Rental Property Investor · Elk River, MN · Member since 2016 · 102 posts · 10 votes
Do you have a service through your energy provider that fixes your appliances for you at not cost? In Minnesota we have a company called Home Service Plus through Center Point Energy. They cost about $5 per unit but I use it on my personal home and they fix the furnace, dryers, fridges etc at not cost other than your bill.
The question is do you think this service insurance would be worthwhile? Let' say you insured 10 items and the annual cost was $600. Would that be worth it?
Investor · Rochester, MN · Member since 2016 · 80 posts · 37 votes
9y
In my opinion no, especially if you have newer appliances. Not all your appliances are going to break in one year so you could take that $600 and buy a new appliance for that amount except for furnace instead of handing it over to an insurance company. Each year you could take your $600 and set it aside and when you need it you have the money for an appliance you would have it. Or just upgrade each year to a new appliance with your $600.
PS Just by chance do you know the owners at Elk Agency Inc
Investor · Rochester, MN · Member since 2016 · 80 posts · 37 votes
9y
In my opinion no, especially if you have newer appliances. Not all your appliances are going to break in one year so you could take that $600 and buy a new appliance for that amount except for furnace instead of handing it over to an insurance company. Each year you could take your $600 and set it aside and when you need it you have the money for an appliance you would have it. Or just upgrade each year to a new appliance with your $600.
PS Just by chance do you know the owners at Elk Agency Inc
Deerwood, MN · Member since 2014 · 184 posts · 122 votes
9y
Jeremy,
I tend to repair appliances myself or replace them if the repair costs more than the depreciated value of the appliance. For this reason, I self insure them.
I would like to hear your experience with the insurance. Do you come out ahead insuring the appliances in your home?
Just my opinion, but if you win at the insurance game they'd likely drop you or raise your rates. Insurance companies rarely lose money.
Investor · Rochester, MN · Member since 2016 · 80 posts · 37 votes
9y
My sister married the owners brother. Really nice people. I was just curious if you knew them. I thought it was kind of neat you were in the same town as them. I thought maybe by chance you knew them. My sister of course uses them for insurance but don't know much more than that about them. Have a great day!
I don't user the service plus. When I priced it out, it is too high. I don't repair my own stuff...I'd much rather call in a repair guy. I do understand the appeal. Consider time as a big factor. If it works for your situation, there is nothing wrong with it.
Rental Property Investor · Elk River, MN · Member since 2016 · 102 posts · 10 votes
9y
Sounds fair everyone. My personal home I definitely come out ahead. There has probably been one repair a year with a cost around 500 bucks. My cost for insuring 5 appliances I think come to about 250 a year or so.
@Jessica Grewe - That is cool. I am sure we will run accross eachothers paths!