Home Warranty vs. Appliance Warranty: Which is Best for You?

There are a couple of options available to you when it comes to protecting your home investments: a home warranty or an appliance warranty. Both types of warranties offer coverage for the repair or replacement of household appliances and systems but differ in terms of what is covered and cost. In this article, we will compare home warranties and appliance warranties to help you decide on which is best for you.

What is a Home Warranty?

A home warranty is a service contract that provides coverage for your home's major systems and appliances. It is designed to protect homeowners from the high costs of repairing or replacing these items, for a small service fee, when they break down due to normal wear and tear.

A home warranty typically covers a wide range of systems in your home, including electrical, plumbing, heating, and cooling. It also provides coverage for household appliances such as refrigerators, dishwashers, and washers/dryers. With a home warranty, you know that the covered items of your home are protected for a set period of time, such as one year, and can be renewed annually. 

What is an Appliance Warranty?

An appliance warranty is a type of warranty that provides coverage specifically for individual appliances. It is typically provided by the manufacturer of the appliance and is included with the purchase of a new appliance.

Appliance warranties vary in coverage and duration, but they generally cover the cost of repair or replacement if the appliance breaks down within a certain period. This means that if your appliance stops working due to a mechanical or electrical issue, the warranty will cover the expenses of getting it fixed or replaced.

Some manufacturers also offer extended warranty plans that provide coverage beyond the standard warranty period. These extended warranty plans are optional and can be purchased separately to provide additional protection for your appliance.

Coverage Comparison: Home Warranty vs Appliance Warranty

When comparing home warranty and appliance warranty, it is important to consider the coverage provided. Home warranties generally offer more comprehensive coverage as they cover a wide range of systems and appliances in your home. Systems can include electrical, plumbing, heating, and cooling. Appliances such as refrigerators, dishwashers, and washers/dryers are also typically covered. 

On the other hand, an appliance warranty provides coverage for ONLY the specific appliance that is covered.

Review the terms and conditions of both types of warranties to understand what is covered. Home warranties may have exclusions for specific items or conditions. Similarly, appliance warranties may also have specific exclusions for certain parts or types of damage. 

Cost Comparison

At the end of the day, what you really want to know is how adding a warranty is going to impact your wallet. 

Home Warranty Costs

A home warranty typically has an annual cost that can range from a few hundred to a few thousand dollars, based on factors such as the level of coverage and the provider. Remember that most home warranties also require a service fee to be paid for each service call. Porch’s Whole Home Warranty, for example, costs $62 per month with a $100 service fee. So, instead of spending $1,200 on an HVAC repair, you simply pay a $100 service fee. 

Appliance Warranty Costs

Appliance warranties are often included with the purchase of a new appliance. However, if you purchase an extended warranty plan, there may be an additional cost to consider.

Considerations for Choosing the Right Warranty

When deciding between a home warranty and an appliance warranty, there are a few considerations to keep in mind. First, assess your needs and determine which items you want coverage for. A home warranty may be a better option if you have older appliances or systems that are more likely to require repairs or replacements. An appliance warranty may be sufficient if you have newer appliances or only want coverage for specific items.

Budget considerations are also important when choosing the right warranty. Home warranties can be more expensive than appliance warranties, so it's essential to consider the cost of the warranty, any service fees, and the potential savings on repairs or replacements. By carefully evaluating the cost of each warranty and comparing it to your budget, you can make an informed decision.

Be mindful of value-added options for a home warranty. Porch’s home warranty comes with a handyman service that you can use for anything from TV mounting to leaf clean-up. 

Home and appliance warranties provide valuable protection for your household systems and appliances. The choice between the two depends on your individual needs, budget, and preferences. Home warranties offer more comprehensive coverage but can be more expensive, while appliance warranties provide coverage for specific appliances but may have limitations. It is important to consider your needs, budget, and the age of your appliances when making a decision.