- No deductibles
- 24/7 hassle-free online claims
- Reimburses contractors 100% for parts and labor
- Cancel anytime for a full or pro-rated refund
Unlike with other home warranty companies, they don’t offer a single plan that covers several different appliances and systems. Instead, SquareTrade allows you to cover individual appliances, provided they are new and purchased within the last 30 days. So, basically, when you buy a new appliance, for example, a washing machine, you can opt to cover it with a protection plan and if something breaks down or goes wrong, you will be covered and the company will take care of the repair or replacement for you. SquareTrade offers plans for appliances such as washing machines, clothes dryers, refrigerators, dishwashers, mixers, vacuums, and ranges.
The company has two plans for your appliances – a 3-year plan and a 5-year plan. Each plan can then be adjusted according to the price range of your appliance. For example, the 3-year plan for an appliance that costs up to $199.99 costs $99.99, while the 5-year plan for the same appliance costs $109.99. Appliances ranging from $2,000 to $2,999.99 can be covered with a 3-year plan for $219.99 or with a 5-year plan for $399.99.
SquareTrade covers all parts and labor costs for the repair or replacement of your appliance. And the best thing about this company is that there is no deductible or a service trade fee. This means that when a contractor comes to fix your appliance, you are completely covered and don’t have to pay anything then and there. The company will reimburse the contractor for any parts used in the repair, as well as for the labor.
Terms and Conditions
Furthermore, the SquareTrade protection plans for electronics and appliances can only cover up to four claims or the labor and parts cost up to the limit of liability. Coverage cannot be used for re-installation of appliances, normal maintenance, damage that is only cosmetic and not substantial or affecting the performance of an appliance, as well as incidental loss. Theft is not covered either. Appliances that have broken down due to a pre-existing damage will not be covered either, and the same goes for appliances purchased outside of the United States or in a private sale, such as garage sales, flea market, Craigslist and so on.
SquareTrade applies what is known as the “No Lemon Policy,” which means that if an appliance that has been repaired twice for the same problem breaks down again, for the third time, due to the same problem within a 12-month period, it will be either replaced by the company or you will receive a cash refund so that you can replace it yourself.
SquareTrade also provides refunds. Cancellation of your protection plan contract within the first 30 days of the contract term comes with a 100% refund. Cancellations after that period are also eligible for a refund, albeit not for the full sum – you will receive a pro rata refund calculated using the time remaining on your contract.
Another important thing to bear in mind is that, while there is no deductible for the protection plans and repairs performed based on your coverage, there is something called limit of liability. This means that the total amount the company will pay for the repairs and replacements of your covered appliances cannot exceed a certain sum, which is called the Coverage Amount, and is basically the purchase price of your covered appliance (the price you paid for it when you bought it). If you paid $1,000 for a fridge, SquareTrade will perform repairs or replacements up to $1,000, and so on.
To file a claim through this system, you will first need to create a user account, using the same email address you provided when you signed your contract. After that, the claim filing system will guide you through the process, step by step. The entire process is very quick and easy and once you complete it, all you have to do is sit back and wait for the company to reach out to you. They will first establish whether your appliance is eligible for an on-site service (and most appliances are, considering they are too big to be shipped to one of the company’s service centers), after which they will send an authorized technician to inspect and repair your appliance. This generally takes up to five business days and the on-site repairs are done within normal working hours. Your appliance will be repaired, replaced with a compatible product or you will receive a cash refund up to the coverage amount. There doesn’t appear to be any emergency customer service for severe malfunctions and breakdowns, and you simply have to wait for them to answer, which can be a bit inconvenient, of course.
The company also has a phone number you can use to ask about plans and get additional information, but existing users wishing to file a claim are encouraged to do so using the online system on the SquareTrade website. The system is available 24/7 but the claims are examined and addressed only during normal working hours.
Pros & Cons
- No deductibles whatsoever
- No lemon policy
- Covers individual appliances
- Online claims
- A+ rating at the BBB
- No comprehensive plans for several appliances
- Only covers brand new appliances
- Limited coverage amount.