Answered by Shaykh Faraz Rabbani
Please could you tell us whether it is permissible, when buying a domestic appliance to pay extra for an extended warranty.
Walaikum assalam wa rahmatullah,
Extended warranties that have specific stipulations are permitted, valid and binding contractual conditions.
This because they do not go against the principles of the Shariah, do not normally lead to dispute, and are customary market practice. [see: Mufti Taqi Usmani, Dars Tirmizi]
The Majalla, the definitive codification of classical Hanafi commercial law, states,
“Item 188. In the case of a sale concluded subject to a condition sanctioned by [f: sound] custom [f: that does not contravene the principles of the Shariah] established and recognised in a particular locality, both sale and condition are valid.”
See answer below, too.
And Allah alone gives success.
Wassalam,
Faraz Rabbani