Home warranty versus PSE&G worry free. Any feedback? (insurance, appliances)
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Hi. Since I bought my home a few years ago, I have had an AHS extended Home warranty. I originally paid a promotional price for it but since then the price each year keeps going up, I am now close to $580 per year for a core coverage plan (heating, cooling, plumbing, etc) and there is a $100 service fee. So I am starting to question the value here. The peace of mind is good I guess, especially since I have some very old stuff in my home, such as the furnance and AC. But I do not tend to call them for the "smaller" issues that arise, because I know I still have to pay the service fee and sometimes the contractor still charges for some things too that are not covered in the fine print. For example, I used it last year when my water heater died and I still had to pay close to $500 out of pocket for labor, the permit, bringing pipes up to code, etc. It is great that the new unit itself was covered but I was not expecting these additional charges out of pocket to the contractor. AHS has offered me a credit to stay on as a customer, and I can switch to a different plan that covers these added things as well as it lets me choose which 10 items I want covered, which sounds better because I do not like the fact that appliances such as my fridge are not covered in the core plan (unless I want to pay for added coverage). This "pick 10" plan sounds more flexible, but it still will cost me over $600 a year.
Some people have told me to ditch AHS and just get a PS&EG worry free plan instead, where I can choose however many items I want covered and pay a much smaller price per month, per appliance. I like the sound of that. However the big difference is that they do not replace the items if they need to be replaced, they only repair. I do not know if there is a service fee either.
So my question is this: does anyone have any feedback with this or experience with these plans? Looking for some recommendations.
Worry Free can only fix small easy to replaced items listed in their agreement. Pricier parts will be billed. Essentially Worry Free is a paid laborer service that will come and examine and give you the cost to repair something and you have to pay extra to get them repaired.
It's worth it for small appliance. I have all my washer and dryer warranty replaced with Worry Free. They don't have the best customer service as it took me 4 appts to get a simple Dryer roller replaced and repaired. Since it was a cheap item it was covered under their warranty. Probably would've cost me about $200-300 to replace with a 3rd party technician.
if you're paying $580/yr, why not just take $580/yr and put it into a money market account? do you have a cash buffer otherwise, if something really bad happened (i.e., furnace and a/c both die in the same year?).
I have some buffer but that would be a tough pill to swallow. Furnace and AC could run close to $5,000 - $10,000. That is the primary reason I have the warranty, now that the water heater has been replaced. I guess it could help with the fridgerator and the washer / dryer too, those are also a bit old.
I have some buffer but that would be a tough pill to swallow. Furnace and AC could run close to $5,000 - $10,000. That is the primary reason I have the warranty, now that the water heater has been replaced. I guess it could help with the fridgerator and the washer / dryer too, those are also a bit old.
yeah. but i mean, if you're a financially smart person, you can get a fridge or washer/dryer fairly easily at most retailers with a 6 months or 12 months 0% interest deal, if not longer. new models of each of those appliances are very efficient compared to 5-10 yr old models, so they are cheaper to operate as well.
i think a furnace would run about 4-6k installed. so if you are problem free for 5 years, you've banked about $3,000 plus tiny amount of interest. i dunno, it just seems like a lot to pay for "insurance" that also has a 'deductible' of $100 and may exclude a lot of things, as you pointed out.
I hear you. That is why I am starting to question it. If my furnace and AC were not over 20 years old, I probably would not even consider this and maybe would just pick up the worry free thing.
I hear you. That is why I am starting to question it. If my furnace and AC were not over 20 years old, I probably would not even consider this and maybe would just pick up the worry free thing.
do you do maintenance on the furnace and ac? is that included with what you're currently paying for? if i were you, i'd create a replacement plan for both. maybe they die before your target, but you should be setting aside cash each month now for units that are that old. i think NJ's program ended, but i replaced my 22 yr old boiler about 2 yrs ago using a 0% loan through the state.
I have the PSE&G worry-free for my gas furnace, central AC and hot water heater -- altogether it costs me $21 a month, added onto my monthly bill (if you do 3 or more appliances, they give you a 10% discount).
I was having problems with my furnace last week and a tech came, diagnosed the problem (which was a faulty control board) ordered the part, and now I have an appointment for Thursday for them to come and replace it.
Considering a control board could be $200-$400, and HVAC labor is about $80-$120 an hour, the worry-free contract has already paid for itself for the year.
Re: replacement of appliances -- no, they don't replace altogether, but, they do offer discounts and payment plans on new appliances if they are unable to repair. Also, if there is a part that they don't cover - yes, you will pay for the part, but, at least the labor is free. You can go on their site and read through a list of parts that are/aren't included for each appliance.
The monthly cost is so minimal that I think it's worth it to have that peace of mind.
When our 18 yr old HVAC Condenser would not fire up, PSEG came and diagnosed the coil as faulty. The cost of labor and the part was covered under Worry Free.
That said, when the condenser itself sprung a leak last year, Worry Free didn't do anything other than inform me the unit needed to be replaced. I selected to replace the whole system at my own cost. As I have new units now, the worry free will probably cover any parts or issues for the next 10 years. After that it's a gamble.
As for AHS, I've heard there are issues with loopholes, providers and the actual service you get. Plus you actually have to pay out of pocket for the work, then have it reimbursed to you, I think. This means using a vendor AHS works with, which limits service.
I have a question about AHS and would appreciate if anyone with AHS can answer. If AHS offers replacement of HVAC system when it can no longer be repaired, how do they prevent their program from being abused. i.e it is widely said that the life of a HVAC system is about ~15 yrs. So, folks can buy AHS in their 14th year and have AHS pay for a replacement system when time comes to replace the system. Assuming it costs AHS about $4K to replace a HVAC system, it will take them over 7yrs to recover their cost from the premiums. So, how does AHS manage to stay in business?
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