Photo | Appliances

When it comes to insurance in general, it can be confusing trying to figure out what you’re covered for, and how much you would have to pay out-of-pocket if something that is covered breaks. One of the more confusing insurance policies to figure out is homeowner’s insurance, because it can be difficult to tell exactly what of the things you own is covered. That’s why there are more specific policies out there, such as appliance insurance.

While homeowner’s insurance only covers your appliances in certain situations – and only certain appliances – appliance insurance covers your washer-dryer and any of your other essentials no matter how they fail.

What Exactly is Appliance Insurance?

Like most other policies for things you insure, appliance insurance – sometimes known as a home warranty – is there to protect you and your wallet. Should your washer, oven or refrigerator need fixing or replacement, appliance insurance can cover those costs while also assisting with maintenance and repair services. Sometimes appliance insurance is an extension of your home warranty plan, or you can buy it a la carte for things like hot tubs or swimming pools.

How Does Appliance Insurance Work?

Firstly, much like many other insurance plans, they don’t cover pre-existing problems. However, while homeowner’s insurance only covers theft or fire damage, appliance insurance covers you should something break down because of normal wear and tear. It is always wise to check the exclusions list on an insurance policy, to be sure of what you are covered for.

Should something break, the first step is to call your insurance company and file a claim. Once that request is confirmed you’ll have an appointment set up by the company with an approved contractor. At this point the service fee (which we’ll talk about in the next point) is collected to determine and sort out the issue.

Before deciding on a policy, you should check exactly what the plan covers and the reputability of whatever company from which you may be getting a plan. Read the fine print, check for any hidden fees, and verify whether a broken appliance will be replaced, or simply repaired. Also, in case of emergency situations, such as the furnace going out in the dead of winter, be sure the company is available 24/7 for extra assurance.

How Much Does Appliance Insurance Cost?

Depending upon the type of plan you purchase and the amount of coverage you wish to have, annual premiums for appliance insurance can range between $250-$500 in cost. This yearly premium covers plumbing, electrical work, HVAC systems, and most other major appliances. Your washer dryer may be excluded; again, it’s always important to double-check what is covered under your plan. Should you need to file a claim, there is your deductible, plus a service fee which is normally $50.

Do I Actually Need Appliance Insurance?

There are quite a few reasons it may be good to purchase appliance insurance. If you are selling your house, and it is more than ten years old, insurance can certainly entice buyers. Also, most water heaters and furnaces have a lifespan between 10-15 years, so when repairs or replacements on big time things such as these are imminent, having appliance insurance can give you peace of mind. Should one of these things break, the cost of insurance compared to what it would cost out-of-pocket pays for itself many times over.

For maximum financial protection, it is good to carry both appliance insurance as well as homeowner’s insurance. The bottom line is, you are most likely a great homeowner and take great care of it, but appliances naturally wear down over time no matter how great of care you have taken. And in these cases, appliance insurance can really save you a lot of hassle and money.


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