The Ins and Outs of Home and Appliance Warranties


Your home is likely the largest financial investment you’ll ever make. That’s why protecting it—and everything inside it—is crucial. One of the ways to do so is by purchasing home and appliance warranties. However, it’s important to understand that different kinds of policies offer different kinds of protection. Here’s what you need to know about the options so you can make an informed decision.

What is a Home Warranty?

A home warranty is not the same as a homeowner insurance policy. Unlike homeowner’s insurance, which is mandatory if you have a mortgage, warranties are optional. Depending on the type you purchase, they can cover repair or replacement of certain aspects of the home. Some cover systems in the home such as HVAC and plumbing, while others only cover appliances, and still others cover the entire house.

Wonder if you need a home warranty if you have manufacturer warranties on your appliances? It depends. Most manufacturer warranties expire after a certain number of years and a home warranty can pick up where they leave off.

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How Do Warranties Work?

When one of your appliances stops working and its outside of the manufacturer’s warranty window, a home warranty can cover the cost to replace or repair it. Depending on the type of warranty you have, it can cover maintenance and replacement on a variety of appliances as well as your home’s mechanical systems. Some home warranties have monthly costs while others charge a yearly fee.

Benefits of Warranties

Warranties are just another way for homeowners to have peace of mind. Here are some of their benefits:

  • They give you easy access to a service provider. When you have a warranty, you get 24/7 access to the repair companies that work with the warranty provider. This means you don’t have to wait for return calls or wonder who you should call to take care of your repair or replacement.
  • They add value when selling. If you have a home warranty and plan to put your home on the market, it can be a value add for the buyer. The buyer’s risk is reduced, and you may get more (or higher) offers on your home.
  • It provides more protection from costly repairs and replacements.
  • You can budget more easily. When you have an expected monthly or yearly cost instead of unexpected and unpredictable repair or replacement costs, you can more easily develop and stick to a budget.

Is There a Difference Between an Appliance Warranty and a Home Warranty?

Yes, there is a difference. It’s important to read all the information about the warranty you are purchasing to see what it covers. A home warranty will generally cover the systems in your home including the plumbing, central heat, garbage disposal, water heater, faucets and toilets, and air conditioning system. Appliance warranties, on the other hand, cover the repair or replacement for certain home appliances such as the refrigerator, oven, or washer and dryer. The number and type of appliances covered depends on the warranty you purchase. Combination plans are also available.

Is It Worth It to Buy a Home or Appliance Warranty?

Whether or not a warranty is worth it is a personal decision. However, knowing that a simple appliance malfunction could cost hundreds of dollars and a failure of an HVAC system could cost ten times that, it often makes sense. Some warranty plans start at as little as $50 per month. At $600 per year, it’s pretty easy to see that it would pay for itself if you had just one covered repair or replacement in a 12-month time frame.

As a homeowner, it’s never fun when your appliances or home systems break down. Whether or not you have a warranty, you can always count on ASAP to help you when you need an appliance fixed. Give our experts a call today!