"Be prepared, the big bug is coming to a home near you." This may sound like the introduction to a children's programme or a public service announcement, but the millennium bug, Y2K or year 2000 problem, is something to think about in relation to home appliances and home insurance policies.
Despite warnings of doom, there are simple steps to help alleviate the possible Y2K problems arising from our dependence on microchips. Understanding the problem is the most important issue.
Some appliances rely on microchips to govern their date/time functions. Older models using this technology have not been programmed to recognise four digit numbers and as a result, they will read 2000 as "00" and become confused about which century has been reached.
The worst-case scenario is that affected appliances will stop working. In many cases, appliances relying on date/time functions can be reset using instructions in the users' manual.
The best defence is a good offensive, so identify appliances that are likely to be affected in advance.
"A very limited number of appliances are likely to be affected," says a spokeswoman for the Irish Insurance Federation (IIF) which has just published a new Year 2000 Insurance Guide. It divides appliances into two Y2K categories.
The appliances which may be affected are: answer phones, burglar alarms, camcorders, digital cameras, fax machines, home computers, video recorders and video phones.
All the hardware and software in a home computer should be checked for Y2K compliance.
Appliances not likely to be affected are ovens, washing machines, kettles, toasters, microwaves, fridges, freezers, irons, TVs, stereos, vacuum cleaners and telephones.
If in doubt about an appliance's Y2K compatibility, call the manufacturer. By now, many companies have tested for Y2K compatibility, so they should be prepared for your questions. Some even offer convenient websites with specific product information, including compatibility issues.
Many homeowners are concerned that the stroke of midnight, 1999, will cause a permanent malfunction of their home appliances, resulting in an expensive outlay for replacement goods.
The IIF says: "Home insurance policies don't provide insurance cover for damage to a household appliance which breaks down or fails to work properly. The Year 2000 problem is no different in this respect. Insurers will not provide cover if any of your household appliances break down because they are affected by the millennium bug."
The good news is that Y2K product malfunction is covered by the Sale of Goods Act under the "fit purpose" provision, so manufacturers are liable for their products. Unfortunately the Act only covers items purchased in the last three or four years, according to the Office of Consumer Affairs. Older items should be checked for Y2K compliance, or replacement policies, with the manufacturer.
It is unlikely that product malfunction will lead to major damage to homes but in that event the IIF says: "If there is further damage or loss as a result of the product's failure due to Y2K, you will be covered by your household insurance policy."
If, for example, your burglar alarm fails and your house is burgled then you will be able to claim for the burglary but not for the alarm itself.
"Consumers should take heed of these warnings. They should check their appliances and be happy one way or another that the product is going to fail or not fail," says Mr Dermot Jewell, the chief executive of the Consumers' Association of Ireland. "If they're in doubt, or can't get an answer from a company, then they should assume that the product is going to fail. We're all going to have to do this, including the insurers."
For more detailed household appliance product information try the Britain-based website: http://domestic.bug2000.co.uk.html. The Irish Insurance Federation is hoping to launch a website with Y2K information in the next few months.
