SquareTrade Appliance Warranty 2020 Review

SquareTrade is an Allstate company that offers extended warranties for a variety of items, including appliances, electronics, and furniture. Allstate has been in business for more than 85 years and, coupled with Squaretrade, they have over 70 million active policies.

In this review, the This Old House Reviews team discusses SquareTrade appliance warranty plans, pricing, and customer reviews to help you determine if this is the best home protection plan for you and your home.

SquareTrade provides extended warranties for a wide range of products, including major home appliances. Some of the other products the company provides coverage for include:

  • Cellphones
  • Computers, including laptops, tablets, and desk computers
  • Televisions
  • Watches and fitness trackers
  • Furniture
  • Gaming gear

SquareTrade lists four appliance warranty plans on their website—a dishwasher warranty, refrigerator warranty, washer/dryer warranty, and a coverage option for other appliances. However, all plans operate under the same “appliance warranty.”

SquareTrade has two plans that cover appliances: a standard plan and a plan that includes accident protection. SquareTrade protection plans are offered as a three-year protection plan or a five-year protection plan. Coverage is only available for new appliances bought in the past 30 days.

SquareTrade Appliance Warranty Plans and Coverage

Coverage Standard Plan Plan with Accident Protection
Coverage Standard Plan Plan with Accident Protection
Mechanical and electrical failures
Unexpected leaks
Power supply burnout
Won’t power on
Power supply burnout
Accidents like drops and spills

Note: You won’t be able to submit a claim for the following types of appliance failures:

  • Physical (cosmetic) damage
  • Replaceable parts (bulbs, etc.)
  • Commercial use
  • Intentional damage
  • Loss or theft

The “other appliance” category isn’t defined explicitly, but SquareTrade defines the types of items that aren’t eligible for coverage in their help center. These include, but are not limited to:

  • Items with no electronic or electrical components
  • Other outdoor appliances (barbecue grills, pressure washers, etc.)
  • Plumbing-related appliances (water heaters, softeners, or filters)
  • Automobiles of any type
  • Industrial equipment
  • Items intended for commercial use

When Does SquareTrade Coverage Start?

If you purchased your item new, your coverage starts on the day you purchased your service plan.

If you purchased your item used, you might have to wait 30 days before coverage goes into effect. This waiting period varies and will be detailed in the terms and conditions of your contract under a section labeled, “Waiting Period.”

The cost of a SquareTrade appliance warranty will depend on the plan you choose, the cost of the appliance you want to protect, and the contract length. Here’s a breakdown of SquareTrade protection plan pricing:

SquareTrade Appliance Warranty Pricing

Cost of Appliance 3-Year Plan 5-Year Plan
Cost of Appliance 3-Year Plan 5-Year Plan
$0.00–$199.99 $99.99 $109.99
$200.00–$299.99 $99.99 $109.99
$300.00–$399.99 $99.99 $114.99
$400.00–$499.99 $99.99 $134.99
$500.00–$699.99 $99.99 $159.99
$700.00–$999.99 $114.99 $229.99
$1,000.00–$1,249.99 $149.99 $299.99
$1,250.00–$1,499.00 $149.99 $299.99
$1,500.00–$1,999.99 $169.99 $344.99
$2,000.00–$2,999.99 $219.99 $399.99

Coverage Specifics

If SquareTrade determines that your item can be repaired, they will cover 100% of the parts and labor. If the item needs to be replaced, the amount covered will depend on your plan and appliance type. SquareTrade will contact you directly to discuss your repair and replacement options.

Once the cost of repairs or replacement meets or exceeds the coverage amount of your plan (generally equal to item purchase price), your plan will expire.

How Does SquareTrade Compare to the Competition?

The average cost of a home warranty plan breaks down as follows:

  • Plans range from $300 to $600 a year.
  • Additional items or coverage options range from $100 to $500.
  • Deductibles and service fees range from $75 to $125 for every claim made.

At first glance, this makes SquareTrade seem cheaper than the average plan. There are no deductibles, and the plan cost is lower than the industry average. However, most home warranty plans don’t charge by item. For example, if you had a plan with American Home Shield, you’d pay a flat coverage fee to protect major appliances and systems in your home.

Let’s take five standard appliances in a household as an example—a refrigerator, washer/dryer unit, dishwasher, central air conditioning unit, and water heater. For the sake of this exercise, we’ll use the high end of the industry average home warranty cost.

If all five appliances needed repairs or replacements within one year, here’s a cost comparison between SquareTrade’s three-year plan and an average home warranty:

Cost Comparison

Appliance Average Cost SquareTrade Average Home Warranty
Appliance Average Cost SquareTrade Average Home Warranty
Umbrella Plan $0 $600.00
Refrigerator $600.00 $100.00 $100 deductible
Washer/Dryer $3,000.00 $220.00 $100 deductible
Dishwasher $1,000.00 $150.00 $100 deductible
Central Air Conditioning $1,800.00 $170.00 $100 deductible
Water Heater $1,000.00 $150.00 $100 deductible
TOTAL $790.00 $1,100.00

If all five items fail in one year, SquareTrade is the cheaper option. If just one or two appliances fail, American Home Shield is the more affordable option.

As a precaution, there may be a risk involved with only covering some items in your house and not all of them. It’s almost impossible for homeowners to anticipate which items will fail and which will not.

Idea House, Kitchen

Nat Rea

SquareTrade Appliance Warranty Claims Process

Submitting a claim with SquareTrade can be done online in four steps.

  1. Locate your receipt and covered item.
  2. Have details like the IMEI/MEID number, serial and/or model number, and other information such as the brand, model, carrier, memory, color, and size of your broken system or appliance.
  3. Contact SquareTrade or file a claim online at squaretrade.com/claim.
  4. Upon approval, call SquareTrade to schedule an in-home service visit.

There’s no service fee for a home repair visit, but SquareTrade limits the amount it will cover for repairs or a replacement item to the upper level of the policy you purchased.

Many SquareTrade warranties include a “no lemon” policy. This policy applies if you had the appliance repaired two times for the same issue and need a third repair for the same problem, all within a 12-month period. If that happens, SquareTrade would authorize replacing the covered product with a comparable model or give you cash to replace the appliance, instead of repairing the problem a third time.

Note: You do not need to register your appliance to submit a claim. However, registering your items might speed up the claims approval process. You won’t be able to register your item over the phone—all registrations must be completed online and will require a username and password.

If you want to register your appliance, you must:

  • Wait three days after your appliance purchase. It will take the retailer up to three days to send SquareTrade the necessary information.
  • Go to squaretrade.com/register.
  • Have your receipt on hand in case you need to upload it.

How Does SquareTrade Impact a Manufacturer Warranty?

If you purchased your appliance new, it likely came with a manufacturer warranty that covers defects due to parts or workmanship, generally up to one year from the date of purchase. If your item is covered under the manufacturer warranty, SquareTrade will direct you there first.

If the appliance in question is not covered by the manufacturer but is covered under your SquareTrade plan, SquareTrade will cover it. After your manufacturer warranty expires, SquareTrade covers all issues included in your plan for the remainder of the plan term.

Frequently Asked Questions about SquareTrade Appliance Warranties

Does SquareTrade offer appliance warranties?

Yes, SquareTrade offers extended warranties on appliances such as refrigerators, dishwashers, and washers and dryers.

What does a SquareTrade appliance warranty cover?

A SquareTrade appliance warranty covers mechanical and electrical failures, issues when the appliance won’t start, and power supply burnout.

What is SquareTrade known for?

The company started out providing extended warranty coverage for consumer electronics, such as cellphones. Consumer electronics continue to be a major thrust of its business.

SquareTrade Appliance Warranty Reviews

SquareTrade has a 4-star rating on Trustpilot. Out of more than 13,000 reviews, 74% of reviewers said they had an excellent experience, while 12% of consumers rated the experience as bad.

Because SquareTrade covers consumer electronics in addition to appliances, most of the reviews don’t involve a specific SquareTrade appliance warranty. Most comments seem to involve phones, televisions, and computers and many reviews don’t specify what sort of item was covered.

Positive reviews from customers note a quick, hassle-free experience with SquareTrade.

“I’ve been using SquareTrade for at least 5 years on quite a few different items including quite a few phones and I’ve never ever had a problem ever. I completely trust them even if I live in no man’s land and my phone is trashed due to my own fault of dropping it. They have it shipped overnight and back to me in 48 hours in perfect condition. I’m such an avid believer in them. Everything that I ever buy on Amazon or anywhere else I immediately tag on a SquareTrade warranty even if I never use them that’s how much I believe in these guys.” — Jaden Turner, 5 stars, Trustpilot, 3/4/2020

Customers who gave SquareTrade a low rating cited slow service or denial of claims.

“SquareTrade was not able to replace or repair the headphones I had covered under their protection plan, so they sent me a check. I am not satisfied with a check and feel they should have tried a little hard to get me a replacement as the exact brand of headphones are openly available to most stores and online. Sending a check seemed to be their easy ‘cop out’ way of ending the protection plan on my item.” — Natasha, 2 stars, Trustpilot, 2/4/2020

Our Conclusion

A SquareTrade appliance warranty might sound appealing with its promise of paying for an extended warranty once and facing no further fees. However, if you buy warranties on multiple appliances, the cost can add up quickly. Additionally, it’s difficult to determine how well the company serves its appliance warranty customers, since so much of its business involves consumer electronics.

The This Old House Reviews team believes a better option for an extended warranty on your home appliances is a home warranty from American Home Shield.

Our Recommended Provider: American Home Shield

With four available plans, plus optional add-ons, American Home Shield (AHS) provides flexible, comprehensive coverage for the important appliances and systems in your home.

American Home Shield has flexible service fee options of $75, $100, and $125. Homeowners can select their own fee, with a higher fee translating to a reduced monthly cost. AHS also provides an easy claim process on its site, over the phone, or on its mobile app, and claims to respond to customer service requests within 24 hours 98% of the time.

You can get a free quote from American Home Shield by calling 888-751-6014 or filling out this online form.

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