TALLAHASSEE, Fla. — Do consumers value their home service contracts more during this COVID-induced period of home quarantine? Almost three-quarters of those who report any change say that having a service contract on big home appliances and systems makes them more confident in how they would handle repairing or replacing the item if it breaks.
That’s a key finding from a survey of 1,000 American consumers conducted by the Service Contract Industry Council (SCIC).
The survey found that half of American consumers reported having a service contract on at least one product in their home, from kitchen appliances to entertainment products like laptops and televisions. Among those who said the contract makes them feel differently amid COVID-19, 72% said they feel more confident having the service contract, given the challenge of paying for costly repairs or replacement during the ongoing crisis. Service contracts alleviate the stress of finding a contractor to fix appliances or the financial burden of replacing them.
”With so many Americans forced to spend more time at home, their appliances have come under a microscope because of more frequent use. Unexpected repair fees or purchases are stressful enough without the added strain of a pandemic,” said SCIC executive director Tim Meenan. “Consumers who have purchased service contracts gain the peace of mind that comes with knowing that this burden will be handled by their provider.”
Service contracts are sold at the point of sale or after purchase to cover a variety of significant home systems, such as heating, air conditioning, and electrical and plumbing, as well as automotive repairs and replacement. Many service contracts include a refund period allowing consumers to cancel without penalty for a certain period of time after purchase. These refund policies, combined with the long-term coverage that a service contract offers, can provide families with much-needed financial security in such unprecedented times.
The survey of 1,000 American adults was conducted via Google Surveys May 29-June 3, 2020. It carries a margin of error of 3.2%.
The Service Contract Industry Council is a national trade association that works with lawmakers across the country to develop fair and uniform regulation of the service contract industry. Learn more at www.go-scic.com.