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UncategorizedIs it worth getting home appliance insurance?

Is it worth getting home appliance insurance?

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Home appliances usually come with a minimum of a 1-year warranty. The great thing about the manufacturer’s warranty that you don’t have to pay an extra dime for it, unlike the home appliance warranty plans.

One of the biggest reason why most homeowners, hesitates to insure appliances plan is the cost attached to them. If you are someone whose mind is buzzing with the question – Is it worth spending  £3.99on home appliance policy – then you have landed on the right page.

In this article, we are going to weigh the pros and cons of home appliance insurance plans – reaching out to a conclusion – whether you should spend your money or not? However, if you want to get your hands on the affordableappliance insurance plans, then you might want to check with Prominence Support – as they offer the best appliance insurance plans.

Photo by Naomi Hébert on Unsplash

Home Warranty and Home Appliance Insurance Are Two Different Things!

Before we could start our discussion on the pros and cons of appliance insurance or extended warranty plan – first understand the concept of a home warranty. Most people confuse home appliance policies with home insurance. However, both of these terms are completely different!

When you buy a ‘Home Insurance’ policy, you are actually covering for the un-intended, un-expected home repair and damages. It could be due to a weather condition or some other uncertain event. If your home appliances are covered in your home insurance, and you claim on your home appliances, then your premium is most certainly going to go up.

On the other hand, a ‘Home Appliance Insurance’ plan is to insure the major home systems – such as washers & dryers, refrigerators or stove & oven, etc. These policies cover the cost of repair, maintenance and replacement of in-home systems.

Advantages Of Buying A Home Appliance Insurance Plan:

The biggest benefit of buying a home appliance policy is your peace of mind and convenience. Appliance insurance policies come handy, especially if you have bought new appliances

The other major reason to buy the appliance insurance policy is the cost savings. According to Bidvine, the UK National average for a call- out excluding parts and labour) to repair a faulty appliance like a washing machine is £70.00.

Other advisor estimates a simple washing machine bearing and drum damage could cost you from  £175 to  £450. This is where your£3.99 appliance insurance policies can help save money.

These home appliance policies keep you one step ahead in your financial planning game. It reduces the number of unanticipated costs and you can easily calculate the repair deductibles out of your budget.

Disadvantage Of Home Appliance Insurance Policy:

The only disadvantage of home appliance policy is that you have to pay for it even when you don’t utilize it. While it might not be a great deal for some homeowners, it’s definitely a punch in the gut for most of them.

Furthermore, if during the repair period you end up having a small repair – that cost you less than the cost of your insurance – you might want to pay that cost out of your pocket rather than using the insurance cover. However, with a low-cost policy, you will never spend more than the average repair cost.

Therefore, it is best to buy the appliance insurance for those devices that are in regular use, rather than buying new ones!

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