The need for separately insuring your appliances separately arises because an existing homeowners’ insurance will only cover damage to your appliances caused by accidents like fire or a natural disaster like a hurricane. It will not cover repairs caused by overuse, wear, tear, cost of spares, or breakdown of expensive home appliances like washers, heaters, refrigerators, freezers, dishwashers, ductwork, or heating systems. Replacements and repairs of such home appliances can set you back by thousands of dollars if you do not have appliance insurance.

What is appliance insurance?
Appliance insurance or home appliance insurance plans cover the cost of potential repairs and replace specific or multiple appliances and systems in your house.

Appliances covered by insurance
The appliances covered will depend on the plan you choose. The most commonly covered appliances under such plans are as follows.

• Washers and dryers
• Water heaters and home heating systems
• Air conditioning
• Ceiling fans
• Kitchen appliances – built-in oven, microwave, dishwasher, cooktop, refrigerators
• Garbage disposal units
• Plumbing systems
• Electric systems and ductwork
• Swimming pools and spa
• Septic systems, well, and sump pumps
• Central vacuum

Difference between appliance insurance and home warranty
Home warranty and appliance insurance are the same plans branded differently by insurance companies.

Difference between home insurance and appliance insurance
Homeowners’ insurance covers damage that happens due to natural calamities or fire. They do not cover repairs, damages, and breakdowns that are caused by everyday use.

Types of appliance insurance
There are three types of plans – appliance plans, system plans, and combination plans.

• System plans provide coverage for air conditioning, electrical equipment, plumbing, water heaters, garbage disposal, smoke detectors, ductwork, doorbells, and ceiling fans.
• Appliances like washers, dryers, refrigerators, built-in oven, microwave, freezers, ice makers
• Combination plans cover both systems and appliances and are the most commonly sought appliance insurance plan.

Cost of home appliance insurance
The cost of basic appliance insurance can vary between $300 and $600 per annum. The cost could increase as you keep adding new systems or appliances. Apart from the cost, the company will charge you a fixed service fee between $60 and $125 for every service call. This charge remains fixed irrespective of minor or major repair.

How does appliance insurance work
You can choose an appliance plan based on the number of appliances and systems you own. Some expensive systems like pools and sumps may not be part of the package and can be added only at an additional fee. The appliances and systems covered in a plan are not standardized and depend on the insurance provider. Some companies allow you to customize and include only the appliances and systems that you own. That is why thorough research and comparison of plans is crucial before you decide on a plan.

The process for an appliance service claim
Once you purchase a plan, the insurance will be activated within 30 days, and you can call for service and file a claim only then. You can also roll the insurance payments into your home mortgage payments. In the case of a breakdown, you should call your insurance provider. They will send a technician within two days to assess the damage and costs. Once the technician makes an assessment, you will pay the service fee. If only minor work is required, they will do it right then or call for additional replacements and come back again and complete the service. You don’t have to do anything else as the rest is taken care of by the insurance company.

Benefits of appliance insurance
The primary benefit is, of course, it saves you from unexpected and expensive repairs and replacement. It is ideal for homeowners whose homes and appliances are old. With insurance, repairs are faster and streamlined, taking a load off your hand. If you are a homeowner, home warranties can be a plus if you decide to sell your home. Home warranties are not covered by Federal law and are regulated under the consumer protection laws in each state.