Many Dutch consumers pay extra for product insurance they already have
Dutch consumers increasingly buy insurance for appliances like washing machines, laptops, and televisions, but much of that coverage is redundant, according to research by the Consumentenbond. Basic policies often duplicate protection already provided by home insurance or statutory warranties.
Sandra Molenaar, director of Consumentenbond, said, "We see in the policy terms of product insurance multiple things that are also covered under the statutory warranty. This includes coverage for damage resulting from manufacturing defects. That is misleading. Companies may not present consumers’ legal rights as a benefit of additional insurance.”
The consumer advocacy group reviewed offerings from Coolblue, MediaMarkt, EP, Electro World, and Expert. Prices depend on the product. MediaMarkt customers buying a 600-euro washing machine can choose a basic policy for 90 euros or a premium policy for 359 euros. Coolblue also offers basic insurance for 90 euros, while EP, Electro World, and Expert sell coverage for 160 to 270 euros. All policies cover the product against damage for five years.
Basic product insurance generally includes fire and water damage, but these events are already covered by standard home insurance. Consumers with all-risk coverage on their home insurance can claim for accidents at home affecting any appliance, not just the insured product.
Premium policies may include coverage for wear and tear or motor damage. Under normal use, such damage often falls under the statutory warranty, which guarantees free repair or replacement for a device during its expected lifespan.
Certain policies provide extra coverage. MediaMarkt, EP, Electro World, and Expert will pay for damage to large appliances caused by limescale buildup or clogs—damage that standard home insurance typically does not cover. Insurance can also be useful for mobile devices like smartphones and laptops, particularly if they aren’t already protected by a home or travel insurance policy.
