Quick answer: is appliance insurance worth it?
- What it covers
- Breakdown of white goods and electricals: mechanical and electrical faults, often accidental damage, call-outs, labour and parts.
- vs home insurance
- Contents cover handles fire, flood and theft, not breakdown. Appliance insurance fills the breakdown gap.
- Is it worth it?
- Often yes for new, high-value appliances; usually not for old or low-value ones a savings buffer could replace.
What is appliance insurance?
Appliance insurance covers the cost of repairing or replacing your home appliances if they break down. Most new appliances come with a one year manufacturer warranty, but that leaves a gap once the warranty expires. Appliance insurance is designed to pick up where the warranty stops.
Which appliances are covered?
Kitchen items and electrical goods, often referred to as white goods, are typically classed as home appliances and included in appliance insurance policies. These usually include:
- Fridges and freezers;
- Washing machines;
- Tumble dryers;
- Dishwashers.
- Ovens, hobs and cookers;
- Microwaves;
- TVs and home entertainment;
- Games and music systems.
Items such as your mobile phone, laptop and tablet are classed as gadgets and fall under gadget insurance, not appliance insurance.
What does the cover protect against?
Exact cover depends on the provider, but appliance insurance usually includes the following:
Mechanical or electrical failure
You are covered if the appliance stops working due to a fault, including failure caused by wear and tear over time.
Accidental damage
If you damage an appliance by accident, for example a toddler spills water on a new TV, a policy with accidental damage can still cover it.
Engineer call-outs
The cost of calling out an approved engineer to diagnose and fix the appliance is included.
Labour and spare parts
The cost of the engineer's time and any parts needed to repair the item. If it cannot be repaired, most policies pay to replace it.
A new for old replacement policy is common. If your appliance cannot be repaired, it is replaced with a new appliance of the same market value, though not necessarily the same make or brand.
Good appliance insurance will cover several items, letting you include all your household appliances on one policy, and many apply a discount for each item you add. Some policies have an unlimited claim limit; others cap the amount they will pay, so always check.
What is excluded from appliance insurance?
Exclusions vary between providers, but the following are commonly left out of an appliance insurance policy:
Unnecessary call-outs
If an engineer finds nothing wrong, the call-out cost is usually not covered.
Cosmetic damage
Purely visual damage such as a scratch or dent is normally excluded.
Delivery, removal and installation
The cost of delivering, installing or removing an appliance is rarely covered.
Deliberate damage
Accidental damage may be covered, but damage you cause on purpose is not.
Ignoring the manufacturer's instructions
Misusing the appliance, for example overloading a washing machine, can void a claim.
Unauthorised repairs
If someone other than an approved engineer has tried to fix it, this can invalidate cover. Do not attempt repairs yourself.
Pre-existing faults
Damage that existed before you bought the policy is excluded, which is why many insurers apply an initial waiting period.
Items still under warranty
If the appliance is still covered by its manufacturer warranty, insurance may not pay out.
Older appliances
Many policies set an age limit, for example refusing items more than 8 to 10 years old.
Business use
Appliance insurance is for domestic household goods only; anything used commercially is excluded.
Appliance insurance vs home insurance vs warranty
There are three different ways your appliances might be protected, and they cover very different things. The table below shows where each one helps and where it leaves a gap.
| Scenario | Appliance insurance | Home contents insurance | Extended warranty |
|---|---|---|---|
| Mechanical or electrical breakdown | Yes | No | Usually yes |
| Accidental damage | Often yes | Only if added | Usually no |
| Fire, flood or theft | No | Yes | No |
| Engineer call-outs | Usually yes | No | Sometimes |
| Multiple appliances on one policy | Yes | Yes | No, one item each |
| Who provides it | Insurer | Insurer | Manufacturer or retailer |
Does home insurance cover appliances?
If you assumed your appliances were already covered by your home insurance, you are not completely wrong. A home insurance policy that includes contents insurance will cover such items, but the cover is much narrower than appliance insurance.
For example, home insurance will likely cover your washing machine against theft and damage from an insured event such as a flood or fire. If you have added accidental damage, it may also cover the machine if you or a family member damage it by accident.
However, your home insurance will not pay out if your washing machine simply stops working. If it breaks down through a mechanical or electrical fault, home insurance will not cover the repair or replacement, whereas appliance insurance will.
Appliance insurance vs an extended warranty
An extended warranty lengthens the guarantee that comes with a new appliance. A standard warranty usually lasts one year, and in many cases you can pay to extend it. There are three main differences from appliance insurance:
- Who supplies the cover: an extended warranty comes from the manufacturer or retailer, whereas appliance insurance comes from an insurer;
- Extent of cover: a warranty usually only covers mechanical and electrical faults and rarely accidental damage or call-outs, while appliance insurance can cover all of these;
- Number of appliances: a warranty applies to one item only, whereas appliance insurance lets you put several appliances on one policy.
Because appliance insurance can offer wider cover and lets you insure several appliances together, often with a discount per item, it is frequently the more flexible of the two.
Do you need appliance insurance?
Like most home insurance add-ons, appliance insurance is not mandatory or essential. The decision mainly comes down to the value of your appliances and whether you could afford, and would be willing, to replace one yourself if it failed.
If your appliances are old and not worth much, appliance insurance can be a waste of money, since the premiums may add up to more than a replacement would cost. If your appliances are over a certain age, many providers will not cover them anyway. If you have just bought new, high-value appliances, cover is more likely to be worth it.
More likely worth it when
- Your appliances are new or high value.
- A sudden replacement would strain your budget.
- You want accidental damage cover the warranty does not give.
- You want one policy covering several appliances.
Often not worth it when
- Your appliances are old or low value.
- The premiums over time would exceed a replacement cost.
- Your items exceed the policy age limit anyway.
- You could comfortably cover a replacement from savings.
Tenants and landlords
Whether you need appliance insurance as a tenant or landlord comes down to who owns the appliances.
If, as a tenant, you have rented an unfurnished home and bought the washing machine, dishwasher and so on yourself, those appliances are yours and the decision is yours too. Note that your tenants insurance will not cover appliances breaking down, and gadget insurance is needed for laptops, phones and tablets.
If you are a landlord letting a furnished home, the appliances belong to you. Cover can be useful here, as it gets a broken appliance fixed quickly and saves the tenant chasing you. Where the landlord owns some appliances and the tenant owns others, both parties can take out their own cover if they wish.
How much does appliance insurance cost?
As with all insurance, the cost depends on the provider, and several factors affect the price of your premium:
- The appliances: the number, value and age of the items you insure;
- The level of cover: a basic policy is cheaper than a comprehensive one with extras added;
- Your claims history: previous claims tend to push the premium up;
- How you pay: paying monthly can cost more than paying annually once interest is added.
The package prices in the tables below are a dated 2019 research snapshot kept for illustration only. They show how packages and excesses tend to be structured; they are not current quotes. Always run a live quote before buying.
To illustrate how providers structure their packages, here are figures Selectra gathered from three providers in 2019: 24/7 Home Rescue, Surewise and Row.
| 24/7 Home Rescue | Basic 3 | Standard 5 | Premium 7 |
|---|---|---|---|
| Excess | £0 | £0 | £0 |
| Appliances covered | Washing machine, tumble dryer, fridge freezer | Basic 3 plus dishwasher and hob | Standard 5 plus electric oven (fridge and freezer separate) |
| Call-outs | Unlimited | Unlimited | Unlimited |
| Claim limit | Unlimited | Unlimited | Unlimited |
| Surewise | Bronze | Silver | Gold |
|---|---|---|---|
| Price (per month) | £10.99 | £17.99 | £21.99 |
| Excess | £20 (£40 over 5 years) | £30 (£60 over 5 years) | £35 (£70 over 5 years) |
| Total value of items | £1,000 | £3,000 | £5,000 |
| Max claim per item | £200 | £300 | £800 |
Unlike the package providers, Row priced per item: you entered each appliance with its brand, make and value and received a single quote. In a 2019 example, five LG appliances (a washing machine, tumble dryer, dishwasher, fridge freezer and DVD player) came to roughly £20 a month or about £230 a year.
As these figures show, prices vary but not dramatically. Running a couple of quotes with different companies should quickly tell you a reasonable price for your situation. Always weigh the excess and the claim limits alongside the headline premium.
How to choose an appliance insurance policy
Here are six things to keep in mind when comparing appliance insurance:
Age limits
If your appliances are older, check the policy still covers them.
Accidental damage
Confirm it protects against accidental damage and not just mechanical faults.
Appliance limits
Check whether there is a cap on the number or combined value of items you can add.
Claim limits
Look for both an overall claim limit and a single-item claim limit.
Single-item value
Some policies cap the value of any one appliance, which matters for expensive items.
Call-outs and excess
Make sure engineer call-outs are included and note the excess you pay per claim.
Appliance insurance providers in the UK
Some of the best known names to compare when looking for appliance cover in the UK include 24/7 Home Rescue, Surewise, Row, Smart Cover Insurance, Home Emergency Assist, Warranty Wise, Domestic & General, Cover-4-less and Home Appliance Guard. Always compare cover levels and exclusions, not just the monthly price.
Appliance insurance FAQ
All material on this page is for information purposes only and does not constitute financial advice. Selectra.co.uk is not responsible for any consequences arising from your use of the information provided.