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


Replacing Your Washing Machine

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

Choosing Window Treatments: Pros and Cons

Deciding on the right size, color, fabric and pillow configuration for your couch took three weeks. You still haven't decided on the paint color for the bedroom, despite having seven different shades of blue in swatches up on the wall. It seems like every design decision you've made in your home was critical, but the one that will help pull it all together hasn't garnered a moment of thought.

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.

Inspired Ways To Create A Guest Space When You Don't Have A Guest Room

Not all of us are blessed with enough bedrooms to accommodate every member of the family plus a home office and a man cave and a theater room and a guest space. And, it's that last one that often ends up as a challenge when friends and family come to visit and you either have to break out the blow-up bed or give up your room and hunker down with the kids. You don't need to add on or buy a new home to provide a comfortable space for guests. These smart solutions will help you create a great space for guests with minimal effort.

Clever Tips To Make Painting Your Home Easier

Painting is one of the easiest and least expensive ways to transform a space. But it can also be a hassle, what with all that taping and prepping and cleaning up. These clever tips can make it easier. Fun, even. (That might be a stretch.)

10 Key Problems to Look Out For and Fix in Your Home

Ignore some of these signs and you may end up with major issues. We tell you which are normal and which are cause for concern

Replacing Your Kitchen Dishwasher

Mix water, moving parts and wear and tear and you get a dishwasher replacement project

Can't Sleep? Why Your House Might Be To Blame And What You Can Do About It

Not being able to get sufficient sleep isn't just annoying. Beyond making you grouchy and causing you to yawn all day, it can threaten your immune system, impact your memory, and injure your back. There are a number of potential reasons for your sleeping issues, but your house probably isn't helping. With a few fixes, you may be sleeping soundly in no time.

Bright Ideas: How to Light Up Your Rooms

These clever tricks banish dim interiors and dark corners, and usher natural light into the house.

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.

See More Articles