Before you commit to buying this insurance policy (that is what extended warranties really are), read the actual contract, not the sales brochure so you understand exactly what is and is not covered. Do not rely on the salesperson's interpretation of its value or coverage. In deciding whether to purchase this insurance, ask yourself this, "If I have to replace the {refrigerator, oven, microwave, water heater, or insert any component you wish} will I have the money to do so?" If your answer is yes, then do not buy the insurance. If your answer is no, then buying the insurance may represent a value to you. Never buy insurance to cover an item you can afford to replace without insurance. Remember, insurance is not an investment and is not intended as a method to make money. It is to pay you for a loss that you otherwise could not afford on your own. Now regarding those "extended warranty" insurance policies: Many include so many exceptions and exclusions and are so carefully worded that they have more reasons not to pay than to pay. The industry is not well regulated and many of the "extended warranty" companies are basically corrupt refusing to pay a valid claim and just going out of business after they have paid very few claims and sold many policies leaving you with a worthless piece of paper.
