It’s a newer coverage that many insurance companies have started to offer. It’s essentially like a home warranty program for those major items in your home. The following details all come from Safeco’s coverage plan.
How much is it? $2.00 a month
How much does it cover? $50,000 in coverage
How much is the deductible? $500.00
If I utilize this coverage will I have a claim that counts against me? No
What are some commonly covered items: dryer, refridgerator, dishwasher, garbage disposal, oven, computer, a/c unit, TV, water heater, well water pump and electrical panel service.
Are their exclusions? Yes, it does not cover wear and tear. Losses must be suddeen, direct and accidential. Please see below for examples.
During a hot summer day the air conditioning wouldn’t turn on in John’s home. He finds out that the compressor motor seized up due to mechanical damage and needs to be replaced. Yes, that’s covered. He’ll pay the $500 deductible and the rest is taken care of under the program.
Mrs. Pierson discovered that her over range would not turn on. An inspection revealed an electrical short and that the oven needed to be replaced. Yes, that would be covered and again she would just have the $500 deductible expense.
Safeco also offers up to an additional $3,000 for expedited repairs, clean up and spoilage (if you loss everything in your fridge freezer due to the loss). They also include an extra 25% of coverage to upgrade your appliance, so if there’s a failiure but the new model cost more you would have an extra 25% in coverage to purchase that new appliance.
If you have any questions or concerns please let us know. It’s just an endorsement that gets added to your policy so we can make the change at any time. It’s a really nice option that will save you from paying the extra fees for an appliance warranty and allow you to have just 1 coverage option in place.