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


Unique Ways To Dress Up Your Kitchen Cabinets With Hardware

Hardware is the jewelry of the kitchen. In a well-designed space, it can add an important finishing touch. In a space that needs a little help, it can provide some sparkle to help distract from worn or outdated features that may be more difficult to update. And, it's an easy, inexpensive project you can do yourself.

Nontraditional Places to Use Pendant Lights

When you picture pendant lights, where do you see them in a house? Close your eyes and imagine it.

New Designs In Cabinet Refacing

You may be one of the fortunate homeowners whose kitchen just needs an update instead of a full remodel. Cabinet refacing is an economical option that can give your kitchen a quick makeover in no time. Rather than gutting your cabinets and replacing them with new ones, cabinet refacing allows you to update the exterior of the cabinets you already have. It's also a fabulous way to add contemporary design elements to your space, both with cabinet doors, colors and hardware. Let's take a look at the latest designs in cabinet refacing.

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.

New Tech All Homes Will Have By 2020

New technologies are constantly emerging, rendering others obsolete every day. Many of these technologies eventually enter into our homes after being used in businesses or other capacities throughout the world first. Once they show themselves to be useful, people incorporate them into their everyday lives. Here are some technologies that every home will have by 2020.

Follow These Steps Before Starting Your Kitchen Remodel

If your kitchen is looking a bit dated, consider a remodel to upgrade its efficiency and looks. Here's a quick guide to planning your kitchen update:

You Really Should Inventory Your Personal Property

A home inventory is a smart way to safeguard your valuables, saving money and time.

Tips For Decorating Rooms That Are Long And Narrow

Distract attention away from an awkward room shape and create a pleasing design using these pro tips.

Chimney Liners: Does Your Home Have One - Do You Even Need One?

You rely on your chimney being safe. Whether you use your fireplace for wood-burning fires, you have a furnace that vents through your chimney, you utilize a wood stove or gas insert, your chimney needs to be able to handle heat and sparks without allowing damage to your home. Stone or brick chimneys can be made safer with a flue lining that helps to move heat and gases up and out of your home.

8 Ways to Love Your Small Space More

When we run stories on living in homes with petite proportions, you often tell us, "Small? You should see my house!" Because we aim to please, we've rounded up some of the tiniest rooms on Houzz, picking those that pack plenty of ideas and function into a small space. We think that these are indisputably compact. But, more important, do you?

See More Articles