Home warranties are they worth it?

P

perplexed

Member
Do any of you have a home warranty? I see so many commercials on different ones and you never know which ones are good or not or even worth it.

I always try and tuck back a little money in case a repair is needed but if a huge item goes out like HVAC etc.... well it is going to expensive.

What are your thoughts and experiences with home warranties
Thank you!
 

charry said:
exactly carol....useless
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Actually, as the OP mentioned, it was an HVAC problem we had that wasn't covered. We ended up with an electrical issue as well, and that wasn't covered either. It totally turned me off from any "repair insurance" companies including those that will get your car repaired at "no cost to you". Right!
 
Our house here in Toronto was built in 1907, so no home warranty ( grin ). When we did a major renovation all of the important things were warranted by either the makers like Kenmore, General Electric, American Standard plumbing, or by the installation company. The Kenmore stove in the basement apartment unit required a new oven element a few weeks ago, but as it is 12 years old, there was no warranty applicable. Our appliance guy Nick replaced it with a new one, and he warrants it for 5 years. $350 total cost, part and labor included. We tell all of our friends about Nick Pantaloni, who is the best appliance repairman we know. JimB.
 
perplexed said:
Do any of you have a home warranty? I see so many commercials on different ones and you never know which ones are good or not or even worth it.

I always try and tuck back a little money in case a repair is needed but if a huge item goes out like HVAC etc.... well it is going to expensive.

What are your thoughts and experiences with home warranties
Thank you!
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Think about why a home warranty (or extended car warranty) company is in business. To make money.
The only way they can stay in business is by taking in more money in premiums than they spend on repairs. That's why there are so many loopholes & restrictions; they they don't mention in their ads.
 
caroln said:
Once bought a house that came with a home warranty. Turned out to be totally useless. They always have a reason why your particular problem isn't covered.
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Same thing happened with a home my daughter purchased, the home warranty was "transferable" but she had to pay for it. I told her it was a scam but as a first time home owner she was worried about repairs. Septic pump failed...not covered, A.C. failed...not covered. She dropped it after that.
 
Only once did our extended warranty work on our Kenmore stove. We had a great repair man who got us replacement grates to replace the originals that were very unsteady & not the reason for the call. The original grates should have been as safety recall he said. He fixed the burner & brought the grates back the next week. He also said extended warranties weren't worth the money. We dropped it after that.

We have found a local repair company for our home appliances.

Better off putting money aside for when you need it for anything.
 
caroln said:
Once bought a house that came with a home warranty. Turned out to be totally useless. They always have a reason why your particular problem isn't covered.
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Totally agree. I had a one-year warranty that the seller threw in as an incentive when I bought a house back in the early 90's......we used it twice, both times it was a huge hassle and once they absolutely wouldn't pay. They'll use everything they can come up with to say "oh, that's not covered".
 
C50 said:
Same thing happened with a home my daughter purchased, the home warranty was "transferable" but she had to pay for it. I told her it was a scam but as a first time home owner she was worried about repairs. Septic pump failed...not covered, A.C. failed...not covered. She dropped it after that.
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I came back to add this.....since the original home warranty was such waste my daughter now uses the Dad home warranty program. It comes with free advise and trouble shooting, repairs and renovations done right and at cost, plus 24/7 service, and every service call ends with a hug! Best. Deal. Ever.
 
Trending here in Houston are utilities selling insurance against failure of inside-the-house piping and wiring. They are quick to point out it is the homeowner's responsibility and defer you to an aftermarket seller of a policy.

I bought into a gas line policy. Big mistake. Now I am overwhelmed with all manner of "buy this or suffer grave expenses for repair, etc., etc."

Personally, my thought is public utilities ought not be selling insurance against failure of their product. Their charge is to provide a service and product. Full stop. That said, anymore utilities are getting contracted out to who knows.
 
This thread reminds me of the time I got scammed by a new car salesman about 40 years ago. He told me that by rust proofing under my car, I would get a better resale price. So, being a newbie and no Internet back then, I paid for that option. When I went to trade in the car a few years later, I mentioned it to the new salesman. He was very direct that there was no allowance for rust proofing. Fool me once and I learned.

Now, as far as home warranties, I self insure everything. I am quick to tell salespeople NO for appliances, water heaters, TVs, and etc. Someone mentioned their HVAC system. After about 26 years of operation, my system needed replacing about 6 years ago. I bought a new low end system for just under $10K. Some of the better and more efficient systems cost like $19K to $21K. I took whatever basic warranty that came with it and as a result, I will pay for any future repairs myself. I don't buy warranties.
 
Thank you all! As a second time homeowner and reading the reviews on some of the companies I knew not to get one. I was curious as to others experiences with the home warranties. I will just tuck back what I can for any future home repairs that may come up.
 
I remember once going to buy a new TV and the salesman tried to sell me an extended warranty. I asked why that might be necessary and he rambled on about how much it would cost if it broke down. But was it likely to break down? Oh yes, as they got older they tended to break down.
In that case, I said, if it's that unreliable, I won't buy it.. Good bye.

It comes down to the "Bathtub reliability curve". If you plot the breakdown rate against time, the graph will resemble the shape of a bathtub.
During early life, there may be failures which are covered by warranty (usually 2 years). After that, there is a long period of reliable operation with few, random, failures. Later on the product starts to wear out, but with any luck, you've got your money's worth. So extended warranties are rarely worth it unless they are cheap and cover everything.
 


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