If you are a homeowner, you may have wondered what does a home appliance insurance policy cover that a homeowners contents insurance policy does not cover?
What Is Home Appliance Insurance?
It is different from a homeowner’s contents insurance policy.
Most homeowners know what house insurance and contents policies cover. If the structure of your house and all your personal belongings within the house and on your property are damaged due to fire, theft, weather issues or accidents, you are protected.
However, if items like appliances are damaged and need repair or replacement due to normal wear and tear, these policies pay nothing,
Home appliance Insurance works differently.
For example, if your dishwasher leaks, your homeowners insurance will pay for any water damage, but it does not repair the dishwasher.
A home appliance insurance policy will pay for the dishwasher repairs, but not the water damage.
What Does Home Appliance Insurance cover?
These policies cover the costs of sending a repairer to your home and fixing your household appliances and systems. If you want one of these plans you should get quotes form at least three insurers.
With home appliance insurance cover, you pay a monthly or annual amount. In exchange, you get a set service call fee every time an appliance or system breaks down.
Most plans do not require you to supply maintenance records or get an inspection to buy coverage, and it doesn’t matter if your home is brand new or decades old.
Most home appliance insurers offer plans that cover appliances and systems which typically covers:
- plumbing systems,
- dishwashers,
- ductwork,
- washers and dryers,
- heating systems,
- water heaters,
- refrigerators,
- ovens,
- sump pumps,
- lawn sprinklers,
- septic systems,
- built-in microwaves,
- air conditioning,
- garage door openers,
- electrical systems,
- and more.
Appliances can be expensive to repair or replace but breakdowns of a major household system can cause serious financial hardship.
Do Home Appliance Insurance Policies Cover all Appliances?
Each insurer has their own range of policies with their own limits and deductibles to allow you to pick a policy that best suits you.
This includes options to cover all appliances or just some specific appliance.
We know that major appliances are made to keep going for 10 years plus. If you have a brand-new refrigerator and oven, you could argue that there is not much chance of them breaking down within their first five years.
Therefore, you could choose not to cover those two appliances.
The cost of cover depends on how many appliances and systems you are covering, their replacement costs, the claim limits you choose and the deductible you choose.
You can design a policy that is affordable and covers the appliances you know will cost a lot to repair and that are getting older and are more likely to have issues.
What Don’t Home Appliance Insurance Policies Cover?
Some of the issues that home warranties don’t cover include (but are not limited to):
- Structural issues, foundations, walls, paint, and flooring
- Solar systems and components
- Commercial-grade equipment or systems, such as Bosch, GE Monogram, Sub-Zero, Thermador, and Viking
- Anything a home inspector has previously uncovered
- Preexisting conditions and normal wear and tear
- Problems related to rust, corrosion, and sediment
- Repairs related to improper maintenance, installation, design, manufacturer defect, or earlier repairs (outside of the contract)
- Nonessential components include items that covered items that don’t need to function, such as oven racks, remote controls, clocks, and timers
- The identification, detection, abatement, and removal of hazardous substances, e.g., asbestos, radon gas, and mold
- Services to correct building and zoning code violations
The Bottom Line
A home appliance insurance policy compliments a house insurance policy to provide you with peace of mind and limit the costs you will face in case of any breakdowns of appliances and systems needing diagnoses, repair, or replacement. If you’re considering a home warranty, get at least three quotes, and be sure to read the contract very carefully before you sign on the dotted line. Make it a point to understand what’s covered, what’s not, and how the coverage limits work.
