When making a major purchase like furniture or appliances, a warranty is often offered. With such a significant monetary decision, it is certainly natural to want assurances that your purchase will be protected from potential defects and damage. The question remains: Are they worth the price? Well, yes…no…maybe. In the next section, we will talk about the types of warranties as well as the pros and cons. Then we will discuss the situations in which it is best to purchase a warranty.
Warranty Types
Limited Lifetime Warranty
Also called a manufacturer’s warranty, it is provided by the furniture maker and covers defects in materials or workmanship. Manufacturer warranties are best if used in the first year. After the first year, some parts of the coverage expire, with labor costs being the most expensive subtraction. Another common coverage loss in the first year is shipping charges on any parts. Mid-tier parts like the foam of a seat usually have their lifetime limited to 3 to 5 years. Framework is usually covered for at least 5 years but can be warranted for 10 years or more. It is important to read the terms and conditions, as each can vary from the next.
Pros
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- Manufacturer’s warranties come at no additional cost to you.
- Your retailer will take on the replacement or repair process for you.
- Retailers are usually eager to hear about what is happening to the furniture they sell you.
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Cons
- The process is certainly slower, depending on the type of damage to the furniture. For instance, some of the repair processes I have been involved with took months.
- This warranty does not cover pet damage or damage caused by consumer.
Extended Warranties
Extended warranties provide additional coverage beyond the scope of the manufacturer’s warranty. Retailers offer this warranty at the time of purchase. A third-party company, not the retailer, typically manages extended warranties. The length of coverage of an extended warranty can vary widely, from 2 to 10 years. It is important to read the terms before purchasing. You may want to pay special attention to the “Exclusions” portion of the contract.
Pros
- Knowing that you are protected against potential damages and defects will bring you peace of mind. This is indeed the primary advantage of the warranty.
- Many warranties offer customer support. Of course, this offers convenience in addressing concerns or issues related to your furniture concerning its warranty.
- The warranty generally covers labor costs throughout its lifespan.
Cons
- The cost of the extended warranty can be considerable. The cost of the warranty is usually tied to the purchase amount of the furniture or appliance. The higher purchase price means a higher warranty price.
- Fine print interpretation and other complexities in the legal jargon can be difficult to overcome. It is crucial to understand what is specifically covered in the warranty before making a purchase.
- The filing process may be laborious.
Are Extended Warranties Worth It?
Yes…
Yes, if the object is to give you peace of mind in your purchase. In many cases, justifying the cost is possible as it covers the replacement of the item, saving hundreds, even thousands, of dollars. Repair technicians are normally not cheap either. A simple inspection charge can range from $50 to $100. If you have a warranty company taking on the process, as well as its cost, that may be worth it.
No…
About 10 years ago, I gathered from multiple sources that the extended warranty sales vs. use ratio was only about 5%. To put into perspective, out of every 20 extended warranties sold, only 1 is ever utilized.
In fact, the top reasons given:
- The consumer forgets about the purchase of the warranty.
- The consumer didn’t think that the issue would be covered, thereby voiding their own warranty.
The utilization percentage decreases even further when the warranty is used multiple times. Furthermore, you will need to use your warranty multiple times if you want to recoup the full expense of your investment.
Maybe…
The cost of a warranty compared to the cost of finding a repairman may produce the same monetary result. Additionally, your furniture or appliance will likely not experience any catastrophic events.
You will likely use your warranty for minor issues. In fact, I strongly recommend you do so. I have had multiple conversations with consumers about this very issue. Nothing is too small a problem to repair, especially on someone else’s dime. Warranties, both manufacturer and extended, will give you the best return on your investment.
Lesser repairs, when repaired on a private market, would cost about $125/hr. If an extended warranty costs $500, the savings amount is apparent.
Warranties can be quite a benefit or, on the other hand, an unnecessary expense. Unfortunately, we don’t have a crystal ball to look into the future and tell which decision is best. Looking at past results may give you the most information for future expectations. Moreover, if you are buying new furniture, how does the old set look? Are you experiencing issues on the back or arm frame? Do you have stains? How long did you have your furniture before issues started to arise? To sum up, calculating these issues will give you a good answer for purchasing a warranty.
Exclusions
Finally, if you have purchased an extended warranty, the greatest obstacle to a successful warranty claim is an exclusion. Exclusions are essentially the reason warranty companies give for not covering the issue. Exclusions include:
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- Normal Wear
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- General Soiling
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- Accumulation of Issues
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- Manufacturer Defect
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- Abuse or Misuse
Also, be aware of the length of time you have to file a claim. These grace periods vary from warranty to warranty, so it is always best to report as soon as possible.
I hope you find this information informative. If you have any specific questions about a warranty, you can reach out to the issuing company or manufacturer. Your best bet; however, is to reach out to your retailer. More than anything, retailers want your future business now more than ever.