An appliance extended warranty, also known as a protection plan or service agreement, is an insurance policy that covers the cost of repairing and replacing home appliances. These warranties can be purchased from the manufacturer, retailer, or a third party. Appliance protection plans cover everything from large appliances like refrigerators and washer and dryers to smaller devices such as coffee makers. They also come with a wide range of perks, including convenience and affordability.
Peace Of Mind
Many major appliances come with a manufacturer’s warranty free of charge, but a home appliance protection plan can extend that coverage. These plans typically cover in-home repairs and replacement parts. Depending on the provider, these warranties may also include 24/7 troubleshooting and diagnostic services. You can purchase these plans through retailers, but they’re often sold by third-party companies. The cost of the plan varies and is usually listed in the fine print. Be aware that some policies have limiting terms, including exclusions for cosmetic damage and certain types of repair.
The benefits of a home appliance service plan include the peace of mind that comes with knowing you’re protected. The plan can also help to reduce the amount of money spent on repairs or replacement costs. Having the warranty also adds to resale value and can make selling a used appliance more attractive. Consumer Priority Service works with highly-trained technicians to ensure you’re covered for repairs and replacements.
Reliability
Most people understand the need to purchase insurance for items that may break down or otherwise go wrong. Appliance extended warranties, sometimes called product protection plans or service contracts, provide similar coverage as manufacturers’ warranties, but usually come with an additional premium and deductible. They also often stipulate that specific maintenance providers must be used, which could prove inconvenient. While they’re available for individual appliances, they’re not as common as home warranty services, which offer bundled coverage for major household items like refrigerators, washers and dryers, ovens, dishwashers, stoves or cooktops, built-in microwaves, water heaters and HVAC systems. Many of these are offered by retailers and through third-party companies.
Retailer extended warranties are often offered at the point of sale, creating sales pressure and a short window of time to buy. Alternatively, they can be purchased online from home warranty companies like CPS Central. Those who choose to purchase an Appliance Extended Warranty should carefully consider the fine print of the agreement.
Coverage Options
Some companies offer home appliance insurance policies as stand-alone products. Other companies have all-in-one plans where you pay a monthly fee and all of your appliances are covered under the policy. Regardless, they typically cover functional parts and labor costs. According to Consumer Reports, they cost an average of $126 for large appliances and $21 for small appliances. Purchasing coverage may make sense if you want to reduce your out-of-pocket expenses in case an appliance breaks down. However, it’s important to weigh the pros and cons of these services.
Many retailers offer an extended warranty option when you purchase a new appliance. The plans vary by retailer and the type of appliance purchased. You can add the protection plan at checkout or buy it later from a third-party provider. These plans usually protect functional parts and labor against breakdowns due to normal wear and tear, power surges, and heat or humidity. Some also protect against preexisting conditions and are transferable when you sell your home.
Cost
Many manufacturers offer a manufacturer warranty that is included in the purchase price of a new appliance and covers repair or replacement costs for a limited time after the appliance is purchased. An home appliance insurance or protection plan can extend the coverage period of these warranties, which can help consumers pay for repairs and maintenance when they are needed. These plans also cover accidental damage to a covered appliance.
However, these warranties have a cost and can add up over time. They are also typically less comprehensive than home warranties, which can cover all major appliances and critical home systems. Consumers can also choose to save money for unforeseen repairs by setting aside a specific amount each month in an emergency fund.
Conclusion
Typically, these warranties cover repair and replacement costs. However, they often have fine print and terms that limit coverage or void the warranty. They are also expensive and there is a chance you won’t use the coverage. Consider other options like a home warranty or checking your credit card for coverage.