What Is Appliance Insurance?

Shawn Plummer

CEO, The Annuity Expert

When you purchase a home appliance, it’s a significant investment. You rely on your appliances to keep your home running smoothly, and it can be frustrating and expensive when they break down unexpectedly. Appliance insurance, also known as home appliance insurance or appliance protection plans, can give you peace of mind by protecting your appliances against breakdowns and malfunctions. In this guide, we’ll look closer at appliance insurance, how it works, how much it costs, and the pros and cons of having this type of insurance.

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What is appliance insurance?

Appliance insurance is a type of insurance that covers your home appliances against breakdowns and malfunctions. It is also known as home appliance insurance or appliance protection plans. This insurance protects your appliances from unexpected repair costs and can give you peace of mind.

Appliance insurance covers a variety of home appliances, including refrigerators, ovens, dishwashers, washing machines, dryers, and more. The coverage can vary depending on the plan and provider you choose.

What Is Appliance Insurance?

How does appliance insurance work?

When you purchase appliance insurance, you pay the provider a monthly or yearly premium. If your appliance breaks down or malfunctions, you can file a claim with the provider, and they will send a technician to repair the appliance. Depending on your plan, you may be responsible for paying a deductible or service fee.

Some appliance insurance plans also offer additional benefits, such as free maintenance checks, discounted replacement appliances, or coverage for accidental damage.

How much does appliance insurance cost?

The cost of appliance insurance can vary depending on the provider, the appliances you want to cover, and the plan you choose. On average, appliance insurance costs between $100 and $500 per year, depending on the level of coverage and the number of appliances covered.

Some providers also offer pay-per-use options, where you only pay for coverage when needed. However, these plans are more expensive per repair than an annual policy.

The pros of having appliance insurance

  • Peace of mind: With appliance insurance, you can know that your appliances are protected against unexpected breakdowns and malfunctions.
  • Save money: Repairs can be expensive, especially if you have to replace a major appliance. With appliance insurance, you can save on repair costs and potentially avoid costly replacement fees.
  • Convenience: When your appliance breaks down, you don’t have to worry about finding a reputable repair technician or paying out of pocket. Your insurance provider will handle everything for you.
  • Additional benefits: Some appliance insurance plans offer additional benefits, such as free maintenance checks or discounted replacement appliances, which can save you even more money in the long run.

The cons of having appliance insurance

  • Cost: Appliance insurance can be expensive, especially if you have multiple appliances that you want to cover.
  • Limited coverage: Some appliance insurance plans have exclusions and limitations that may not cover all breakdowns or malfunctions. It’s essential to read the fine print and understand what is and isn’t covered before purchasing a policy.
  • Service fees: Depending on your plan, you may be responsible for paying a deductible or service fee every time you file a claim, which can add up over time.

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Next Steps

Homeowners could find appliance insurance to be a valuable addition to safeguarding their appliances and evading unforeseen repairs. While it may not come cheap, the extra positives can compensate for the coverage cost. However, before investing in any plan, read through the small print and comprehend what is included—know precisely what you’ll get out of your expenditure!

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Frequently Asked Questions

What is appliance insurance, and how does it work?

Appliance insurance is coverage for home appliances. It provides repairs and replacements.

What appliances can be covered under an appliance insurance policy?

Various home appliances can be covered under an appliance insurance policy, including refrigerators, dishwashers, ovens, and washing machines.

Is appliance insurance worth buying?

Home appliance insurance is wise if you own a home with aged appliances. For example, consider this: if your central air conditioning unit breaks down after only one or two years under the agreement, the cost of repairs and replacement can quickly climb into the thousands. Home appliance insurance could help cover that expense – making it more than worth it!

Why is it never a good idea to buy an extended warranty?

Although it may seem intelligent, extended warranties often come with an expensive price tag and might not even cover all potential problems. On top of that, many individuals who buy extended warranties end up never using them – resulting in a cost without any return on investment.

Is insurance better than a warranty?

The crucial distinction between warranty and insurance is that insurance compensates for unanticipated incidents causing harm. In contrast, warranties address expected events, such as the eventual breakdown of machinery due to natural wear and tear.

What appliance company is the most reliable?

Whirlpool, Maytag, and KitchenAid are the brands you can trust for top-quality and dependable appliances.

Should I get a fridge protection plan?

Investing in an extended warranty for your refrigerator may seem unnecessary at first. However, it is worth considering if something goes wrong with the appliance no longer covered by the manufacturer’s warranty. Nonetheless, even when you purchase this type of coverage, there are chances that you won’t use it – but don’t let that stop you from potentially saving yourself a lot of money!

What appliances are covered by home insurance?

Most policies will encompass the majority of household appliances found in nearly every home, such as refrigerators and freezers, ovens, stoves & microwaves, washers, and dryers. With coverage included on these essential items, you can rest assured that your everyday necessities are safe.

Why is appliance repair so expensive?

On average, homeowners can anticipate spending around $240 for repairs on electricity-powered appliances. However, parts for gas-powered machines are more costly and require technicians with an added level of skill and expertise to ensure safety. This is due to the higher risk of working on a machine that utilizes gas as its energy source.

What is the best insurance for appliances?

Liberty Home Guard has earned the highest customer ratings. American Home Shield is the go-to choice for those seeking comprehensive coverage. Select Home Warranty offers unbeatable value in their plans. First American Home Warranty provides expansive appliance coverage, and America’s First Choice gives you unparalleled freedom to customize your warranty plan to fit your needs.

Should I get insurance for a fridge?

Is it necessary to buy insurance for appliances? You know, the expensive ones like your washing machine, dishwasher, and fridge/freezer. Yes! Purchasing appliance insurance will give you peace of mind if something goes wrong with one of them—so you won’t be left footing the bill.

Is warranty better than insurance?

The essential distinction between warranties and insurance is that insurance safeguards against unexpected circumstances resulting in destruction. At the same time, warrants are built to manage inevitable breakdowns of appliances and systems due to poor performance or aging.

Does household insurance cover appliances?

Home insurance is like a safety net for your belongings, protecting you if you relocate. All of your possessions will be covered so that whatever moves with you do not have to worry about being exposed to potential risks.

Does homeowners insurance cover a refrigerator?

Your homeowner’s insurance policy can be a lifesaver when protecting your costly large appliances, like refrigerators. You’ll be covered in the case of theft, fire, or damage from storms and other perils – so you won’t have to worry about replacing or repairing those expensive items on your own!

What does Allstate appliance warranty cover?

Enjoy the benefits of fully covering your appliance against any mechanical or electrical malfunctions during regular use, even if they occur years after purchase. No hidden fees or deductibles to worry about! File a claim anytime online with 24/7 access – it’s simple!

What is an appliance protection plan?

An appliance protection plan, or extended warranty and service contract, is a supplementary agreement that customers can buy to extend their coverage on any product issues beyond the original manufacturer’s warranty.

What is complete appliance protection for three years?

This plan covers repair and replacement for damages resulting from manufacturing defects, accidents, liquid spills, and voltage surges for three years.

Are our warranty plans worth it?

When buying an extended car warranty, the choice is yours. While some drivers may never need a warranty, others are thankful for the added protection when their vehicle needs repairs. Nevertheless, if you have a trustworthy automobile and can financially afford any surprise costs that come your way, investing in an extended car warranty might not be necessary – or worth it!

Can you claim appliances on insurance?

The answer is yes! Most policies will cover your house’s contents, including any existing significant appliances. Depending on your plan type, specific perils may be covered if something goes wrong and needs to be repaired or replaced. A quality home insurance policy can help protect you and your belongings long-term.

What appliances are worth an extended warranty?

Shopping for home appliances doesn’t have to feel like a chore. Whether you need refrigerators and freezers, washers and dryers, dishwashers, microwaves, ovens, stoves, or heaters and air conditioners – we’ve got it all! So let us help make your hunt for the perfect appliance effortless so that you can enjoy more time doing what matters most.

Is insurance for the washer and dryer worth it?

Your washer and dryer will eventually break down with normal wear and tear. An extended warranty may help, but why not opt for a home warranty that covers these two appliances and other essential items in your abode?

How much is CarShield per month?

With CarShield, you can choose from various monthly plans that range between $99 and $129. The cost depends on the selected coverage level, usually featuring a standard deductible of one hundred dollars for all plans and your vehicle’s make, model, age, and mileage.

Can I buy an extended warranty later?

Absolutely! It is possible to purchase an extended warranty even if your manufacturer’s warranty has expired. That said, most current vehicle makers have conditions requiring car owners to sign up for a prolonged guarantee plan before their first one runs out.

Can I claim house insurance for a washing machine?

Home insurance typically offers protection against fire, theft, and flood by default. However, it is not likely to cover any mechanical or electrical issues that may arise with your appliances.

Does my home insurance cover my washing machine?

So long as any harm or destruction of your appliances is caused by an event protected by your home insurance policy – you’ll be adequately reimbursed for the expense. Unfortunately, standard policies don’t cover gradual wear and tear damage.

How to get a good deal on a washer and dryer?

To get the best deal on your new washer and dryer, shop before purchasing. Take advantage of rebates and any special offers available to help save money. Additionally, consider rent-to-own options, as these may be more cost-effective than buying new appliances!

*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost if you purchase a policy. It helps us keep the lights on!

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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