Orange County Register

For $10 a month, Irvine start-up GreenUmbrella.com will warranty all of your new electronics and home appliances for up to three years. That’s $10 per month total, which comes out to $120 a year or $360 for three years. (The site launches today so hopefully it’s working by now.)

Sounds like a deal if you think about how much extended warranties cost. Key word, of course, is relative. Stores like Circuit City will sell you a 3-year extended warranty on a $1,180 HP laptop for $230 (or $430 if you opt for the store’s Advantage Protection Plus plan).

Mike Balducci, general manager

I’ve always felt extended warranties are a big waste of money (although I purchased one last year for a new fridge and washing machine). This is especially true with electronics, which seem to get outdated the minute you handover your credit card.

But one point made by Mike Balducci, GreenUmbrella’s founder (actually, he just came up with the idea while working at parent company Experian) and general manager, made me give them a chance:

“Two-thirds of consumers who purchased a warranty didn’t do the research and frankly, there hasn’t been any competition. That’s what we’re trying to do,” said Balducci, who came up with the idea for a warranty company while working at Experian.

Ya! Stick it to those stores and their outrageous prices for extended warranties.

Balducci realizes that a one-stop-warranty shop isn’t for everyone. But for those who want that extra piece of mind, this is a new option. Plus, you don’t have to deal with a pushy sales person. (Click image on right for a larger view of GreenUmbrella’s comparison chart.)

“We’ve tried to model the the plan with consumer friendly focus and combat against the monopoly that retailers have,” Balducci said. “The plan attaches to the consumer and follows the consumer around.”

GreenUmbrella is an independent subsidiary of credit-report company Experian, based in Costa Mesa. Experian also owns FreeCreditReport.com, PriceGrabber.com and LowerMyBills.com. All are part of Experian Interactive in Irvine. GreenUmbrella works with The Warranty Group, which handles warranties for manufacturers and retailers. That gives GreenUmbrella access to 25,000 repair shops nationwide and in-home repair people.

The idea behind GreenUmbrella is consumer minded: A central place to help consumers track all purchases and, when a product breaks, one number to call for repairs.

However, it’s not automated. Consumers must input new products into their online account by going through a list of screens and adding the make and model, purchase date and any manufacturer warranty information. Too bad you can’t just scan in your receipt and let GreenUmbrella figure out the rest.

GreenUmbrella doesn’t even want your receipt, at first. Nor the product’s serial number. I’m not sure how the company knows whether you really did buy the product on the day you said, but Balducci said that there is a judicial process on every claim to determine legitimacy.

On closer inspection, here are a few more things to know before you sign up:

• More than 60,000 brand-name products are covered, from clock radios to camcorders, air purifiers, refrigerators and wine coolers. I’ve pasted the whole list at the end of the post. Here is a PDF of GreenUmbrella covered products.
• Not covered: Cell phones and exercise equipment. Balducci said that adding these two categories would make the monthly price go up substantially. (Cell phone insurance tends to be a few dollars a month.)
• This covers wear and tear of the product and NOT accidental damage.
• Most of the gadgets you already own cannot be covered. Coverage starts the day you sign up and that extends to anything you’ve purchased in the last 60 days. Products must have a minimum 90-day manufacturers warranty (and 12-month minimum warranty if you’re adding products after you sign up).
• Don’t forget to save your receipt — GreenUmbrella doesn’t ask for it when you register a product but may ask for it if you make a claim.
• The warranty will fix or replace the product up to the amount of its initial cost.
• This does not include preventative maintenance, unlike most extended warranties sold by retailers.
• Read more of the fine print.

While this hasn’t convinced me to sign up, it’s nice to know there is some competition out there. Perhaps on my next refrigerator or front-loading washing machine, I’ll have second thoughts about signing up for the extended warranty.

(I should mention that I personally buy a special computer insurance from State Farm. It completely covers all of my computer equipment, cameras, and all other equipment I’ve registered so I don’t have to purchase separate earthquake, flood, fire and theft insurance. My agent said that even if a computer virus wipes out my hard drive, it’s covered. I haven’t actually made a claim though.)

Products Covered By Extended Service Plans Purchased Through GreenUmbrella.com

Electronics: Alarm Clocks, Camcorders (Analog and Digital), Cameras (Analog and Digital), Car Audio Radios, Amplifiers, CD Players, CD Changers, Equalizers, Speakers, Subwoofers), Car Videos (DVD Players and Video Monitors), Home Audio Components (Non-Portable: Amplifiers, CD Players, CD Changers, CD Players/Recorders, CD Recorders, Equalizers, Receivers, Tuners), Home Speakers, Home Theatres in a Box, Home Video Products (DVD Players, TV/DVD Combos, TV/VCR Combos, TV/VCR/DVD Combos, Digital Video Recorders, Digital Satellite Systems, HDTV Receivers), MP3 Players, Portable Electronics [PDA's, Satellite Radios, GPS, DVD Players, Telephones (Not Cellular)], Radar Detectors, Boom Boxes, Televisions (CRT Projection, CRT Televisions, Front Projectors, LCD Flat Panels, Microdisplay Rear, Projection and Plasma).

Appliances: Air Purifiers, Blenders, Bread Makers, Clothes Steamers, Coffee/Espresso Machines, Cooktops, Dehumidifiers, Dishwashers, Disposals, Downdrafts, Dryers, Electronic Can Openers, Electronic Tooth Brushes, Electronic Shavers, Floor Cleaners, Food Processors, Freezers, Fryers, Griddles, Grills, Grinders, Hair Dryers, Humidifiers, Ice Machines (Freestanding), Indoor Grills, Irons, Juicers, Microwaves, Mini-Refrigerators/Freezers, Mixers, Ovens, Portable Heaters, Ranges, Range Hoods, Refrigerators, Rice Cookers/Steamers, Rotisseries, Sewing Machines, Slow Cookers (Crock Pots), Steamers, Small Portable Appliances, Space Heaters, Toaster or Toaster Ovens, Trash Compactors, Vacuums, Vacuum Sealers, Waffle Makers, Warming Drawers, Washers, Window Air Conditioners, and Wine Coolers.

Computers: Copiers, Desktop Computer Systems, External Electronic Computer Accessories and Electronic Peripheral Devices, Flat Screen Monitors, Laptop Computers, Monitors, PocketPC’s, Printers (Laser, Dot Matrix, or Ink Jet), Printers (Multifunctional), and Paper Shredders.

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