The designed walmart protection plans provide customers peace of mind by providing repair or replacement coverage for a wide range of products.
Two critical features that define how much you can claim and when you may receive a replacement are the No Lemon Policy and the Limit of Liability.
Understanding these terms ensures you know exactly what to expect if your product fails repeatedly or if you reach the plan’s payout cap.
What is No Lemon Policy in Walmart Protection?
The No Lemon Policy is a consumer friendly guarantee built into most Walmart Plans.
It ensures that if your covered product experiences two service repairs for the same issue and a third repair is needed for that same problem within any twelve month period, Walmart will replace your product with a comparable item or provide a cash settlement.
This replacement or settlement will not exceed your product original coverage amount.
For multi-item plans, the aggregate value of all replacements cannot exceed the total coverage amount for the plan.
Key Points:
- Applies after two repairs for the same problem, with a third repair needed within a 12-month period.
- You receive a replacement or cash settlement up to the product’s coverage amount.
- The No Lemon Policy does not apply to:
- Problems resulting from Accidental Damage from Handling (ADH).
- Video game software, CDs, DVDs, furniture, or replacement plans.
- Repairs performed while the product is still under the manufacturer warranty.
- Preventative maintenance, cleanings, product diagnosis, and customer education are not considered repairs for the purposes of this policy.
What is the Limit of Liability in Protection Plan?
The Limit of Liability sets the maximum amount Walmart will pay for repairs or replacements under your Protection Plan.
This limit is typically the original purchase price of your product (excluding taxes and fees) or the coverage amount specified in your order summary.
How it Works:
- The total amount paid for all repairs or replacements cannot exceed your product’s coverage amount.
- Once the aggregate payments (repairs, replacements, or cash settlements) reach the coverage amount, Walmart has no further obligations under the plan for that product.
- For multi-item plans, the combined payouts for all covered items cannot exceed the total coverage amount.
- Walmart is not liable for incidental or consequential damages, such as lost time, lost data, or property damage resulting from product failure or service delays.
Practical Scenarios
| Scenario | No Lemon Policy | Limit of Liability |
|---|---|---|
| Multiple repairs for the same defect | After two completed repairs, if a third is needed within 12 months, product is replaced or you receive a cash settlement (up to coverage amount) | The replacement or cash settlement cannot exceed the product original purchase price |
| Several different repairs over time | Each repair counts toward the total payout, once the total equals the coverage amount, the plan ends | Plan obligations end when payout cap is reached |
| Accidental damage (if ADH purchased) | No Lemon Policy does not apply to ADH related issues | ADH repairs or replacements still count toward the total coverage amount |
What’s not covered
Certain issues and products are excluded from these policies:
- Accidental damage unless ADH coverage is purchased (and even then, No Lemon Policy does not apply to ADH issues).
- Pre existing conditions, normal wear and tear, and manufacturer defects.
- Products sold as-is, demonstration models, or items not in your possession.
- Any failure, damage, or loss covered by another plan, warranty, or insurance.
The final words what we say: The No Lemon Policy and Limit of Liability in Walmart Protection Plans protect you from the frustration of repeated repairs and set clear expectations for the maximum benefit you can receive.
If your product keeps failing for the same reason, you may qualify for a replacement or cash settlement, but only up to your coverage amount.
Once that cap is reached, the plan obligations end. Understanding these terms helps you make the most of your Walmart Protection Plan for peace of mind and maximum value.