If you have one of those worry-free contracts from PSE&G you may have fallen into the same trap as I did. From the surface, PSE&G worry-free contracts claim to take all the worry about the appliances in your house. The worry free contracts basically charge the homeowners and advance payment for repair services on their appliances which may be a good deal if you have older appliances that may need to be serviced frequently.
How, what may not be known to most people is the fact that these contracts do not cover replacement of the appliance should the appliance break down completely. When this happens, PSE&G instead offers to come out and replace the appliance for the outrageous price and most other service companies.
While PS&G claim that they tell you this when the contract is signed, it was not my understanding about this at all. I have talked to many other people about this and they were under the same impression as I was. So, if you have one of the worry-free contracts on a hot water tank, for example, you are paying ahead for a service call should the pilot light fail or some other rare occurrence. It does not replace your tank when it collapses and there is water all over your basement.
