Home appliance has become inevitable part of modern life. They save immense time and energy for us and provide a comfortable and stylish living. But, what will happen if they malfunction or break down? If our refrigerator stops working, it will cost us at least $800 for a replacement. Well, what if some one bears this expenditure without hurting their packet.
Home appliance insurance does exactly the same. When you opt for a home appliance insurance policy to cover your major home appliances, you pay nominal premium every year, which is deductible. When something goes wrong with your home appliance, the insurance company will take care of it. Either they get it repaired or replace a new one depending upon the terms and conditions in the policy. These policies cost anywhere between $200 per year. Like other types of insurances, home appliance warranty premium are also eligible for deduction.
It is said that the home appliance insurance provides ‘peace of mind’ to the homeowners. Because, if some thing goes wrong with these appliances, you do not have to raid your savings account to repair or replace them, if they are covered under home appliance insurance. People can argue when they take a homeowners insurance policy, which covers the home appliances also, what is the need for going for a separate home appliance insurance policy. Well, the homeowner’s policies cover the appliance damaged or lost due to fire, theft or any other emergencies; they do not repair or replace home appliances when it malfunctions in normal conditions. This is where the home appliance insurance comes into picture.
There are many views favoring and opposing the home appliance insurance. Some people think that the home appliance insurance is very handy when they face a huge expenditure for repairing or replacing a malfunctioning appliance, because they do not have to shell out a huge sum from their packets for repairing or replacing it, as it is the company’s headache.
Others argue that the home appliance insurance is unnecessary. It is believed that all modern home appliances manufacturing today are durable, and they last long enough to get your money’s worth. Spending on insurance premium is a wasteful expenditure. Second point according to them is that every appliance comes with manufactures warranty for at least one year. If anything goes wrong during this period, which is called as ‘infant mortality’, the manufacturers take care of it. He either repairs it or replaces it with a new one. So, instead of paying insurance premium for a home appliance insurance policy, people can put that amount in a savings account. You can save a considerable amount by the time the manufacturer warranty is expiring. If that appliance is conked-off after the warranty period that you can repair it from your savings account, or even buy a new one after disposing the problematic appliance. This works out to be cheaper than paying insurance premiums every year.
Most of the people agree that home appliance insurances are more beneficial to old appliances than the new one. Because, in new appliances the chances of malfunctioning is very less and even if it develops problem manufacturers warranty is enough to cover such problems.