Insurance of life, house, motor vehicle are standard bets that enterprises take. The science of actuary is refined and distilled to a fine art in which the City of London is a world leader. To this mix is the array of home appliance insurance that has entered the lexicon of certain enterprises that have created a niche business value in such financial products. On the face of it may appear that these enterprises are laying the wrong kind of bet. After all insurance is nothing but a bet. The insurance company bets that the house that you are residing in will need ‘x’ amount of repairs in 10 years’ time. In the event that repairs are required within the period, the insurance company will pay. In most cases, repairs may not be required and the premium is the profit.
Refrigerators and washing machine insurance are the appliances that are covered by several people. Some insurance companies are offering cover for 6 to 8 years old appliances. Of course, the premium will be higher and the onus is on you to analyse the cost vs benefit factors.
Selecting the right appliance insurance company from amongst several is a matter of due diligence. Check the websites of and read the reviews. It will make sense if the enterprise has a long-standing track record. By talking to neighbours and friends, you will also get some feedback on the integrity of the company.
Once you have short-listed the appliance insurance company ask for quotes. Insurance cover for washing machine repair can vary between companies. For appliances that are beyond two years it is better to buy appliance warranties from such insurance companies. Another factor that you should be able to check is whether you can stop paying the premium at any time. It goes without saying that if allowed by the company the cover also ceases.