So, you’ve found the perfect couch, bed, or dining table, and the salesperson is pushing a furniture warranty on top of the sale. It’s tempting – peace of mind for a not-so-few extra bucks, right? But hold on before you swipe your card. In most cases, furniture warranties are a money-losing proposition.
While the title may give away my stance about extended warranties for furniture and other home goods, I can’t complain much. I have spent more than a decade of my life building a home furnishing business where furniture warranties were a major factor. For the stories they produced, I feel like I could start a podcast with no end in sight, content-wise. I can also tell you about the exceptions to the rule. I had a consumer use her furniture warranty EIGHT TIMES before her warranty expired to have spots on her furniture cleaned, making her furniture warranty purchase well worth the cost. But these situations are the scarce exception, not the rule.
Here’s why:
1. Using Your Furniture Warranty: The Odds are Stacked Against You
Most furniture is built to last longer than the standard warranty period (usually 3-5 years). Moreover, while a precise percentage of furniture warranty usage is difficult to pinpoint, the available evidence suggests it’s lower than 20%, and potentially much lower depending on specific factors. So, the chance of something major breaking down within the warranty timeframe is statistically low. You’re essentially paying for insurance on an unlikely event.
2. Extended Furniture Warranties Have Exclusions Galore
Read the fine print! Many furniture warranties have numerous exclusions, like accidental damage, normal wear and tear, an accumulation of fabric stains (which is a subjective term), or waiting too long to report the claim. So, even if something breaks, it might not be covered, leaving you stuck with the bill anyway.
3. Oh, the Hurdles
The claim process can be a hair-pulling ordeal. The fine print will likely dictate the claim-making process, which can include filling out paperwork and mailing it to the furniture warranty company along with pictures of the issue. If there is a portal, great. In either case, the process goes to a “Claims Manager” who has a line of questions that needs to be answered correctly, or the claim is denied:
- Did the consumer send the claim to us in the appropriate amount of time after the damage was caused?
- Is the problem caused by something not considered an exclusion?
- Can the damage/stain be considered a manufacturer defect?
Depending on the warranty company and terms of the individual furniture warranty, there are likely more questions than above that need answering. At best, this is a long process. At worst, it can become a nightmare investment that not only bears no fruit but puts you back at square one, looking for new furniture yet again.
4. Better Alternatives To the Extended Furniture Warranty
Consider these options instead:
- Manufacturer’s warranty: Check if the furniture already comes with a warranty from the manufacturer. This is often free and may be more comprehensive.
- Savings plan: Instead of spending on an furniture warranty, set aside the money in a savings account. This way, you have a flexible fund for any future repairs, not just covered ones.
- Credit card protection: Some credit cards offer extended warranty benefits. Check your card’s terms and conditions to see if you’re already covered.
- Paying for repairs out of pocket: With some furniture warranties costing hundreds of dollars, especially if you are buying a lot of furniture, you may be better off contacting a furniture repair company. The average cost to repair or clean your furniture may be fractional of the warranty.
5. Remember, furniture is an investment, not an heirloom.
Unless you’re buying a priceless antique, be realistic about the lifespan of your furniture. After a certain point, repairs or replacements might be more cost-effective than clinging to an aging piece.
The Bottom Line
Before you buy an extended warranty, do your research, understand the exclusions, and compare the cost to the potential benefits. In many cases, you’ll be better off saving your money and putting it towards future repairs or even a new piece of furniture down the line.
Remember, informed consumers make the best choices!