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Why you may need home warranty insurance protection and/or equipment breakdown insurance

With the rising cost of repair and replacement  for household appliances, such as the average cost of  a new energy efficient refrigerator  around $700.00 and a new energy efficient washer and dryer around $500.00 each, you may find yourself hard pressed to come up with the cash to repair or replace them after they breakdown. This is where home warranty coverage may be beneficial. However, if you feel comfortable self insuring these items, but would not be comfortable shelling out thousands of dollars to replace your central air conditioner or hot water heater, then you may want to consider equipment breakdown insurance coverage. You may also wish to take out both policies to cover any gaps.

Home warranty is an appliance protection insurance plan that covers maintenance expenses associated with household items such as refrigerators, dishwashers, Heat and Air Conditioning units, plumbing system, electrical wiring etc. In most cases, with a home warranty, you will need to place a service request with the home warranty company, they they will then send a technician out for repair. If the equipment cannot be repaired then the home warranty insurance will replace the equipment.

If you own a home, it is likely that you have received some type of solicitation offering this insurance. Before purchasing this insurance, you may want to consider comparing plans. The costs range from around $300 to $500 a year with a $50.00 to $150 deductible. Some mortgage companies and real estate agents offer this type of insurance. One local real estate agent, Amy Lewis with Keller Williams Bluegrass Realty, offers an Old Republic plan with every listing. You can meet Amy in person, Sunday, March 21st, at an Open House located at 217 Hays Blvd. Lexington, KY , 3:30 pm to 5:30 pm. You can reach Amy by phone at 859-582-6622 or by email at

Your traditional homeowner’s insurance, HO3 form, will insure you for such causes of loss as fire, theft and wind but it will NOT insure you against regular wear and tear or pay for maintenance and repair charges when your home machinery breaks down. However, many insurance carriers are now offering an optional coverage, equipment breakdown coverage. 

Insurance agent,  Susie Powell, CPCU (Chartered Property Casualty Underwriter) from Buckley & Company said, “We can offer equipment breakdown coverage with limits up to $50,000 with Grange Insurance. This coverage is for direct physical loss caused by sudden and accidental mechanical or electrical breakdown to items such as your air conditioner of water heater. Items such as, but not limited to, refrigerators and dishwashers are not covered”. The costs are considerably lower than the broader home warranty coverage though, ranging from $16.00 to $150.00 dependent upon the replacement cost value of your home and the deductible chosen. Deductibles range from $500 to $5,000. For more information please contact Susie Powell, at Buckley & Company, located at 698 Perimeter Dr., Lexington, KY 40517, #859-269-8002, ext. 221 or by e-mail at

So whether you are just purchasing, recently purchased or have lived in your home for awhile, you may want to consider either a home warranty and/or equipment breakdown coverage. In these hard economic times, these policies may provide you with that extra peace of mind you need when your appliance or machinery breaks down.


  • Rhonda Rae 5 years ago

    Thank you for all the money saving tips, I had no idea I could save so much by buying the xtra insurance in the long run.

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