Protecting Your Home With Insurance for Home Appliances
Insurance for home appliances might be a good idea for people who purchased a house and want to protect their wallets from spending thousands of dollars on repairs or replacing all items. Your home is your most valuable asset, but it’s the appliances within your home that make modern life livable. Your stove, oven, air conditioner, washer and dryer, dishwasher, and refrigerator are really the most important things within the home.
Unfortunately, it takes very little to damage those items. Something as simple (and unavoidable) as a lightning strike can destroy those appliances. And when damage does occur, repair or replacement can cost thousands of dollars.
Insurance for home appliances can help to offset those costs, reduce your risk, and help ensure that you have peace of mind. What do you need to know about home appliance insurance, though? We’ll walk you through everything below.
Does Home Appliance Insurance Actually Exist?
The answer to the question above is a resounding yes. You’ll find protection available for your home appliances from a wide range of companies. In fact, there are almost 200 companies in the US alone that offer plans that include protection for your most essential assets. What might be throwing you off here is the difference in language. Rather than insurance providers, these are home warranty companies. You can’t really insure your stove, refrigerator, or pool system with your homeowner’s insurance provider, but you can with the right home warranty company.
Does This Really Make Sense in 2020?
We live in the age of disposable assets. When your shirt rips, you throw it out and buy another. You don’t usually take it to a tailor to have it mended. When your shoes wear out, you throw them away and buy a new pair. You don’t take them to a cobbler to have them resolved. When your computer is outdated, when your glasses break, when your couch cushion rips because the kids were being rowdy – replacement is the norm today.
Given that, does it make sense to replace damaged or broken appliances in 2020? Wouldn’t it be simpler to just replace them with something new? Actually, it makes a lot of sense to repair a damaged appliance rather than replacing it completely.
Think of it this way. You use your stove and oven every single day. Then, a power surge fries the circuit board that powers the whole thing, leaving that trusty appliance useless. You have two options. You can head to the nearest appliance store or DIY shop and pay for a new one (which might cost you $10,000 depending on the features you select), or you can have it repaired for a minute fraction of that cost.
Of course, appliance repair costs can still be quite high depending on the damage in question. Many Americans cannot afford to have their major appliances repaired, which is where insurance makes this entire process simpler.
With insurance for your appliances, when something goes wrong, you simply call the warranty company and file a claim. They dispatch a repair technician, who fixes the problem. You’re on the hook for your deductible, and usually nothing more. That lets you get your trusted stove (or other covered appliance) back up and running for pennies on the dollar in comparison to what it would cost to replace it, or even to pay out of pocket for a repair.
How Much Does Appliance Insurance Cost, Though?
That’s all well and good you say, but just how much is it going to cost you to insure your appliances? Actually, it varies depending on a number of different factors. With a home warranty, you’ll pay somewhere between $400 and $600 per year, with the median price being $524.
However, you can reduce that if you opt for an appliance-only plan that excludes home systems like your air conditioner, heating, ductwork, electrical system, and plumbing. Still, because those are pretty important to your comfort and convenience, we really recommend covering them, as well. Other factors that can help you reduce your costs include:
- Going with a higher deductible (where possible)
- Shopping around with different home warranty companies
- Being strategic in the appliances you cover
- Customizing your policy
Is This Really in Legal Sense?
No, a home warranty is not the same thing as insurance, legally speaking. However, it serves many of the same roles, allowing you to protect your investment and your quality of life, so it is pretty similar. What are the differences between insurance and a warranty program?
It’s primarily in the protection offered. For instance, homeowner’s insurance protects you against specific threats both to the structure and its contents. If your home catches fire, your insurance company will pay for the damages. However, if your refrigerator fails because of a worn part, the insurance company will not do anything at all. This is where the warranty company steps in and helps you get back to living your life as normal.
Ultimately, insurance for your appliances makes a lot of sense. However, you’ll still need to shop around, compare the plans available to you, check into each company’s reputation and consumer ratings, and make an informed decision regarding your needs.