Many people buy protection plans for home appliances such as refrigerators, washers, and dryers. Typically, these protect against repair costs for a fixed amount of time. These warranty plans usually cost less than those offered by manufacturers. However, is a home appliance extended warranty worth it? We analyzed prices from four popular retailers and home warranty providers.
Peace Of Mind
While it’s impossible to predict when an appliance will break down, there are ways to protect your investment with an appliance extended warranty. The peace of mind that comes with knowing your appliances are protected can save you from the stress and expense of unexpected repairs or replacement costs. Typically, manufacturer warranties only last one or two years, while an extended home appliance warranty can offer up to ten years of coverage. Additionally, many warranties provide benefits such as service call reimbursements and repair guarantee windows.
It’s important to read the fine print on any plan before purchasing. Be sure to check the terms for any conditions that could void the warranty, such as failure to follow recommended maintenance or certain types of damage. Some warranties may also exclude natural disasters or residential appliances used in a commercial setting. Alternatively, homeowners can save money each month into an emergency appliance fund, but this requires dedication.
Predictable Costs
Many home appliance warranties are similar to insurance policies, and homeowners pay a monthly or annual premium to cover the repair costs of their appliances in case of an accident. While this is not a cheap option, it is often less expensive than repairing or replacing your appliances if they break down. Some warranty companies provide a service guarantee, which ensures that you will receive your repaired appliance within a certain timeline after you submit a claim. For example, Home Depot’s protection plans offer a two-day service window for customers in its top 100 metro areas.
Another benefit of extended warranties is that they provide consistent coverage for a fixed cost. This allows homeowners to budget for their appliances’ maintenance, ensuring that they don’t have any unexpected expenses. Additionally, some warranties provide perks and services that aren’t available with other protection plans, such as priority customer service or in-home repairs.
In-Home Service Calls
A home appliance extended warranty allows homeowners to save money by ensuring that their entire collection of appliances is covered in case of repair or replacement. It also injects predictability into their budget. Many retailers offer protection plans as an add-on when purchasing new appliances. It is important for consumers to understand the differences between these and a home warranty to avoid paying extra money for coverage they may not need.
A home warranty provides comprehensive coverage for the entire household’s appliances, including refrigerators, washing machines, dryers, dishwashers, ovens and stoves or cooktops, built-in microwaves, and water heaters. A typical all-in-one plan costs around $20 a month and covers most of the major appliances in the home for as long as the contract is active. Most warranties have a clear-cut breakdown of what is and isn’t covered. The contract will include information about how to file a claim and any specific terms and conditions associated with the policy.
Transferability
Many home appliance extended warranty have manufacturer warranties that cover a limited time frame and scope of issues. While extended warranties directly from the appliance manufacturers are available, they typically have high upfront fees and strict terms that limit their coverage. On the other hand, a home warranty service provider such as CPS Central offers competitive appliance protection plans with flexible payment options and comprehensive coverage. They also guarantee a timely response and swift repair service for their customers.
In addition, an appliance warranty is transferable if homeowners decide to change homes or sell their appliances. This makes it a smart investment to protect against wear and tear costs that are not covered by the manufacturer’s warranty or homeowner’s insurance.
Conclusion
A home appliance extended warranty is a protection plan that covers costs to repair household appliances after the manufacturer’s standard warranty expires. These plans typically cost a flat up-front fee and do not include coverage for other home systems or components.
