We all know about insuring our valuable assets like our cars, bikes, houses, property, etc. A relatively new type of insurance is now becoming popular. This type of insurance is informally called a “home warranty.” Basically, this type of warranty provides an insurance cover for all the electrical and electronic appliances at home like TV, refrigerators, air-conditioners, dishwashers, computers, and even the plumbing equipment if need be.

This article will try to provide a general overview of all such insurance schemes available today. Let us first start by looking at the advantages of such an insurance cover:

1) Convenience: If any piece of equipment or appliance that is covered fails, a single call to the insurance agencies helpline is all that is required. These insurance firms usually hire a local technician in your area at their own cost.

2) Savings: Original components usually cost a lot in the market but if you have an insurance cover, the cost of the same is borne by the insurance company itself. If a piece of equipment/appliance completely fails and is deemed “not repairable” by the technician, the insurance agency provides a replacement as well.

3) Peace of mind: Naturally the fact that most of the appliances in your home are covered will make you, as policy owner, feel at ease.

An insurance cover is not a complete solution to all your maintenance problems. Sometimes, it may also cause some new problems to creep up. Here are some of the cons associated with such an insurance cover:

1) Not everything is covered: Never sign any policy document before reading it first. This is a simple rule that is easily forgotten. Most insurance policies will simply not provide any cover for aging equipment or for any other appliance that is in bad shape at the time of policy enforcement. Before a company decides to cover your equipment it will most probably send a technician to your house to check the performance of every appliance to be covered.

2) Delayed repairs/replacement: A general rule that applies the world over. The technician may be busy and might take a few days to visit your house. The same rule applies to the replacement parts as well. They are usually late.

3) Denial of repair: Many companies simply deny any repair claim made by the policyholder. The reason given is simply “policyholder’s / homeowner’s negligence”. This situation can usually be avoided by reading the policy document carefully at the time of purchase.

4) Fraudulent companies: Some companies simply “disappear without a trace” a few months after the policy is enforced. The best way to avoid such a complication is to simply do your research before purchasing. Choosing a reputed company is also another option.

The above covers almost everything; here are a few general tips that are based on the general experience of many policyholders:

1) A technician will always request some “service visiting fees” that are to be paid by the policyholder.

2) The policy document should be read very carefully. This will give the customer a good idea of what is covered (as well as what is not covered) by the policy.

3) The better the policy (the higher the premium), the more appliances will be covered.

4) Companies will often prefer repair to replacement.

To sum it up: Be well informed before purchasing any insurance policy. Ask your friends and colleagues and search the internet for reviews and experiences of other customers about the various insurance policies. Many companies release their annual financial reports to the public domain. Read these carefully if you get the chance to do so. Most importantly, let your common sense prevail when making any such decision.

Home Appliance Insurance Reviews is a post from: Home Maintenance

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