article

Are Extended Warranties Worth the Cost?

By Blanche Evans via Realty Times

bluehammer

Extended warranties offer consumers longer terms of coverage on service, repair and replacement for their home's appliances than the standard out-of-the-box warranty from the manufacturer. These warranties are highly profitable for retailers, as they can run up the total cost of your purchase by $100 or more, with very few claims being filed per year. Are they actually worth it?

You can argue the benefits both ways.

In the fast paced world of home electronics, by the time the extended warranty expires, future technology will far outclass today's. Digitaltrends.com states that household electronics have seen great improvements in product reliability, making the price of most extended warranties about the same as a repair bill. The same is true with most appliances today too.

Consumerreports.com agrees. Their data concludes that the likelihood of most home appliances needing repairs in the first three years is less than one in five. And most defects will reveal themselves within the first year of use, while the manufacturer's warranty is still good.

That said, extended warranties should be purchased for some items, including those that are difficult to repair or high-priced items that would be painful to replace. These include high ticket items like a $6000 Viking gas range or pricey hi-definition plasma TVs, suggests smartmoney.com

Since extended warranties do make so much profit for retailers, they are very aggressive about selling them to customers. If you're tempted, follow this rule -- the cost of the warranty should be no more than 10% of the purchase price.

And if you decide to skip the warranty, be prepared to shoulder the cost for assessment (service calls), repair (time in labor plus parts) and shipping. Though it's more of a hassle, this can be the most cost-effective measure. If you have a warranty option of $250 and you experience only one instance in the life of your appliance where it needs $100 of work, you could save $150, or 60%.

Ultimately the choice and risk are yours to assume. Extended warranties can be worth the cost in terms of peace of mind, but only if it's for a product you don't intend to change for a few years.

Want to estimate your home improvement costs before talking with a contractor? Claim your home for free with bluehammer to estimate costs, secure your home inventory and learn more about your home.

* THIS REPORT IS AN OPINION THAT MAY BE INACCURATE AND IS PROVIDED SOLELY AS AN INFORMATIONAL TOOL NOT DESIGNED TO PROVIDE DEFINITIVE ANSWERS. ALL ELEMENTS ARE OFFERED "AS IS" AND BLUEBOOK EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES, REPRESENTATIONS, AND GUARANTEES OF ANY NATURE, EXPRESS, IMPLIED OR OTHERWISE, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABLITILY, NONINFRINGEMENT, TITLE, QUIET ENJOYMENT, ACCURACY, OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL BLUEBOOK (OR THEIR SUPPLIERS) BE LIABLE FOR ANY GENERAL, DIRECT, SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND, OR ANY DAMAGES WHATSOEVER (INCLUDING WITHOUT LIMITATION, THOSE RESULTING FROM USE OF THE PRODUCT, INCLUDING : (1) RELIANCE ON THE MATERIALS PRESENTED, (2) COSTS OF REPLACEMENT GOODS, (3) LOSS OF USE, DATA OR PROFITS, (4) DELAYS OR BUSINESS INTERRUPTIONS, (5) AND ANY THEORY OF LIABILITY, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF INFORMATION) WHETHER OR NOT BLUEBOOK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Know what you should pay for your home improvement projects with bluehammer.Claim your home. It's free!

Popular


Simple DIY Projects That Will Increase the Value of Your Home

Looking to boost the value of your home without spending hundreds of thousands of dollars? You can! Making changes in certain rooms, like the kitchen and bathroom, is more beneficial than in others. These simple DIY projects will help increase your home's value the most.

10 DIY Peel-And-Stick Tiles To Quickly Take Your Backsplash From Meh To Magnificent

Adding a flashy backsplash is one of the best ways to help transform your kitchen, and, especially, to take the emphasis off of countertops that might need updating or cabinets in need of an overhaul. It could also inspire you to make those other needed changes. But the hassle of working with tile and stone and dealing with messy thinset and grout - or paying someone to do it for you - often wins out over going for it.

The Best Paint Colors For An Enduring Look In Your Home

Trends come and go. If you paint your walls the "provocative and thoughtful purple shade" of Ultra Violet, as Pantone, itself, calls it, you're probably gearing up to repaint them in whatever the color authority deems the "it" shade next year. If you'd rather pick a paint chip or two and keep your space the same for the long haul, you'll love these colors that endure.

Replacing Your Water Heater

Hot water is a luxury we all take for granted until it goes cold.

How To Cut Your Costs Building A Pool

Having a pool can be one of the most enjoyable parts of homeownership, but building it can be an expensive undertaking. "If you're planning to install a pool, be prepared to open your wallet," said US News. "PK Data reports that the average cost of a residential in-ground swimming pool was $39,084 last year."

How To Choose The Right Vanity To Kick Off Your Bathroom Remodel

You can change your bathroom lighting, your floors, and your fixtures. But if your vanity is rickety, chipped, timeworn, or just plain ugly, your bathroom might feel that way too.

Building an Emergency Fund to Cover Unexpected Home Repairs

With homeownership comes new responsibilities, including repair and maintenance expenses. Sooner or later, you'll encounter a leaky faucet or a blown circuit breaker and quickly learn that keeping your household up and running is no longer as simple as a call to the landlord.

Getting your home ready for that big party

Preparing for a party can be a hectic time - you have a full slate on your to do list, including choosing the menu, preparing food, planning activities, and coordinating decor. It can be easy to overlook one of the most important elements of planning an event, making sure your home is presentable for your guests. Our guide will help you to quickly get your house party-ready so you can focus on all the other things involved in preparing for your event.

Is Your Furnace Affecting Your Indoor Air Quality?

The push to make our houses as energy-efficient as possible has, in some cases, led to unintended consequences. Because modern houses are less drafty due to tighter-fitting windows, doors and weather stripping, pollutants that were vented in the past are trapped inside. Most of the pollutants are relatively harmless, but some can be dangerous, and they all contribute to what some people call "sick house syndrome."

5 Home Upgrades For Your Vacation Rental Space

Vacation rentals are experiencing a surge of popularity as websites like VRBO and Airbnb make them more accessible. Guests can find a place that fits their budget, location and accommodation needs. Hosts can easily list their property.

See More Articles