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Federal Appliance Rebate Combined with Extended Warranty has Consumers Seeing Green this Earth Day

(Tallahassee, FL) April 21, 2010 – Replacing old appliances with new energy-efficient units under the Federal Appliance Rebate Program, and adding a service contract to the purchase — often called an extended warranty — can result in increased savings, according to the Service Contract Industry Council (

“The Federal Appliance Rebate Program gives consumers a discount off the initial purchase price and energy cost savings over the long run. With a service contract, consumers can save additional money with access to qualified repair professionals and tech support at minimal or no cost,” said Timothy Meenan, SCIC executive director. “Service contracts encourage consumers to address minor repair issues before they become major problems and thereby may extend the life and functionality of a product.”

To protect new energy-efficient appliances, consumers can purchase a home warranty to cover all appliances and major systems in their home, including HVAC, plumbing, and electrical, or purchase individual service contracts for each new appliance.

Top Florida realtor and homeowner Ed Smith owns and annually renews a home warranty on his personal residence, which he calls a “good protection policy and valuable service that provides peace of mind.” Smith has used his personal home warranty several times, most notably to replace an AC compressor, which according to repair professionals can cost $2000-5000 without a service contract.

“Consumers who participate in the Federal Appliance Rebate Program and add the protection of an extended warranty to their new energy-efficient appliances will be seeing green well into the future, as they reduce energy consumption, trim household budgets, and avoid large unexpected repair bills if an appliance malfunctions during or after the manufacturer’s warranty period,” Meenan said.

The popular rebate program is being administered and rolled out on a state-by-state basis. Fifteen states, including Florida, California, Massachusetts, Maryland, Pennsylvania, Colorado and Kentucky will commence or restart the program this week in conjunction with Earth Day, April 22.

The SCIC offers tips on purchasing and using service contracts at

About SCIC

The Service Contract Industry Council is a national trade association whose member companies collectively offer approximately 80% of the service contracts sold in the U.S. for home, auto, and consumer goods. The SCIC educates consumers about service contracts, encourages its members to pursue high standards of customer satisfaction, and has developed and promoted model legislation to regulate the industry.

Media Contacts:

Phyllis Laorenza Linnehan 781-275-7226 [email protected]

Jane Meehan Lanzillo 617-244-0448 [email protected]

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