Appliances Home People Company Repairing Period Time Case

Home appliances are expensive, so many people want to have a "warranty" (an agreement for a company to repair or replace something if it breaks within a certain period of time) to protect themselves "in case of" (if something happens) unexpected "breakdowns" (instances where something stops working). Most appliances come with a standard manufacturer's warranty, often for one year. But some consumers "opt" (choose) to purchase an "extended warranty." This means that they pay extra money to have the warranty extended by some period of time, usually 2-5 years, depending on the appliance. In many cases, the investment "makes sense" (is logical; is a good idea), because people are often buying appliances immediately after buying a new home, in which case they have little cash to pay for repairs or new appliances.

A "protection plan" or a "home warranty plan" applies to a group of appliances, rather than an individual unit. The purchaser pays an "annual" (yearly) fee, and in exchange, a company "commits" (promises) to repairing and/or replacing any of the "covered" (included in the agreement) appliances if they break during the "term" (length of time) of the plan, typically one year. Often these plans are purchased by people who are selling their home, and the buyer receives protection for the appliances left behind by the sellers. This is important, because the buyers don't really know how "reliable" (dependable; trustworthy) the appliances are.

Finally, a "service contract" is similar to a protection plan, but it focuses more on repairs than on replacement. If something breaks, the company agrees to come to the home or business and "service" (fix or repair) the appliance at no additional charge beyond what the "policyholder" (the person who benefits from the plan) has already paid.