Do I Need That Warranty or Will My Insurance Cover It?
When making large purchases, you may find some stores offering a warranty along with your purchase. For a few dollars more, you can buy protection for your new item in the event that something were to go wrong with it and it no longer works properly. Over the summer you may have been asked about a warranty for a blow-up swimming pool or patio set. In the winter, you could be asked to purchase warranties on many things, especially if you are doing holiday shopping. So is it worth it?
You may think that your homeowner’s insurance will cover you for problems with your newly purchased items, and you would be right, to some extent. Remember, your homeowners insurance has limits. You will need to meet a deductible before your insurance will cover any costs and the policy will only pay up to the limit you have set on it. In a lot of cases, the damage to the items may not even reach the deductible amount on your policy.
Buying the store warranty can remove that deductible cost to you and usually replaces the item you bought the warranty for. Some warranties cover just one year beyond the manufacturer’s warranty, but some can be bought for up to 5 years. You can have full coverage on your item for a minimal fee. If you are buying the item as a gift, it is a nice addition to get the warranty as well.
Having homeowner’s insurance is important, but having coverage for the items that are not quite cheap but not expensive either can really help if something were to go wrong. Weigh your options. If spending a few extra dollars now on a warranty will save you money in the long run, it may be worth it for you and your finances.