Extended Warranties?

[Tim Smith]

Do you invest in them? Are they worth it?

[maderemark]

Anything I've ever read is that they are a waste of money. Usually, the equipment will last longer than the extended warranty... that's why companies make money on them. Of course, some things do fail prematurely and if you happen to have one of those items, you'd be glad you had the extended warranty.

For me, I don't bother. I figure that all the money I've saved over the years will more than cover the rare item that would have broken during an extended warranty.

BTW, some credit card companies automatically double the manufacturer's warranty when you buy the item with their card. And it costs nothing extra.

Mark

[DragonflyDM]

Most extended warranties are only as good as the manufacturer guarantee. Even without the extension, that is limited coverage to damage that only occurs from faulty craftsmanship.

HOWEVER, I have bought the Ritz Camera program and it is brilliant-- worth every penny. I had a bad run and dunk my Nikon DSLR in the Ohio. I dropped it off at Ritz, and they sent it to Nikon. Nikon sent me a brand new body to replace it. The same thing happened when I smashed it against the ice during the pregame ceremonies for the Penguins.

It covers everything but theft and fire.

[EricC]

Tim,

All in all, you are better covering you gear either under your home owners policy or with a business policy. You can cover the gear for 'all risk' and never need to worry about a loss. My policy covers my gear no matter what or how the failure occurs. The equipment is covered for replacement cost minus a $250 deductible. There is no hassle with depreciation.

I carry $150K worth of coverage and had the insurance company list the vendors that I rent equipment from as an additional insured. I can call and rent up to the $150K of equipment without the need for a deposit, or the worry of something happening to a rental.

Other benefits are that you aren't paying for a 3 year policy in advance for something that you may get rid of after 6 months. You can renew yearly and adjust the value of the policy according to your needs. It's just a better deal and protection. The fact that even if my entire bag were lost, stolen, or damaged, it would only set me back the $250 is all I needed to hear.

Eric

[Tim Smith]

EricC, thanks for the reminder! Just this year I was required to obtain professional liability insurance in order to continue servicing my biggest client. My insurance company also required that I have additional insurance that covers equipment loss. I'll look at it more closely, but I think you're right, my existing business insurance is likely to allow me to sleep at night without spending extra $ on extended warranties. Thanks!

[phillips66]

EricC

What is the name of your insurance company and the policy type. I haven't found anyone who covers what you described which is basically " no fault" insurance...no matter what happens to anything your covered? Especially anyone insuring professional use.

My current policy does cover a lot of what you described, with a deductible, but not "normal equipment failure". For instance, if my Nikon D2X has an internal failure, that is not covered. This is not considered a "loss". It would come under the manufactures warranty..if I had one.

An extended warranty is generally need to get equipment failures covered after the original expires. I can promise you that the $ 75 dollars I used to get a 3 year MACK warranty on the D2X ( cost me $4300 ) lets me sleep at night.

I do agree that you have to take the cost of the equipment versus the extended policy in to consideration and it often is not a good deal.

For the most part, I buy everything with my Citi Bank credit card that doubles the manufacture warranty and don't buy seperate coverage. It came in handy when it cost me $800 to get the CCD replaced on a 15 month old Fuji S2, three months past warranty. The new cameras DO fail. Not like the old film ones.

ps. I doubt any homeowners policy would cover a failure...only loss or maybe physical damage. Its a very complex area...read all the fine print

[EricC]

I did better.... I married the fine print. My wife is the subro supervisor for the insurance company (not agent). I have to look up the policy, but, she assured me that an all risk endorsement is just that, all risk.

Prior to her current position she worked with the "VIP" policy department at another LARGE insurer (think hands). I know for a fact that you can insure your equipment (non commercial) with a no questions ask replacement policy under your home owners policy. I know because that was her department and I would here the stories.

A VERY famous member of a popular 60's 70's 80's 90's 00's and still going rock band once sang his message onto (into??) the voice mail system . I should have save that one.

Anyway I'll try to pull the policy, truthfully I don't know who she put it with, what it costs, or anything other than what I've been told. If for any reason the gear needs replacing I'm covered minus the 250 deductible, at current replacement costs. I also know that the endorsement was accepted by Calumet for rentals up to $150K. The agent faxed the policy to them several years ago.

I also remember that when I was in college I wanted to rent 2 4800ws strobe setups. I remember my dad having the insurance agent write an endorsement to the rental company that covered the pack no matter what. At that time there was no way I could have covered the 'deposit' the rental company wanted. That was over 20 years ago.

Talk to your agent. The underwriting department can write anything providing that you are willing to pay the premium. Don't just assume that you have to accept the standard policy. Heck doesn't Lloyd's still insure the space shuttle?

Mark your are correct. I do most of my purchases on AMEX for that very reason. I don't know how they feel about business purchases though. I should ask.

Eric