Home Appliance Insurance

Home Appliance Insurance Guide

These days, many households rely heavily on several different home appliances—the fridge and freezer, dishwasher, washing machine and dryer, and many other electrical appliances that typically make lives easier every day. When those appliances break down it may cause a lot of chaos and inconvenience, so many people consider it a wise move to buy insurance to protect them.

Why Purchase Home Appliance Cover?

If a home appliance such as a fridge or washing machine breaks down within the first year after purchase, it's probably covered by a manufacturer's guarantee. But appliances don't usually break down according to a tidy schedule, and if the problem happens after the warranty expires, the owner could potentially be several hundred pounds out of pocket to cover the cost of repairs or replacement.

Preventing these kinds of problems could be the main purpose of home appliance insurance, which may sometimes be referred to as extended warranty. This kind of insurance could provide coverage for home appliances after the original warranty period, so if they break down in the second, third, or fourth year after purchase the insurance may cover the cost of repair or replacement.

Typically a domestic appliance insurance policy covers a period of 12 months. Once the term is up the owner generally needs to buy a new 12 month term in order to remain covered.

Another reason to buy home appliance insurance is that many of these insurance policies offer additional services that make it more convenient to get broken appliances repaired. Typically, the insurer has its own network of repair service providers. When someone has a problem with an insured provider, they probably call the insurance company rather than contacting a tradesperson directly.

What Kinds of Home Appliance Problems are Covered?

This kind of appliance protection plan doesn't cover all kinds of damage and malfunction, so it's usually important to check exactly what's covered when purchasing this insurance.

One thing to note is that appliance insurance does not always cover accidental damage. So, while the insurance might pay out if a dishwasher has an electrical or mechanical fault, it may not necessarily cover damage caused by an accident involving the appliance. It could be important to read and understand the fine print so that owners know exactly what’s covered by the insurance purchased.

Another important caveat is that most policies may have some restrictions on the age and value of the items they cover. For instance, a policy might cover appliances that are up to 8 years old, and might pay out a maximum of £2,000 per single item claim. Note that many policies limit how the amount of each single claim, and also limit how much could be claimed on any single appliance in the 12 month coverage period.

Single or Multi Appliance Cover?

For a home that has multiple different appliances, it may be cheaper to put all the various appliances on the same insurance policy, rather than purchasing a single policy for each one. While each additional appliance on the same policy could increase the cost of premiums, it may be possible to take advantage of a multi-appliance discount. This means it may cost less to insure multiple items with a single policy.

Extended Warranty or Home Appliance Insurance?

Many manufacturers offer extended warranties on their appliances. The customer could purchase an extended warranty at the same time as they buy the appliance, with the extended warranty cost added to the purchase price.

This may be a convenient way to buy this extra protection, but many people find they could get cheaper home appliance insurance if they forgo an extended warranty and instead shop around for quotes from insurance providers. Or, if someone already has a home appliance insurance policy in place, any new appliance purchases could potentially be added to the policy more cheaply than the cost of an extended warranty.

If a person already has home appliance insurance and is thinking about buying new appliances, it may be a good idea to check with an insurance provider about the cost of adding new appliances to the policy before makingke the purchase. Then people may be able to make a more informed decision about whether or not the extended warranty is a good option.

How to Compare Home Appliance Insurance Policies

When shopping around for home appliance cover it might be possible to compare several different features. The monthly cost of the insurance is typically the amount paid in premiums each month. In some cases it might be possible to save money by paying the full annual amount in an up-front lump sum. The maximum cover is the maximum value of each single appliance that is covered by the insurance. For instance if the maximum cover is £1,500 each single appliance must be worth £1,500 or less. The claims limit could be the maximum amount an insurer will pay out for any single claim. This might be the same as the maximum cover amount, but may also be less, depending on whether or not the policy covers replacement cost. If someone has multiple items to insure, look for a policy that offers a discount for each additional item on the policy. Compare exclusions, too. All policies tend to have coverage limitations—for instance excluding appliances over a certain age—so these may need to be considered when making a choice. Some policies charge for labour and replacement parts, while for others these costs are factored into the premium, and don’t incur an extra charge. Some policies have a claims excess, while others waive the excess amount.