Appliances are major long-term investments for homeowners. It can be very frustrating when essentials like the refrigerator or washer are on the fritz. Many people buy home warranties hoping to protect themselves from an expensive home repair bill, but are warranties really the best way to protect your appliances?
Though these plans fully cover appliances, they may force repairs to be performed on a failing system. In this case, the homeowner pays the cost of a deductible for a patch instead of a permanent solution. Homeowners who have a home warranty should be aware of the limitations of their appliances and know when to replace rather than repair.
What is a Home Warranty?
A home warranty is an insurance agreement purchased by a homeowner that covers the cost of repairs and replacement to most of their home's mechanical systems. Most will cover the plumbing, air conditioning and heating system, electrical, and all appliances. The insurer will require a full list of the make, model, ages, and condition of all of the appliances to covered. Some will adjust the monthly rate of the coverage based on these factors, though many insurers offer flat rates. Most in home repairs will cost the owner an extra deductible.
Appliance Repair Issues
When a home warranty goes into effect, all of the appliances in the home will be covered regardless of age. Homeowners with older appliances may have received more expensive rates than those with updated ones.
Like any other type of insurance, the company for any reason cited in the contract may dispute the repair claim. Pre-existing conditions, owner-negligence, and improper maintenance can all be cited as reasons to dispute a claim.
Despite these restrictions, the home warranty company will perform most claimed repairs. Homeowners need to understand however that if an appliance is older than its intended life span, repairs are only temporary fixes. The company will likely fix the problem to avoid the cost of replacing the appliance. Make sure to carefully read the contract to identify what problems are grounds for replacing an appliance before agreeing to the warranty. It may be wise to replace a machine beforehand in order to bring down the monthly rate.
Major Appliance Life Expectancies
Nothing is made like it used to be. This old adage is especially true of appliances. Many people have too many expectations of their home appliances. There are average life expectancies that can be assumed when buying a major appliance, but these can vary due to frequency of use, maintenance performed, and brand.
Despite the probable inaccuracies, referencing an estimated lifespan can help in the process of budgeting for replacements and knowing when appliances need to be retired will save on costly repairs. Full-size refrigerators have an average life of 15 years, and compact mini-fridges should last for 5. Washers and dryers are meant to run for an average of 13 years. Air conditioners, dishwashers, microwaves, garbage disposals, and trash compactors all have an average life of 10 years. Both gas and electric ranges are good for 18 years.
Other Appliance Warranties
Both manufacturers and retailers also offer warranties on products. The terms, coverage, and cost of these agreements will vary greatly depending on the appliance. Most of the time, a warranty will guarantee free repairs for a certain amount of time. These repairs may be limited to certain systems and parts. Almost all warranties protect the service provider from responsibility if the appliance is misused, installed improperly, or is damaged in an accident. Usually, only problems caused by normal wear and tear or device malfunctions are covered under warranty. These are called a limited warranty. Full warranties cover more kinds of repairs.
Some of these warranties do not require deductibles, but some do. Read the contract and terms of other appliance warranties before claiming a repair on a home warranty. It may be more cost effective to repair the device using a one of these agreements to avoid the restrictions and deductible associated with a home warranty.
Home Warranties and Appliances
Choosing the right home warranty can help the resale value of your house and avoid unexpected expenses. Homeowners should remember that sometimes it is a better option to replace a problem appliance rather than claiming many temporary repairs on a home warranty. Being aware of the limitations of the machines will simplify these choices, so always make sure to completely read the home warranty contract before signing it. Also, make sure to keep manufacturer and retail contracts so that full advantage can be taken of other offered warranties.
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