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What are the Benefits of a Home Warranty on Appliances?

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  • Written By: Donn Saylor
  • Edited By: John Allen
  • Last Modified Date: 07 December 2016
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Obtaining a home warranty on appliances ensures the repair or replacement of certain major appliances and household items. When purchasing a home warranty, there are distinct benefits to both home buyers and home sellers. Each advantage offers individuals peace of mind, home protection, and assurance that potentially pricey repairs can be tackled without a significant amount of overhead cost.

For home buyers, a home warranty on appliances means, first and foremost, that should a covered appliance break down, the cost of fixing — or in some cases, replacing — the item will be paid for by the home warranty company. A home buyer pays a premium, typically at a yearly rate, in order to indemnify the appliances in the new home. There are, however, only specific items traditionally covered by this type of policy. These include larger appliances like dishwashers, garbage disposals, stoves and ovens, microwaves, telephones, and any other major household items that were purchased with the home. Home warranty coverage may also protect electrical wiring, plumbing, heating systems, and water heaters.

In many instances, a home buyer may not even have to foot the bill for a home warranty on appliances. If a home seller is motivated enough and is confident in the integrity of the appliances, he or she might offer to purchase the warranty for the buyer. This benefit ensures the home buyer that the appliances that come with the house are in proper working order.

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Home sellers can also benefit from buying a home warranty on appliances. Offering to provide coverage is a definite perk for interested home buyers as it will reduce a buyer's cost and provide less questioning about the proper working order of the home. Another benefit for home sellers arises if they choose to purchase coverage during the actual sale of the house. The premium will not be due until the sale is closed, and the seller can use any profit made on the home to buy the warranty.

A home warranty on appliances will typically vary by provider. Some plans may only cover cost of repair, while others may pay for a new appliance should the repair cost be too great. Items like air conditions, swimming pools and spas, and washers and dryers might be covered by certain home warranty companies. Others may offer to cover these items for an additional fee on the yearly premium. Small household appliances like toasters, blenders, and convection ovens are traditionally not insured by home warranties.

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