Appliance insurance is invaluable to homeowners, given that it covers you against problems with existing appliances, systems, and electromechanical devices in your home. Most of us do not have the requisite technical expertise when it comes to repairing washing machines, dryers, refrigerators, insinkerators and the like. As such, it is worthwhile considering your appliance insurance options. According to those in the know, the average lifespan of an appliance is 1 year for every $100 spent. For the most part, a toaster, coffee maker, microwave, extraction fan, or built-in soap dispensing unit worth $100 or less is not worth fixing after 1 year – it is simply better to replace it.
The Cost/Depreciation Paradigm: $100 for Every 1 Year of Functionality
On the flipside, a stove, washing machine, tumble dryer, or pool motor that costs $1,000 + is certainly worth fixing after 1 year, possibly as long as 10 years. There are many ways to benefit from the purchase of appliances for your home, notably energy efficient machinery, fully refurbished items, or factory floor items. The cost of these alternatives to home appliance insurance should be considered when your existing appliances go on the blink.
It is also a good idea to consider the warranty, guarantee or returns policy of your appliances when they stop functioning optimally. You may find that items under warranty may not need to be double-insured with appliance insurance, but if the warranty runs out, or does not cover loss of functionality, you will want an effective home warranty insurance option. Many people are concerned about the specific brands that they buy for appliances.
Unless you are shopping around for premium-quality brands like Bosch, or Whirlpool, it doesn’t make much difference when you are in the low to mid-price range. Many home appliances rank similarly at an affordable price level. According to the Consumer Reports editor, there is no single appliance brand/maker that is an expert at everything all the time. Many home warranty service specialists routinely swap out parts from different machines and manufacturers for repair purposes.
Use Consumer Advocate Websites to Evaluate the Quality of Home Appliances
It is a good idea to consult reviews of the top appliances with tech sites like CNET, and even consume advocate platforms like Angie’s List or Consumer Records. Honest reviews of appliances and products are a useful resource for evaluating the credibility of brands. Of course, when it comes to making purchases, there are e-commerce platforms, the store website, and the in-store purchase option.
Sometimes it is more cost-effective to use promotional codes, coupons, and discounts in-store, where you get to speak to sales representatives to determine your home appliance needs. Remember to consider things like warranties when purchasing new items. If your home already has existing appliances, it’s worthwhile checking how old they are before you go ahead and pay for home warranty insurance.
If a home was built over a decade ago, chances are you may still have the same appliances that the home came with. In this instance, you may be better off purchasing brand-new appliances instead of paying for a home warranty on old microwaves, stoves, refrigerators, washers, and dryers. The HVAC unit is another big-expense item and it needs to be thoroughly evaluated in terms of its suitability to a home warranty option.
Important Things to Look out for with Home Warranty Insurance
The decision to replace old appliances with new appliances, or reconditioned appliances is an important one. Remember that a home warranty is designed to save you money if these appliances stop working, or need to be replaced. The costs of your home appliance insurance should be factored into the equation. Typical appliances that you should keep a close eye on include your dishwasher (problems can typically be solved for around $150), your dryer (thermal fuses can cost $200 +), your washing machine (repairs cost from $60-$400), and your dishwasher disposal. Remember: the more expensive your home appliances, the costlier it is to replace them and the more valuable your home warranty insurance will be.
There are several ways to protect against malfunctioning or faulty appliances, notably home warranties that cover electric appliances, and extended appliance insurance. Comparative shopping platforms are a good place to start when evaluating which appliances and home warranty options you would like to consider. Remember: the purpose of a home warranty is to maximize your protection on faulty appliances at minimal cost.