Home Appliance Insurance provides you a repair or replacement of covered home appliances in exchange for a monthly premium. Home appliance insurance is also called a “Home Warranty”. Home Appliance Insurance is different from homeowners insurance, which covers the cost of property damage.
Home Warranty covers the home systems and Home appliances that you use every day. Many Home Appliance Insurance companies offer 3 different types of plans.
- Home Appliance plans (e.g. Oven, Dishwasher etc)
- Home Systems plans (e.g. Air Conditioner, Water Heater etc)
- Combo Plans ( Appliance + Systems)
Home Appliance Insurance (Home Warranty) can be a great investment if you want to avoid the costs associated with unexpected breakdowns of expensive appliances that occur due to routine wear and tear and add an extra layer of protection on appliances. Home Warranty Insurance can potentially save you thousands of dollars and provide the peace of mind that if something were to break in your home, you’d be covered.
Home Appliance Insurance Cost
A Home Appliance Insurance companies offer a diverse set of coverage plans that cost around $40–$70 per month, the Service fee is another cost to consider, it is usually between $50 and $100. You’ll pay a service fee every time you call for a repair.
3 Best Home Appliance Insurance
1. American Home Shield
American Home Shield is a home warranty provider that has three comprehensive plans and optional add-ons. AHS is one of the most trusted home Home Appliance Insurance providers with 50 years of experience in the home warranty industry.
American Home Shield allows you to pick a $75, $100, or $125 service fee, if you choose a lower service fee, you will pay a higher per month premium, and a higher service fee results in a lower monthly premium.
Plan and Monthly Cost
- ShieldSilver ($34.99-$49.99 per month) : Coverage For 14 Major Systems such as heating, cooling, and electrical.
- ShieldGold ($44.99-$59.99 per month): Covers Parts Of 23 Systems & Appliances.
- ShieldPlatinum ($59.99-$74.99 per month): Coverage For 23 Systems & Appliances, Plus Roof Leak Repairs And More.
Plan Details: American Home Shield
2. Choice Home Warranty
Choice Home Warranty was founded in 2008 and is now one of the best home warranty companies in the industry.
Choice Home Warranty comes with 2 plans and offers total protection against the high cost of repair or replacement of home appliances and systems.
Choice Home Warranty’s service fee is about $85.
Plan and Monthly Cost
- Basic Plan ($45 per month): Covers for 14 home appliances and systems.
- Total Plan ($55 per month): Covers for 18 home appliances and systems
Plan Details: Choice Home Warranty
3. Select Home Warranty
Select Home Warranty comes with 3 plans that offer flexibility for customers. You can select a base plan and add the addons that suit your needs.
Select Home Warranty offers affordable home appliance insurance plans with a $41–$50 per month premium and is currently available in 46 states.
If you’re looking for an affordable Home Warranty Plan, Select Home Warranty may be the best option for you.
Plan and Monthly Cost
- Gold Care ($41 per month): This is Systems only plan, covers 6 systems.
- Bronze Care ($41 per month): This is Home Appliance plan only, covers 7 home appliances.
- Platinum Care ($47 per month): This plan covers both home appliances and home systems.
- Service Fee: $60–$75
Plan Details: Select Home Warranty
Is home warranty worth?
The cost to replace or repair any major home appliances without a Home Warranty can be up to $2000 or more. Home Appliance Insurance policies cut the cost to replace or repair many of the home appliances and systems. The Home Warranty is a great way to save your money and keep your home running smoothly.
If your home appliances are new and under manufacturer’s warranties then no need to go for a home warranty plan.
Home Warranty Pros And Cons
- Peace of mind
- No need to spend time on researching repair technicians.
- Saves Money : cut the cost to replace or repair
- Possibility of Enhanced Coverage
- You might never use it.
- You’ll pay a service fee every time you call for a repair.
- Exclude Certain Repairs
- Repair instead of replace
How Does a Home Warranty Work?
- 1. Purchased a Home Warranty Plan.
- 2. Call the Home warranty company to report the issue.
- 3. The company sends a repair technician to your home to check the issue.
- 4. If your plan covers this issue, the company pays the cost to fix it.
- 5. Pay a service fee.