The manufacturer’s guarantee for a household appliance should cover all parts for a specific period of time. It is not necessary, under normal circumstances, to purchase additional insurance unless you require that your labour costs are also covered. Under a standard manufacturer’s guarantee any faulty parts will be replaced for free, but you will have to pay for the work to be done. While under an extended appliance insurance cover plan, you may also be entitled to free labour.
Be aware that different manufacturer’s guarantees have different criteria. Some guarantees will include total servicing and repair with no cost involved from the consumer. So it is important that you fully understand the clauses within your guarantee before you consider buying additional insurance.
Once the manufacturer’s guarantee has come to an end, it can be appropriate to consider an appliance insurance policy to retail cover.
It can be the case that a store tries to sell additional cover when you purchase an appliance. In many cases this is definitively unnecessary. If you are worried that you will be sold a policy you do not need, do your research on the manufacturer’s guarantee before you buy the product. It has been also the case in some stores, where the staff is even trained to believe an appliance is not covered by a guarantee when it is.
With new appliance technologies bringing in new types of potential fault into the kitchen or home, it is very important that you understand what an appliance insurance policy that you buy is capable of covering. An induction hob set, for example, must be serviced and maintained by a qualified engineer, who has the relevant certifications in working with magnetic induction technology. Therefore, if your appliance insurance policy is incapable of providing this kind of servicing engineer, it’s not right for your induction hob and cooker.
A third party appliance insurance company, i.e. a company that provides this kind of insurance as a separate product, rather than one tied to the store where you may have bought your appliances, can provide a genuinely useful service to two groups of people – landlords, and companies. In both cases, large numbers of appliances may be bought at any one time and, because they are considered as part of a “fleet” of appliances, it’s possible that the insurance company may provide a competitive rate with a premium covering everything.
A landlord is particularly vulnerable to appliance failure, as legally he or she is obliged to repair any domestic appliance in short order, should it break while one of his or her properties is tenanted. As a result, a bulk appliance insurance policy can be a method of saving money whilst protecting against the sudden expense of a breakdown in one of the properties owned.
It must be noted, of course, that in some cases appliance insurance for a landlord or company may make less sense than trusting to the law of averages. The calculation a landlord has to make should be based on the cost of monthly insurance of all the appliances he or she owns, against the likelihood of those appliances breaking and having to be replaced.