I received an offer through Florida Power that seems too good- but they are a reputable outfit, and maybe it is worth signing up for.
My home and electric water heater are 11 years old and I have been anticipating replacement within the next few years.
Today I got a letter from FPL that offers water heater insurance through Homeserve that states after a 90 day waiting period, I will be covered for repair or replacement up to $1000, which is about what a new heater would cost. The price is $7/ month.
I have read some awful reviews about all the warranty companies and avoid them, but as this came directly through my utility I am tempted.
Any experiences here?

Just be sure they aren't going to prorate coverage based on the age of your water heater.

From what I have seen in the fine print, there is no provision for depreciation. So I guess for $7 a month I should give it a go.

Sounds like a good deal and I'm not one for such insurance.

How long does a water heater last? 20 years?

9 * 12 = 108 months * $7 = $756

New heater is $1000, does the policy cover install to or just the heater?

I would expect the cost of a new heater to rise in the next 9 years.

Most of the time, when you receive something like this from a utility, it is not being offered (or endorsed) by the utility. But, they usually are getting a fee for everyone who signs up.

Take the $7 a month and put it in an envelope marked "new water heater" and don't touch it.

By the time your present heater goes belly up you should have a good chunk of money to pay to replace it.

I'm skeptical of all these type "deals" and based on the home warranty company I had to deal with which was a complete and utter joke, I'd pass.

My electric company keeps sending me these letters for insurance for my electric line from the pole to the meter and inside to the panel. I am supposed to pay them X dollars a month because all of these things could fail at any moment and cost thousands. The problem is, my line and meter/ meter enclosure and breaker panel were all replaced 3 years ago when this house was upgraded to 200 amp service.

I'm guessing the fine print states that it won't pay to bring your plumbing up to code either.

I received an offer a few weeks ago endorsed by my city government for sewer line insurance.

I usually ignore service contracts but this one made me think, consensus here was to not take it, I followed the advice.

All of the previous bullshit aside , read the fine print and look for anything that would make the policy a bad investment . We can't help you without seeing it .

FPL doesn't replace the water heater, they apply the balance of your plan towards replacing it and the warranty isn't through FPL it's through another company. Here is the link:
?Protect yourself from costly repairs or replacement with a Water Heater Repair and Replacement Plan. If your water heater can’t be repaired, the balance of your annual benefit can be applied to a like-for-like replacement." It does say it will pay the replacement up to $1000 (which is what it should cost or less to replace most tank water heaters)

http://www.fplenergyservices.c...bing-protection.html

The home warranty company I used in the past paid for the cheapest brands and did minimal work. I had one honest a/c repair guy that came out for a warranty repair explain to me the instructions they were given from the warranty company (which boiled down to patch it up and do the bare minimum to get it working).

quote:

Originally posted by Yellow Jacket:
Most of the time, when you receive something like this from a utility, it is not being offered (or endorsed) by the utility. But, they usually are getting a fee for everyone who signs up.

Take the $7 a month and put it in an envelope marked "new water heater" and don't touch it.

By the time your present heater goes belly up you should have a good chunk of money to pay to replace it.

Yellow Jacket is spot on. Do this instead.

Pass, electric water heaters are not that expensive.

quote:

Originally posted by Yellow Jacket:
Most of the time, when you receive something like this from a utility, it is not being offered (or endorsed) by the utility. But, they usually are getting a fee for everyone who signs up.

Take the $7 a month and put it in an envelope marked "new water heater" and don't touch it.

By the time your present heater goes belly up you should have a good chunk of money to pay to replace it.

This!

I have got two letters now from Columbia Gas for pipeline repair. I don't even have gas here.

I just stick the agreement in their envelope and return it on their dime. I have lost respect for some of these companies trying to rip off old ladies.

It sounds like the plan is not very useful, even at $7/month. I'll pass.
Thanks for all the advice.

quote:

Originally posted by roberth:
How long does a water heater last? 20 years?

My last water heater lasted 6 1/2 years. Just past the tank warranty and that's what started leaking. $470 for a new water heater and $170 for installation and removal of the old water heater. I did some looking around online and most are saying you are lucky to get 6-10 years out of them now.

That said I still wouldn't put insurance on it. Like someone else said. Just start sticking that $7 a month into an envelope and then use that money towards a new one when this one craps out.

quote:

Originally posted by WildSig:

quote:

Originally posted by roberth:
How long does a water heater last? 20 years?

My last water heater lasted 6 1/2 years. Just past the tank warranty and that's what started leaking. $470 for a new water heater and $170 for installation and removal of the old water heater. I did some looking around online and most are saying you are lucky to get 6-10 years out of them now.

That said I still wouldn't put insurance on it. Like someone else said. Just start sticking that $7 a month into an envelope and then use that money towards a new one when this one craps out.

YUP, I've been hearing from A LOT of people that the new ones don't last nearly as long as the old ones and less than 10 years is very common. It sucks because NOBODY wants to come home to a leaking water heater and flooded house!

My plumber tells me a lot of them would last longer, but almost no one does regular tank purges to get rid of the crap that settles at the bottom of the tank.