The Best Home Appliance Insurance (2023)

Home appliance insurance, also called a “home warranty,” covers your home’s frequently used appliances. In addition, it protects major systems for complete home coverage. Most home warranty providers offer appliance-only plans, which makes them a suitable choice once the manufacturer’s warranties expire on your major appliances. In this guide, we’ll discuss home appliance insurance, how coverage works, and how to find the best home warranty companies for you and your home.

*Ratings are accurate as of July 2023.

When comparing each provider, our team considered available plans, customer service, the number of covered appliances, and response time. We also factored in the total amount of covered appliances before making our recommendations. Our top five home appliance insurance providers are the following:

• American Home Shield: Best for Comprehensive Coverage
• Liberty Home Guard: Best Customer Ratings
• Select Home Warranty: Best Value
• First American Home Warranty: Best Appliance Coverage
• America’s First Choice Home Club: Best for Customization

The table below compares our home appliance insurance picks. Note that you can pay for your home warranty monthly or annually. The table’s cost data is based on our national average. To obtain the national average, our team pulled quotes in more than 20 states from our top six providers using a 2,000-square-foot, single-family home. We highlighted monthly costs in the table for easy comparison.

Below is a detailed overview of the top home appliance insurance providers we analyzed. We called the providers’ customer service departments, interacted with their websites, and read their sample contracts to highlight their benefits and drawbacks. 

Note: We obtained all pricing information below by pulling quotes for a 2,606-square-foot, single-family home in Austin, Texas. Your monthly premiums may vary based on your home’s location, size, type, plan, and add-on selections.

A home warranty is a solid option to financially protect yourself from unexpected appliance breakdowns. According to InterNACHI, a refrigerator, for example, typically lasts between nine and 13 years. A home warranty provides peace of mind if your appliances are around that age or older.

Liberty Home Guard provides an extended workmanship guarantee on all covered appliances. In addition, First American Home Warranty is a great choice for those who own high-end appliances because the provider offers generous appliance limits.

Our team created a calculator to break down the estimated annual cost of owning a home warranty. Enter your monthly premium, service call fee, and estimated number of claims to see your projected annual cost. It’s best to request a quote directly from one of our recommended providers, as annual costs and service fees vary between them.

What Does Home Appliance Insurance Cover?

Home appliance insurance is similar in name to home insurance. However, they are completely different policies. Home appliance insurance covers the normal wear and tear of appliances and systems. Home insurance covers the structural components of your home, such as your roof. Home insurance also covers perils that home appliance insurance doesn’t cover, such as storm damage. 

According to Arthur Chartrand, of counsel to the National Service Contact Association (NHSCA), home warranties are “contracts of inclusion,” and home insurance plans are “contracts of exclusion.” This means home warranties cover items a provider specifically includes in its sample contract. We recommend reviewing a home warranty’s terms and conditions before choosing a policy.

In general, home warranty companies provide a variety of plans: systems plans, appliances plans, combo plans, and build-your-own plans.

Systems plans cover:

• Air conditioning
• Ductwork
• Electrical system
• Plumbing system
• Heating system
• Water heaters

Appliances plans cover:

• Built-in microwave
• Clothes washer/dryer
• Garbage disposals
• Refrigerator
• Other important appliances

Combo plans cover:

• A combination of both systems and appliances

Build-your-own plans cover:

• Whatever systems and/or appliances the homeowners decide need coverage

How Much Does Home Appliance Insurance Cost?

Based on our research, the average cost for basic to comprehensive home warranty coverage ranges from $644 to $737. Pricing for a home warranty will depend on the company, the coverage you choose, and where you live.

While the monthly premium is usually the most expensive factor when buying a home appliance warranty, there are other costs, such as the following:

• Service call fee: You pay this fee when a service technician comes to your house to inspect a broken system or appliance. Most service fees range between $75–$125.
• Enrollment fees: Check with your potential home warranty provider to determine if they require a one-time enrollment fee upon signing up.
• Cancellation fee: If you cancel before a contract expires, you should expect to pay an early termination fee. Timothy Meenan, JD, who serves as executive director and general counsel for the Service Contract Industry Council, stated that reputable providers include a 30-day free cancellation period when you sign up. However, most providers charge a cancellation fee if you cancel after 30 days. The average cancellation fee for customers who cancel after 30 days of coverage is $75, but it can range between $25–$90, depending on the company.

We recommend getting quotes from several providers to negotiate prices and get the best deal. We also recommend asking about current home warranty offers and promotions, as some companies will offer free coverage for a couple of months.

Annual Home Warranty Cost Calculator

Our team created a calculator to break down the estimated annual cost of owning a home warranty. Enter your monthly premium, service call fee, and estimated number of claims to see your projected annual cost. It’s best to request a quote directly from one of our recommended providers, as annual costs and service fees vary between them.

Lifespan and repair cost data sourced from InterNACHI and Home Depot

How Does Home Appliance Insurance Work?

Customers can file a claim on covered systems and appliances after a standard waiting period (usually 30 days after signing a contract). The home warranty company typically takes 24 to 48 hours to approve a claim and send a contractor to your home. The time of day you file a claim also determines how soon a provider answers your service request. If the provider covers your issue per its terms and conditions, you are only responsible for paying a service call fee when the technician arrives at your home. 

What To Consider When Buying Home Appliance Insurance

Consider costs, coverage, claims processes, and customer service when purchasing home appliance insurance. We break down each of these factors below.

• Think about the coverage you need—Evaluate which items in your home need the most protection. Do you have only a few aging appliances that need protection? Do you need comprehensive coverage for both systems and appliances? Once you know which items you want to be covered, compare plans and choose an option that provides the coverage you need.
• Determine the coverage limits in your policy—Home warranty companies will set coverage limits on certain items and require homeowners to pay the remaining cost once a repair reaches the limit. For example, if there’s a $2,500 limit on air conditioning and heating for the contract term, customers are responsible for paying any costs that exceed that amount. According to Bailey Moran, Chief Operating Officer of Austin TX Realty, reading your sample contract ensures you know exactly how much coverage you have for an item.
• Figure out how the claims process works—Most home warranty providers will approve claims within 24 hours and send a contractor to inspect your appliance or system within 48 hours. However, this isn’t a guarantee among all companies, and some providers will wait as long as four days to send a contractor to help you. We recommend reading customer reviews to determine if a provider offers solid claims processing.
• Read trusted, third-party reviews—It’s a good idea to read trusted customer reviews from sites like the Better Business Bureau (BBB) before signing up for a home warranty. This gives you another perspective from consumers who have held policies with the company you’re considering. Arthur Chartrand suggests choosing a provider that is a member of the NHSCA because the organization requires companies to adhere to fair business practices.

When To Buy a Home Warranty

While consumers often purchase home warranties during real estate transactions, they can be bought anytime during homeownership. This is important for homeowners to note if they live in older homes with aging appliances. The assistance for financial support during sudden breakdowns helps policyholders protect their budgets.

One of the best times to buy home appliance insurance is when you notice your equipment is beginning to age—not after it starts experiencing problems.

Here are the average life expectancy ranges for the most common home appliances:

• Clothes washer and dryer: 5–15 years
• Dishwasher: 9 years
• Freezer: 10–20 years
• Oven: 10–18 years
• Range: 15–17 years
• Refrigerator: 9–13 years

Note: Appliance life expectancy figures sourced from InterNACHI

Whether you own older or high-end appliances, a home warranty protects your essential items for a minimal monthly fee. We recommend American Home Shield due to its rust, corrosion, and sediment damage coverage. Liberty Home Guard is another reputable choice due to its lengthy workmanship guarantee and focus on customer service. Finally, consider First American Home Warranty. It’s a solid choice because of its comprehensive appliance limits. We suggest pulling quotes from three providers to compare plan costs and options. 

The This Old House Reviews Team backs up our home warranty ratings and recommendations with a detailed rating methodology to objectively score each provider. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts from each company, and conducting focus groups and consumer surveys. We then score each provider against our review standards for coverage, value, trustworthiness and transparency, availability, and customer service to arrive at a final score on a 5-point rating scale. 

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.