Home Appliance Insurance vs. a Home Warranty: What’s the Best Way to Protect Your Home?

Home appliance insurance is similar to a home warranty plan in that protects you from unexpected costs when your home’s systems or appliances break down. It covers what traditional homeowner’s insurance does not: the wear and tear of home systems, such as water heaters, built-in microwaves and HVAC units.

Home appliance warranty plans can reduce the stress and expense of home repairs. If your appliances are nearing the end of their lifespans or you want to simplify home maintenance, a home appliance warranty could be a sound investment.

With hundreds of home protection plans available to you, from appliance and system plans to combo plans, it is important to understand what type of home warranty fits your needs. This includes understanding:

  • The age and lifespan of your home’s systems and appliances
  • The cost to fix them without home appliance insurance
  • The total cost of home appliance insurance, including service contract costs, add-ons and service fees
  • What is not covered by home appliance insurance, including pre-existing damages
  • Any maximum caps on the replacement of covered items

Owning a home is a milestone, but it can also come with unexpected headaches. The right home protection plan from Choice Home Warranty will bring you peace of mind, financial safeguards and overall convenience, ultimately ensuring that your house will always feel like your home.

Ready to get your free quote from Choice Home Warranty? Fill out the form or call (732) 907-4902.

What Can Home Appliance Insurance Do for Me?

Having a home appliance protection plan provides a number of benefits.

Coverage Beyond Homeowner’s Insurance

When you purchase a home or a new appliance, you will likely receive or be required to purchase some sort of insurance to cover equipment malfunctions or unexpected damages. With all of the options out there — from home appliance insurance to manufacturer’s warranties to homeowner’s insurance — it’s important to understand the different levels of coverage and what exactly is included in each protection plan. Here’s a description of each option.

Home Appliance Insurance / Home Appliance Warranty Plans

Similar to how an auto extended warranty would work for car parts and systems, these are optional service contracts that cover the repair or replacement of major systems and appliances.* They are typically 12-month agreements that include an annual contract fee and a service fee. Home appliance insurance can be offered an as add-on to your homeowners insurance, while a warranty is offered through a separate provider, such as Choice Home Warranty.

Manufacturer’s Warranty

This is a warranty that usually comes with the purchase of a system or appliance and covers the repair or replacement of that specific item. The offered coverage typically lasts for one year and only applies to the original owner.

Homeowner’s Insurance

This is a mandatory policy that protects against accidental disasters, theft or vandalism. You pay an annual premium and deductible and the insurance policy will cover the additional costs.

Home appliance warranty plans can be an important financial safeguard for the appliances that are not covered by your homeowner’s policy or manufacturer’s warranty. These can include:

  • Large home systems—HVAC, electrical systems and garage door openers
  • Plumbing—Toilet tank, water heater and circulating pumps
  • Appliances—Washer and dryer, dishwasher, refrigerator and garbage disposal
  • Amenities—Additional refrigeration, pool and spa equipment and well pump

Peace of Mind

An estimated 96% of families own a microwave, 82% and 79% have a washer and dryer, respectively, and 59% have a dishwasher, according to the U.S. Energy Information Association.

Without the protection of a home warranty plan, you are responsible for paying for the repair or replacement of all of these household items, which can quickly add up. Manufacturer’s warranties can help reduce these costs, but you will likely be on the hook for the price of labor, parts, materials and potential replacement when the terms expire.

Home appliance protection plans bring peace of mind knowing that if your appliance or home system breaks, you don’t need to pay out hundreds of dollars at once or call around to find the right service provider. You can simply report the issue and pay the service fee, and we’ll have a licensed service technician to repair or replace your equipment within 48 hours.**

Cost Savings

Home appliance insurance or another protection plan can save you money on the repair or replacement of dozens of covered items. Consider the life expectancy for common household appliances, as estimated by the International Association of Certified Home Inspectors and Sears Home Services.

Item Life Expectancy (Years) Repair Cost
Dishwasher 9 $150–$200
Dryer (Clothes) 13 $200–$300
Freezer 10–20 $200–$330
Refrigerator 9–13 $200–$400
Washing Machine 5–15 $200–$300
Central Air Conditioner Unit 7–15  $350–$900
Water Heater  10–11  $570

Say your refrigerator is seven years through its estimated maximum 13-year lifespan. It is safe to assume that as your fridge depreciates, you will need to spend $200–$400 in repair costs at least once over the next six years. When the time comes to purchase a new appliance, you might be looking at an additional $1,079 and $1,709 for energy efficient fridges, as estimated by Consumer Reports.

Assuming the average purchase price of $1,244, plus $250 in repair costs, you could be ready to spend between $1,444–$1,544 over the next six years to repair your existing refrigerator and eventually purchase a new one.

  • Lifespan: 13 years
  • Repair Costs: $250 (average)
  • Replacement Costs: $1,244 (average)
  • Total repair and replacement cost: $1,244–$1,544
  • Home appliance service contract from Choice Home Warranty: Less than $1 a day

Start adding other appliances, and the cost of maintaining a home quickly exceeds the annual service contract fee, which, for the average American homeowner, costs between $319 to $894.

Most home appliance insurance companies offer service contracts that cover the cost of your refrigerator, washer, dryer and many other common household appliances, potentially saving you a considerable amount of money over the lifespan of your home’s equipment.

A home appliance insurance plan can also make your house more attractive to potential buyers by driving up the selling price or reducing the time your house sits on market. Since home warranty plans are paid in advance, a potential buyer can feel assured that they will not be unpleasantly surprised with an expensive appliance failure or repair bill upon purchasing the home.

What Do Home Appliance Insurance Plans Cover (And Not Cover)?

The total cost of repairing or replacing your covered items will depend on where you live and the type of coverage you purchase. In order to understand the total home appliance insurance cost, it is important to identify what is (and is not) included under the home appliance warranty.

The Better Business Bureau identifies several points to consider when deciding between home appliance warranty plans. Recognizing both the extent and limits of your home protection plan can help you make a smart, financially sound decision.

  • Pre-existing damages—Most home appliance protection plans do not cover pre-existing damages or damages caused by improper care.
  • Maximum caps—Some home warranty appliance plans cap maximum repair or replacement costs on items such as pool pumps or specialty systems such as geothermal.
  • Upgrade costs—A home warranty provider will not upgrade your home appliances. You will likely have to pay the additional cost to upgrade a covered item if it exceeds the replacement cost.
  • Replacement costs—If an appliance or system needs to be replaced, some warranty plans may cap replacement costs at the depreciated value, not the market value. Verify with your home warranty company about the replacement policies.

Who Should Purchase Home Appliance Coverage?

When it comes to protecting your home appliances and your budget, appliance coverage is extremely beneficial. It can save you time, money, and unnecessary stress, especially if you are one of the following individuals:

  • A new homeowner who is buying an older home.
  • A homeowner who doesn’t want to spend extra on broken appliances or systems.
  • A home seller who wants to increase the value of the home.

If you’re a home seller, appliance coverage can make your property more appealing to home buyers, especially if you’re selling an older home. This gives the buyer peace of mind. Should an appliance or system break down in the first week or month of buying the new home, the buyer won’t have to pay outrageous (and unexpected) out-of-pocket costs for a repair or replacement.

Choosing The Right Home Appliance Insurance Provider

When it comes to choosing your home appliance coverage, you’ll want to ensure that your provider offers comprehensive coverage that best fits your needs and your budget. Here’s what you should consider, when choosing the best home warranty companies:

  • If customizable coverage is available. Unlike Choice Home Warranty, some providers don’t offer optional coverage. Pools, tubs and septic systems, for example, aren’t always included for potential coverage.
  • If the terms and conditions are readily available. You don’t want to be blindsided when you purchase a plan. The best companies will share their contracts up front, so you know exactly what’s covered and what’s not.
  • If labor is included alongside the covered parts. Often, labor can cost as much as the part, so you want to make sure your provider includes labor costs in their coverage plans.
  • If customer service is reliable, responsive and available 24/7 to handle claims. You can’t predict when your washer or refrigerator will stop working, so you want to make sure the provider is available at all times.

When it comes to buying a home warranty plan for your appliances, you want to make sure you’re choosing the best provider. Pay attention to the company’s offerings, as well as their hidden fees, their extra benefits, and their payment options.

Which Home Appliance Coverage Plan Is Right For Me?

The Balance estimates that the average homeowner should expect to spend 1% of their home’s value on repairs or replacements each year, as well as an additional $1 per square foot. This could mean big bucks if a large system breaks. Consider the following:

  • $200,000 house: $2,000+ maintenance costs
  • $300,000 house: $3,000+ in maintenance costs
  • $400,000 house: $4,000+ in maintenance costs

As your house and appliances age, maintenance costs will increase, and neglecting important repairs depreciate the value of your home.

Repair or replacement costs are an expected part of homeownership, but there are cost-effective strategies that can help reduce the financial burden. A home appliance protection plan from Choice Home Warranty can take the stress out of home maintenance and shield your finances.

With Choice Home Warranty, you receive:

  • Comprehensive coverage*
  • Flexible, customizable terms
  • Transparent service contracts
  • Prompt and courteous 24/7 customer service
  • Access to a network of trusted home repair professionals
  • Reliable claim process 
  • Easy and free quote

Choice Home Warranty offers two tiers of coverage* for your home’s systems and appliances with straightforward pricing. You can select the Basic Plan or the Total Plan, which both offer coverage for dozens of common home appliances.

Each Choice Home Warranty Total Plan can be customized, but will generally include the following covered items:

Total Plan Covered Items

  • Air Conditioning System
  • Built-in Microwave
  • Ceiling and Exhaust Fans
  • Clothes Dryer
  • Clothes Washer
  • Cooktop
  • Dishwasher
  • Ductwork
  • Electrical System
  • Garage Door Opener
  • Garbage Disposal
  • Heating System
  • Oven / Range / Stove
  • Plumbing Stoppage
  • Plumbing System
  • Refrigerator
  • Water Heater
  • Whirlpool Bathtub

You can purchase extended coverage or specialty add-ons with your service contract for an additional cost.

When you find the level of coverage that is right for you, you will work with a dedicated team of customer service professionals to quickly address your repair or replacement needs**. Choice Home Warranty has an expansive network of local technicians that are licensed and insured to service your equipment, removing the hassle out of finding your own contractor and simplifying the process. Unlike a normal service call where you pay for the contractor’s time, Choice Home Warranty includes time and labor in the service contract.

Shield Your Home With a Home Appliance Warranty from Choice Home Warranty

You worked hard to buy a house and even harder to make it into a home. Safeguard your investments and buy yourself some peace of mind with a home appliance warranty plan. Join the many satisfied, protected homeowners who have saved time, money and stress with the best home protection plans from Choice Home Warranty:

“Service was timely and thoroughly done. The individual was professional and explained what was wrong and what he was doing to remedy the problem.”

“It was so hot and my air went out, I tried everything before I called so it was too late for someone to come out on Sunday, but early Monday morning as promised the company came out early and fixed my unit. I was very satisfied.”

“Customer service was extremely pleasant, personable, helpful, and professional. I would recommend Choice to everyone.”

Want to learn more? Fill out the form or call (732) 907-4902 to get a free quote and one month of free coverage.


* Click Here to view complete limits of liability and any exclusions. CHW offers service contracts which are not warranties. ** See policy for specifics on response times. *** CHW reserves the right to offer cash back in lieu of repair or replacement in the amount of CHW’s actual cost (which at times may be less than retail) to repair or replace any covered system, component or appliance. **** In the event a claim is denied, and a customer seeks to have Us review that denial, We have the right to request routine maintenance records in reviewing its decision.