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Costco Home Warranty Review

Q: How Do You File a Claim with Costco?

The process for filing a claim is simple and can be done in a few steps: 1. Call the warranty provider or file a claim online. 2. Provide them with your name and contact details, the nature of your claim and the date you purchased your coverage. 3. Be prepared to answer questions about what caused the damage and submit any receipts that may help with processing your request. This is where keeping the receipts for your appliance and protection plan is so important. Without those receipts, getting your appliance repaired or replaced may be impossible.

Q: How Does a Costco Home Warranty Work?

Costco does not offer a home warranty plan . Instead, Costco offers an appliance protection plan that covers the repair or replacement of items purchased from Costco. Costco offers a variety of plans that can be customized to fit your recent purchase, with costs varying depending on the retail value of the item you'd like protected. These plans offer five years of protection, split into two stages. The first part is the Costco Concierge Service warranty. Any item you purchase from Costco comes with a two-year warranty from CCS. The second optional part is a three-year warranty through Allstate that extends your total warranty coverage to five years. To be eligible for the Allstate Protection Plan, you must purchase the plan within 90 days of buying your appliance. Any time a part of your appliance malfunctions, you can file a claim on the phone or online, and a technician will come out to attempt to repair the item. If it cannot be fixed within multiple visits, you will receive a new item or reimbursement for that item.

Q: What do I do if My Claim Gets Denied?

If your claim gets denied, there are some steps you can take: 1. Contact the company's customer service department to find out why they denied your claim. 2. If they have additional questions, provide the necessary information and wait for their response. 3. If you still need to understand why your claim was denied after talking to them, ask for an explanation in writing. 4. After that, you can always file a complaint with the BBB by contacting one of their regional offices.

Q: Is the Costco Appliance Protection Plan Worth It?

Problems with newly-purchased appliances are common, and having extra protection just in case something goes wrong can save you thousands of dollars. However, if you just bought an exact copy of an appliance you've had minimal issues with in the past, and you're installing it in the same place in the same house, you might be able to save a few dollars by skipping the protection plan. Modern appliances are generally not as easy to fix as older ones. The electronic controls (as opposed to the electromechanical controls used years ago) are difficult to fix and to find parts for. A defective electronic control that can't be fixed can render your stove or your washer and dryer useless. This is something to keep in mind, particularly if you haven't had much experience with trying to get contemporary appliances fixed. This is a situation, however, in which having an extended service plan in place could be quite valuable.

By Andre Walker MONEY RESEARCH COLLECTIVE

November 22, 2022

If you’re in the market for home warranty coverage, you might consider a name you already trust in another area of your life: retail giant Costco. That’s especially true if you love shopping at Costco and want to use your membership to purchase your coverage.

However, before you rush out and sign up, be sure you know the costs and benefits of your Costco home warranty or any other home warranty you choose to purchase. This review will help you determine whether Costco’s home warranty plan is worth it for you.

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Costco Warranty overview

Rather than provide a traditional home warranty, Costco offers what it calls an “appliance protection plan” which is available on most major appliances purchased from Costco. The plan comes in three varieties, available to all members, distinguished by the nature of the covered items:

Appliances
Laundry Suites
Kitchen Suites

No service fees
Any and all parts of the appliance are covered
24/7 claims process online
Any replacements will be brand-new, non-refurbished items

You have to purchase the service contract within 90 days of buying your appliance
Only available for appliances purchased from Costco
No coverage available for home systems like HVAC, heating and electrical

Costco Appliance Protection Plan coverage

The cost of the appliance protection plan will offset or fully cover the repair or replacement of covered products, such as appliances and electronics. With your purchase of an appliance protection plan, you’ll get a two-year warranty on your Costco purchase via Costco Concierge Services. But i you buy a service plan, you’ll get coverage for an additional three years from Allstate, for a total of five years of coverage.

In the first two years of your service, you’ll need to contact Costco Concierge Services for repairs or replacements. After that, you will be referred to Allstate to make a claim.

What it offers

Costco offers full coverage for every part of a qualifying appliance, with no service fees and 24/7 online claims processing.

No service fees or deductibles

One of the best things about the Costco appliance protection plan is that there are no service fees, and you don’t have to pay any deductibles. The insurance also covers one hundred percent of the parts and labor cost for repairs on covered appliances in the event of a mechanical failure due to normal wear.

The warranty covers all parts of your appliance

Appliance protection covers a wider variety of repairs than most home warranty plans, but provides that coverage on a smaller number of items. Other home warranty and extended service providers often expressly limit which parts they will cover repairs for. Some providers will even have so many exceptions written into their terms and conditions that the plan only covers parts that are very unlikely to break.

With the Costco appliance protection plan, you’ll have coverage on every part of your home appliance as long as it breaks down due to normal wear and tear. You won’t ever be denied reimbursement because a certain motor or electrical component was deemed ineligible.

24/7 claims process online

You can file a claim 24/7, and claims can be processed online for in-home service of major home appliances. For example, if your dishwasher has stopped working, you can submit a claim online and have an authorized technician come to your home to fix it.

Replacement items are brand new

Most warranty companies offer refurbished replacements that may not always be in the best shape, leading to potential problems down the road. With Costco, you’ll always get a brand-new appliance whenever you need a replacement.

Limited coverage for multiple items

With select Costco appliance protection plans, you can purchase one warranty to cover a whole suite of appliances, taking the guesswork out of deciding which items to cover and which not to cover. The two suites Costco offers are those of kitchen and laundry appliances. Laundry appliance protection covers a washer and dryer pair, whereas kitchen appliance protection covers microwaves, dishwashers, ovens, refrigerators, and other major kitchen appliances.

What it doesn’t offer

Costco’s appliance protection plan doesn’t cover the same things that most traditional home warranties do. It doesn’t cover damage to your home or malfunctions in major home systems. Nor does it offer holistic coverage for all of your major appliances. Coverage is only available for the suites of appliances (which must be purchased from Costco) mentioned above. If you’re interested in purchasing coverage for a broader array of appliances and home systems, check out traditional home warranty companies to find the best home warranty to fit your needs.

You must purchase the appliance protection plan within 90 days of purchasing your appliance

You must purchase the appliance protection plan within 90 days of buying your appliance. Also, you must have the receipt from the purchase of the item to purchase a plan or file a claim, so be sure to hang on to the receipt for any appliances you’re considering getting covered.

Does not offer coverage for loss, theft or vandalism

The Costco plans don’t cover loss, theft, vandalism or accidental damage while transporting or installing your appliance. If those things happen to your machine within five years of your purchase, you’ll have to pay to fix the damage yourself.

Costco Home Warranty plans

There are three types of Costco appliance protection plans, and each type has different levels depending on how much the cost of the appliance.

Here is a breakdown of Costco’s protection plan costs:

Type of Warranty:	Price:
Appliance
<$1,000	$89.99
$1,000 – $1,999	$119.99
$2,000+	$159.99
Kitchen Suites
<$2,000	$174.99
$2,000 – $3,999	$299.99
$4,000+	$399.99
Laundry Suites
<$2,000	$174.99
$2,000+	$219.99

Appliance Plan

The most popular protection plan offered by Costco is the single appliance plan. The program will cover one refrigerator, washer, range, microwave, freezer, dryer or dishwasher, for five years, for $89.99.

Kitchen Suite Plan

The Kitchen Suite plan covers four eligible kitchen items purchased together at Costco. You can protect the following products with your plan:

Wine Coolers
Air Dressers
Over-the-Range Microwaves
Wall Ovens
Range Hood
Refrigerators
Freezers
Dishwashers

Ineligible items include:

Countertop Microwaves
Pedestals
Air Purifiers
All Accessories

You will need to purchase a separate protection plan for appliances purchased at different times.

Laundry Suite Plan

This plan is the same as the Kitchen Suite Plan, except it covers just two items: a washer and a dryer. You’ll have to purchase a washer and dryer package on the Costco website to qualify for this offering.

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What do the customer reviews say about Costco home warranty insurance?

Costco is not officially accredited with the BBB, but they have an A+ rating. Most of the customer complaints have to do with membership fees. However, some purchasers of the Costco appliance protection plan have weighed in on its value and issues with it. Customers report being passed around to multiple customer service reps for hours and having difficulty filing claims over the phone. Other customers say that after a lengthy claims process, they were able to receive a replacement for their defective appliance. While some issues are reported on the customer service side, customers do usually get their problems fixed at the end of the claims process, which is more than can be said for some home warranty companies.

Costco Home Warranty FAQ

How Do You File a Claim with Costco?

The process for filing a claim is simple and can be done in a few steps:

1. Call the warranty provider or file a claim online.

2. Provide them with your name and contact details, the nature of your claim and the date you purchased your coverage.

3. Be prepared to answer questions about what caused the damage and submit any receipts that may help with processing your request. This is where keeping the receipts for your appliance and protection plan is so important. Without those receipts, getting your appliance repaired or replaced may be impossible.

How Does a Costco Home Warranty Work?

Costco does not offer a home warranty plan. Instead, Costco offers an appliance protection plan that covers the repair or replacement of items purchased from Costco. Costco offers a variety of plans that can be customized to fit your recent purchase, with costs varying depending on the retail value of the item you'd like protected. These plans offer five years of protection, split into two stages.

The first part is the Costco Concierge Service warranty. Any item you purchase from Costco comes with a two-year warranty from CCS.

The second optional part is a three-year warranty through Allstate that extends your total warranty coverage to five years.

To be eligible for the Allstate Protection Plan, you must purchase the plan within 90 days of buying your appliance.

Any time a part of your appliance malfunctions, you can file a claim on the phone or online, and a technician will come out to attempt to repair the item. If it cannot be fixed within multiple visits, you will receive a new item or reimbursement for that item.

What do I do if My Claim Gets Denied?

If your claim gets denied, there are some steps you can take:

1. Contact the company's customer service department to find out why they denied your claim.

2. If they have additional questions, provide the necessary information and wait for their response.

3. If you still need to understand why your claim was denied after talking to them, ask for an explanation in writing.

4. After that, you can always file a complaint with the BBB by contacting one of their regional offices.

Is the Costco Appliance Protection Plan Worth It?

Problems with newly-purchased appliances are common, and having extra protection just in case something goes wrong can save you thousands of dollars. However, if you just bought an exact copy of an appliance you've had minimal issues with in the past, and you're installing it in the same place in the same house, you might be able to save a few dollars by skipping the protection plan.

Modern appliances are generally not as easy to fix as older ones. The electronic controls (as opposed to the electromechanical controls used years ago) are difficult to fix and to find parts for. A defective electronic control that can't be fixed can render your stove or your washer and dryer useless. This is something to keep in mind, particularly if you haven't had much experience with trying to get contemporary appliances fixed. This is a situation, however, in which having an extended service plan in place could be quite valuable.

How we evaluated the Costco appliance protection program

We looked at customer reviews of Costco’s Appliance Protection Program, at the company’s website, and at information obtained from the BBB. For our review, we analyzed the available plans by:

Coverage – Is the plan comprehensive?
Pricing – Does the appliance protection plan price justify what you get in return?
Convenience – Can you make monthly payments online, and what is the process for canceling or declining coverage?
Service & Support – Can you contact them by phone or live chat, and are they responsive?
Duration – How long-lasting is the coverage?

Costco Product Protection Plan summary

Costco offers better coverage than most home warranty companies on the appliances it covers. Every part of the appliance is covered, and defective units are replaced with brand-new products rather than refurbished ones.

However, Costco’s appliance protection plan only applies to products purchased at Costco within 90 days of the purchase of a plan. Furthermore, since Costco doesn’t sell larger home systems, like HVAC and electrical, the plan’s coverage is much more limited in scope than a traditional home warranty. There are also some complaints online about customer service and support quality.

Costco’s protection plan may be a great way to replace a faulty appliance, but it’s not a great replacement for solid, comprehensive home warranty coverage. It’s better suited to a supplemental role, providing extended coverage for new items not otherwise included in your home warranty or that don’t have adequate coverage under your existing warranty plan.

Andre Walker

Andre Walker is a content writer based in Los Angeles. He has over 10 years of experience working in sales, finance, technology and marketing. He excels at content marketing, and has written several articles on cryptocurrency, personal finance, and automatic speech recognition.