Home Warranty or Extended Warranty: Important Things You Need to Know
If you have multiple expensive appliances at home, it’s only natural to avoid paying a large amount of money for their repair. But the risk of even the best tech breaking down is very high, so this might be unavoidable.
One of the possible solutions is to cover these items with a warranty that will either reduce or completely pay for any fixes. All brand-new devices today come with a manufacturer’s warranty and some other legal protections. However, those will run out, usually within 6-24 months, depending on the device.
Extended and home warranties offer you a chance to extend that coverage not only in time but also protect you in cases of breakdowns not caused by the appliance’s defects (this is what a manufacturer warranty is focused on). However, as both these protection options have some severe limitations, some people might not need either of them.
Differences Between a Home Warranty and Extended Warranty
Home and extended warranty plans are similar in principle. Both of them offer coverage for appliances in case of a breakdown. However, an extended warranty acts as an extension of the manufacturer’s warranty.
This means that it makes that original protection longer and can cover types of breakdowns not included in it initially. Extended warranties can be offered by manufacturer’s retailers or independent service providers.
But you need to understand that due to the nature of this policy, it only covers a single item. This means that to protect all appliances in your home, you will need to purchase a separate extended warranty plan for each of them.
A home warranty plan, on the other hand, is comprehensive. It can not only cover a wide range of appliances, from fridges to AC units and heaters, but also important home systems, like plumbing, ventilation, etc.
These plans vary greatly, so it should be possible to find or create one that will be a perfect fit for your home. The latter is possible because many providers offer optional coverage for a variety of items so homeowners can customize the protections for their property. However, looking at cost breakdown, you will see that adding optional items to the plan can change its price significantly. Therefore, you need to make sure that you really need all of them covered.
It might be tempting to protect every appliance and system within your home. But is it really necessary?
Home Warranty Vs. Extended Warranty: Do You Need Either?
First of all, you need to decide whether a home warranty or an extended warranty plan will suit you best. In this contest, home warranties win by a large margin. Extended plans are highly inefficient and purchasing several of them will result in a total that will, likely, exceed the yearly cost of a premium-grade home warranty plan. You will also get boggled up with paperwork if you need to manage over a dozen plans.