To buy or not to buy Lowes extra insurance on a stove
- javaandjazz May 20, 2013 03:45 AM
I went looking at new electric stoves with my partner in Lowes yesterday afternoon and the sales guy(who doesn't make any commissions) told us that since the past several storms we have had and the power was out for several days for some people; said that when the power finally came back on the circuit boards on on some appliances were fried and was recommending to buy the extra insurance because the manufacturer does not cover that in their warranty. Now my gas stove is relatively new and has some of that electronic gadgetry and we have had a few power outages but nothing major and my circuit boards were never fried. I know Consumer Reports says not to buy extra insurance but I would like to know from any of you, have you had that experience with the circuit boards being fried and the manufacturer not covering the problem. Thanks.
We've never taken the extra insurance from any box store for any purchase (phone, appliance, PC) but we do have a rider on our home insurance policy for all sorts of wear & tear on major appliances and and for (in our case) $200.00 more a year it covers everything we plug into the wall, heat our home with, etc. Covers furnace, hot water heater, major appliances. These rainy day policies (if you can get one) are well worth the out of pocket costs against the cost of home repairs during the life of your appliance.
Check your manual for the Manuf. warranty for that appliance. That covers you after purchase (if you don't return the appliance during a grace period). After that, a store policy would kick in.
But like I said, look into a rider policy. We bought ours when we moved into our home and just kept renewing it. Very handy coverage.
I don't have a rider policy, but I never get an extended warranty just on principle. I have heard it is a big money maker for the store, and very rare for anything to happen in that initial time period. The fact that they are telling you horror stories about other people seems like a shady move too.
On the other hand, my husband (until recently) could fix anything electric or motorized, so maybe I'm spoiled. But no, never "fried" circuit boards,, and if so I'd expect the manufacturer warranty to kick in, unless it was old...and then neither warranty would cover it. Besides it's not that hard to replace an entire circuit board, although I know easier said than done. Every issue we've had with our stove was within the first year and fully covered by the factory. It's included in the original price, so why pay twice, unless you have money to burn!
From Florida, the land of power surges, power outages, and exploding transformers. Not to mention wildfires, hurricanes, and tornados. We know plenty about power fluctuations and living for weeks without power.
Call a local electrical contractor and ask about the cost of installation of a whole house surge protector. It lowered my insurance costs, and we saved money on replacing individual surge protectors. Also evaluate your power grid for reliability. Call local politicians for input, as well as your insurance company.
The advent of computers in almost every appliance makes this a viable concern.
I work in an industry that makes huge "after sale" profits on extended warranties.
I never buy one. Most things will break during the normal warranty period.
Normally a fried curcuit board would not be covered under any warranty since it is not the fault of the device. This type of damage may be covered by a homeowner policy but filing small money claims on your homeowner policy raises red flags and may not exceed the deductible.
Our expensive refrigerator was a couple of months out of warranty and went wacky on us. It needed a new computer board. I did a little research and found this was a common problem. I called the manufacturer, complained, and they agreed to charge us for the part only. The labor charges were much more than the part. This is called a "hidden warranty."
Getting extra insurance, on average, is never a good deal. (In fact, that statement almost has to be true, otherwise it would be very hard for companies to profitably offer it.)
However, if you are especially fearful that you may be getting a lemon then it might be worth it, just for the piece of mind.
I didn't get one when I bought my dishwasher, or my washer and dryer. However, when I got my refrigerator (a Samsung), the reviews on it were so polarizing (most loved it, but some consistently said it was a total piece of junk) that I took out the insurance just in case.
Just be aware that you'll probably lose money on the investment (especially if things go as you hope!)
There are so many exclusions on aftermarket (non-manufacturer) extended warranties that the companies rarely pay out.
The markup to Lowe's etc. can be 500%. All you have to do is ask the sales rep if they can give you a better deal on the extended warranty and they will play Monte Hall.
You'll also get a couple mailer after the sale and just before the regular warranty runs out giving you one "last chance."
I agree that E/W's are generally not worth the money as most "defects" show up during the factory warranty period.
Having been burned by poor reliability in the past during the pre-internet days, I spend a lot of time researching brands and models within the brand for reliability issues on the net "before" the purchase.
Don't just count stars, read the comments looking for consistent positive remarks and most importantly consistent negative remarks. A theme will usually develop pretty quickly whether the ratings are good or poor.
More money spent is also no guarantee. I have an older high end Dacor range that has been a pita since new. The only reason I still have it is because the granite was cut to a template to fit the range with very tight tolerances and their may be more work involved than meets the eye replacing it. Wish I had done more research before I bought it. I also have a newer relatively inexpensive G/E Profile electric oven that has been flawless. The G/E had far superior ratings than the competition.
Javaandjazz, I have no insight into fried circuit boards but much insight into extra insurance via a H who used to work at Home Depot.
Don't do it.
As an insurance lawyer I'll suggest that it's all in the fine print. Read it. The only way to gauge the value of a warranty is to read it carefully before you purchase.