In addition to the manufacturer's warranty that comes with new appliances, extended coverage is also sometimes available for individual appliances and under such umbrella coverages as a homeowner's warranty. Homeowner's warranties can extend to cover household systems such as plumbing and HVAC.
Before purchasing an additional warranty, it is important to read the terms and limitations. Both extended service plans and homeowner's warranties contain very specific guidelines about what is and what is not covered, and knowing those terms before signing a contract is vital. However, self-insuring by saving up for new appliances or appliance repair may be cheaper than purchasing an extended service plan, advises Consumer Reports.