Understanding the Difference Between a Warranty and Insurance
Understanding the difference between warranties and insurance is key to protecting your possessions. While warranties cover faults or failures in a product, insurance offers broader protection against unexpected events.
What is a Warranty?
A warranty is a guarantee provided by the manufacturer or a third party that protects your product against defects or failures, particularly mechanical or electrical breakdowns. It covers issues arising from faults in materials or workmanship.
Typically, a warranty will cover the costs of repairs, parts, labour, and call-out charges for mechanical or electrical problems. However, if you purchase a warranty after the manufacturer’s warranty has expired, there is a 45-day waiting period before coverage begins. During this time, repairs will not be covered.
At Fish Insurance, we offer warranties that can either extend your manufacturer’s warranty or provide coverage once the original warranty has ended.
What is Insurance?
Insurance offers broader protection, covering a variety of risks that may cause damage to or loss of your property. While warranties are focused on mechanical or electrical breakdowns, insurance provides coverage for unforeseen events such as:
- Accidental Damage
- Malicious Damage or Vandalism
- Theft
- Fire, Storm or Flood
In addition to these types of damage, a Fish Insurance policy may also provide additional cover for important situations, such as:
- Public Liability: Covering you in case you accidentally injure someone or damage their property
- Personal Accident: Provides benefits if you’re injured in an accident
- Hospital Benefit: Offers compensation if you are admitted to the hospital due to an accidental injury
- Replacement Items or Cost of Hiring New Equipment: Ensuring you keep mobile while awaiting repairs or a replacement item
Why Understanding the Difference is Important
Understanding the difference between a warranty and insurance helps ensure that you have the right type of coverage for your needs.
It’s important to remember that warranties do not cover accidental damage, theft, or natural disasters, and insurance does not cover mechanical or electrical breakdowns.
By choosing the appropriate coverage based on your circumstances, you can avoid situations where a claim might be declined because the type of protection you need isn’t in place.
Read the Fine Print
As with all insurance and warranty policies, there are limits and exclusions to the coverage provided. Before purchasing any warranty or insurance policy, it’s important to read the full policy documentation. This will help you understand the specific terms, conditions, and exclusions, ensuring the product meets your expectations and provides the protection you need.
If you have any questions, then please contact our friendly team at [email protected] or call 0333 331 3770.
