Is an Appliance Extended Warranty Worth It?
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The breakdown of a major appliance can be a huge headache for homeowners, and investing an extended warranty can make the repairs process easier and less expensive. These types of warranties aren’t right for everyone, though, and they occasionally fall short on certain types of damage. Read our guide below to help you decide whether an extended warranty is right for you and your new appliance, and which are the best warranties available.
What Is an Appliance Extended Warranty?
An appliance extended warranty extends the standard coverage that an appliance’s original manufacturer provides. Basic warranty coverage includes repair and replacement costs, and usually lasts between 30 days and one year. Many companies offer in-home service repairs for such issues.
Appliance extended warranties, which are sometimes called appliance protection plans or service plans, offer the same coverage terms for a longer period of time at an additional cost. You must purchase an extended warranty before the manufacturer’s warranty period ends if you want to make the investment.
Who Offers Appliance Extended Warranties?
You can get an appliance extended warranty from the original appliance manufacturer, the appliance retailer, or a third-party provider.
Manufacturer Extended Warranties
An appliance’s maker offers a manufacturer extended warranty. This type of warranty provides the most comprehensive coverage, and authorized repair technicians who are familiar with your appliance’s make and model typically perform repairs.
Retailer Extended Warranties
Many appliance retailers, such as Home Depot and Costco, offer their own extended warranty plans. These warranties may cover multiple brands, and are more flexible than manufacturer warranties. The quality of service and coverage can vary significantly between retailers, though. Read our full review of Home Depot’s Extended Warranty and Costco’s home warranty to learn more.
Third-Party Extended Warranties
Independent companies that aren’t affiliated with a given manufacturer or retailer offer third-party warranties. These plans offer the most competitive pricing and may cover multiple appliances under a single policy. They come with more restrictions on who can perform which repairs, and what exactly a plan covers, though.
What Does an Appliance Extended Warranty Cover?
An appliance extended warranty typically covers any repair, replacement, and labor costs associated with a malfunction. It also covers damage due to unapproved or improper maintenance. If a professional can’t fix your appliance, the warranty may cover a refurbished appliance or a reimbursement. We recommend thoroughly reviewing your warranty for coverage and replacement details.
These warranties limit protections against manufacturer defects that occur during the coverage period. Coverage only applies if the product malfunctions because it was faulty to begin with. Many extended warranties only included mechanical parts, and exclude coverage for the following events:
- Breakdowns or failures due to accidental damage
- Cosmetic damage
- Damage caused by natural disasters
- Damage caused by power surges or outages
- Replacement of cosmetic components, such as knobs or glass
- Routine maintenance
Pros and Cons of Appliance Extended Warranties
Extended warranties are convenient and affordable, but offer narrow coverage. Read more about the advantages and disadvantages below.
Appliance Extended Warranty Benefits
- An extended warranty is inexpensive compared to the price of the appliance.
- If the appliance malfunctions due to a manufacturing defect, you can have it repaired or replaced quickly and easily.
- The repair technician will understand how to work on your appliance’s specific make and model.
Appliance Extended Warranty Drawbacks
- Coverage only includes breakdowns that stem from manufacturing defects.
- Each extended warranty only covers one appliance during the first few years of the appliance’s lifespan, when it is least likely to break.
- You can only buy an extended warranty when you purchase the product or shortly after.
Appliance Extended Warranty vs. Home Warranty
Appliance extended warranties aren’t your only option to protect your important home devices. Home warranties also offer protection for your major appliances. Read more below.
What is a Home Warranty?
A home warranty is a broad service contract that offers bundled coverage for major home systems and appliances. A single home warranty policy typically covers your dishwasher, oven, HVAC system, and other items. Home warranties are more comprehensive than extended appliance warranties and cover multiple home appliances. Some home warranty providers allow you to customize your own plan.
You can purchase home warranty coverage at any time, no matter how old your home or appliances are. You can also renew your policy each year. Home warranty costs vary based on plans and location, and the average premium is $54–$61 per month. Home warranties don’t cover manufacturing defects, but they do cover routine wear and tear.
How Do I Pick the Right Warranty Coverage?
Home and appliance extended warranties both have advantages and disadvantages, so thoroughly assess your needs before you choose a coverage option. The Federal Trade Commission recommends carefully reading warranty policies to understand all coverage limitations and exclusions.
Best Home Warranty Providers
Appliance warranties are useful in certain circumstances, but we recommend choosing a home warranty policy for more comprehensive coverage and peace of mind. The following providers offer the best home warranty coverage:
Liberty Home Guard
Liberty Home Guard offers flexible coverage and a lengthy workmanship guarantee. LHG covers up to $2,000 in repairs per appliance under two of its three plans: Appliance Guard and Total Home Guard. LHG also includes a 60-day workmanship guarantee, which is double the 30-day industry standard. You can add coverage for 38 unique add-ons, such as wine coolers and water softeners.
American Home Shield
American Home Shield offers three comprehensive coverage plans, two of which cover appliances. ShieldGold and ShieldPlatinum plans include appliance coverage caps of $2,000 and $4,000, respectively. The company covers appliances and systems that are damaged by rust, corrosion, or improper installation.
Select Home Warranty
Select Home Warranty provides affordable coverage for less than $50 per month. Its Bronze Care and Platinum Care plans cover appliances up to $500 per item. Select offers customers free limited roof-leak coverage and optional septic system coverage. The company offers 30-day workmanship guarantees and customer discounts for customers who enroll in multiyear plans. We recommend Select for homeowners who seek basic coverage on a tight budget.
First American Home Warranty
First American Home Warranty offers comprehensive appliance coverage as part of each plan. The Starter and Essential Plans cover kitchen appliances with a $3,500 cap, and the Premium Plans include a $7,000 limit. The company’s Essential and Premium plans cover your appliance’s knobs, dials, and hinges, which most warranties exclude. First American is an excellent option for homes with high-end appliances.
FAQ About Appliance Extended Warranties
How can I file an extended warranty claim?
Submit a claim to the warranty provider online or by phone if your appliance needs servicing. The provider should acknowledge your claim within 24–48 hours. Your provider will schedule a contractor for an in-home visit to repair or replace your appliance.
Are extended appliance warranties worth it?
Extended home appliance coverage is useful for homeowners who want protection for individual appliances, but we recommend a home warranty for homeowners who want more comprehensive coverage.
Can you buy an extended warranty after purchasing the appliance?
Yes, you can typically buy an extended warranty after purchasing an appliance. Most manufacturers offer warranties that last up to three years after your purchase date.
Do I need an extended warranty for my washer and dryer?
Your washer and dryer will probably break down at some point due to normal wear and tear, and we recommend purchasing a home warranty to cover these appliances.
How long does an appliance warranty last?
The length of an appliance warranty depends on the policy and manufacturer. A manufacturer’s appliance warranty typically lasts for one year, but extended warranties can add up to four more years of coverage.
Our Rating Methodology
We back up our home warranty ratings and recommendations with a detailed rating methodology to objectively score each provider. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts from each company, and conducting focus groups and consumer surveys. We then score each provider against our review standards for coverage, cost, trustworthiness, plan transparency, customer support, and flexibility to arrive at a final score on a 5-point rating scale. To share feedback or ask a question about this article, send a note to our team at reviews@thisoldhousereviews.com.
