Home appliance insurance covers the cost of repairs in case the appliances in your home malfunction or break down. It covers practically all the appliances at home, including ovens, refrigerators, dryers, dishwashers, washing machines, and more. However, the precise coverage amount differs based on your chosen plan and provider. Here are the benefits of home appliance insurance, the overall cost of purchasing a plan, and the right time to buy one.
Benefits of home appliance insurance
Getting this type of insurance has many advantages, some of which are discussed below:
Fills the gap between your home insurance and appliance warranty
While your home insurance may cover your appliances, it has many terms and conditions. For instance, it will cover the cost only when your appliances are stolen or damaged due to incidents like fire. Home insurance does not cover the expenses for repairing appliances that have stopped working.
On the other hand, your manufacturer’s warranty will cover your appliances if they stop working. However, it will be valid for only a limited period. And in most cases, appliances like refrigerators and dishwashers start developing problems a little later, once the warranty has expired.
This is where appliance insurance steps in to help. It lets you save a lot of money on repairing mechanical or electrical issues in appliances and rectifying accidental damages even after the warranty period.
Reduces downtime
Your appliances are vital for you to go about your day smoothly. Any breakdown or damage can disrupt your schedule. Moreover, it becomes very inconvenient when you must wait for someone to fix it or save extra every month to replace the appliance. When you have home appliance insurance, you do not have to worry about these things. Your insurance provider will immediately connect you with someone who will repair your damaged appliance or help you replace it quickly. It ensures you can go about your routine without inconvenience.
Prevents unexpected costs
An appliance breaking down out of the blue means you must prepare to pay out a significant amount for repairs. The price increases when you need to replace parts or completely overhaul the entire system. Moreover, there may be unexpected and hidden costs involved. However, if you purchase home appliance insurance, you only have to pay a small premium every month. With this, your appliances can be replaced or repaired anytime, and the provider will cover the expenses. You do not have to shell out a lot if your system suddenly stops functioning, and you can continue saving for other purposes.
Covers more than one appliance
Most providers let you cover multiple appliances in your home. You can add as many of them to the policy as you want, depending on its maximum limit. This way, you are assured that the essential appliances in your home are protected. You may also save extra money since some insurers offer a discount for insuring more than one unit.
Offers additional perks
Several home appliance insurance providers offer extra perks with their coverage plans. These usually include free maintenance checks and discounted replacements. When you consider it for the long term, these extra benefits can help you save a considerable sum.
How much does home appliance insurance cost?
When you apply for home appliance insurance, you must pay a monthly fee for the service. In addition, you will have to pay a fee to the person who visits your house to handle the repair and maintenance work. The average cost of home appliance coverage across several popular insurance providers is approximately $50 monthly or $600 annually. Service call fees for the technician usually range between $75 to $125 for each claim. All these estimated costs are for the basic plans that offer coverage for kitchen and laundry appliances. The rate will change depending on the provider, plan, number of appliances insured, and the city you reside in. Also, a majority of home appliance insurance plans have annual contracts. If you decide to cancel your plan earlier, you may incur additional fees.
What is the best time to get home appliance insurance?
The best time to enroll is when you have older appliances. Aging machines have higher chances of breaking down and requiring urgent repairs and frequent maintenance than newer models. Also, most of your older appliances will likely have an expired warranty, another critical reason to get insurance. Many people purchase appliance insurance as soon as they move into a new home. However, the premiums turn out to be an unnecessary expense as new appliances rarely break down.
Remember, you may have to wait at least 30 days after enrolling before forwarding service or repair requests to the provider. The exact period can differ depending on your chosen insurance company and plan, so inquire about the same before signing up. Also, read the documentation carefully to check which machines are covered and up to what limit. Not checking the limit can lead to higher out-of-pocket expenses at the time of repairs. Consult the provider’s customer service team if you have any queries about the features of the plan you are considering.
Engagement rings, heirloom jewelry, and wedding rings are all items that we hold incredibly dear. While we often store these in a safe in our house, we might lose them in the event of a theft or house fire. Hence, taking the right precautions to protect them from harm is essential. This can include taking out jewelry insurance that ensures all-around protection of these valuable items.
How jewelry insurance works
Most homeowners in the country opt for a home insurance policy. While this policy can be used to pay for jewelry repair or replacement after a house fire, it provides limited coverage of up to $1500. In addition to jewelry, this amount can be used for watches, furs, and semiprecious stones.
On the other hand, jewelry insurance provided by specialized companies can provide more comprehensive coverage compared to a home insurance policy. For instance, they can help cover preventive maintenance measures such as clasp replacement or stone tightening. Further, they also pay for any jewelry pieces lost in floods, earthquakes, and other scenarios listed in the policy.
What it covers
In most cases, separate jewelry insurance can cover loss, theft, and damage. So, for better clarity, here is a list of kinds of jewelry that are covered by separate jewelry insurance:
While specialized companies cover the items mentioned above on an “all-risk” basis, they may not pay for the damage caused by scenarios not mentioned in the policy. This comprises wear and tear, intentional loss or damage, manufacturer defects, and damage caused by rodents and vermin.
Need for jewelry insurance
There can be various reasons why one may need jewelry insurance. A few reasons are listed below:
Jewelry insurance companies to check out
Here are a few top jewelry insurances companies that one can check out:
Generally, stand-alone jewelry insurance costs 1% to 2% of the value of each item. But the policy’s price can differ depending on factors such as location, number of pieces, and the deductible amount.
Owning a home comes with several unexpected expenditures, which are not always covered by your homeowners’ insurance. In such cases, it proves handy to opt for a home warranty insurance plan, which is designed to cover what your homeowners’ insurance doesn’t. A home warranty insurance plan is considered to be the foil to your home insurance when the certain perils that wreaked havoc on your home—water damage, earthquake, floods, or mold—are not covered by your home warranty insurance.
Here are certain things you should know about home warranty insurance plans that will help you arrive at an informed decision.
How is a home warranty insurance plan different from homeowners’ insurance?
For starters, homeowners’ insurance covers damages that are caused by certain defined perils, such as straight-line winds, fire, burglary, hail, and other property claims. It even covers certain types of water damage. However, homeowners’ insurance doesn’t cover the expenses that are associated with appliances or home system failures unless these failures are caused by the said peril.
Home warranty insurance, on the other hand, covers things that aren’t covered by homeowners’ insurance. These are essentially service contracts that pay for the cost of repairs or replacement of appliances, built-in appliances such as heating and air conditioning, and plumbing, when they cease to function. It typically costs around $250-$500 annually but can run closer to $1,000 depending on what plan you choose.
How does home warranty insurance plan work?
A home warranty insurance plan works in a similar fashion as the product warranty for any appliance you might have purchased. When you opt for a home warranty insurance plan, the company pays for the repairs and replacement of the specific components of your home which are included in the policy, such as your HVAC system, furnace or boiler. You will have to pay an annual fee which is used for dispatching a contractor to your house for repairs whenever a problem arises.
What factors are covered by a home warranty insurance plan?
It is essential for you to know that home warranty companies tend to offer several tiers of coverage, and these are some of the common things that are covered:
Before you decide on a home warranty insurance plan, ensure that you shop around for it.