If you’re a new homeowner, you’re probably excited about having a place to redecorate and make your own. However, you may also be feeling overwhelmed about being responsible for repairs to older appliances that your house came with. Or, perhaps you’ve owned your home for a while, but your manufacturer or extended warranties on your major appliances are expiring. You still want your belongings to be protected and may be looking for an alternative.
No matter how long you’ve owned your home, consider investing in a home warranty1, which is an annual service agreement that provides coverage for repairs and replacements on certain items. Both home warranties and appliance warranties are options available, both of which provide a defined scope of coverage. If you’re confused about whether a home warranty or an appliance warranty is the better choice, keep reading. We’ll explore home warranty vs. appliance warranty plans, their differences, and how to know which is the right option for you.
What is a home warranty?
A home warranty is an annual service contract, which provides coverage for repairs and replacements on home systems and appliances that break down from normal wear and tear. They are available from Cinch Home Services and, in many cases, offer an alternative to extended manufacturer warranties.
With a home warranty, you simply choose the plan that is right for you and then request service when a covered appliance or system breaks down. A trained and experienced service provider will come to fix the problem and get your home’s systems back to operating properly. Depending on the home warranty you choose, appliances can also be covered under the plan.
If you don’t have a home warranty and your major appliances or home systems break down over time, you’ll be stuck with the costs of repairing or replacing them. This can be very expensive, up to thousands of dollars, and may lead to stress and financial burdens. Plus, you may be at the mercy of a repair service’s busy schedule, sometimes having to wait weeks for a repair to be completed. Instead, having a home warranty provides peace of mind that your problems will be repaired with the help of a trusted partner. It also helps you relax, knowing you won’t be paying for the repairs or replacements of covered items completely out of your own pocket.
What is an appliance warranty?
An appliance warranty is a specific type of home warranty that covers appliances and some plans can cover more but may exclude coverage of some major home systems. Home appliances are devices or pieces of equipment, which are designed to perform specific tasks and typically plug into a dedicated power source. These kinds of warranty plans can be a cost-effective way to prolong your investments in your appliances that you use for everyday tasks.
What is the difference between a complete home warranty and an appliance warranty?
The main difference between a full home warranty and an appliance warranty lies in their scope of coverage. A full home warranty could help cover both your appliances and your home systems such as the plumbing, electrical, heating and cooling systems. This means if your HVAC breaks down or your refrigerator stops working, a home warranty could cover the repair or replacement.
On the other hand, an appliance warranty only provides coverage for home appliances. This includes items such as your dishwasher, refrigerator, stove, washing machine, and dryer. It does not cover any home systems. Essentially, a complete home warranty provides more comprehensive coverage compared to an appliance warranty.
Is an appliance warranty worth it?
Whether an appliance warranty is worth it or not largely depends on your specific circumstances. If your home appliances are older and no longer covered by the manufacturer's warranty, an appliance warranty could save you time, money and stress.
It's particularly beneficial if you don't have a budget set aside for unexpected appliance repairs or replacements. For homeowners with newer appliances still under manufacturer's warranty, an appliance warranty might not be necessary. However, it could still provide peace of mind knowing that when the manufacturer's warranty expires, you have coverage.
Scenarios when choosing a complete home warranty is the better option
It’s best to choose a complete home warranty when you want more than just your appliances to be covered from wear and tear and breakdowns. If you frequently use and depend on your heating and cooling systems, electrical systems, and plumbing systems, it’s a smart idea to get them covered with a complete home warranty. This way, both your covered appliances and systems will be protected under the policy. This gives you peace of mind that these covered items will be repaired or replaced promptly. You also won’t be stuck paying hefty bills all out of your own pocket.
Some people who can benefit from a complete home warranty include:
- People with limited resources, who don’t have emergency funds for large repairs or replacements
- Real estate agents who want to protect their properties between sales
- Homeowners who have dealt with home maintenance and breakdowns in the past
- People who aren't handy enough to do repairs on their own
- Homeowners who don't want to search for a reputable contractor when repairs are needed
Examining an appliances home warranty
An appliances home warranty is best when you only want protection for your major appliances. Unlike a complete home warranty, built-in systems are not covered. An appliance warranty is different from homeowners insurance, which covers damage or loss caused by known perils like fires or natural disasters. They don’t cover mechanical breakdowns on appliances caused by normal wear and tear. Since homeowners insurance doesn’t cover breakdowns due to everyday wear and tear, a home warranty can be worth it if you live in a home with older appliances.
Some people who can benefit from a home warranty include:
- New homebuyers seeking protection for their new appliances
- People who just purchased new appliances that are expensive to repair
- People buying a previously owned home with older or outdated appliances
- Property owners with older units who want to prepare and protect their assets
All these people can benefit from having an appliance warranty that helps them prepare and protect their assets.
How is an appliance warranty different from a manufacturer’s or an extended warranty?
Both complete home and appliance warranties are different from the manufacturer warranty that comes with appliances or home systems. A manufacturer warranty is a limited-time coverage that typically covers the parts and labor for repair service of a single appliance or system. It may also offer a replacement for products that have issues due to manufacturing errors. Manufacturer warranties have specific time limits and won’t cover repairs that aren’t considered manufacturing defects. They are for products that you buy new, and these warranties aren’t transferable to new owners.
What products do manufacturer warranties cover?
Manufacturer warranties cover parts and labor for a specific appliance or system. Covered items can vary based on the manufacturer, but they typically include:
- Washers and dryers
- Refrigerators
- Dishwashers
- Ranges, ovens, cooktops and microwaves
- Built-in food centers
- Built-in trash compactors
- Freestanding ice makers
- Wall ovens
What about extended warranties?
An extended warranty is just what it sounds like — an extension of the manufacturer warranty. It provides protection after your manufacturer’s warranty expires. However, extended warranties are only for one item, so the cost can add up quickly if you want to get them for multiple appliances. A more cost-effective solution is a Cinch Home Services appliance warranty plan that covers various appliances. These plans cover the most expensive components of your appliances that break down from normal wear and tear. Cinch home and appliance warranties are also often transferable to new owners. This means you can take over the previous owner’s warranty when you move into a house where the appliances are under a home or appliance warranty.
How to choose between warranty types
Now that you know the differences between complete home and appliance warranties, it’s time to figure out which one you should choose. To determine the best warranty type for your needs, you should research a list of questions to ask yourself, helping you determine whether a complete home warranty vs. appliance warranty plan is best for your home’s needs. Make sure to factor in the considerations in the fine print and your own unique circumstances, which only you have knowledge about when making this choice.
Look at each potential plan and ask yourself the following:
Which appliances and systems are covered, and which ones are not?
This helps you determine if the plan is suitable for your needs. If your home has unique appliances that you want covered, such as freestanding icemakers or built-in trash compactors, you want to make sure that the plan you choose covers these items. If they’re not covered, you might be stuck paying out of pocket to repair or replace them when they break down.
Which repairs specific to your appliances and systems are covered, and which ones are not?
This is another way to decide if a plan is right for you. Many appliance and home warranties only cover mechanical breakdowns from regular use or normal wear and tear. They don’t usually offer repair protection for structural damage or cosmetic issues. Therefore, it’s important to fully understand what types of repairs are covered by reviewing the terms and conditions before choosing a plan.
How much does the home warranty cost, how long is the term of service and what does the renewal process entail?
These factors are crucial to know before signing a warranty contract. Typically, most complete home and appliance warranties last for one year, although there is often a 30-day period before coverage starts. Plans may renew automatically if you have an automatically renewing plan. If not, the company will generally notify you in advance if you need to renew your plan manually. Get in touch with Cinch to discuss pricing specifics for your unique needs.
How quickly will the Original Equipment Manufacturer (OEM) respond to service calls vs. the home warranty company?
If you’re wondering if you need an appliance warranty on top of a manufacturer warranty, it’s beneficial to look at the service response times of both and whether an appliance warranty will cover an item that is also covered by a manufacturer warranty. The response time will depend on the OEM and the warranty company, but manufacturers generally aim to respond within a few days to a week. The exact timeframe varies based on the product, complexity, and the company's internal processes. With Cinch Home Services, service providers are contacted quickly in an effort to provide a referral to an independent contractor within 24 hours. We will also contact you to decide on the best time to come to your home.
It's also important to note that appliance warranties typically don’t cover items that are already covered by a manufacturer warranty. We can help you analyze your existing manufacturer warranties and determine the amount of coverage you need.
Are you purchasing an old home with built-in appliances?
This is important to ask yourself if you’re considering an appliance warranty. Older homes tend to have older appliances, which are more likely to break down unexpectedly compared to new ones. This can result in costly repair or replacement bills, which you will be left to pay out-of-pocket if you don’t have a warranty.
If your appliances are relatively new, are you the original purchaser with the ability to utilize the manufacturer's warranty?
New homeowners cannot typically use the manufacturer's warranty on appliances in a previously owned home. This is because most appliance manufacturer warranties are only valid for the original purchaser and don’t transfer to new owners. However, if you bought the newer appliances in your new home, the manufacturer's warranty can be utilized.
Have you read the fine print, and do you understand the ins and outs of your warranty?
It’s vital to read the fine print of the warranty plans you’re looking at to get a deep understanding of the policies. For example, if you already have some appliances that aren’t working and you’re looking at a home warranty policy to get them fixed, the fine print may tell you that these repairs won’t be covered. Many plans have stipulations that the covered items must be in good working order with no apparent visual or operational malfunctions, as of the service agreement’s effective date. Therefore, this type of policy may not be ideal for you if you know you have appliances that need repair before it goes into effect. The fine print can also tell you what types of repairs and parts will be covered and any other important details.
Does the warranty cover a specific system or appliance or multiple systems and appliances in your home? What exactly is covered?
It’s vital to know what exactly is covered in the plans you’re considering, so you’re not left with gaps that you think are covered but aren’t. Some warranties only cover a certain appliance or system, such as manufacturer and extended warranties. Others, like appliance warranties from Cinch Home Services, cover multiple appliances throughout your home.
What's the average time between placing a service request and the arrival of the professional to diagnose and repair the issue
This is crucial information to know when picking a warranty plan, as you may need repairs quickly. Warranties from Cinch Home Services offer a quick timeframe. We will use reasonable efforts to provide a referral to an independent contractor within 24 hours.
What are the fees involved?
It’s always a smart idea to know the fees involved with any contract you’re signing. Review the terms and conditions of potential plans to get the complete information. Many warranties charge a monthly fee and have a preset service fee you pay each time you place a service request. Our team is happy to talk through pricing with you, so you can ensure you invest in a plan that works with your budget.
Reach out to Cinch Home Services if a home warranty plan seems like the right option for you
If you need a home or appliance warranty plan for your home or real estate property, trust Cinch Home Services to be reliable, affordable and efficient. To learn more about complete home warranty vs. appliance warranty plans, contact us today or get an instant quote now.
The product being offered is a service contract and is separate and distinct from any product or service warranty which may be provided by the home builder or manufacturer.
