Eventually all appliances fail. Aside from the inconvenience of having to store all of your refrigerated food in a cool box, when your fridge dies, or having to mop up mountains of soap suds when your washing machine packs in; domestic appliances can be costly to replace, often leaving a big hole in your bank account.
Domestic Appliance Insurance
If you have a home insurance policy, typically your appliances will be included amongst the items covered. Unfortunately, this only applies to their damage or loss in the event of fire or theft, meaning you won’t be able to claim a penny if they simply break down.
All electrical items are supplied with a one years manufacturers warranty. Manufacturers which are confident in the performance of their product often offer longer warranties; sometimes two, three years, or even more. Not surprisingly, they're calculated so that most failures will occur after the warranty period has expired, certainly outside of the first year. Aside from that, manufacturers warranties only cover for mechanical failure, meaning any damage due to wear-and-tear from everyday use won't be covered. Having a stand-alone insurance for your appliances helps you to mitigate some of these risks. You're essentially 'plugging the gap' left between your manufacturer's warranty and home insurance policy.
Do I really need it
This will of course, depend on your circumstance. It sounds great in practice, but the cost and therefore the 'value' of having extended cover for your appliances, will depend on a number of things. It'll generally be cheaper than having to replace a moderately priced item such as a washing machine, but the value and age of your appliances will play a large part in determining whether it's worth it for you. If your appliance are quite old, then extended cover may actually cost more than they are worth, as claims will be assessed on this basis, rather than automatically providing you with 'new for old'.
On the other hand, if your goods are particularly expensive, you may find that they surpass the maximum claim for individual items (around £2000 as standard) and you wouldn't have appropriate cover. You can of course look for a quote with this level raised, but your premium price will rise as a result.
One particular benefit, other than financial recompense, which stands out is that you can look for policies which offer a fast call-out response from trained and certified engineers. This can often save a lot of research time for you as well, as if you were paying for it yourself, you'd no doubt be shopping around looking for the cheapest quote.
An extended warranty is not the same thing as appliance cover, although it may offer similar benefits. Extended warranties are often sold at the point of sale, be it at your local electrical retailer, or somewhere online. As a result, they are generally dedicated to a single product.
You should avoid these at all costs. They have a reputation for being poor value for money, and often include a multitude of exclusion to catch customers out. Retailers rely on a customer's urge to impulse buy these policies, and as a result you don't get the option to shop around.
If you do decide to opt for appliance insurance, ensure that you compare several different policies to get the best deal, with suitable terms. Price comparison sites offer the ideal opportunity to do this, where terms and conditions of inclusions and exclusions are more transparent.© Franant | Dreamstime.com