Home is where the heart is, but it’s also where we keep some of the most important assets we own. Appliances like ovens, hot water heaters, washers and dryers, and HVAC systems keep us fed, clean, and comfortable in our homes. However, as anyone who has owned a home or any of these devices can attest, appliances are likely to break down unexpectedly due to normal wear and tear—sometimes when you can least afford it.
It’s because of these inevitable mechanical failures that many people have turned to an appliance extended warranty for peace of mind and the chance to save a little money on the repair bill. But are they worth it? Today, we’ll dig deeper into the details of how an appliance extended warranty works and provide our recommendation on if you should purchase one.
All new appliances should come with a standard warranty. The terms of that factory warranty will vary based on the appliance, but it will most likely be anywhere from one to five years. Given the cost of today’s appliances, consumers expect these devices to last much longer than that. And that’s where an appliance extended warranty can help.
Think of an extended appliance warranty as insurance to cover your device after the factory terms have expired. In order to ensure there’s no lapse in coverage, you’ll need to secure the extended warranty either prior to the end of the factory warranty or immediately after. An appliance extended warranty is typically a one-year term with the option of renewing annually should you choose to do so.
Some homeowners mistakenly confuse an appliance extended warranty with other extended home protection plans like a whole-house home warranty. The difference is that an appliance extended warranty covers only the appliances, while a home warranty is comprehensive coverage that includes both appliances like the air conditioner and the intricate ductwork that allows it to cool your home.
The devices included in any appliance extended warranty coverage may vary by provider and protection plan, but there are some that usually come standard. Here are a few of the most popular components of a home appliance extended warranty that you might come across:
However, you may be surprised to learn that some protection plans even cover ice makers and range exhaust hoods—among other unique devices—as part of a comprehensive kitchen appliance extended warranty. There are also some companies that provide levels of protection from appliance extended warranties to whole-home coverage so that you can select the plan best suited for your home and circumstance.
Providers may institute caps on protection plans that will dictate the maximum amount the plan will pay for repairs or replacements. It’s a good idea to confirm what caps are in place before selecting your appliance extended warranty.
Again, this can be all over the map based on your provider, level of protection, and where you live. If you’re just interested in an appliance plan, budgeting around $50 per month is a good estimate. But your monthly premium won’t be the only charge if you have an appliance breakdown.
Remember how we said to think of an appliance extended warranty like insurance? With any insurance, you pay a premium to obtain the coverage and then a deductible when the coverage is used—and the same goes for an appliance extended warranty. Your premium of $30 to $50 each month secures your coverage, but a deductible of anywhere from $75 to $200 will need to be paid for each service visit if something goes wrong. Consumers should consider the age and condition of their appliances before deciding the plan they select. With most providers, the higher your premium per month, the lower your deductible (and vice versa). If your appliances are relatively new and in good condition, you may be able to spend less on the premium since you likely won’t have as many service calls.
In case you’re wondering, because an appliance extended warranty only covers appliances, both the premium and deductible are likely to be less than that of a whole-home warranty.
You should know that the companies that provide the warranties don’t necessarily employ the technicians who are doing the repairing—but it’s in their best interest to only align with properly trained professionals. Reputable providers will only use third-party technicians that have been screened, vetted, and verified to have liability insurance. As a consumer, it’s well within your rights to ask any provider you’re considering about their policy for selecting technicians.
While everyone’s situation is different, we do believe it’s in a consumer’s best interest to purchase an appliance extended warranty. These devices are subject to malfunction, and you never want to be put in a situation where you’re without an essential like air conditioning in the summer or hot water in the winter.
As you start to research who has the best extended warranty on appliances, you’ll find that there are many within the space. Our recommendation for a continued appliance protection provider is Cinch Home Services. Formerly known as Cross County Home Services, the company recently made a name change to Cinch Home Services after four decades of home industry experience.
We think Cinch offers the best appliance extended warranty, and we particularly like the flexibility included in its plans. Cinch offers appliance extended warranty plans, built-in systems plans (i.e., plumbing systems and electrical systems), and complete home plans that cover it all for consumers to choose from. Additionally, Cinch’s plans include some benefits that we know consumers will value in a protection plan, like rust and corrosion coverage and a 180-day workmanship guarantee if a problem persists after a technician’s visit.
The appliance-only plan with Cinch starts at $27.99 per month, but coverage and pricing (including that deductible) will vary by location. For more information on Cinch or to get a personalized appliance extended warranty quote, visit CinchHomeServices.com.
Our top pick for appliance extended warranties