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


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.

New Windows Changed My House - and My Mind

It was exciting to contemplate city life after living in smaller towns. Apparently, everyone else thought so too, because by the time I decided I liked a house, it was gone from the market.

Removing Your Popcorn Ceiling

More and more homeowners are changing out their popcorn ceilings for a more modern look.

House Fires: Less Than Two Minutes To Survive!

Have movies and super heroes lulled us into a false sense of security when it comes to house fires?

Backyard DIY Projects

You don't have to pay through the nose to have the best backyard on the block. If you have a few simple DIY skills and know how to use a tape measure and level, you can easily upgrade and update your backyard all on your own.

How To Safely Remove Window Glass

Why would you need to remove glass from your window? In most cases, it's because the glass is cracked or broken, or it is an insulated pane that's no longer sealed properly. Or maybe it's time to upgrade your windows with tinted or smart glass. Professional glass shops can help you choose and size the right glass for the job, but first you'll have to remove the window glass and bring in the sash. If there is a break on a stationary window or the sash and it isn't budging, you may need to hire a professional glass installation expert.

Lawn Care For The Fall: Essential Tips to Follow

All summer you've been watering, cutting, trimming and feeding your yard in the hopes of having the greenest plot of land in the neighborhood. So what should you do to get your lawn in shape for the cool breezes of autumn? These six steps will help you get a head start on the colder weather.

Find The Right Interior Doors For Your Home

Take a minute to count the number of doors in your house. Surprising, right? Consider then, the impact that a little attention to the doors can have on the overall style and design of your home. Whether you're just moving in or staging for a sale, new doors are a simple way to dramatically update the space. The good news is that there are as many styles of doors as there are doors in your home. Making the decision is the toughest part.

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."

Maintaining Your Hot Water Heater

Water heaters generally have a lifespan of 8-12 years, but as with anything, the better care you take of it, the longer it will last. There are several easy "set it and forget it" tips that you can use with your water heater, like keeping the thermostat at 120 degrees, and always maintain two feet of clearance around the appliance. You can also conserve money on your gas bill by setting your heater to its "vacation" setting when leaving town. This will keep the pilot light going without heating the water.

See More Articles