Appliance Warranty ExtensionsDepends on the item. For major appliances that you want to keep for more than 10 years and that cost more than $500, like refrigerators and washing machines, it makes sense, says Angie Hicks, cofounder of Angie’s List, a site that provides reviews of and info about consumer services. Skip it for TVs and other electronics whose technology changes so quickly you’d probably end up replacing instead of repairing. “As always, understand what the policy covers, if you still have to pay a service fee, and how the repair will be handled,” says Hicks. She also advises buying the extension from the manufacturer, not the store: “It’s easier to get parts that way.” Hvac and Utility Maintenance PlansBuy it. “It’s really important to maintain your furnace and air conditioner, because they lose efficiency otherwise, which will hit you in your utility bill,” says Hicks. Also, you’ll often pay less for up-front service fees and will typically get first priority in the repair queue when your system inevitably goes out on the hottest or coldest day of the year. Home WarrantyDepends on the terms. A home warranty is separate from homeowner’s insurance and is often part of the closing deal. The main benefit is that it can keep you from worrying about unexpected and costly repairs, but warranties come with many restrictions, says Hicks. You don’t have a say as to how a particular item is replaced or repaired, and you’re beholden to the warranty company’s standards, schedule, and service person. The company decides if you get a replacement or (more likely) a quick fix that will last the life of the warranty. And it chooses the service provider, whose quality of work you might not be happy with, adds Hicks. Before saying yes to a home warranty, ask to see a list of service workers, estimated service fees, and the typical timeline of repairs. Travel InsuranceDepends on your prepaid expenses. For any trip putting a large amount of money at risk, particularly up-front costs (think group packages and booked cruises), it can be a good idea, says Damian Tysdal of the site Travel Insurance Review. You typically pay between 4 and 8 percent of the total cost of the trip; so if you’re planning a $5,000 vacation, that extra few hundred dollars can give you peace of mind, medical coverage if you’re in a foreign country, and some protection against certain weather disasters, says Fitzgerald. If you booked your trip using a credit card with travel protection or are willing to sacrifice your prepaid expenses, skip it, says Richardson. It’s especially not worth it for smaller costs, like concert tickets, or for last-minute domestic trips—airfare can typically be changed for a fee, and most hotels can be canceled within 48 hours. Jewelry InsuranceDon’t open a new policy. Instead, if your piece is worth over $1,500, provide a description and receipt to your homeowner’s or renter’s insurance company for broader protection against theft and loss, says Richardson. Extended Car WarrantiesSkip it. As with a home warranty, the main benefit is not having to worry about unexpected costs, but these warranties don’t always cover all repairs and aren’t transferable if you sell your car within a few years, says Richardson. “Also, you may lose coverage if you don’t do proper maintenance,” he adds. “It’s usually a better deal for the warranty company than you.” When it does makes sense: if your brand of car is known for needing expensive and extensive repairs—but not buying that type of car is the best insurance of all.
