Home Warranty Insurance Business Opportunity
There are many kinds of insurance policy and the two most common are: life insurance and car insurance. I heard and read about the two kinds but never heard of the home warranty insurance. Maybe it’s already available here in the Philippines but maybe there was no Filipino corporation who have that kind of insurance company. So what is Home Warranty Insurance? it’s an insurance policy for home owners to protect them from unforeseen breakdown of their major appliances due to wear and tear provided that it is working in normal condition. For example, you and your family went on a vacation and left your refrigerator running. We don’t normally shut down our refrigerator when we leave our house but sometimes we do if we are going out on a long vacation. But a refrigerator works 24/7 because it was designed to do so unlike an air conditioner which you have to turn off once in a while.
Then in your journey suddenly your refrigerator malfunctions and the compressor motor is burning out. All the stuffs in there melted. Your ice cream cake is melting along with the thawing frozen beef and fish dripping all over your stuffs in the freezer. After a few days everything in the fridge is rotting and you went home after your trip and opened the fridge. Then you smell the horrible stench. What will you do then? I hope you won’t get a sledge hammer to fix your fridge (Just kidding). Now you know that somehow a Home Warranty insurance is a necessity specially if you have plenty of appliances at home not to mention top brand appliances to protect your investments. Upon searching the internet I can’t find a local provider of home warranty insurance , I just came across American Home Shield that provide that kind of service in the U.S. Maybe someday local insurance companies will integrate that service or maybe some multinational insurance company will provide that service here.
But for the meantime, if you are planning to have a unique insurance business, this might be a good idea.
Update(14March2008): Mr. Jerry Aton sent me an email regarding appliance insurance in the Philippines. He said there is there is one under the umbrella of Philam Insurance Group (AEG). His industrial fan was replaced after 11 months of use.