Appliance Protection Programs:

Be Sure To Read the Fine Print

The state's largest utility company offers a WorryFree appliance repair program that provides repair coverage on furnaces, central air conditioners, water heaters, clothes washers and dryers, range/ovens, and many other home appliances. Under this type of plan, the customer pays the company a monthly fee and the company agrees to repair any appliances covered under the plan. In the event of a covered repair, customers are not charged for parts, labor, or a service trip. However, as with any service plan,you are best served by reading the fine frint carefully to make sure you fully understant what is covered and what is not covered as well as any limitations the plan may have.

Before purchasing an appliance service plan, consider the following points:

Costs

Always consider whether the yearly cost is worth the advantage of having coverage in the event of an appliance breakdown. Companies offer a variety of service plans. Costs vary, depending on the type of coverage each plan offers. For example, a basic plan covering only a furnace and water hater can cost around $100 - $110 a year. Add air conditioning and your yearly cost jumps to between $230 and $240 per year.

Covered Services And Non-Covered Services

Always ask for a complete list of covered services and parts, and what is not covered. Some services and parts you might expect to be covered may not be covered, like any components that come into contact with water. For example, a proactive maintenance plan that includes a precision tune-up and professional cleaning on a heating or cooling system is not covered by PSE&G or any other New Jersey utility company.

Limitation of Liabilities

Carefully review the terms and conditions of the plan. Typical appliance service plans limit the company's liability if it is unable to respond to a service call in a timely manner or successfully repair a covered appliance. For example, under most plans, companies will not pay for repairs when the company hasn't responded to a service call promptly due to workload emergencies and weather conditions and the customer has to have someone else repair a broken appliance. Under some plans, if the company's cost to repair an appliance exceeds its current market value, the company will not repair it. Ask for a copy of the terms and conditions of the plan and review it carefully.