home warranties

[jipops]

Anybody here have experience with home warranties? Have you found it to work well for you or was it a bad experience?

I have a home about 15 yrs old with original hvac and water heater. I'm sure these will go at some point and would rather not have to deal with the huge cost. Thinking about a home warranty to alleviate some of this.

[OZZIE4DUKE]

Anybody here have experience with home warranties? Have you found it to work well for you or was it a bad experience?

I have a home about 15 yrs old with original hvac and water heater. I'm sure these will go at some point and would rather not have to deal with the huge cost. Thinking about a home warranty to alleviate some of this.

Can't help you on the home warranty, but good electric water heaters are pretty cheap. The HVAC system will run you $4,000 to $8,000+ installed, depending on size and configuration (heat pump, gas pack, dual fuel electric and gas). I'm going to send you a PM with some other information you might be interested in.

[tommy]

My experience with home warranties has not been good. The problem is that every time something breaks and needs repair, it somehow seems to fit into one of their "exclusions," meaning they don't cover it. You've got to read the fine print and understand what it's saying so you know what's really covered and what isn't. And a lot isn't. The company I've used (or, more accurately, used me) was called American Home Shield. After getting almost nothing from them on a number of calls over 4-5 years, I finally just dropped them.

[dukemomLA]

Of course, it depends on the price of your yearly warranty, but our experience has been quite positive. New washing machine, new garbage disposal, cleaning of drains, etc. etc.

With a house -- and 1/2 acre of property in L.A., obviously there's a lot to do -- and lot than go wrong. But for (in our case) $600/yr, it's proved to be a bargain -- as well as the convenience of having ONE place to call -- send someone out to do THIS.

Then again, if you decide to sell your home, it's an added 'perk' to buyers.

Our experience has been positive, cost-effective, and bringing peace of mind. (Kinda like joining AAA -- if you don't need it, you're annoyed for spending the yearly money, but if you do, you are soooo grateful for the service)

[CathyCA]

I've offered a home warranty every time I've sold a house (3 times now), and I've purchased a home warranty the two times I've purchased a house. The time I built a home, I relied on the builder's warranties.

I've used the home warranty each time I've purchased a house--dishwasher or garbage disposal going out, oven quit working.

Offering the warranty when selling the house sweetens the deal for the purchaser, at little cost to the seller. I just priced a home warranty here in eastern North Carolina, and it costs less than $400 annually.

I'm not sure I'd buy a home warranty just to have one. I think the money spent on a home warranty could be put to better use in a rainy day or maintenance savings account. Also, if you have a home warranty, you cannot pick your favorite contractor to perform the work. You must call the warranty company who sends out a contractor of their choice. And, you must still pay a small fee to the contractor that they send, in addition to the yearly premium on the home warranty.

[Devil in the Blue Dress]

My experience with home warranties has not been good. The problem is that every time something breaks and needs repair, it somehow seems to fit into one of their "exclusions," meaning they don't cover it. You've got to read the fine print and understand what it's saying so you know what's really covered and what isn't. And a lot isn't. The company I've used (or, more accurately, used me) was called American Home Shield. After getting almost nothing from them on a number of calls over 4-5 years, I finally just dropped them.

A home warranty came with the purchase of this house (American Home Shield). When there was a minor problem with the plumbing, I called to request help and learned that many of those on contract to provide the services for American Home Shield were small businesses who didn't have the staff to respond in a timely manner.... getting an appointment took time and some contractors didn't even return my call. With such a contract, you don't get to pick which company fixes your problem. When it was time to renew the warranty a year later, I declined.

I would also mention that having a service contract on your HVAC system is a good investment. The annual maintenance of the system will extend its life and efficiency. You get service ahead of those without a contract... a plus when the demand is high. A service contract generally includes a discount on parts needed for repair and can get you a discount when you replace a system.

[Indoor66]

Better than buying "insurance" for such things is, IMO, creating your own fund or savings account and paying into it on a regular basis to fund these known expenses that are usual and expected. In that way you can be in control of the repair/replacement process and not at the mercy of disinterested third parties.

[Lavabe]

In our old home in GA (about 33 years old), we had AHS (came with the house, and we renewed every year). For the most part, the comments people have made here were similar to the experiences we had with them.

However, our AC went out in the middle of the summer, and the contractor put up a fight with AHS, but managed to get AHS to pay for a new AC. They also wound up covering a significant water heater issue close to the time we were selling the house.

We wound up getting the money we paid into AHS.
Cheers.
Lavabe

[OZZIE4DUKE]

Better than buying "insurance" for such things is, IMO, creating your own fund or savings account and paying into it on a regular basis to fund these known expenses that are usual and expected.

Such as food, rent/mortgage, utilities, insurance, gasoline ....

[Son of Jarhead]

It seems others have covered this all pretty well. As a real estate broker in Durham, I encourage all my sellers to offer a warranty & all my buyers to request one. It helps take a little of the stress out of buying a resale home. I use 2-10 Home Warranty Co., they cover more & have fewer exclusions it seems than AHS, & around $400 is about right for warranties bought at closing. (may be more otherwise???) Like Cathy said, I wouldn't get one just to have one, but if your big ticket items are near their end & you have kept them maintained, it might pay for itself quickly. My biggest problem is the contractor issue... I'd rather use my own. Also, keep in mind that the Trade Fee (what you pay the contractor for the trip out) varies from around $50-90. My advice here would be to inquire of the Warranty Company of who is on there call list, especially for HVAC, electrical, & plumbing, and then do some checking into them. Also, shop the warranties themselves & read those terms.