Remember those do-it-yourself science experiments you loved as a kid? You know, when you and your siblings scavenged the kitchen to mix things like soda and mentos? Or when you tried to microwave an ice cube? (Spoiler alert, ice doesn’t melt in there.) It’s funny how we could remember those basic principles of chemistry at that age, but not the kitchen safety rules:
- NEVER put aluminum foil in the microwave
- DO NOT leave anything on or near a hot stove
- Keep electronics AWAY from water
But kids will be kids. Life happens. If you’re a parent or someone who simply wants to protect your home investments, then you understand the importance of being proactive. It’s not about if it happens, but when it happens. Major household appliances, such as refrigerators, dishwashers, and HVAC systems will break down one day–sometimes much sooner with children in the picture. Whether by accident or from normal wear and tear, warranties can take care of the expensive appliance repairs that aren’t covered by home insurance.
But before you begin searching, it’s important to first understand the different types of appliance warranties to determine which one fits best with your needs.
Manufacturer Warranty
So, you’ve just bought that stackable washer and dryer set from Sears that your wife had her eyes on. It’s strong, sleek, and once installed, there’s extra space left in the laundry room for additional storage. It’s perfect. A little more than a week goes by and you finally have a free morning to do the laundry. You carefully follow your wife’s instructions: separate the whites from the colors, pour the detergent, add the fabric softener, and press ‘start.’
It doesn’t start.
You immediately go into panic mode. It’s brand new? What went wrong?
Sometimes, even new appliances come with hiccups. This is when the manufacturer warranty kicks in, in which the original manufacturer provides a free repair service or replacement of the appliance within the time frame specified in the purchase contract. The most common time frame for manufacturer warranties is within one year after purchasing or installing the product. This type of warranty only covers the specific appliance and applies solely to the original owner, that is, the person who bought it.
Extended Warranty
Right before a manufacturer warranty contract ends, owners have the option to pay for an extension, either through the store where the appliance was purchased or from a third-party. For example, let’s say you continue to notice minor glitches and issues with your washer and dryer functionality, even after the manufacturer sent someone out to fix it. One week later, you notice that the load of clothes you placed in the dryer is still damp after its usual set time. You think nothing of it, add 20 more minutes to the drying time, and continue washing other loads. One day, the dryer doesn’t turn on at all. You call your manufacturer’s customer support branch, only to discover there’s nothing they can do. They explain that your warranty has already expired.
Extended warranty contracts can be helpful in case of another unexpected malfunction that occurs after the initial manufacturer warranty expires. However, with this type of warranty the contract still only covers a specific appliance of choice, not multiple appliances around the house. This is why many homeowners choose to invest in the third type of warranty instead.
Home Warranty
Let’s say that a pipe in the washing machine bursts and floods the basement. While home insurance will cover the cost of the water damages and the replacement of damaged personal property, it may not cover the repairs of your washing machine or pay for a new one. With that said, you may still have to pay hundreds of dollars out of pocket to have your washing machine fixed or replaced. Home warranty can help cover the cost of multiple broken appliances due to normal wear and tear, as well as other parts of the home that aren’t covered in home insurance plans. Like home insurance, home warranties have a deductible fee. On the other hand, while home insurance is usually mandatory with a mortgage, home warranty is completely optional.
Take heed, however, of scammers in the home warranty industry. There are companies out there that place so many restrictions on coverage and determining factors that you’ll basically be paying for nothing. And as if their overbearing coverage restrictions weren’t enough, sometimes their customer service departments are nearly impossible to get ahold of or they take an extremely long time to process your claim, leading you to pay out of pocket for appliance repairs regardless. To avoid these sort of traps, check every company’s online reviews and reputation, make sure to ask them as many questions as possible, and thoroughly read their contract and fine print.
And there you have it, a quick and helpful overview of appliance warranties. Parents, if you haven’t already–and if your kids are at that stage of performing every home experiment they find on YouTube–head on over to our list of top recommended appliance repair companies. We’ve already done the research for you (and made sure we weeded out scammer companies) so you can focus on finding and comparing the best services for your home and family.