Home Warranties???

[mpillis]

Thinking about buying one because my mortgage company sent me info on one. Does anyone have one, which one and are there any hiddent costs. It seems like a good deal. About 4-5 hundred dollars per year to cover all appliances and plumbing etc.. What should I look out for?
Thanks all

[RaffyK]

Looks like insurance. They are betting that you won't be claiming anything and they will pocket the premium.

How often you have an appliance breakdown? In twenty years I've had one service call on a Sears brand washer. A tube popped off (no hose clips to hold the tube in place) and dumped water on the floor. The homeowner's policy covered the water damage. The service call cost $65.00.

I'd pass on it.

[usmctpdog]

Nearly a complete waste of Money... Purchased my house last year and after reading the small print they talk more about what isn't covered than what is! (Seller provided warranty for $300.00) *American Home Shield >> http://promo.servicemaster.com/ahsleadform/landingpages/ahslandingpagegooglelead.html

**Even with a warranty you will have a $55.00 per problem service charge...

This time recently when I bought another house I did not make a big deal of the seller providing one nor will I purchase one.. Lots of stipulations and rules all designed for them not to pay....

What good is a warranty if you have to fight them to get some use from it?

[ksawatsky]

I'll ditto the American Home Shield comment. I couldn't have had a worse experience. The seller purchased the policy for us when we bought the home. Furnace - covered under the policy - had a minor issue. Cost me $50 plus AHS said that the issue was "pre-existing" and didn't cover it. What a joke! :confused: That was the whole reason for the policy -- to cover issues left by the buyer. Would never do that again...

No experience with others, however. There may be others that are not scammers!

[lnowell]

A home warranty is more of a sales tool. Some grant programs require them if down payment assistance is furnished by the seller (stupid program). If a buyer I am representing wants one and we have gotten all the concessions (price and closing cost) possible, I might ask for one at the sellers expense, but not at the buyers. A really good home inspector should be able to point out items that may be of concern to you or require attention and might be money better spent than on the warranty.

I have not had one client over the years use one and have only heard of a couple of claims that made the purchase worthwhile. If you get one on a house you are buying, make sure you get the seller to get (and pay for) a service on the HVAC AND furnish you a copy of the paid receipt at closing - because - there have been cases here where the Home Warranty folks claimed that the problem is/was a pre-existing condition and the policy does not cover it. If you have proof the units were services by a licensed company prior to purchase - you have a much better chance of getting a repair - which is not free by the way - there is a base charge for each call. My understanding is that the warranty folks will attempt to get your appliance(s) working - and then - only if they were working when you purchased the property (and the policy).

Just my $.02

[meese]

I've had similar experiences on two different houses. Seller provided the home warranty. When something needed repair, there were charges, preexisting conditions, and lots of hassles, including the plumber and the home warranty company outright lying to us. In one case, our real estate agent had to threaten to stop using their company for any future purchases in order to get a covered repair paid.

But when it came time to renew, they were all smiles and good will.

The bottom line is that they're in it to make money, which means collect the premiums and make it almost impossible for folks to get covered repairs paid. No, thanks.

[astuber]

The seller provided one on our current house, I believe it was American Home Shield. We had a plumbing problem several months after we moved in that cost over $800 to fix. I happened to be out of the country at the time and my wife called a plumber to fix the problem because she couldn't wait until I returned. We happened to mention the problem to our real estate agent and she suggested we contact AHS. They refused to pay since we did not contact them first and use an approved plumber. It seems like they make it so difficult to use the warranty that most people will give up first. I regard them as a tool for the selling agent to use rather than a true warranty.

[usmctpdog]

Gee... It seems unanimous then..... :)

Save the $$$

[mpillis]

Since I have not heard 1 good thing about it . I will not be purchasing one.
Again this site is a great community.
Ride safe all!!!

[hagar]

Not so fast. Since I moved into my house 3 years ago, the home warranty company has replaced: water heater, air conditioner compressor($1200 fix), fixed my washer, repaired a major waterleak, and just replaced my double oven stove (it cost them $1400!). I only pay $60 for a call, and the people they send have been excellent, and come out promptly, which in SC is a minor miracle. Send me a PM and I can get you their 800 number. I pay $500/year for it, and it has paid for itself at least 3x over.

[mpillis]

which companydo you use? Sounds like you have had good luck and I appreciate your reply

[hagar]

The name of the company is Home Trust Home Buyers Warranty/United One Home Protection, 2675 S Abilene Str, Aurora, CO 80014 (800-775-4736).

[UltraLT]

Folks,
I am in the real estate business. You are correct about it being a seller's marketing thing, but it also protects the buyer, especially if the house is not new. New homes usually come with a builder's warranty and the appliances have a Manufacturer's warranty, for specified timeframes. Therefore, I do not recommend it for new homes.

If you are buying an older house and trust your agent, let them recommend a warranty company. In today's market, the buyer should ask for the seller to provide one for the first year. It is an insurance policy, just like an extended warranty on your car. Read the fine print and follow it. Reputable warranty companies pay off if you play by the rules.

Ultra LT

Riding is life. All else is just waiting.