You are comparing apples and oranges. Firstly unless you own your home outright the mortgage company as a contingent of your contract forces you to have insurance. Just like a car with a loan, the bank demands you have insurance. It’s not an option.

Second, and yup this is important. Even if you own the house outright you probably would be financially ruined with a catastrophic event. Ie, lose everything you ever worked for. Huge risk minimal gain scenario. Warranty insurance for you house is stupid. Stupid. If you can pick the year that your compressor goes out then you will win that year. Unfortunately you can’t. So you will keep paying this warranty year after year after year.

I hate to break it to you guys who think it’s paid for itself, quit now while you are ahead. That is sound financial advice. If you won the warranty lottery you are in a small group. Every year you keep buying it, your gain diminishes until you are losing money. It’s just math. It’s why these companies employ actuaries.

You guys can argue all day but your math won’t hold up long term.

Got one with our home purchase last year, actually renewed it for another year while we sort out what, if any, spots of weakness we've got. Honestly I think their pricing is whacked since it's $40/month for three HVAC units, a tankless and another large water heater, semi-pro gas stove, double oven, built-in microwave and ice maker. Carried it for a few years after purchase on house in TX and broke even most years, came out ahead the time we replaced leaking water heater. Already had them replace door latch on microwave and a bad squirrel fan in vent hood last year.

Funny thing is a week after renewal here, had a/c capacitor go out and they came out and replaced for the $75 service fee. Sure that's not a major project at full costs, but it would've been $200 I suspect.

I realize it's a gamble whether we'll even break even, but with all the stuff around the house I'm not thinking we'll lose much on the deal in next year or two. First American, BTW.

Now, getting on the work schedule is a challenge, but if it was something critical I'd just find our own service.

Anyone who think these companies are EVER going to do anything past a quick bandaid fix to get you off their back is delusional.

My firt place was a condo with an AHS home warranty and the Trane central AC quit working, I called and set up a repair and while the tech was doing his thing, which ended up being a capacitor or something, I mentioned how I'd get a new system if the thing was dead beyond repair.

The HVAC guy actually laughed in my face and said "you don't know how these companies work, do you?" He told me he had been doing this work for years for AHS and had NEVER seen them replace a system once. It's all about quick fixes and patches if they don't deny you outright for some bullshit reason they make up.

Do me a favor and save your money, you'll make out better in the long run. These companies are a total SCAM, which is why if you look them all up, they ALL have terrible reviews and ratings.

Im up in the air on the warranties.

When I was selling my first house I purchased the warranty for the next buyer because it "looks good". The day before the closing the water heater crapped out. I probably made out a few hundred bucks.

On the house I just purchased the seller purchased the warranty. I think it was AHS. Water heater craps out on Good Friday. Call company and get set up with the plumbing company. They cant schedule me until tuesday. Not to mention we were having the family Easter dinner at our house. So we had no hot water for almost 4 days. Warranty company said they have a 48 business hour guarantee. So we were screwed there.

When they install the water heater they tell me the expansion tank is required by the manufacturer warranty, however the tank is not required by code. They would not install the water heater without the tank. I had to pay $200 for the tank install plus the $75 deductible.

quote:

Originally posted by PASig:
Anyone who think these companies are EVER going to do anything past a quick bandaid fix to get you off their back is delusional.

My firt place was a condo with an AHS home warranty and the Trane central AC quit working, I called and set up a repair and while the tech was doing his thing, which ended up being a capacitor or something, I mentioned how I'd get a new system if the thing was dead beyond repair.

The HVAC guy actually laughed in my face and said "you don't know how these companies work, do you?" He told me he had been doing this work for years for AHS and had NEVER seen them replace a system once. It's all about quick fixes and patches if they don't deny you outright for some bullshit reason they make up.

Do me a favor and save your money, you'll make out better in the long run. These companies are a total SCAM, which is why if you look them all up, they ALL have terrible reviews and ratings.

What do you expect them to do? If your AC can be fixed, why in the world would a company replace it?

They repair broken things making them work, which is exactly what they are there for. If it can't be fixed it's replaced.

I've met customers who have gotten multiple new appliances and entire HVAC systems. Alternatively I've gone to someone's house and denied a claim that has had plan for years with no claims because they didn't have fixture coverage or because a squirrel chewed through their wiring.

It's a contract, they are under no obligation to do more than is spelled out and mutually agreed upon.

Somehow I've became the defender of these things in this thread, not sure how that happened. Just so you know I don't have a contract with any of them. I have all new stuff and I don't want average of below average people doing work in my home. This is the critical thing most don't consider. Economics aside, I want to choose the best to do work in my home, not those that aren't good enough to find work on their own. We are a bit of an anomaly where I work. Our guys do good work, our company schedules quickly, and we come prepared to make the repairs the same day. I can't say the same, not even close for the other companies.

As for the economics of it, it's a crap shoot like all warranties and insurance. Some people end up getting thousands in repairs done for $75 others pay for years and never use the coverage. If I had a large or older house I'd buy one, I'd also buy one for a rental property. If you have a well maintained home you are never going to win the warranty lottery.

Cross country is a decent home warranty company, they also sell it under hms, total protect. Biggest issue is home owners don’t do their due diligence and keep the maintenance up which gets their claims turned down. It’s a gamble whether to get it or not just how your luck goes.

I'm thinking of pulling the trigger on American Home Shield. I have a leaking a/c evap coil but no one knows but me (and now all of you). The $600 premium will more than pay for itself early next summer when I call to say the a/c ain't working. Plus, the $600 pretty much covers everything else, so, if an appliance or something else acts up, I'll be way ahead.

AHS has been around since 1971 and was one of ServiceMaster's brands (Terminix, Merry Maids, others) till they got spun-off last year.

Most real estate companies around here recommend that the seller provide one as it helps avoid post closing issues. Seller provided one for me when we bought our last house. It was from Old Republic. We had 2 claims on the Viking range that probably would have cost me 600-800 each plus an 850 furnace repair so I came out great. YMMV.

They do have policy limits per appliance so explore those before you buy, if you have a known issue.

I had the misfortune of dealing with one of these home 'warranty' companies before...good luck. These warranties might have some value if they were issued by ethical entities.

quote:

Originally posted by Bluecobra:
Most real estate companies around here recommend that the seller provide one as it helps avoid post closing issues. Seller provided one for me when we bought our last house. It was from Old Republic. We had 2 claims on the Viking range that probably would have cost me 600-800 each plus an 850 furnace repair so I came out great. YMMV.

They do have policy limits per appliance so explore those before you buy, if you have a known issue.

Only covers post closing issues if the buyer had no idea. Things like, failed right after purchasing, not disclosed on home inspection. If known to buyer before buying it it's not covered unless warranty was transferred. Only once ever turned down a claim for that. Only after new homeowners showed me inspection report dated before contract for warranty. Other than that unless we have proof that it was preexisting than we can't deny even if we know issue was prior to contract.

Had AHS. My water heater leaked. They came out (designated plumber for my area) and said it was due to rain coming through the vent pipe. We had a decent rain the day before. They refused to replace it. It busted overnight about 4 days later and flooded my back bedroom. Called them again. With surcharge, I could have damn near bought a new one and installed myself.

Next incident...master shower drain started backing up. Call them, same plumbing company but different plumber arrives. Says I need clean outs, and he will put them in for $1000. I laugh and tell him to get the fuck off my property or I’m calling the Police. Guy was an asshole the minute he showed up. House was built in the late 70’s, not the late 20’s. Hire my own plumber, he digs the existing clean outs up, just had to move some mulch. House was new to me but I knew I was getting gamed. My plumber snakes it out, all is good. Then it happens again 2 weeks later. Call my plumber again, he says something else is up, suggests using a camera. He runs the camera through there and discovers 2 issues. Roots from one of the trees getting in the pvc, and another issue at the curb, a buried cleanout for a RV to dump sewage. Caps that off, and fixed the roots issue. Never had an issue again. My plumber was like $125 to fix, $125 for the camera run. AHS plumber was gonna be 1k+?

Fuck home warranties. You’re at the mercy of whatever shithole HVAC or plumbing company they use and they’ll try to weasel out or band-aid anything they touch. I can’t wait until Amazon, Walmart, some major corporation comes in and does home repairs or they change the law here where contractors can’t rip you off. I have to get 7 bids for any job, research my ass off, could take me months. Sometimes you don’t have months to find a solid contractor or company to fix something.

quote:

Originally posted by gpbst3:

When they install the water heater they tell me the expansion tank is required by the manufacturer warranty

Complete Bullshit

Please post make and model.

quote:

Originally posted by Prefontaine:

or they change the law here where contractors can’t rip you off.

I think you need to wake up, you're dreaming.

How do you suggest they stop a con artist? Or keeping an unqualified tech from showing up?

Got an emergency call tonight. No A/C. Arrived asked customers what was going on. No A/C for ten days. HVAC said furnace needed parts, I guessing a new board, they weren't sure. Said that HVAC company said furnace wasn't getting 120v, only 90 or so. I laughed and said, not likely (they misdiagnose as electrical issue half the time). Told them I'll check power and see if diagnosis was correct.

Power is good at disconnect, power good at furnace wiring compartment. At this point I'm guessing maybe bad transformer. Open it up and find the HVAC techs forgot to connect neutral on the board. Plug it in, flip on disconnect, fan roars to life. Jesus. Really? seriously? Are you kidding me? You do this for a living, to feed your children and provide for your wife and you don't know how to replace a board and test it?

I want to be an HVAC tech when I grow up. Probably the only profession in the world that you can be wrong fifty percent of the time and not lose your job.

Go with the company you had. My two experiences were completely negative. Once company left me without heat in -10 degree weather. Apparently there was no real problem with my furnace. 7k later I had heat. My attorney is working on it.