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Hi there, [background] moved here 5 years ago, first year, seller paid for the home warranty (covers appliances, heating/ac, plumbing, etc). The warranty was through AHS and cost $340. We renewed the second year at $340. Third year the premium wet to $425 and we renewed. We didn't renew on the 4th year as the policy went to $500. Was nervous all through summer because the house is at the 10 year mark, and from what I'm told that about when the A/C unit goes, etc. There was no deductible and the service call was $50.
So I'm looking again at AHS and now they have a "Pick 10" program, where you pick 10 covered items and the annual premium is $550. Again, no deductible, but service calls are now $100.
Just wondering if anyone else uses the home warranty, and if so who is it through? Are we limited to only national firms or are there any local ones?
If you don't mind me asking, about what are the premiums and service call costs? Are you happy with them? Did you ever need service?
Our realtor purchased a very nice plan for us when we bought our home. I read the plan and felt good about everything being covered. Our water heater died at the end of the first year (within the plan) so we were compensated...$100. So many pieces were not covered by the insurance that we ended up paying quite a bit out of pocket for a water heater because of connections, backflow valve, etc. A new water heater cost about $400, insurance covered $100.
For hundreds of dollars a year spent on insurance, it isn't worth the small payout you get when something does break. If you do go with the pick 10 program, ask them specifically how much they pay vs what you will have to pay when one of those 10 things breaks.
In most cases I would not recommend a home warranty. Most people would be better off to self-insure. I might make an exception on a 15-20 year old house with all the original equipment and in those cases, make certain that "pre existing" conditions are covered. Often they are not! While some people have good luck with their claims, most do not. If one decides to move forward on the purchase of a warranty, make certain to really read what is covered and what is not. Remember, they don't make money by paying out claims! The squeaky wheel gets the grease certainly applies in this case!
I try to get the seller to pay for a home warranty for my buyers, particualarly if they are first time homebuyers or if they are just not handy, at all!
Keep in mind that if the garbage disposal breaks, the buyer calls the warranty company, they send a repair person, buyer pays the service fee ($50 or $75 or $100, depending on the policy) and the repair person either repairs or replaces the garbage disposal.
It is a bit different for the larger items...water heater, hvac, etc. In those cases, the home warranty will not cover 100% of the costs involved.
There is usually a separate fee for disposing of the hot water heater.
As for the HVAC, I'd want my clients to know that it is not 100% covered. There could be some costs involved in removal of the old units, there could be some necessary changes to the duct work, etc.
Instead of paying $400 or $500 per year, maybe saving that money so that when the hvac system needs repair or replacement, you'll have the necessary cash available.
My downstairs unit lasted 15 years. My upstairs unit is now 20 years old and still working (knock on wood).
I just replaced my 23 year old A/C a few months ago - it was actually working fine but I wanted the higher efficiency of a new unit (and knew it was due to croak any day).
As a seller I've bought home warranties as an extra enticement for the buyer - as a buyer I've never renewed a home warranty if my house happened to come with one. In my current house I got one, and the only problem I had wasn't covered (leaky toilet) - I wish I had taken the $400 off the price of the house instead!
In most cases I would not recommend a home warranty. Most people would be better off to self-insure. I might make an exception on a 15-20 year old house with all the original equipment and in those cases, make certain that "pre existing" conditions are covered. Often they are not! While some people have good luck with their claims, most do not. If one decides to move forward on the purchase of a warranty, make certain to really read what is covered and what is not. Remember, they don't make money by paying out claims! The squeaky wheel gets the grease certainly applies in this case!
Exactly. I would also like to add that the service techs that typically come out on warranty claims are bottom of the barrel due to warranty companies paying well below average wages to perform the work. Expect band aids for problem resolution.
Exactly. I would also like to add that the service techs that typically come out on warranty claims are bottom of the barrel due to warranty companies paying well below average wages to perform the work. Expect band aids for problem resolution.
Not to mention that the replacement units are often the least energy efficient models available for sale when you have a service contract.
We had a warranty when we bought. We renewed it for 2 years. They did replace the AC unit and another time the blower for the heat. Each time it took at least a week to fix between finding parts and company dragging its feet. With the extra fees, we probably broke even between service fees, uncovered parts of system and the premiums we paid.... It was peace of mind for my wife. But Im glad we ditched it....
We also had a warranty when we first moved here. I would never do it again. There is always something in fine print you either didn't see or understand which is the loophole they use to make you pay for the repair anyway. Now that we no longer have the warranty, they send us emails monthly to try and get us to come back. You are definitely better off saving your money and doing the homework for companies to deal with if you do need something repaired or replaced.
I just wish AHS would stop sending me crap to get me to resign up once a month, 4 years later.
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