An appliance extended warranty is an optional coverage plan that extends your standard manufacturer’s warranty. It often includes a flat, upfront fee and a monthly payment. Many credit cards offer complimentary extended warranties on appliances purchased with them. However, some plans may include terms that make them less useful.
Warranty Length
An appliance extended warranty is an added layer of protection to cover repairs after the manufacturer’s initial warranty period expires. Also known as a protection plan, service contract, or appliance insurance, these plans are offered by retailers and third-party companies to provide long term coverage for major home appliances like refrigerators, freezers, washers, dryers, dishwashers, ovens or stoves, built-in microwaves, and water heaters. Many extended warranties offer additional perks or services to enhance the customer experience. For example, LG’s Premium Care plan includes free in-home repair service with a deductible of $0 and food loss reimbursement, among other features.
Ultimately, the decision to purchase an extended warranty depends on one’s risk tolerance and budget. Statistically, there is a very small chance that an appliance will need repair during the duration of the extended warranty, especially since most modern appliances are designed to last longer than their predecessors. However, many consumers feel it is worth the added peace of mind and cost to protect their investment in these essential household appliances.
Exclusions
An appliance extended warranty, also called a product protection plan or purchase protection plan, extends the manufacturer’s original warranty for an additional cost. Depending on the terms of the warranty, it may cover repairs and parts replacements as well as home appliance insurance or reimburse the cost of a new device. It’s important to read the fine print of an appliance extended warranty to find out what types of breakdowns are not covered. For example, many warranties exclude damage that results from normal wear and tear or a lack of routine maintenance, and some plans require that you use a certain service technician for maintenance.
A good extended warranty should also include a promise that if the appliance is unrepairable, the warranty company will provide a replacement or a refund for the cost of the appliance. However, this type of coverage is more likely to be found in a home warranty, which typically offers more generous coverage.
In-Home Service Calls
Many appliance manufacturers offer extended warranties for their products after the original manufacturer warranty has lapsed. These extended warranties often cover wear-and-tear problems that may not be covered by the initial manufacturer warranty. Home appliances are expensive investments, and a warranty provides peace of mind that you’ll be able to get help with the cost of repairs or replacements. Some warranties also have convenient features like access to a network of experienced service technicians who can quickly respond when an appliance breaks down.
Many appliance warranties also make it easier to keep up with routine maintenance, extending the lifespan of the appliances in your home. This can prevent costly breakdowns and improve your home’s value when it comes time to sell. An appliance protection plan can be purchased from a retailer or directly from the manufacturer, and it’s available for both homeowners and renters. The plans can also be transferable to a new owner in the event that you move.
Customer Service
An appliance warranty protection is a coverage plan that offers repair or replacement of a product after the manufacturer’s standard warranty has expired. It typically costs extra and is available from the manufacturer, retailer or a third party provider. Many consumers purchase an appliance extended warranty as a safeguard against expensive repairs after the manufacturer’s initial warranty period has passed. A warranty company will typically offer a range of customer service options, including 24/7 support.
The pros of an appliance extended warranty include the knowledge that you have set aside a predetermined amount each month toward repairs, rather than having to pay out of pocket for a costly repair bill or replace a broken appliance. A good extended warranty plan may also reimburse for food spoilage or laundry expenses while an appliance is under repair. The cons of an appliance extended warranty include high deductibles and exclusions. Additionally, these warranties may require that you use specific providers for repairs or maintenance, which can be inconvenient.
Conclusion
Appliances can be costly to repair or replace. An extended warranty or purchase protection plan can help you manage unexpected expenses. Before you buy, consider the cost-benefit ratio. Also, review the warranty’s terms and fine print for exclusions and limitations.
