If you're looking to protect the appliances in your home, you have two options: home warranties and appliance warranties. Home warranties protect older homes against issues that can arise with installed fixtures, while appliance warranties cover issues that can arise with your appliances specifically. Here are a few of the differences, including the benefits and drawbacks of each.
A home warranty covers a large number of items in your home, including (but not limited to) ceiling fans, central vacuums, doorbells, and garbage disposals. An appliance warranty covers a more limited number of items, including dryers, washers, dishwashers, and microwaves.
Home warranties may not cover appliances that didn't initially come with your home or that aren't fixtures in your home. Though they functionally cover many items, they also cover items that aren't very likely to fail, such as doorbells and smoke detectors. Comparatively, appliance warranties may cover fewer items, but these items may be more likely to require repair.
Home warranties are often written for a period of one year. During this contract period, you'll continue to pay for the warranty as though it is insurance. Appliance services are often delivered on an annual basis rather than a period of multiple years and consequently may be more flexible.
A home warranty may deny coverage for a homeowner if an appliance has been previously repaired, if an appliance is too old, or if an appliance was not properly maintained or experienced too much wear-and-tear. All of these things are things that will usually still be covered under appliance insurance.
If you don't know the history of an appliance (such as having just purchased a home or purchased the appliance used), appliance insurance will be more likely to be useful. If you have all new appliances, a home warranty may still be beneficial.
Cost of Warranties
Home warranties are more expensive than appliance warranties, weighing in at about $300 to $600 a year and requiring an additional service cost for each appliance servicing. In fact, they are often expensive enough that many people don't recommend getting them, as saving the money instead could potentially pay for the cost of repairs.
Home warranties have to cover things like HVAC systems, which means that in order for the warranty company to come out ahead, they need to charge quite a lot. Appliance warranties cover fewer items and cover smaller items, which means that they can charge less. They are consequently easier for many people to get.
Choice of Service Provider
A home warranty service is going to require that you use the service provider that they prefer. If you are unhappy with their service, you'll often still need to continue working through the same service provider. Appliance services, on the other hand, are purchased directly through the appliance company.
If you have an appliance company you want to work with specifically, you can purchase an appliance warranty through them to get servicing through them every time. This also means your servicing will often be much faster; you don't need to wait for the warranty company to find someone who is available.
Home warranties have a tendency to be expensive and inflexible. Often, you'll still need to pay a substantial sum to get your appliances fixed, and you may end up paying for coverage you don't really need. Meanwhile, appliance servicing can be done through local companies and ensures that you can get quick, easy servicing for any appliance breakdowns you suffer.
For more information about appliance services, inquire about the annual service contracts we offer at ACA Appliance & Air Conditioning, LLC.