In case paying $100 or more for an extended home warranty helps you to sleep at night and avoid nightmares, then it’s possibly money well spent. Consumers, who can put all the emotional worries aside, can save money by choosing to buy this type of warranty. The first and foremost thing to consider before purchasing an extended warranty is the things that are covered under this warranty.
Differences between home warranty and extended home warranty:
Home warranties offered by the best home warranty providers charge annual deductibles and premium per repair incident but these warranties can be purchased anytime during the product life-cycle. But the extended warranties will charge the fees up-front, but no deductible per incident and generally this type of protection plans are sold during the initial stage of product usage. Still there are some exceptions.
Commonly, home warranties cover different types of used appliances, but extended warranties only cover new items. There is some kind of overlap, but generally both of these warranties serve different types of purposes.
Which one to consider?
But in case the homeowners need peace of mind coverage, then it is better to opt for home warranty coverage as this covers all the appliances in the homes and not just any specific product. Therefore, the home warranty costs are much higher than extended warranty coverage, but this covers far more items and the homeowners have one single point of contact for all types of repair needs.
Often extended warranty providers argue on the topic that they offer better service as well as more economic protection plans to the homeowners. This argument is inducing on the surface, but it is important to keep in mind one thing and it is that the home warranties are more useful in the situations where there is frequent requirement for repair like old appliances.
But here the main thing to wonder about is what the service level will be in case the extended companies offer maintenance service for 10-15 years old appliances like air conditioners and heaters. Here the requirement of repairing is much higher while the profit margins are pretty lower. In most of the cases, the extended warranties are purchased for new electronics items and repair incidents are much lower in this case. Because of this reason, it is better not to invest in the extended warranty coverage during the purchase of electronic items and home appliances.