What Is A Home Appliance Warranty?

Reviews Team The Daily Caller’s Reviews Team is a group of experts that rate and review products and services in order to help our readers save time, find value, and make better decisions.
Font Size:

Your home is probably the most expensive purchase you’ve ever made. So it only makes sense to get as much protection on your investment as you can.

Although specific appliance coverage can be available under some non-traditional homeowners insurance plans, your best option for home appliance insurance is a home appliance warranty.

When your realtor suggests a home warranty, it may be easy to scoff at it as an unnecessary expense, but we’re going to walk you through how the right home warranty can save you hundreds, maybe thousands, of dollars. 

Which home warranty is the right home warranty? We’ve researched the most popular plans and companies to find the best option for homeowners. Our conclusion: Choice Home Warranty is our top pick. Before we talk about Choice Home Warranty, let’s explore the world of home warranties.

What Is A Home Warranty?

A home warranty is a plan designed to cover the cost of repairing or replacing appliances, heating and cooling systems, plumbing, and electrical systems that break down in your home. You pay one monthly price and it acts as a safety net for those expensive and often unexpected costs. Think of it as home appliance insurance, that covers typical usage instead of disaster situations.

Things break down – our appliances don’t live forever. When even two appliances call it quits in a year, those costs can add up quickly. Most home warranty plans last for 12 months, so not only do you have coverage for your appliances, but also peace of mind. If something does go wrong, you have help. Renewing your warranty at the end of the contract is simple, and most people do. Some providers, like Choice Home Warranty, even offer auto-renewing plans.

Understand Your Options

Some people choose to purchase an extended manufacturer’s warranty for each appliance they buy, but those warranties only cover those specific appliances. Paying for each one separately can begin racking up serious costs, and then you’re the one stuck keeping track of multiple warranties and service numbers. 

In the long run, you will save more money with one comprehensive home warranty. You don’t have to renew each appliance individually making it easy to keep that peace of mind when it comes time to renew your one home warranty. 

What’s Covered in a Home Warranty

Home warranties can vary so it’s important to know exactly what’s in them. Check which items are specifically written into the contract and covered by the plan.

To qualify for repair or replacement, the item has to break down due to normal wear and tear, and it has to have had routine maintenance done before breaking. You cannot try to claim pre-existing damage from an appliance that occurred before you started your home warranty plan.

Most warranties, including Choice Home Warranty, have several levels of coverage. Many define coverage based on the number of items covered, while some split it by the types of items covered. Be sure to check what’s covered in every level.

Also remember that most warranty providers have spending limits on the covered appliances and systems. Let’s say your plan sets a maximum spending limit of $2,000 on your oven. When it breaks down – probably the day before Thanksgiving – your warranty would cover the repair or replacement of a new oven up to $2,000. Then, you would be responsible for the rest of the costs. 

Make sure you understand your coverage and exclusions before you sign a contract.

Home Insurance is Not a Home Warranty

Homeowners insurance is a particular kind of insurance coverage that your mortgage lender will require and covers structural damage. That means anything that happens to your home as a result of fire, natural disaster, or other circumstances out of your control are covered by your homeowner’s insurance.

You pay your insurance in a monthly bundle with your mortgage payment, and it doesn’t protect you when your HVAC stops working. Home warranties, on the other hand, are there to protect you from all of those mechanical failures. They serve as home appliance insurance to cushion the blow of repairs or replacement costs. 

What’s Not Covered Under a Home Warranty

It’s important to know what’s covered under your home warranty, but it’s also important to understand what’s not covered.

Things not included are lawn items, like your irrigation system and piping repairs, or lawn care services, like TruGreen. Also, this should go without saying, but anything not originally listed in your policy or anything broken before you purchase your policy is not covered.

Home warranties cover normal wear and tear. So if you drop a fork down the garbage disposal, it’s unlikely the warranty will cover that mistake. The biggest reason warranty claims are denied is because the damage is from negligence to the appliance or if the appliance was damaged before the home warranty plan was purchased.

Costs of a Home Warranty

Premiums of a home warranty typically run from $25 to $65 a month, but you can often save money by paying for an annual premium. You may also consider investing in a long-term plan for three or five years in order to lock in a price that won’t increase over time. These premiums are determined by your location, your level of coverage, plus any add-ons you decide to include.

Just like insurance plans, home warranties come with a deductible known as a “service fee.” These non-refundable fees range from $75 to $125 for every claim filed. Be sure to read your coverage details carefully to make sure you won’t be charged a service fee if your appliance isn’t repaired in the first appointment.

In the long run, what you pay for your home warranty premium and service fees are minimal compared to the unexpected costs of a broken appliance. Some retailers offer specific protection plans, such as the Rheem water heater warranty, but that doesn’t always cover what a home warranty would:

  Repair Costs Replacement Costs Savings
Air Conditioner $284 – $347 $4,249 – $5,413 $544 – $1500
Water Heater $546 $1,065 $1,037
Refrigerator $310 $1,925 $1,306

The Daily Caller’s Picks For Appliance Warranties

After our extensive research, we have determined our top 2 picks for home warranties for appliance protection. 

Choice Home Warrantychoice home warranty logo

With two different plans to choose from, Choice Home Warranty offers comprehensive coverage to their customers. Whether it’s your first home or an investment property, the Basic Plan or Total Plan will cover you and any future tenants from high repair costs.

The Basic Plan covers most appliances in your home while the Total Plan adds more appliances like the washer and dryer. You also have the option to include additional coverage for things like a pool or spa, a septic tank, or a second refrigerator.

Learn more about Choice Home Warranty’s plans. Call 848-256-4657 or fill out their form online to get a customized quote.

American Home Shield

american home shield logo

 

Our second-choice pick, American Home Shield, has competitive and flexible pricing. They offer four different plans with add-on options.

They include a pre-set fee for all service requests you make under your warranty. Whether your sink is leaking or your air conditioning goes caput in the middle of summer, you’ll pay the same fee for both plumbing and HVAC professionals.

Learn more about plans from American Home Shield. Call 888-878-4576 or fill out their form online to get an easy and personalized quote

Home Warranty Appliance Coverage FAQs

There are a lot of things to consider as a homebuyer, and in the end, you’re simply trying to make the best decisions for the place you call home. Make sure you’ve thought through every question you may have before deciding on your home warranty.

 Are my appliances already protected?

Some of your appliances may have a manufacturer’s warranty already or you could purchase extended protection, such as the Samsung appliance extended warranty. However, by putting everything under one warranty, you cover yourself completely. Renew once a year and keep track of just one customer service number.

How much does the warranty cost?

That will depend on where you live and how many items you’re covering. In most circumstances, however, the home warranty will prove to be valuable in both covering any unexpected problems and giving you invaluable peace of mind. 

Do I understand what the plan covers?

It’s important to review the warranty contract to better understand which items are included in your coverage. Many warranty companies will list their user agreements online so you can see your coverage, terms, and conditions before making any purchases. 

Do I understand what the plan doesn’t cover?

This will also be listed in your contract, but it’s important to note that the only issues covered are those from normal wear and tear. So anything that happens as a result of negligence or accident is not covered. 

Does the plan repair or replace broken items?

As long as the broken appliance meets certain requirements, it is eligible to be repaired or replaced. Be sure to consider how many times the company is going to charge service fees if the appliance isn’t fixed on the first visit. 

What limits are on the plan’s total payout?

Many plans will have a cap for how much they will pay out for repairs and replacement, and you, the policyholder, will be responsible for paying the difference.

Caring For Your Appliances 

By doing a few things around your home, you can take better care of your appliances and limit how often you need your home warranty.

Oven – Make sure your oven door has a tight seal. When the seal isn’t tight, you lose heat and your food doesn’t cook evenly. To check the seal, open the door and look at the rubber or fiberglass gasket around the door’s perimeter. Feel for anything that is broken or torn. If that area is leaking heat, replace the seal. 

Dishwasher – Clean the filter inside the dishwasher to keep it from getting bits of food trapped in the machine.

Refrigerator – There are so many things that can clog refrigerator coils when not cleaned properly. Don’t let dirt and dust restrict air flow because then your refrigerator has to work harder to keep cool. Use a handheld vacuum to clean the coils – most models have them located behind the kick plate or at the back of the refrigerator.

Washing machine – Most of us are guilty of this and know it almost immediately when you hear that loud spin cycle. Don’t overload your washing machine. It makes the machine work harder. If you have a front-loading machine, keep the door open after a wash to let it dry out completely.

Dryer – This one is more than an efficiency tip, it’s a safety tip, too. If you don’t clean out the lint trap after every use, it can become a fire hazard. At least once a year, you should also clean out the dryer exhaust. All you have to do is loosen the clamp and pull the exhaust off the back of the dryer. Remove any large clumps of lint you see in the tubing.

AC filter – If you’re not cleaning your AC filter every two to four weeks, you may be restricting your air flow and harming the energy efficiency of your air conditioning. If you have a reusable filter, remove it from the front panel of the unit, vacuum it to remove dirt, and return it. If you have a disposable filter, simply replace it and be on your way. 

Our Recommendation

If you’re looking to get the most out of your home appliances, there are two steps to take. First of all, take good care of your appliances and maintain them regularly. Secondly, get a comprehensive home warranty. The Daily Caller recommends Choice Home Warranty as the best overall home warranty provider. To get a free quote, call 848-256-4657 or fill out the quick form online.

Have a suggestion for a cool product or great deal that you think Daily Caller readers need to know about? Email the Brightbulb team at dealer@dailycaller.com.

 The Daily Caller is devoted to showing you things that you’ll like or find interesting. We have partnerships with affiliates, so The Daily Caller may get a small share of the revenue from any purchase.