Best Home Appliance Insurance Companies (2023)
Written By: Alexis Bennett
Edited By: Andrew Dunn
A good home warranty is like an insurance policy. If your dryer goes on the fritz or your dishwasher breaks down, your home warranty can help pay to repair or replace it without putting a hole in your budget.
For many homeowners, appliance coverage is the most important aspect of a home warranty. So to help you find the best plan for your home’s appliances, we’ve reviewed dozens of the top home warranty companies and selected our top picks based on factors like coverage options, cost, and customer service.
We found the best home warranty for appliance insurance to be American Home Shield. Even on its basic plan, the company will provide more than enough coverage to keep your appliances running. But American Home Shield might not be the right choice for everyone, so we also cover six other home warranties that work well for appliance insurance.
Compare Home Warranties for Appliance Coverage
Home Warranty Appliance Coverage, at a Glance
Company | Cost | Appliances Covered | Coverage Limits | Appliance-only Plan? |
$45/$75 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Range or cooktop, Ovens, Built-in microwave, Garbage disposals, Instant hot/cold water dispenser | $3,000/$6,000 | No | |
$54 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Oven, Range or cooktop, Built-in microwave, Garbage disposal | $3,000 | No | |
$45 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Built-in microwave, Oven, Garbage disposals, Range or cooktop, Ceiling and exhaust fans, Garage door opener | $2,000 | Yes | |
$35 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Cooktop, Ice maker, Built-In Microwave, Range, Range hood, Trash compactors, Wall ovens, Built-in food center | $2,000 | Yes | |
$57/$72 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Oven, Cooktop, Built-in microwave, Garbage disposal, Instant hot water dispenser | $3,500/$7,000 | No | |
$44 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Oven, Range, Garbage disposal, Ice maker, Built-in microwave, Garage door opener | $2,000 | Yes | |
$45 | Refrigerator, Dishwasher, Clothes washer, Clothes dryer, Garbage disposal, Stove/Oven, Cooktop, Built-in microwave | $500 | Yes |
Note: Prices above are for the provider’s plan that best covers a home’s essential appliances, including a refrigerator, dishwasher, clothes washer and clothes dryer. It may not represent the cheapest available plan. Quotes pulled on a 2,000 sq. ft. home in Des Moines, Iowa.
Who Are the Best Home Appliance Insurance Providers?
For a new homeowner or a first-time buyer, the terms home warranty, homeowners insurance, and appliance insurance might be a little confusing. After all, they are all geared to protect your home and save you from spending more on repairs and replacement costs.
What's In This Guide?
The best home appliance home warranties will offer you a high coverage limit – the maximum amount your provider will pay out – on appliances while maintaining a low monthly cost. We found the following to offer the best appliance insurance:
- American Home Shield: Best for Appliances
- Choice Home Warranty: Best Service Fees
- Liberty Home Guard: Best Reviewed
- Cinch Home Services: Best Budget Pick
- First American Home Warranty: Best Customer Services
- America’s 1st Home Club: Best For Customization
- Select Home Warranty: Most Affordable
American Home Shield: Best for Appliances
We rated American Home Shield as the top provider for appliances because of its high coverage caps, even on basic plans.
Although a little pricier than some of the other providers on our list, American Home Shield plans have a relatively high $2,000 coverage cap on individual appliances in its basic plan, with the option to double that through its premium plan offering. The company will also cover high-end appliances, something many other home warranties won’t do.
Established in 1971, American Home Shield has a long track record in the industry. It’s also broadly available: American Home Shield is available in every state except Alaska and Hawaii.
Pros and Cons of American Home Shield
Pros | Cons |
Free HVAC maintenance in its premium plan | Plans cost more than competitors |
Covers pro-series appliances | Does not offer a live chat option for customer service |
More than 50 years in business |
What Does American Home Shield Cover?
American Home Shield offers three plans: one for home systems only, a basic comprehensive plan that covers systems and appliances, and a premium option that provides higher-dollar coverage. If you’re concerned about your home appliances, either the basic comprehensive plan or the premium plan is the one you want.
Like most home warranties, American Home Shield will pay to repair or replace appliances and systems that break down due to normal wear and tear, improper installation or repair, or rust and corrosion. But it also has one advantage that many home warranties don’t offer: American Home Shield will cover a break-down that occurs to a pre-existing issue you didn’t know about.
All plans include a workmanship guarantee of only 30 days, which is lower than other providers on this list. But American Home Shield’s response time on repairs and replacements is unusually fast: 48 hours, in most cases.
American Home Shield’s appliance plans are as follows:
- ShieldSilver: This plan covers major home systems like electrical, heating, and air conditioning. It does not provide any home appliance insurance coverage, so this won’t be the plan you want.
- ShieldGold: This plan covers all major systems and home appliances, including refrigerators, dishwashers, ranges and cooktops, ovens, garbage disposals, built-in microwaves, instant hot/cold water dispensers, and washers and dryers. Appliances are covered up to $2,000 per item.
- ShieldPlatinum: This premium plan covers everything in ShieldGold but extends coverage to $4,000 per appliance. Additionally, roof leaks repairs and HVAC tune-ups are covered under ShieldPlatinum.
You can adjust your monthly bill depending on the service call fee — similar to an insurance deductible — you are willing to pay in the event an appliance breaks down. For example, if you opt for the lowest service fee of $100, your monthly charge will be higher. Or you can save on your bill by choosing the higher service fee of $125.
Plan Name | $100 Service Call Fee | $125 Service Call Fee |
ShieldSilver | $49.99 | $39.99 |
ShieldGold | $69.99 | $59.99 |
ShieldPlatinum | $99.99 | $89.99 |
Optional Add-Ons: American Home Shield has five options you can add to any of the three plans to further customize your coverage.
Here are the optional add-ons:
- Pool and spa
- Extended warranty for electronics
- Guest unit
- Well pump
- Septic pump
Protection for roof-leak repairs is also available through the ShieldSilver and ShieldGold plans for $10 per month.
Exclusions and Coverage Limits: For most home systems, the coverage limit is $5,000 per item – a higher coverage limit than most home warranties provide. For appliances, the cap is $2,000 per item under ShieldGold and $4,000 per item with ShieldPlatinum. Both are above the industry standard.
American Home Shield won’t cover appliance upgrades or routine maintenance, unless you purchase the ShieldPlatinum plan that includes HVAC tune-ups. Stand-alone freezers are also not covered.
General exclusions include cosmetic, mold, and pest damage, but specific exclusions exist for each covered item. It’s best to review an American Home Shield sample contract for your state to determine what is and is not covered.
Read our American Home Shield review for the full breakdown of how the company scored.
Choice Home Warranty: Best Service Fees
Choice Home Warranty hits two of the most important boxes when it comes to appliance insurance: It’s one of the most affordable plans in the industry, and it has an unusually high $3,000 coverage limit.
The company has been around since 2008 and is available across the U.S., with the exception of California and Washington state. We also like Choice Home Warranty for its affordable service call fee on each of its plans.
Pros and Cons of Choice Home Warranty
Pros | Cons |
Has a basic plan that covers both home systems and some major appliances | Adds a $2.50 monthly charge to customers who prefer to pay their premium monthly instead of annually |
Provides a 90-day guarantee on parts | Is facing a 2019 consumer fraud lawsuit in Arizona* |
Offers the most affordable comprehensive plan of any other provider in this review |
*The lawsuit alleges that the company made false promises to customers regarding home warranty policies and coverage. This isn’t necessarily unusual in the home warranty industry, but it is worth noting. Lawsuit is pending resolution as of May 2023.
What Does Choice Home Warranty Cover?
Choice Home Warranty offers a basic plan that covers home systems and some major appliances and a more comprehensive option that includes additional appliance and system coverage.
Choice Home Warranty’s plans are as follows:
- Basic Plan: This plan covers heating, electrical, and plumbing systems, as well as cooktops and ovens, dishwashers, garbage disposals, water heaters, ceiling and exhaust fans, whirlpool bathtubs, and garage door openers.
- Total Plan: This plan includes everything in the Basic Plan, as well as AC and electrical systems, washers and dryers, and refrigerators.
Both plans have a service call fee of $85 per claim, lower than many home warranty providers.
Plan Name | Cost |
Basic Plan | $45 |
Total Plan | $53 |
Optional Add-Ons: Choice Home Warranty offers a variety of add-on options to customize your plan, including the following:
- Standalone freezer
- Standalone ice maker
- Second refrigerator
- Trash compactor
- Central vacuum
- Pool and spa
- Additional spa
- Sprinkler system
- Limited roof leak
- Septic system
- Septic tank pumping
- Sump pump
- Well pump
This is a slightly more extensive list than most home warranties provide, and can help you get coverage for the appliances you need.
Exclusions and Coverage Limits: Like most home warranty companies, Choice Home Warranty will not cover any systems or appliances with preexisting conditions. Appliance knobs, handles, and doors are also excluded, which is a miss in our book. Cinch offers this coverage, so if it’s important to you, that company might be worth a look.
Choice Home Warranty plans come with a $3,000 coverage cap per item, which is higher than most home warranty companies. However, most of the add-on options have a much lower per-item cap. A standalone ice maker, for example, has a cap of $500.
Read our full Choice Home Warranty review to see more about how it compares to competitors. You can also see the full list of exclusions and coverage limits in the Choice Home Warranty user agreement.
Liberty Home Guard: Best Reviewed
Although it’s one of the newer companies in the industry, Liberty Home Guard has quickly established a rock-solid reputation. If your chief concern is service, Liberty is a good choice.
Founded in 2017, Liberty’s customer service and extensive menu of options have earned it stellar reviews. One of those options is coverage for higher-end appliances, which most home warranty companies don’t offer. Another plus: Liberty is available in all 50 states.
Pros and Cons of Liberty Home Guard
Pros | Cons |
Offers nearly 40 add-on options, including coverage for pro-series appliances | Will not honor its 60-day workmanship guarantee if you choose an out-of-network repair technician |
Provides round-the-clock customer service through its live chat feature | Does not provide a service call fee amount as part of the quote process |
Has a Better Business Bureau rating of A+, higher than any provider in this review |
What Does Liberty Home Guard Cover?
Liberty Home Guard has three plans: Systems Guard, Appliance Guard and Total Home Guard. The first two only cover home systems and appliances, respectively, while the Total Home plan covers both systems and appliances. Each plan can be customized through a variety of add-on coverage options.
Here is a breakdown of Liberty Home Guard’s three plans:
- Systems Guard: This plan covers six major home systems, including HVAC, plumbing, and ductwork.
- Appliance Guard: This plan covers nine major appliances: washers, dryers, refrigerators, dishwashers, garbage disposals, cooktops and ovens, built-in microwave ovens, ceiling and exhaust fans, and garage door openers.
- Total Home Guard: This combination plan covers all systems and appliances included in each of the above standalone plans.
Liberty Home Guard charges a standard service call fee of $90 on all of its plans.
Plan Name | Cost |
Systems Guard | $52.49 |
Appliance Guard | $47.49 |
Total Home Guard | $57.49 |
Optional Add-Ons: Liberty Home Guard has 38 add-on options, by far the most of any provider in our review. If you have a large number of appliances or some unusual ones you want coverage for, Liberty could be the right choice.
Here are some of Liberty’s optional add-ons:
- Trash compactor
- Freestanding ice maker
- Second refrigerator
- Wine cooler or fridge
- Instant hot water dispenser
- Water softener
- Carpet cleaning
- Lighting fixtures
- Electronics
- Window washing
- Limited roof leak
- Sprinkler system
- Pool and spa equipment
- Salt water pool
- Plumbing fixtures
- Septic system pumping
- Well pump
- Sump pump
- Pest control
- Generator
Liberty Home Guard also offers optional coverage for pro-series refrigerators, ranges and ovens, dishwashers, microwaves, and washers and dryers.
Exclusions and Coverage Limits: For most appliances and systems, there’s a coverage limit of $2,000 per item. Like most home warranties, the company excludes computerized or internet-based parts, aesthetic damages like dings or scratches, and issues caused by defective manufacturing.
Read our comprehensive review of Liberty Home Guard for more details on how its coverage compares to the competition.
Cinch Home Services: Best Budget Pick
If you’re looking for solid appliance insurance without spending a lot of money, we recommend Cinch Home Services. Cinch provides an appliance-only plan that is budget-friendly but still comes with industry-standard coverage caps and one the best workmanship guarantees in the business. Its appliance coverage also includes things most home warranties don’t, like knobs and drawers.
Based in Boca Raton, Florida, Cinch Home Services has been in the home warranty business for more than 40 years, providing coverage in the 48 contiguous United States.
Pros and Cons of Cinch Home Services
Pros | Cons |
Workmanship guarantee lasts 180 days, significantly longer than the industry standard of 30 days | Does not allow you to choose your technician for repairs |
Offers a mobile app for 24/7 service | Higher service call fees than some competitors |
Covers appliance components, like knobs and drawers |
What Does Cinch Home Services Cover?
Cinch Home Services offers a systems-only plan, an appliances-only plan, and a comprehensive package that covers appliances and major home systems. If you’re concerned about your home appliances, the latter two will be your best bets.
Here is a breakdown of Cinch’s plans:
- Built-in Systems: This plan only covers major home systems, such as plumbing and HVAC. It won’t cover any of your appliances.
- Appliances: This plan covers all major home appliances, including washers and dryers, refrigerators, cooktops, ovens, ranges and exhaust hoods, built-in microwaves, dishwashers, built-in food centers, freestanding ice makers, and built-in trash compactors.
- Complete Home: This comprehensive plan covers all appliances in the Appliances Plan, as well as major built-in home systems, such as HVAC units, plumbing, and electrical.
Pricing for Cinch Home Services coverage depends on your location and the coverage you choose, as well as any add-on options you select. Cinch has three service call fee options: $100, $125, and $150. The higher the service call fee, the lower your monthly bill will be. A lower service call fee means a higher monthly rate.
Plan Name | $100 Service Call Fee | $125 Service Call Fee | $150 Service Call Fee |
Built-in Systems | $83.99 | $80.32 | $71.99 |
Appliances | $75.99 | $74.32 | $65.99 |
Complete Home | $99.99 | $96.32 | $87.99 |
Optional Add-Ons: Cinch Home Services provides six optional add-ons, as well as a Premier Upgrade Package, which covers the cost of various fees like code upgrades.
Cinch’s add-on options are as follows:
- Pool
- Spa
- Pool with spa
- Premier Upgrade Package
- Well pump
- Septic tank pumping
Exclusions and Coverage Limits: All Cinch Home Services plans come with a $2,000 coverage cap per appliance for repairs and replacements. Coverage caps on systems vary depending on the system. For example, the payout max on an air conditioner unit is $1,000, while the cap for heating systems is $1,500.
The company’s total claims payout per year is $10,000, meaning you will have to foot the bill for any repair or replacement costs that exceed that amount in a given year.
Cinch will not cover damage caused by remodeling or an unauthorized repair. Items that were damaged due to abuse or neglect are also excluded, as are any damages due to “Acts of God,” such as fire or floods. You’ll need to rely on your homeowners’ insurance for those.
Check out our detailed Cinch Home Services review to find out how we scored each coverage vs. competitors. To see specific exclusions on each covered item, check out a sample contract for Cinch Home Services.
First American Home Warranty: Best Customer Service
With 24/7 support and a lot of flexibility in payment options, First American Home Warranty is our pick for best customer service. The long-standing company also stands out for its high coverage caps and upgrade options to extend your coverage even further.
However, First American doesn’t offer an appliance-only plan – so if appliance insurance is your only concern, you can likely save money by looking elsewhere.
The company also has one of the smaller territories on our list. It’s available in 35 states, and you can’t get coverage if you live in one of the following: Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont, or Wisconsin.
Pros and Cons of First American Home Warranty
Pros | Cons |
24/7 customer service | Is only available in 35 states |
Provides coverage of up $3,500 for each appliance | Does not have an appliance-only option |
Covers improper installation in its premium plan |
What Does First American Home Warranty Cover?
First American Home Warranty’s plan structure is a little different from the other companies on this list. All three of its plans include coverage for both appliances and systems, but there are different tiers of coverage that include different items.
First American’s plans are as follows:
- Starter Plan: This basic plan includes plumbing, electrical, and heating systems, as well as dishwashers, refrigerators, ovens and cooktops, and built-in microwaves. This likely won’t cover quite enough of your appliances for you to consider.
- Essential Plan: This plan includes everything in the Starter Plan, with the addition of AC systems, washers and dryers, water heaters, and garage door openers. This is a solid appliance plan.
- Premium Plan: This plan includes all items in the Starter and Essential plans, as well as luxury appliance coverage, garbage disposals, full garage door systems, faucets, and instant hot water dispensers.
We like that First American Home Warranty allows you to choose from three service call fees, which can help you adjust your monthly bill.
Plan Name | $75 Service Call Fee | $100 Service Call Fee | $125 Service Call Fee |
Starter Plan | $67 | $57 | $52 |
Essential Plan | $77 | $67 | $62 |
Premium Plan | $92 | $82 | $77 |
Optional Add-Ons: First American Home Warranty provides a variety of add-on options. One of the most unusual options is special coverage if you are buying or selling a home. These upgrade packages — First Class Upgrade or Plumbing Plus — allow you to extend coverage through the transaction.
The First Class Upgrade helps offset the cost of building permits, improper installations, and disposal of any replaced appliances, systems or components. Plumbing Plus, which is only available to homebuyers, provides coverage of any repairs to water, drain, or gas plumbing encased in concrete or outside the home’s foundation. It also covers water heater expansion tanks and clearing stoppages caused by roots.
First American’s other add-on options are as follows:
- Second refrigerator
- Water softener
- Central AC
- HVAC tune-up
- Pool and spa equipment
- Septic tank or septic pump
- Well pump
Exclusions and Coverage Limits: The company provides a high annual coverage cap of $3,500 for appliances. This is unusually high for basic plans. However, its $1,500 limit on home systems is below standard.
First American Home Warranty will not cover certain components, accessories, or cosmetic pieces (knobs, hinges, etc.) on any appliance or system. Most preexisting conditions are not covered, unless your plan was purchased as part of a real estate transaction. Damage from pests, cosmetic issues, and improper installation are also excluded
For a more-comprehensive breakdown about coverage and exclusions, read our dedicated review of First American Home Warranty.
America’s 1st Choice Home Club: Best for Customization
America’s 1st Choice Home Club, or AFC Home Club, is a great choice for homeowners who want to tailor their home warranty to best fit their needs. Founded in 2011, AFC Home Club provides four plan options, numerous add-on options, and membership perks that further help you protect your investment and finances.
AFC Home Club is available in all U.S. states except Hawaii.
Pros and Cons of America’s 1st Home Club
Pros | Cons |
Provides parts and labor guarantees for the life of your membership | Charges a $75 fee if you cancel your policy |
Has membership perks like identity protect alerts and free credit monitoring | Requires policyholders to submit claims within one day of noticing damage or other issues |
Provides free roof leak coverage with every plan |
What Does America’s 1st Home Club Cover?
America’s 1st Home Club offers a systems-only plan, an appliance-only plan, and two options for more comprehensive coverage of both systems and appliances. We like that each plan comes with free roof leak protection, which most home warranty plans require you to buy separately.
Here are AFC Home Club’s plans:
- Systems Plan: This basic plan covers HVAC, plumbing, and electrical systems and water heaters. Appliances are not included in this plan.
- Silver Plan: This plan only covers some major appliances, including washers and dryers, refrigerators, ovens and cooktops, dishwashers, garbage disposals, and garage door openers.
- Gold Plan: This plan combines everything in both the Systems and Silver plans.
- Platinum Plan: This plan is the most comprehensive, covering everything in the above three plans, with the addition of plumbing stoppages, built-in microwaves, ice makers, and ceiling, exhaust, and attic fans.
You can select from among three service call fees, depending on how much you want to pay monthly.
Plan Name | $75 Service Call Fee | $100 Service Call Fee | $125 Service Call Fee |
Systems Plan | $44.75 | $42.42 | $44.17 |
Silver Plan | $37.67 | $35.33 | $37.17 |
Gold Plan | $51.83 | $49.42 | $47.08 |
Platinum Plan | $56.50 | $54.17 | $51.83 |
AFC Home Club provides savings if you choose a three-year coverage term instead of signing up for one year. This can be an asset if you know you’d like to lock in a plan for a long period of time
Optional Add-Ons: America’s 1st Home Club has a number of add-on options available for any of its four plans.
Those optional add-ons include the following:
- Ice maker
- Double oven
- Standalone freezer
- Hot water dispenser
- Electronics coverage
- Central vacuum
- In-ground pool (with or without spa)
- Sump pump
- Well pump
- Septic system
Exclusions and Coverage Limits: America’s 1st Home Club will not cover damage due to pests, light fixtures, or ornamental water features, like fountains.
Coverage limits vary by plan and specific appliance or home system. Sample contracts for each plan offering, as well as add-on options, are available for download on AFC Home Club’s website.
See a more detailed breakdown of how coverage compares to the industry by reading our full AFC Home Club review page.
Select Home Warranty: Most Affordable
With comprehensive coverage at a reasonable price – and a host of discounts – Select Home Warranty is a good choice for homeowners who are looking for low-cost, bare-bones appliance insurance.
However, its low coverage caps make it less-than-ideal for people with newer or higher-end appliances. At just $500 per item, they’re not high enough to really replace your appliances unless they’re on the older side.
Pros and Cons of Select Home Warranty
Pros | Cons |
Provides a 90-day workmanship guarantee | Has low coverage caps ($500, on average) for appliances |
Allows customers to cancel for free within the first 30 days | May charge multiple service call fees if repairs fall into different categories |
Provides $500 in free roof leak coverage for the first two months |
What Does Select Home Warranty Cover?
Select Home Warranty has a systems-only plan, an appliance-only plan, and a comprehensive plan that includes both appliances and systems.
Here is an overview of Select’s plans:
- Bronze Care: This plan only covers major appliances, including washers and dryers, garbage disposals, refrigerators, ranges and ovens, built-in microwaves, and dishwashers.
- Gold Care: This plan covers home systems, including HVAC, plumbing, and electrical, as well as water heaters and ductwork.
- Platinum Care: This comprehensive plan covers everything in Bronze Care and Gold Care, with the addition of garage door openers and ceiling fans.
Plan Name | Cost |
Bronze Care | $44.42 |
Gold Care | $44.42 |
Platinum Care | $47.75 |
Optional Add-Ons: Select Home Warranty offers optional coverage at an additional monthly charge.
Add-on options include the following:
- Standalone freezer
- Built-in ice maker
- Second refrigerator
- Plumbing fixtures
- Lighting fixtures
- Switches and outlets
- Sprinkler system
- Pool and/or spa equipment
- Well pump
- Sump pump
- Septic system
Exclusions and Coverage Limits: Like most home warranty companies, Select will not cover items that break due to improper installation, natural disasters, or neglect. It’s important to note that Select Home Warranty excludes some components, such as dishwasher racks.
The company typically pays up to $500 for the repair or replacement of appliances and plumbing and electrical systems. This is well below what we like to see. But we like that the coverage cap is a lot higher for HVAC systems – a very reasonable $3,000. Add-on options have a cap of $400 per item.
Check out our Select Home Warranty review for more info on how its coverage compares to competitors in the industry.
How Much Does Home Appliance Insurance Cost?
The cost of home appliance insurance typically ranges from about $38 to $63 per month, which comes out to between $450 and $750 each year. You also have to pay a service call fee every time you file a claim, which usually runs between $75 and $125.
However, the actual price you pay for a home warranty can vary based on a variety of factors, including:
- The coverage you choose
- Your service call fee
- How large your home is
- Where you live
Coverage
Most home warranty companies offer multiple plan options with varying levels of coverage. The more your home warranty covers, the more expensive it will be. For example, an appliance-only plan is going to be cheaper than a comprehensive plan that covers appliances and home systems.
Additionally, some home warranty providers offer higher coverage caps than others. This refers to the maximum amount your home warranty will pay out when something breaks down. A $2,000 coverage cap on appliances means your home warranty will pay a maximum of $2,000 to repair or replace your fridge. Higher coverage limits typically mean higher prices. You’ll pay more in your monthly bill but have to pay less out of pocket when a home appliance breaks down and needs repair.
Optional add-on items also come with an extra cost, so you will pay more to cover items like a swimming pool or standalone freezer.
Service Call Fee
Many home warranty providers give customers the option of their service call fee amount. Remember, a service call fee functions similarly to an insurance deductible; it’s the fee you’ll have to pay before the home appliance insurance kicks in.
If you opt for a higher service call fee, you’ll save a little money on your monthly bill but pay a little more if you need a repair or replacement. On the flip side, paying more each month means you’ll have less to shell out on the service call fee.
Home Size
The size of your home can also affect the price of your appliance insurance coverage. Most homes will fall under the home warranty’s standard fee, but people with larger homes will likely need to pay extra. Many home warranty companies will charge a higher rate for homes over 4,000 or 5,000 square feet.
If you have a large home, it’s a good idea to shop around for a home warranty company that does not adjust pricing based on square footage.
Location
Home warranty coverage may vary depending on the state and city in which you reside. For example, a comprehensive plan from Liberty Home Guard for a 2,000 square-foot house in Des Moines, Iowa is $57.49. The same plan is slightly higher — $59.99 — for a similarly sized home in Raleigh, North Carolina. This typically comes down to the cost of repairs in your area.
It’s best to receive a sample quote from home appliance insurance providers so you can compare costs for your location.
Does a Home Appliance Insurance Plan Save You Money?
While a home appliance insurance plan is an added monthly bill, it can save you money in the long run if a major appliance or system breaks down.
For example, if your refrigerator needs to be replaced, the out-of-pocket costs could be anywhere from $700 to $2,000. If you have a home appliance insurance plan with a $2,000 coverage cap on appliances, all you’ll need to pay for the new refrigerator is the service call fee.
It’s important to pick a home appliance insurance plan that fits your budget and your specific needs so that you know your items will be adequately covered in the event that they break or are damaged.
What Should You Look For in Home Appliance Insurance?
Finding the right home appliance insurance will make all the difference in whether or not the cost is worth the payout if something goes wrong.
Common homeowner complaints about home warranties include fine-print exclusions and service call fees. That’s why it’s so important to read the sample services agreements and ask questions before you sign up for a plan. You need to understand exactly what a home warranty covers and how you’ll file a claim. Another thing to keep in mind is how a home warranty company handles repairs. In most cases, a home warranty provider can select a technician to come to your home. But some homeowners want to select their own repair person rather than use a home warranty company’s contractor. Not all home warranty companies allow this, so you’ll want to make sure the home warranty provider you choose fits your needs.
Here are some key things to consider when shopping for a home appliance insurance plan:
- What items are covered?
- How much is the coverage cap?
- How old are my appliances?
We’ll explain each of these questions next.
What Items Are Covered?
You should find an appliance insurance policy that fits your specific needs. Most appliance insurance plans cover major kitchen appliances and washers and dryers. Some go beyond that and offer coverage for garbage disposals or specialty appliances. But if you don’t have anything beyond a washer and dryer and a dishwasher, you may be paying for coverage you’ll never actually use.
Additionally, reviewing sample service contracts from home warranty providers will give you insight into various exclusions that could apply to specific appliances.
How Much Is the Coverage Cap?
It’s important to not only understand what is covered in a home appliance insurance policy, but also the coverage limit on each item. Some companies, like Select Home Warranty, have a low coverage cap of $500 per appliance. This means that if your washing machine repairs total $700, you’ll have to pay that additional $200 yourself. Look for a home warranty with a coverage cap that’s high enough to cover your bases when something breaks down.
How Old Are My Appliances?
The age of your appliances is crucial to consider with an appliance insurance plan. If you have older appliances, an appliance-focused home warranty could be an excellent idea. On the other hand, if you’ve purchased a new home with brand-new appliances, the likelihood of them breaking down is much lower. You may not need a home warranty for appliances just yet, especially if they’re covered by a manufacturer warranty.
But remember that newer appliances will also likely be more expensive to repair or replace if an issue does occur. Some home warranty companies allow you to tailor your policy to include additional coverage for pro series appliances.
How Does Home Appliance Insurance Work?
If an appliance breaks down, here are the common steps you’ll follow under a home appliance insurance plan:
- Contact your home warranty company. It’s important to get in touch with your home warranty provider as soon as you notice an issue, since some companies will exclude coverage of items that aren’t reported or repaired within a reasonable time frame. You can find the company’s customer service number on the website. Some providers allow you to file a claim directly online.
- Follow the claims process. Once you contact your home warranty provider and file a claim, the warranty claims process begins. Typically, you can do this through an online form, but you may also be able to call your provider directly. That can often save a step: Your provider may want to conduct a preliminary diagnosis over the phone to determine if a service call is necessary.
- Pay the service call fee. If a technician needs to come to your home to assess damage, you’ll pay the designated service call fee to your home warranty company, which typically pays the repair person directly.
- Determine next steps. Depending on the technician’s assessment, you may need to contact your home warranty company to figure out what comes next. If your appliance needs to be replaced, your provider will walk you through the process of purchasing a replacement. If the appliance can be fixed, your provider will let you know if there are any out-of-pocket expenses you must pay beyond your coverage cap.
What Are the Different Types of Home Appliance Protection Plans?
Before buying a home warranty for your appliances, it’s important to understand the differences between home warranties and other ways to protect your home, like a manufacturer warranty and homeowners insurance. Each of them plays a different role.
- Home warranty: A home warranty pays to repair or replace your home’s appliances or systems if they break down due to normal wear and tear. It doesn’t matter where the appliances came from; a home warranty typically covers them all. They aren’t required for you to buy, but they can be a big help in keeping control of your home maintenance expenses.
- Manufacturer’s warranty: A manufacturer’s warranty is generally offered by the company that makes the specific appliance you bought. In many cases, they come free with your purchase, though some companies make you pay for or register for the warranty. For new appliances, these are typically the way to go.
- Homeowners insurance: Homeowners insurance covers appliances only in the event of a sudden catastrophe, like a natural disaster. For example, if a fire damages your kitchen appliances, homeowners insurance would cover the repair or replacement of those items. However, homeowners insurance will not pay for appliance repairs due to wear and tear or other breakdowns. That’s what home warranties are for.
Is Home Appliance Insurance Worth It?
Like all forms of insurance, home warranties provide some peace of mind against the worst-case scenario. You pay a monthly fee up front in exchange for an assurance that your home warranty provider will pay if something breaks down.
If you have a lot of money saved, you might decide against a home warranty and pay for home repair issues as they come up. But for most homeowners, a home warranty can be a good investment. You can work the monthly payment into your budget and not have to worry so much about an unexpected bill.
So, What is the Best Home Appliance Insurance Company?
We recommend American Home Shield as the best overall provider for home appliance insurance based on its comprehensive coverage, reasonable pricing, and experience in the industry. Liberty Home Guard is also a top choice due to the company’s stellar reputation with customers.
If you’re looking for a budget-friendly home appliance warranty, we recommend Cinch Home Services and Select Home Warranty. Both companies offer basic protection of major appliances without breaking the bank.
Ultimately, the best home appliance insurance company will depend on your specific needs. It’s important to contact providers for pricing information and to review sample contracts for the fine print to ensure you are getting the right policy for you.
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