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


7 Tricks Hotels Use That Can Make Your Home Look and Work Better

Looking to breathe some life into your house? Maybe all you need is a vacation. A hotel stay is great for a lot of reasons - as a romantic getaway, an opportunity to see the world or explore new places, a break from work or kids - but taking a good look at your surroundings can also give you great ideas for refreshing your space when you get back home.

Are You Prepared For Disaster?

How prepared are you if natural disaster descends on your home?

Replacing Your Toilet

The work horse of the bathroom, the toilet is the most used appliance.

The Nightmare Next Door: What To Do When Your Neighbor Is a Nuisance

The animals that live in the house across the street bark incessantly. The people two doors down play their music so loud you now know all the lyrics to every Kendrick Lamar song ever written. And something, presumably a dog (you hope) keeps leaving presents on your lawn. Annoyances like these can make it unpleasant to live in your neighborhood. And, they can quickly escalate, becoming dangerous or even in need of legal intervention.

7 Reasons Quartz Counters Are The Answer For Your Kitchen

Has the tide finally turned on granite? In the last few years, granite has continued to be a popular choice for kitchen counters, but has lost ground to quartz, which is now the go-to for homebuyers and renovators, not to mention design shows and flippers. If you're getting ready to redo your kitchen or are building a new home, here are all the reasons to swaddle your counters in quartz.

6 Smart Updates To Make To Your Bathroom

The idea of renovating your bathroom can be overwhelming, but you don't have to knock down walls or gut the whole thing to make it feel new again. Making smart updates can get you closer to the look you want without the big budget, or the big hassle.

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

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.

Keeping Your Refrigerator Running Its Best

Refrigerators are the most important appliance in the Kitchen. Many home owners make sure to keep the inside of their refrigerators clean but often don't think about the best practices that can help keep their fridge running it's best.

Installing a Ceiling Fan

Ceiling fans add to the decor of a room and are an energy efficient way to improve cooling when it's hot and heating when it's cold. For simple installations, installing your own ceiling fan is a breeze.

See More Articles