Home appliance insurance covers the cost of repairs in case the appliances in your home malfunction or break down. It covers practically all the appliances at home, including ovens, refrigerators, dryers, dishwashers, washing machines, and more. However, the precise coverage amount differs based on your chosen plan and provider. Here are the benefits of home appliance insurance, the overall cost of purchasing a plan, and the right time to buy one.
Benefits of home appliance insurance
Getting this type of insurance has many advantages, some of which are discussed below:
Fills the gap between your home insurance and appliance warranty
While your home insurance may cover your appliances, it has many terms and conditions. For instance, it will cover the cost only when your appliances are stolen or damaged due to incidents like fire. Home insurance does not cover the expenses for repairing appliances that have stopped working.
On the other hand, your manufacturer’s warranty will cover your appliances if they stop working. However, it will be valid for only a limited period. And in most cases, appliances like refrigerators and dishwashers start developing problems a little later, once the warranty has expired.
This is where appliance insurance steps in to help. It lets you save a lot of money on repairing mechanical or electrical issues in appliances and rectifying accidental damages even after the warranty period.
Your appliances are vital for you to go about your day smoothly. Any breakdown or damage can disrupt your schedule. Moreover, it becomes very inconvenient when you must wait for someone to fix it or save extra every month to replace the appliance. When you have home appliance insurance, you do not have to worry about these things. Your insurance provider will immediately connect you with someone who will repair your damaged appliance or help you replace it quickly. It ensures you can go about your routine without inconvenience.
Prevents unexpected costs
An appliance breaking down out of the blue means you must prepare to pay out a significant amount for repairs. The price increases when you need to replace parts or completely overhaul the entire system. Moreover, there may be unexpected and hidden costs involved. However, if you purchase home appliance insurance, you only have to pay a small premium every month. With this, your appliances can be replaced or repaired anytime, and the provider will cover the expenses. You do not have to shell out a lot if your system suddenly stops functioning, and you can continue saving for other purposes.
Covers more than one appliance
Most providers let you cover multiple appliances in your home. You can add as many of them to the policy as you want, depending on its maximum limit. This way, you are assured that the essential appliances in your home are protected. You may also save extra money since some insurers offer a discount for insuring more than one unit.
Offers additional perks
Several home appliance insurance providers offer extra perks with their coverage plans. These usually include free maintenance checks and discounted replacements. When you consider it for the long term, these extra benefits can help you save a considerable sum.
How much does home appliance insurance cost?
When you apply for home appliance insurance, you must pay a monthly fee for the service. In addition, you will have to pay a fee to the person who visits your house to handle the repair and maintenance work. The average cost of home appliance coverage across several popular insurance providers is approximately $50 monthly or $600 annually. Service call fees for the technician usually range between $75 to $125 for each claim. All these estimated costs are for the basic plans that offer coverage for kitchen and laundry appliances. The rate will change depending on the provider, plan, number of appliances insured, and the city you reside in. Also, a majority of home appliance insurance plans have annual contracts. If you decide to cancel your plan earlier, you may incur additional fees.
What is the best time to get home appliance insurance?
The best time to enroll is when you have older appliances. Aging machines have higher chances of breaking down and requiring urgent repairs and frequent maintenance than newer models. Also, most of your older appliances will likely have an expired warranty, another critical reason to get insurance. Many people purchase appliance insurance as soon as they move into a new home. However, the premiums turn out to be an unnecessary expense as new appliances rarely break down.
Remember, you may have to wait at least 30 days after enrolling before forwarding service or repair requests to the provider. The exact period can differ depending on your chosen insurance company and plan, so inquire about the same before signing up. Also, read the documentation carefully to check which machines are covered and up to what limit. Not checking the limit can lead to higher out-of-pocket expenses at the time of repairs. Consult the provider’s customer service team if you have any queries about the features of the plan you are considering.