For many, your home is your most expensive asset you will ever own. And that’s not just the general structure of the home, but all the appliances and assets inside. An optional coverage many consider, is home appliance insurance also known as a home warranty. This covers many of the appliances and systems inside the house that can be expensive to replace.

It is an optional coverage, unlike homeowner’s insurance which is required in order to secure a mortgage. It covers a variety of aspects of the internal workings of the home and various options can be added to the home warranty plan. Here’s a quick breakdown of what options you have when it comes to home warranty plans.

What’s Covered with a Home Warranty?

Each insurance provider will have a different set of offerings when it comes to home warranties, however there are some common coverages you can expect to see. They include the following packages:

  • Systems: This kind of coverage is related to the typical systems found in a home such as air conditioning, heating, electrical, plumbing, etc.
  • Appliances: This looks at coverage for your common home appliances such as refrigerators, washers and dryers, microwaves, stove fans and much more. 
  • Combo Plans: These plans bring together a combination of systems coverages and appliances.
  • Custom Plans: In some cases you may be able to also pull together a custom plan which will help you create the exact coverage you want/need for you particular situation.

What Does Appliance Insurance Cost?

Just like any type of insurance, the cost for appliance coverage and systems coverages will depend on the insurance company you work with. The typical range is between $300 and $600 annually. The premium is usually the most expensive aspect of the coverage but there are certainly other costs you will need to consider.

Insurance companies often don’t cover service call fees. Also, you may be required to pay an enrollment fee or cancellation fee should you decide to end your coverage. Be wary of these fees when considering a home warranty coverage.

When Should I Consider Home Appliance Insurance?

If you’ve invested in updated systems or appliances you may want to consider this coverage to protect your investment. Oftentimes, most people purchase their home warranties during real estate transactions. Sometimes home buyers will ask sellers to offer a limited home warranty policy to protect them should any of the systems or appliances fail during early home ownership. 

Whether you’re in the midst of a real estate transaction, or you’ve just invested in updated systems and/or appliances, you should consider this in order to protect yourself from potential issues in the future.


While you are required to purchase homeowner’s insurance in order to get a mortgage, the various interior systems and appliances aren’t necessarily covered. Some aspects are, but your systems and appliances are expensive assets that you might want to consider covering as well via a home warranty policy. If you have any questions about these policies, contact us today and we can help you navigate these coverages.