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


Wall Mounting (Hanging) a Flatscreen TV

Wall mounting your new flatscreen TV not only looks great but also saves space.

8 Clever Ways To Zone Off Space In An Open Floor Plan

We've fallen for open-plan living in recent years. After all, not many of us have a formal room just for company anymore. And with modern building materials, we don't necessarily need every room to have four walls to keep it at a comfortable temperature. But although an open plan may bring the space, light, flow and garden views we desire, it can also feel problematic to organize into zones - and prove distracting to share. Enter the glass partition. It makes room division simple yet doesn't starve spaces of light or compromise the open feel. Decorative, at half or full height, framed or barely visible, a glass partition can work in every environment. Check out these designs.

Five Easy Ways To Remake Your Fireplace

It's chilly out there! You've probably got your heat cranked up and the fireplace on. And, chances are you're staring at that fireplace and thinking of all the things you'd like to change.

5 Tips to Clean and Prepare Your Air Conditioner for Summer

Making it through the summer without a working air conditioning system isn't feasible in some parts of the country. Even if you live in a temperate climate, your AC system will make you and your family much more comfortable at home.

It's Time to Clean Your Kitchen Dishwasher

Whether your dishwasher has a funky smell to it or not, a periodic cleaning should be at the top of your to-do list

Replacing Your Washing Machine

With moving parts, water and dirt, washing machines perform some tough work.

Ideas for Saving Energy with Your Smart Home

You may feel safe inside on a hot, smoggy day, but hidden dangers could be damaging your health right in your own home. In fact, according to the World Health Organization (WHO), 4.3 million people a year die from exposure to household air pollution. Poorly ventilated dwellings, smoking around the home and fine particles can all negatively impact your health.

8 Laundry Rooms That'll Make You Want To Fluff And Fold

Let's face it. Laundry is no fun. In fact, it's often counted among our most hated chores. But since running around in stinky, soiled clothes is not an option for most of us, it's gotta get done.

7 Model Home Ideas To Steal For Your Home

You don't have to be in the market for a new home to tour model homes. In fact, model home complexes are a great place to get a few ideas for your existing home. Whether you're looking for ideas to renovate your kitchen and want to see the most current trends, are having a hard time deciding on paint colors and want to see how others are incorporating color into the home, or are simply looking for a little inspiration, you can find it here.

10 Spring Cleaning Tricks For Everyone

Lazy cleaning is all about minimizing the effort. But, minimal effort doesn't have to mean you live like a slob - it just means you need to know some cool tricks tools that will help do the work for you, or at least make it less painful.

See More Articles