Availing Home Appliance Insurance
Warranty vs. Insurance
It may actually seem having the same meaning of protection over an item, which in this case is a home appliance. However, there are many details that differentiate warranty and insurance over a home appliance. A warranty is a form of coverage given by the manufacturer to the consumer buyer from mechanical defects and malfunctions of the product. This is to ensure that the appliance was created to serve its purpose and function according to its design. The coverage ends there and no other conditions may warrant. Insurance is a coverage given by a third party firm to protect an item from certain events not pertaining to the mechanical or design of the item. Home appliance insurance covers such items stated.
Application
Home appliance insurance is an extended form of protection by the insurance company given to home owners in the event that the insured appliance is destroyed, stolen, burned by fire, and the like. Usually, the smaller appliances bought at a low price are not subjected to a home appliance insurance policy due to the much more expensive cost in monthly fees than just buying a new one. A home owner purchasing these appliances should distinguish what items should be insured with home appliance insurance coverage, considering the idea for the much more expensive or valuable ones.
The Paradox
Though it is some form of personal security to invest in home appliance insurance, some would rather invest in a savings account, using the same amount to be paid in the monthly insurance fees. Unless the appliance is a collector's item or holds a very sentimental value, the most logical way is just to save enough in case the appliance bought breaks down or gets lost. Other types of domestic appliances to be considered for home appliance insurance are lawn mowers, fridges and freezers, television systems, and the like. These big appliances still serve their purpose even after 5 to 8 years, when warranties have already expired.
Alternatives
It doesn't mean that appliances are not worth covering for insurance anymore. There is an alternative way for home appliance insurance. This is integrating the appliances, major ones at that with the current homeowner insurance policy (HOI). This way, whenever any appliance situated originally inside the house being covered by home insurance gets lost or destroyed, certain reparation may be claimed by the homeowner in lieu of the lost appliance. Be careful in fine print definitions in homeowner insurance policies as it may not include specific appliances, and clarifying them with the insurance firm will be best.
