DIY, House and Home
Protecting Your Home Appliances: Understanding the Difference between Extended Warranties and Home Warranties
Your home is the single most expensive asset you own. However, it’s filled with possessions that also represent investments – your stove, refrigerator, HVAC system, washer and dryer, and all the rest. You want to protect those assets and ensure that you get years of trouble-free use out of them. Let’s face it. Without these modern conveniences, life just isn’t as comfortable. How do you protect them, though? According to Appliance Texas, you’ve got quite a few options, including buying an extended warranty through the manufacturer, going the route of a home warranty for appliances, and more.
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In some cases, you may be tempted to let things ride. After all, you’ve gone this long without anything catastrophic happening, so what’s the harm in not spending the money on a warranty of any type? While that might save you a little bit of cash in the short term, it’s not going to work in your favor in the long term. Eventually, everything breaks down, and when your refrigerator or dryer does fail, you need someone to call and a way to mitigate the cost of repairs or replacement. So, going without protection is certainly not advisable. What about an extended warranty or a home warranty for appliances?
Extended Warranty
An extended warranty is almost what it sounds like – an extension of your manufacturer’s warranty that kicks in when the original warranty expires. Because of this, many people assume that this is the right path to take. Sadly, they’re often wrong because there are some key differences between an extended warranty and your original warranty. These include the following:
- Often not sold or serviced by the manufacturer, which means you may have no idea who is handling repairs or replacements
- Often does not cover the full range of risks that the manufacturer’s warranty covered, leaving you to deal with a long list of exclusions
- Usually purchased at the same time as the appliance, which increases your costs initially
- May expire before you even need to use it, meaning this may be money down the drain
As you can see, an extended warranty, while better than going without any type of protection, falls short of what many people assume that it will offer.
Home Warranty for Appliances
A home warranty differs from an extended warranty in several key ways. One of those is that your policy will provide coverage for an entire range of appliances and systems in the home, not just a single appliance. When you purchase a home warranty for appliances from www.ahs.com or other sites, the warranty company will explain the covered items on the base plan, the upgraded plans, and any optional coverage items available. Often, you’ll find that home warranties provide protection that you would not otherwise have available for things like pool pumps and hot tubs, in addition to standard items like your washer and dryer or your oven.
So, how does a home warranty stack up to an extended warranty? Here’s a quick look:
- Usually purchased after the manufacturer’s warranty has expired, saving you time and eliminating needless double coverage
- Covers an entire range of appliances and systems for an affordable price
- Renewable annually so you can customize your coverage as needed
- Fewer exclusions than with some extended warranties mean you get more peace of mind
As you can see, a home warranty offers greater value and more protection than an extended warranty, plus it saves you from having to “double-up” on your protection when the appliance is new and unlikely to experience problems.
With that being said, not all home warranty companies are the same, and it’s imperative that you compare your options to make an informed decision. When comparing home warranty companies, you’ll want to consider the following in your decision:
- Deductible per service/incident
- Emergency service availability
- Reputation with existing/past customers
- Rate of claim denial
- Rating with the BBB
In Conclusion
In the end, protecting the appliances that make your home livable is a vital consideration. While both extended warranties and home warranties promise to help you achieve that, extended warranties usually fall short. A home warranty, on the other hand, can give you protection for multiple appliances and systems in your home, reduce your costs, and ensure that you have the peace of mind you deserve.
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