Last year, I got a home repair insurance with my mortgage, free for 6 months. Now I am supposed to pay $19 per month. This covers all the repairs for applianaces and other stuff.

But there is a catch. I have to pay $50 for each service they make. In case, they cannot repair anything, I get compensate for $100.

Does anybody have any idea, what would be the cost, if I asked the service centre of my appliances company (Whirlpool) to come and repair my washing machine? Or if I get it serviced by some other technician?

Even if I call service centre of the insurance company once every year, I still end up paying $240 in insurance + $50 service fee = $290. Does anybody know, if repair fees by other technician is cheaper than this?

Meghal

Generally this type of insurance is offered by the lender free for the full1st year as a mortgage selling feature and is good for those people who are buying houses which are more than 15-20 years old and have older appliances in the house which may require repaires earlier than later.

However, if the house is comparatively new and the appliances are in good conditions, then one can cancel this insurance and save premiums. Experience tells us that washer, dryers and other equipment do not cause any problems for years and if you save premiums for a couple of years or more, you would be better off in getting it repaired cheaply (for minor problems) or even buying a new appliance in the amount saved in premiums.

Never had to call to repair fridge or washer machine in the last 5 years. Did call once for the dryer and the desi technician charged only $60 including labour for changing some washers. Water heater is generally rented and is in full guarantee by the hydro company.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada