You may probably be wondering if you should add some appliance insurance to your monthly mortgage payments. This is understandable when you consider that if your heating and conditioning equipment breaks, this can bite a large chunk out of your savings which you may probably have reserved for other things like the automobile or a vacation. Actually, the real challenge is not so much whether to get an appliance insurance or not, but rather, which of the two to go for; a savings account or an insurance.
Fortunately, there are no hard rules to the whole thing. You can either decide for the savings account, if you feel up to it or go for the insurance, if you feel this sounds better. Some people reason that since modern appliance are built to last, it makes little sense to pay monthly or yearly premiums to cover them. However, it is also good to look at the other side of the coin; most appliance break down during their warranty period. This ëinfant mortalityí, as it is commonly called will usually be covered by the appliance guarantee or the store from where it was bought. But as it nears the end of its life span and eventually outlives its warranty it will increasingly fail more.
Thus, some people have opted to have appliance insurance to avoid paying for routine maintenance and repairs and instead save that dollar for other needs. While this may prove to be less cheaper than doing the regular repairs, it also has the advantage of one not having to worry about repairing and replacements. appliance insurance will usually cover all the repairs and maintenance issues. Sometimes, when several uninsured appliance break down at once, it can prove almost impossible to replace them all at once. However, with insurance, all you have to do is make a call and explain your problem and sit back and wait to either get the equipment fixed or replaced, all without paying a dime. In such situations, it is usually way cheaper to have the insurance company cover the expenses.
Companies have varying policies when it comes to appliance insurance. Some will demand an annual premium fee while others a monthly fee. Some companies will do repairs when the need arises while others will come to fix and replace appliance within certain time periods. Depending on your need, it is thus important to carefully read the contract in its entirety. In this way, you will be able to make an informed decision.