Sears home warranty plan


BillyJack

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My only experience with home warranty plans is make sure to read how old of items it covers. A lot of those home warranys only cover devices that are XX years old or less. I've seen a lot of 15y or 10y on them. Often times that isn't helpful. Other times they don't cover the expensive part of something or the part that is likely to break.

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Product warranties generally a bad idea. Actuaries are the people that calculate the cost to the company offering the warranty. The customer is calculated to pay their equal share of costs plus profit. The profit on this type of warrant is 15 to 18 percent. So in general over the long run your premiums end up being more than if you hired out for repairs. There are exceptions. In life insurance they demand to know your complete medical records. Not so in product insurance. 

Be your own judge. Know what type of products may not last for you because of how you use it. If you carried a lap top to construction sites and the circumstances were rough on you lap, then insure. If you are a typical consumer for wear and tear don't get insurance.

Product warranty is a profit center for retailers. If it was profitless then most people would break even. But it is not profitless and that is the component that gives the house the edge. And the consumer loses. Even if the consumer gets a big win along the time line, over time they usually win..

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