When you buy a household appliance, you will usually be offered an extended warranty to cover repair costs (parts and labour) following a breakdown. The retailer will give you information about policies they sell and may also be able to provide details of policies offered by the manufacturer. Details may also be enclosed with the equipment or sent to you when you return the guarantee registration card.
Benefits
If the appliance cannot be repaired, a 'new for old' policy will replace it with a new one. If a similar model is no longer available, it may either be replaced with an appliance of similar, or higher, specifications, or you may be paid a cash equivalent. Other policies may simply pay out the cost of the product after depreciation. There will probably be a limit to the total amount payable during the life of the policy, and some plans may have a limit on each claim.
Exclusions
Policies will usually exclude claims arising from non-domestic use or general misuse, and cosmetic repair for damaged paintwork or trims. Consequential losses, such as water or fire damage, are not covered, and your home insurance should meet these claims.
Buying Cover
Although cover can be obtained through the retailer or manufacturer, you can also purchase a plan directly from specialist insurers, insurance brokers, your credit card provider or any financial institution that lent you money to buy the appliance.
You can buy breakdown insurance for appliances you already own, which are not currently insured, subject to the age and condition of the appliance. There will usually be a �no-claim� period immediately following the start of the cover, during which claims for breakdown will not be met.
