What Are Your Views on Appliance Protection Plans

Question

Hey everyone!

We had to buy a new fridge for our rental property, which cost about $1000. I'm wondering if we should get the Lowe's 3-year protection plan with it. It costs $150 and they deal with maintenance issue. Do you think it's worth it? Seems like not a lot could go wrong with a fridge in 3 years, but maybe I'm wrong.

If there's other appliance protection that's better/cheaper, I'm interested in hearing the options as well.

Scott Mac · Answer

You could choose to have an extra refrigerator on hand.

Then when your renter calls and says the refrigerator is bad, swap it out and take the old one home.

Then have the service person come and fix it while you have it. Then your renters groceries are less at risk of spoiling.

If you offer air conditioning to your renters. You could also have a window AC unit on hand, that you can place in the unit until the AC Tech gets the main air conditioning system repaired.

Also, offering renters an ice maker in the refrigerator is simply asking for extra repair calls when there are problems with it - which many over the years will have.

To me this is simple customer service, and how I would want to be treated if I were a renter.

Just my 2 cents.

Ice maker parts.

Colleen F. · Answer

@Scott Mac extra fridge is only good if you have a couple guys to move refrigerators around on demand. now an AC ok I get that.

@Marty Rogachefsky we never get extended warranty because you also need the unit fixed in a timely way and the warranty service may not be timely.

Nathan Gesner · Answer

Every warranty is a sham. They know most owners will never use it. Heck, many will forget they even have it! The stores make a ton of money selling the upgrade. The same is true for home warranties.

Bill B. · Answer

Appliance warranties are almost a bad deal and that one Seems too expensive. You’re buying a 1 or 2 year warranty for $150? (It comes with 1-2 years and many credit cards double it for free.)

The ONLY time I buy appliance extended warranties is when buying clearance items.

At RC Willey they discount clearance items about 20-25%. Then they will sell you a 5 year warranty for 10% of the discounted rate. In your case that would mean buying a $1,250 refrigerator for $1,000 and then getting a 5 year warranty for $100. Even then it’s probably a bad deal. But they cover everything. No service call or labor charges. I figure it will cost me $75-$100 just to have someone come out.

On 40+ appliances I think they’ve come out twice. But I’ve also had to replace entire refrigerators because the ice maker cost $600 plus $250 in labor to repair/replace. It’s nice having a guy come out that doesn’t mind throwing new parts at a problem until it works. :-)

TLDR: if you want to feel good get a 5 year warranty for 10% of the price after you save more than that in the purchase. It’s still a money losing deal but not as bad.

Mary Smith · Answer

I never purchase any appliance protection plans, I personally feel like they're not worth it.

Chris Seveney · Answer

@Marty Rogachefsky

I find them not to be useful honestly

Greg Scott · Answer

The reason they sell those insurance plans is because they make a lot of money off of them.

If a $1,000 unexpected expense will cause a problem for you, it may make sense to have that insurance. If you have multiple properties, you would pay more in the long-run buying insurance ever time.

What Are Your Views on Appliance Protection Plans

What Are Your Views on Appliance Protection Plans

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