3 Best Home Appliance Insurance Companies (2021 Review)

Looking for the best home appliance insurance? You’re in the right spot. Finding the right coverage for your appliance can be difficult. But, we’ve done the research for you! Finding the best home warranty will protect your home from unwanted and expensive appliance repairs and replacements. In our guide you will find:

  • Best home appliance insurance providers of 2021
  • What does appliance insurance cover?
  • How much does home appliance insurance cost?
  • Are home appliance warranties worth it?
  • Factors to consider before buying home appliance insurance

Home appliance insurance—also called a home warranty—is an annual service contract that covers expensive repair and replacement costs and protects major home appliances and systems when they break down due to normal wear and tear. It’s different from traditional homeowners insurance in that a home appliance insurance policy covers major home items instead of covering damage done to the structure of your home.

Having home appliance insurance can be a lifesaver if you don’t have an emergency budget for unexpected home repairs and can provide peace of mind that if something were to break down, you’d be covered and receive professional service in a timely manner. Keep reading to learn about home appliance insurance and how to find the best home warranty for you and your home.

Top 3 home appliance insurance providers of 2021

Before buying a home appliance warranty, you should compare different home warranty companies and make sure that you’re comfortable with the one you select. To save you time, House Method did the research for you. We called some of the best home warranty companies, asked them the tough questions, and negotiated prices to find out how low they would go. 

Here’s what we found:

Provider Website Best For.. Monthly cost Service fee Years in business BBB rating
Choice Home Warranty choicehomewarranty.com Best Overall $45-$55 $85 12 B
American Home Shield ahs.com Customizable Plans $35-$65 $75-125 49 B
Select Home Warranty selecthomewarranty.com Most cost-effective $36-$45 $60 7 B

1. Choice Home Warranty

Choice Home Warranty is one of the best home warranty providers with over 11 years of experience in the industry and a B rating from the Better Business Bureau (BBB). It offers comprehensive coverage at competitive pricing with two plans and plenty of optional add-ons. 

Best Overall

  • 2 plans available + optional add-ons
  • Has over 11 years of industry experience
  • 90-day repair guarantee
  • $46–$55 per month with $85 service fee

Choice Home Warranty offers two plans, the Basic Plan that covers 14 basic home appliances and systems, and a more comprehensive Total Plan that covers those 14 major appliances and systems plus four additional important ones.

Plan Plan cost per month Plan cost per year Service fee
Basic Plan $45 $560 $85
Total Plan $53.33 $660 $85

Choice Home Warranty also offers optional coverage on these items for an additional fee:

  • Septic System
  • Septic tank pumping
  • Well pump
  • Sump pump
  • Limited roof leak
  • Central vacuum system
  • Pool and spa
  • Second refrigerator
  • Standalone freezer

You can expect an $85 service call fee each time you use your home warranty. 

To get a free quote from Choice Home Warranty, fill out this online form or call 929-400-6164.

For more information, read our Choice Home Warranty Review.

2. American Home Shield

American Home Shield (AHS) is a veteran in the industry with nearly 50 years of experience as a home warranty provider. AHS offers three plans to provide comprehensive coverage of all major home appliances and systems with ample optional additional coverages.

Best Customizable Plans

  • 3 plans + add-ons and the option to build your own plan
  • Customers can choose the service fee they want to pay
  • Provides generous coverage caps
  • $35–$75 per month

AHS offers three different options for home warranty plans: ShieldSilver which covers cooling and heating systems, electrical system, and plumbing systems; ShieldGold which includes the systems in ShieldSilver plus major kitchen and laundry appliances; and ShieldPlatinum which covers all of ShieldSilver and ShieldGold plus roof leak repairs, a free annual HVAC tuneup, and higher coverage caps.

Plan Plan cost per month Plan cost per year Service fee
ShieldSilver $34.99-$49.99 $419.88-599.88 $75-$125
ShieldGold $44.99-$59.99 $539.88-$719.88 $75-$125
ShieldPlatinum $59.99-$74.99 $719.88-$899.88 $75-$125

In addition to its three plans, AHS offers additional coverage on the following:

  • Pool and spa
  • Well pump
  • Septic pump
  • Extended electrical warranty
  • Guest unit
  • Roof leak repair

AHS allows you to choose your service fee between $75-$125 but if you choose a lower service fee, you will pay more per month and a higher service fee results in a lower deductible per month. (Ex. for $75 service fee: ShieldSilver = $49.99, ShieldGold =  $59.99, ShieldPlatinum = $74.99)

 To get a free quote from American Home Shield, fill out this online form or call 888-365-2839.

To read more, visit our American Home Shield review.

3. Select Home Warranty

Select Home Warranty has over 7 years of experience in the home warranty industry and has landed itself a B rating with the BBB. Select Home Warranty offers three plans to its customers with a definitive plan for appliances, systems, and a combo plan.

Most Cost-effective Plans

  • 3 plans ranging from $52-$58 per month + optional add-ons
  • Provides free roof leak coverage
  • Covers rental properties, mobile homes, manufactured homes, single-family homes, and condos
  • Affordable service fee of $60

The three plans offered by Select Home Warranty are the Bronze Care plan, The Gold Care plan, and the Platinum Care plan. The Bronze Care plan covers your major home appliances and the Gold Care plan covers home systems, but the Platinum Care plan is a comprehensive warranty that covers both home appliances and major home systems, plus garage door opener, ceiling fans, and plumbing stoppage. Select Home Warranty also offers optional coverage on other items for an additional fee. 

Plan Plan cost per month Plan cost per year Service fee
Bronze Care Plan $57 $580 $60
Gold Care Plan $57 $580 $60
Platinum Care Plan $63 $650 $60

Select Home Warranty also offers optional coverage for the following:

  • Sprinkler
  • Pool and spa
  • Septic
  • Stand-alone freezer
  • Vacuum
  • Well pump
  • Sump pump
  • Roof leaks

You’ll also pay an additional $60 service fee each time you use your plan.

To get a free quote from Select Home Warranty, fill out this online form or call 888-370-3953.

Read our Select Home Warranty review to learn more.

Types of home protection plans

There are three types of home warranty plan options that can cover the costly repairs and replacements of household appliances: a home warranty, homeowners insurance, and a manufacturer’s warranty. Here’s everything you need to know about all three plans.

Home appliance insurance vs. manufacturer’s warranty

A manufacturer’s warranty is a guarantee from an appliance manufacturer—such as Samsung, Frigidaire, or GE—that its product will perform as advertised for a specific amount of time (usually one to two years). However, some manufacturers might cover expensive components—such as a motor—under an extended warranty for a longer period of time.

If you want to cover an electronic or specific home appliance, such as a clothes washer or a water heater, you’ll have to register your product at the time of purchase to activate your coverage. The manufacturer will outline procedures for you to follow in the event that a covered appliance needs service while it’s under warranty.

Appliance insurance Manufacturer’s warranty
Required? Optional Optional
Cost $25–$67 per month Up to $125 per product per year
Coverage Covers most home systems and appliances Only covers registered appliances and electronics
Exclusions Age or brand don’t matter, but companies are not liable to match brand, dimensions, or color Only covers the registered brand name and specific model at the time of purchase
Coverage length 12 months with the option to renew 1–2 years unless you buy an extended warranty
Other factors to consider Transferable between seller and buyer at closing Non-transferable between buyer and seller during a home sale

Home appliance insurance vs. homeowner insurance

Homeowners insurance companies protect your home in the event of theft or natural disasters—such as a tornado or fire. Unlike appliance insurance, homeowners insurance policy is required by mortgage lenders before you can close on a house.

Homeowners insurance covers structural and property damage in cases of perils, liability if someone is injured on your property, property lost through theft or damage, and short-term housing costs in the event that your home becomes uninhabitable due to damage or disaster.

Appliance insurance Home insurance
Required? Optional Required
Cost $25–$67 per month $600–$2,000 per year
Coverage Most home systems and appliances Structural damage, theft, liability, and short-term housing costs
Exclusions Coverage is limited to items explicitly written into the contract that break down due to normal wear and tear Coverage is limited to perils—such as natural disasters and theft—named by the insurance policy
Coverage length Renew coverage annually or pay in monthly installments Premiums are bundled with mortgage payments
Other factors to consider Coverage is capped at a certain dollar amount, so the provider may not pay for the full cost of the repair or replacement There’s a set deductible that you’re responsible for paying prior to the insurance company

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What does home appliance insurance cover?

Here are some common major appliances that are covered under home appliance insurance:

Appliance Average lifespan Cost to repair Cost to replace Potential savings
Furnace 16–25 years $285 $4,249 $1,500
Air conditioner 15–20 years $347 $5,413 $1,500
Water heater 8–12 years $546 $1,065 $1,037
Refrigerator 14 years $310 $1,925 $1,306
Range 14–19 years $150 $1,675 $1,607
Built-in microwave 8 years $125 $408 $1,485
Dishwasher 12 years $150 $1,000 $1,683
Clothes washer 12 years $310 $1,250 $1,466
Dryer 13–14 years $250 $1,075 $1,466
Garage door opener 10-15 years $221 $510 $1,485
Garbage disposal 10 years $196 $456 $1,037
Cooktop 13-15 years $220 $770 $1,607

Home Warranty providers typically offer warranty policies that cover home systems in addition to major home appliances. Some of these systems offered are air conditioning, heating, ductwork, plumbing and electrical systems. Most home warranty companies have three levels of coverage options—a basic appliances plan that covers appliances and/or major systems, a combo plan that includes additional coverage like a Whirlpool bathtub or a clothes washer and dryer, and optional add-on coverage for special features like a pool, spa, or guest house.

Home warranty limitations and exclusions

As seen in the table above, most home warranty policies will set limits on repairs and replacements at a specific dollar amount. For example, your home warranty company may pay for a refrigerator replacement up to $1,306, leaving you to pay for the remaining $620.

Additionally, many home warranty companies don’t cover appliances or systems that have pre-existing conditions or have been improperly installed or inadequately maintained, which often includes rust and corrosion.

Before purchasing home appliance insurance, schedule a home inspection and have your house evaluated by a real estate agent to ensure that your systems and appliances are functioning and in good working condition. You’ll also want to read your contract’s terms and conditions and make sure you know how much your warranty company will pay for covered services.

How much does home appliance insurance cost?

Depending on the type of coverage you purchase, a typical appliance insurance plan will cost between $25–$67 per month. For more comprehensive plans, you can expect to pay upward of $50–$75 per month. In addition to this monthly premium, you’ll likely pay a trade service call fee, or deductible, that ranges between $75–$125 whenever you contact the home warranty company for a home service.

The overall cost of your home appliance insurance will vary by state, the company you purchase coverage from, and the level of coverage you purchase. Note: the size and age of your home, appliances, and systems should not affect coverage or costs unless you live in a brand new home, which should be covered by a builder’s warranty, or a house that’s larger than 5,000 square feet.

Are home appliance warranties worth it?

Yes, we believe home warranties are definitely worth the investment. Not only can these home protection plans save customers thousands of dollars, they can give homeowners peace of mind. When a covered item breaks under your plan, you can rest assured that an expert will handle the problem in as quickly as 24 hours. Some customers have even reported same-day appointments.

Additionally, a home warranty offers homeowners access to a whole network of local professionals. Instead of nagging your neighbor for the name of their plumber again, or spending hours reading home warranty reviews of technicians online, your home warranty provider will schedule an appointment with a local and licensed contractor in your area for you.

How does home appliance insurance work?

  1. Call your home warranty companies customer service line or file a claim online. Some claims may not be accepted if the appliance or system isn’t covered by your home warranty plan or was subject to code violations, improper installation, or unusual wear and tear.
  2. Once customer service approves the claim, the home warranty company will hire a local contractor to make an assessment or allow you to choose your own trusted contractor.
  3. The service technician will call you to schedule a time to either repair or replace your broken system or appliance.
  4. You’ll pay a small service fee to the contractor when they arrive at your home. Before you purchase a home warranty plan, ask your provider if you’ll be charged service fees for every repeat visit or if repairs are guaranteed for a window of time—usually 30 to 90 days.
  5. Once an appointment is made, the service provider diagnoses the problem and recommends either repairing or replacing the item. If a repair is necessary, the technician will typically fix it during the first visit. If a replacement is necessary, you’ll likely have to schedule another appointment for the technician to come back and reinstall the appliance or system.

Note: Most home warranty companies aim to schedule service within 48 hours of receiving your claim; however, this process can take longer on weekends and holidays. Since it may take a couple of days to dispatch a licensed contractor to your home, contact your home warranty company as soon as you notice an issue with your system or appliance.

Do you need insurance for your appliances?

While appliance insurance isn’t mandatory, it gives homeowners peace of mind against costly repairs and replacements. It’s a given that systems and appliances will wear down and break over time, so we recommend home appliance insurance for anybody who owns a home.

In particular, the following groups of people will benefit from a home warranty:

  • First-time home buyers—If you’re strapped for cash, invest $30 a month in a basic home warranty plan.
  • Homeowners of older homes—Most home warranties will cover systems and appliances regardless of age, as long as they were properly installed and are sufficiently maintained.
  • Home sellers—Sellers can use a home warranty to expedite the closing process. At closing, sellers often transfer the home warranty to the buyers, covering their repairs for the first year.
  • Realtors—Listing agents will enjoy the assurance that repairs will be taken care of while the house is for sale.
  • Rental property ownersRental property owners can streamline maintenance by letting the home warranty provider handle claims.

Factors to consider before buying home appliance insurance

Before buying a home appliance insurance plan, there are a variety of factors to consider, such as home warranty coverage, pricing, customer service, and more. Here are a few factors to consider when searching for a home protection plan:

  • Type of coverage—Think about whether you want to cover just systems, just appliances, or a combination of both. Most home warranty providers will provide appliance-only, systems-only, and combination plans to meet your coverage needs.
  • Coverage limits—Your home warranty provider will likely have coverage limits, or coverage caps, on certain appliances and systems in your home warranty contract. Once this limit is reached, you’ll be responsible for paying the remaining costs for either a repair or replacement.
  • Pricing—The cost of monthly premiums and service call fees will vary by provider. If you’re on more of a budget, we recommend Select Home Warranty for its affordable premiums and service fee. However, if you want more comprehensive coverage and have a little more room in your budget, American Home Shield may be a good option.
  • Claims process—Most home warranty providers will approve claims within 24–48 hours of receiving one. Though this is pretty standard, not all companies follow this timeframe and some will wait as long as four days to send a technician out to your home.

Find Home Appliance Insurance

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Our Recommendation

When selecting a home warranty provider for your home appliances, House Method recommends going with Choice Home Warranty, American Home Shield, or Select Home Warranty. Going with one of these providers will save you your wallet and give you peace of mind in the case that one of your main appliances needs repair or replacement. Be sure to look into the different plans offered by each provider and choose the one that best fits your needs.

FAQ

How long does a home warranty last?

Home warranties typically last 1 year. In general, home warranty providers offer 1 year service contracts that can be renewed by the homeowner at the end of the year. Coverage usually begins 30 days after purchase and the customer typically has 30 days to cancel their policy to receive a refund.

What is a coverage cap?

A coverage cap or coverage limit is the maximum amount of money that the home warranty company will pay to cover a certain appliance or system when it needs maintenance or replacement. This price range depends on both the company and the item. For example, for Choice Home Warranty the coverage cap for most items is $3,000 (air conditioner, heating, refrigerator, washer, water heater, etc) and the coverage cap for other items such as pool and spa is $500.

What is a service fee?

Similar to how an insurance company has a customer pay a deductible when they use their insurance, home warranty providers have a service fee. A service call fee is what the customer has to pay each time they use their home warranty. This fee varies from company to company, but typically falls between $50-$90.

House Method home warranty provider ranking methodology

At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology.

We’ve done the homework for you and have researched over 50 home warranty companies so you can have the information you need to make the best choice for your home. Additionally, transparency and trust are our most important values for the reader.

That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology. Our team spent hours on the phone speaking to representatives from each home warranty company to get information right from the source. We also dug into the fine print on each companies service agreement to make sure no detail was left out.

To make the most of our research, we developed a formula to objectively determine the best home warranty companies based on the following criteria:

  • Plans: Do they provide a variety of plan options? We looked at the number of plans each company offered and the flexibility adjusting the plan.
  • Prices: How reasonable are the monthly fees and service fees in comparison to the industry average? We compared the costs of each company to competitors.
  • Coverage: How many items are covered in each plan? We looked at the number of items each company covers. We dig into all service contracts available to get all the details.
  • Customer service: How is the customer experience when calling the providers? Based on our phone calls, we were able to judge each company’s customer service.
  • Trust: What do customers rate the company? We looked into what customers are saying about their experience with the company.
  • Nationwide availability: How many states does the company cover? We found the number of states covered by each company.
  • Unique perks: Does the company offer discounts or cover special items? We looked for perks offered by each company that sets them apart from the competition.

How do we keep our data up to date?

We want to make sure we’re providing you, the consumer, with the most current data available for every home warranty company we’ve researched and rated. That takes significant effort but we feel that’s vital to providing you thorough and trustworthy reviews.

With that in mind, we have dedicated staff members who regularly update our database of home warranty research.

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