Everyone relies on appliances and machinery, from simple products like toasters and irons to complex equipment like cars and computers. Sometimes a breakdown is merely a nuisance, but it can cause inconvenience and may result in considerable expense.
When you buy something new the law requires it to be up to its job. Usually, the manufacturer or retailer will guarantee it for a period of time, generally a year.
An extended warranty is a type of service contract or guarantee that covers you for repair costs after the manufacturer´s or retailer’s guarantee has expired. These policies are also sometimes called mechanical breakdown insurance.
Household appliance warranty cover:
Policies are available to cover repair costs following breakdown for most household appliances. Most policies cover the cost of parts and labour. There is usually a maximum amount payable during the term of the policy and some may have a limit on each claim.
If the appliance cannot be repaired, some policies will replace the appliance with a new one of similar specification, or pay a cash equivalent if a similar model is no longer available. These are often called “new for old” policies. Other policies will make good up to the current value of the appliance after depreciation. If any appliance is replaced the policy will usually end.
What should I think about when buying an extended warranty for a household appliance?
Additional benefits :
Some policies provide additional benefits, such as accidental damage or frozen food spoilage. This cover may be available on your home contents insurance.
Common Exclusions :
Policies usually exclude misuse and non-domestic use and cosmetic items such as damaged paintwork or trims. Consequential losses, such as water or fire damage, are not covered as your home insurance will probably meet these claims.
Where can I buy an extended warranty for a household appliance?
When you buy new appliance, the retailer will give you information about policies they sell and may also be able to provide details of policies offered by the manufacturer. Details may also be enclosed with the appliance or sent to you when you return the guarantee registration card.
Cover is also available directly from specialist insurers, insurance brokers, banks, your credit card provider or other financial institutions that lend you money to buy the appliance.
You may want to obtain breakdown insurance for appliances you already own but which are not currently insured. Insurance companies can offer this cover, subject to the age and condition of the appliance. With this type of cover there is usually a ‘no-claim’ period immediately following the start of the cover during which claims for breakdown will not be met.
When extended warranty insurance on certain appliances expires, your existing cover supplier may write to you with an offer of renewal. They may also invite you to extend cover to other appliances you own.
