Kat Tretina is a personal finance writer specializing in debt repayment and insurance.
Previously, she worked in public relations within the pharmaceutical industry before switching to non-profit work. After struggling to repay her own student loan debt and seeing firsthand how complex the financial aid and repayment system is, she began writing to share what she learned so other people could better manage their loans.
For the past seven years, she’s been freelancing for major financial publications, focusing her work on helping people understand their financial options. Kat double-majored in English and Communications at Elizabethtown College, and she went on to earn her master’s at West Chester University. She has also earned certifications in student loan counseling and financial education.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Your home is a major investment. And if your appliances stop working, you can be left scrambling to cover the cost of repairing or replacing the broken items. Replacing or installing all new appliances can cost more than $10,000 (and even more for luxury or premium brands).[1]
Standard homeowners insurance policies won’t pay to repair or replace an appliance when it breaks down. But home appliance insurance — sometimes referred to as a home warranty — can help protect you against financial stress when your appliances break down unexpectedly. Separate from homeowners insurance, it can be a useful safety net for property owners with new homes or high-value appliances.
Quick Facts
Home appliance insurance ranges in cost from $15 to $90 per month, depending on the coverage level and company.
This form of coverage doesn’t pay for repairs related to cosmetic damage or a lack of maintenance.
Plans usually have per-item coverage maximums.
What is home appliance insurance?
While your homeowners insurance protects you if your property and possessions are damaged in natural disasters or stolen, home appliance insurance is for your home’s appliances and major systems. This form of coverage is a service contract between you and the insurer, and it covers appliance malfunctions or repairs due to wear and tear.
For example, let’s say you splurge on a high-efficiency washer and dryer. But just months after the purchase date, the dryer’s motor breaks, and it no longer dries your clothes properly. A home appliance warranty would help with the cost of repairing the dryer or, if it turns out to be a defective unit, replacing it with a new one.
Some plans allow you to get coverage for your heating and air conditioning systems or even your pool or hot tub. If your air conditioner stops working in July or your pool pump shuts down, your home appliance insurance policy may help.
How top home appliance insurance companies compare
You have many home warranty or home appliance insurance companies to choose from. Here’s how some of the industry leaders stack up:
Insurance Company
Service Fee
Monthly Premium
BBB Rating
Trustpilot
2-10 Home Buyers Warranty
$100
$28–$35
A+
1.8
First American Home Warranty
$100 or $125
$47–$82
B+
4.0
Old Republic Home Warranty
$100 or $125
$50–$80
A+
4.1
Choice Home Warranty
$100
$47–$55
B
4.0
AFC Home Warranty
$75 or $125
$48–$89
B
4.0
American Home Shield
$100 or $125
$15–$80
B
4.2
Liberty Home Guard
$75–$125
$45–$55
Not rated
4.6
First American Home Warranty: Best for luxury homes
First American Home Warranty has been in operation since 1984. It offers several plan options, and its premium plan includes appliances and items that other companies exclude, such as luxury or premium-brand appliances (up to $7,000 per appliance). It also has multiple add-ons, such as coverage for pool and spa equipment, septic systems, and well pumps.
But the company has an unusually strict cancellation policy. If you make a claim within the first 30 days, your policy isn’t cancelable until its renewal date.
Pros
Premium plan covers luxury appliances
Low service fee options
Strong customer reviews
Cons
Strict cancellation policy
Shorter-than-usual work guarantee
Base plan has limited coverage
American Home Shield: Best for customer service
American Home Shield was launched in 1971 and has more than 2 million customers. It has a range of coverage options, from a basic silver plan for your major systems (heating, air conditioning, electrical, and plumbing) to the platinum plan that also covers your appliances and roof.
Its gold and platinum plans include extra benefits, including heat, air conditioning, and HVAC tuneups, and you can video chat with live repair experts for real-time assistance at no added cost. But appliances aren’t covered under its basic plan, and very large homes — 10,000 square feet or larger — aren’t eligible for coverage.
Pros
Strong customer reviews
Basic low-cost plans available
Video chat available at no cost
Cons
Appliances aren’t covered under basic plan
Very large homes aren’t eligible for coverage
Shorter-than-usual work guarantee
Liberty Home Guard: Best for add-on coverage
Liberty Home Guard operates in all 50 states and Washington, D.C., and is a good fit for homeowners who want to customize their policies or enhance their coverage with add-ons. With Liberty Home Guard, you can add coverage for your pool, spa, central vacuum, electronics (including your laptop and television), and even your lawn sprinkler system.
But Liberty Home Guard’s plans exclude coverage for luxury brands like Bosch or La Cornue. If you want coverage for those items, you’ll have to contact a representative for a specialized policy.
Pros
Many add-ons available
Stellar customer reviews
Five-year plans available
Cons
Excludes coverage for luxury brands
$50 cancellation fee
Relatively low coverage maximums
Our editorial team analyzed home warranty companies to assess which offer the best prices, coverage options, customer service, and savings to homeowners. We looked at available plans, service fees and agreements, and coverage limits. We prioritized competitive prices, customer service reviews, discounts, and specialty or supplemental coverages.
What home appliance insurance covers
Home appliance insurance typically covers the cost of repairing or replacing items due to normal use, mechanical issues, or age. Although specific coverages vary by provider, a home warranty will usually cover the following:[2][3]
Kitchen appliances, including your stove and refrigerator
Washers and dryers
Garbage disposals
Heating and air conditioning
Good to Know
Some policies will also cover septic or well systems, pools, spas, and electrical systems, but you may need to purchase coverage for these items as an add-on. And some higher-end items, such as luxury appliances or commercial-grade appliances, may not be eligible for coverage.
What home appliance insurance doesn’t cover
Although home appliance insurance can provide valuable protection, it has some important exclusions to keep in mind:
Entire cost of repairs: Even with covered repairs or appliances, your policy may not pay for the entire bill. Typically, policies have per-claim or per-appliance maximums. For example, if your gas range breaks, your policy may only cover up to $2,000.
Damages that occur during the waiting period: Most policies have a waiting period of 30 to 90 days. Only issues that occur after the waiting period are eligible for coverage.[4]
Cosmetic damage: While those scratches on your stainless steel fridge may be unsightly, your refrigerator still functions as it should, so repairs wouldn’t be covered under a home warranty. Home appliance insurance policies don’t cover cosmetic issues, like scratches, dents, or chipped paint.[5]
Damages due to lack of maintenance: To keep costs relatively low, companies usually require homeowners to keep up with general maintenance, including regular tuneups. If your systems or appliances break down or have issues because you skipped necessary maintenance, the company won’t cover repairs.[6]
Outside repairs: If you hire your own repair service, the home warranty company will exclude any repairs from coverage. You must work with the home warranty provider to find a partner repair service.
Cost of home appliance insurance
The cost of a home warranty can range from $15 to $90 per month. Your actual cost will depend on the following factors:
Your location and ZIP code
Areas with a higher cost of living will typically cause repairs to be more expensive, since the prices for labor and parts will be higher. As a result, you’ll pay a higher premium.
The size of your home
Larger homes may have larger and more complex systems, so they tend to have higher rates.
The service fee you select
Service fees are a flat amount you pay for every visit for a covered issue. Typically, you can choose a fee between $75 and $125. Opting for a higher service fee will give you a lower monthly rate.
The plan you choose
Companies usually have several plans to choose from, such as a basic, barebones policy for your major appliances to more comprehensive plans with added perks and services. If you add any extra protections or add-ons to your policy, the cost will be higher.
How to file a home appliance insurance claim
To file a home appliance claim, follow these steps:
Contact your home warranty company. You may be able to file a claim online or over the phone, but you must contact your home appliance insurer before reaching out to a service technician.
Schedule a service appointment. Your insurance company will help connect you to a repair service and schedule an appointment to diagnose and repair the issue.
Pay the service fee. Typically, you have to pay the service fee at the time of the appointment.
Complete the repairs. The repair service will fix the appliance, or, if it’s too damaged, your insurer will offer you a payout for a replacement.
Is home appliance insurance worth it?
Although a home appliance insurance policy could be a smart investment for some homeowners, it’s not for everyone. Generally, it’s best for the following groups:
New homeowners with functioning but older appliances: If your appliances break, your policy can reduce strain to your budget.
Homeowners with luxury appliances: High-end appliances, like a Thermador refrigerator or a Viking range, can cost well into the five figures. Repairing or replacing these appliances can be expensive, so a home appliance insurance policy can come in handy.
Budget-conscious families who hate surprises: If you dread the idea of a surprise or unexpected repair bill, the monthly fee of a home appliance insurance policy can be a smart alternative.
If your appliances are new and covered under a manufacturer’s warranty — or if you’ve got an emergency fund to cover the cost of repairs — you may be able to go without a home appliance insurance policy.
Another option is to add a mechanical breakdown endorsement to your homeowners insurance policy. While this won’t cover damage related to wear and tear, it’ll cover damages to uncontrollable circumstances like electrical surges or motor burnout.
Home appliance insurance FAQs
If you’re still on the fence about purchasing a home warranty, the following information may help you make an informed decision.
Sometimes. Homeowners insurance policies cover appliances if they’re damaged or stolen in a covered incident. For example, if a fire damages your home and destroys your refrigerator, your homeowners insurance policy will pay for its replacement. But homeowners insurance doesn’t cover appliances that break down due to installation issues, age, wear and tear, or malfunctions.
No single company is the best choice for everyone. For example, American Home Shield has the best customer service, with positive Trustpilot ratings and a useful video chat option. But if you’re looking for coverage for luxury appliances or add-ons, you may prefer First American Home Warranty.
It depends. While home appliance insurance will usually cover a broken refrigerator, some exceptions apply. For example, some companies’ basic plans don’t include coverage for kitchen appliances, and some exclude certain brands of appliances.
Appliance insurance policies usually last for one year. But some companies offer three- or five-year plans, allowing you to lock in your rates for longer.
In general, home appliance insurance policies cost between $15 and $90 per month. Your cost will depend on your location, the provider you choose, the plan, and any selected add-ons.
Kat Tretina is a personal finance writer specializing in debt repayment and insurance.
Previously, she worked in public relations within the pharmaceutical industry before switching to non-profit work. After struggling to repay her own student loan debt and seeing firsthand how complex the financial aid and repayment system is, she began writing to share what she learned so other people could better manage their loans.
For the past seven years, she’s been freelancing for major financial publications, focusing her work on helping people understand their financial options. Kat double-majored in English and Communications at Elizabethtown College, and she went on to earn her master’s at West Chester University. She has also earned certifications in student loan counseling and financial education.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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