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Can you please explain this in more detail. It seems like the warranty company covered the cost of a new water heater. They didn't cover installation. Without the warranty they would have had to pay for both.
but water heater + installation could easily have been cheaper elsewhere.
but water heater + installation could easily have been cheaper elsewhere.
I guess I'm not sure from the OP if they picked the plumber or the warranty company picked the plumber. Obviously if the warranty company picked the plumber and someone else would have charged less for the total that is an issue.
Search the RE Forum for "Home Warranty Scam". Basically, what goes on is like this. You think your roof is covered and it starts leaking. The naive think, great I will get a new roof, but then they find out that the nails are not covered. And they really stick it to you on the installation of those new, expensive nail--so much that they can cover the cost of the shingles. BTW, Home Depot sells a HWH expansion tank for less than 40 USD, it would be easier to install than an ice-maker. So they charge you 500 for that, and are able to cover the cost of the new HWH.
Well, I just had a 50 gallon electric water heater replaced, and if memory serves the parts cost was around $600. At $100/hr x 2 hrs minimum that would total up to around $800.
If you have a 50 gallon heater, what do you need a separate tank for?
At any rate, I would guess the labor to replace this mystery tank would be similar to the labor to replace the water heater itself, so another 2 hours or $200. No idea what the parts cost of the mystery tank would be, so I can't comment on that.
Sounds like you would be better off just talking to your neighbors and coworkers, identifying a good plumber of your own choice, ditching the "warranty" and paying for repair work yourself. Or you could just install a water heater yourself, if you have a way to get it from the store to your house. It's not particularly difficult.
great thread.. I'll keep all these things in mind.. I'm not going to prematurely replace the natural gas heater that came in my home but rather use it until it dies. I flushed the system really well and replaced the anode rod which was worn but still had life left on it.. so I'm betting this AO Smith model lasts another decade or more.
Most cost effective thing to do is buy a new water heater when the old one craps out, not do home warranties or try to fix.. also keep the anode rod changed however often you require it based on your local water supply.
I had the exact same experience and found a satisfactory solution.
My water heater broke and started leaking everywhere. Called the home warranty (First American Home Warranty) and a plumber came out. He quoted me an additional $270 for "modifications" he declared were necessary to install the new water heater. I was incensed and asked him to just replace the heater with a new one without the modifications. He laughed in my face and basically said you either pay my fees or you don't get the warranty honored.
I called the home warranty company figuring that if the modifications were "necessary" they would cover them or at least let me get a quote from another plumber to see if they could do it without modifications. They confirmed that "modifications" were not covered and they would not let me shop around for a different contractor. To make matters worse, the jerk plumber decided to punish my indignation by jacking up the fee for modifications to $390 on the final report.
I escalated the claim to a supervisor who basically parroted the "sorry you have to eat it" line of the lower level technician. I suspect this is a scam between the warranty company and plumber that lets them lowball what they would pay the plumber and in exchange he gets to shaft the customer with uncovered "modifications."
The solution I eventually came to was I asked the insurance company to cash out the value of my claim (they did not volunteer this option, you have to ask for it). They then gave me the price of the heater plus labor. Then I shopped around for another plumber who was willing to install an identical water heater without all the crazy modifications for just $55 more than I got in cash out money. That was a heck of a lot better than paying $390 out of pocket.
I'm definitely going to cancel my home warranty when it comes up for renewal again. They should really just be used when you buy a new house and want to make sure everything is in working order.
Why would anyone pay for a home warranty since it restricts you from obtaining competive bids and making your own informative decision regarding a repair or replacement.
Many mechanical contractors, utility companies, appliance repair companies and exterminators are all pedaling insurance/warranty contracts to homeowners in order to generate more income. My response is always, No Thanks!
Real estate agents usually include a warrant when they sell a home, it make the buyer feel better, it has no other value than that.
I feel better without a warranty. A warranty locks you into one tradesman and they usually work for these companies hoping to get “extras” one they’ve gained access to your house.
I had a plumbing warranty once and needed to replace a kitchen faucet. Long story short, a local plumber installed a new faucet of my choice for $200 less than what the warranty company wanted.
I went with the lower price as quoted and dumped the insurance company the day after having the new faucet installed. They are rip offs!
Competitive pricing is always best and gives you the choice of materials or the fixture.
Last edited by Rickcin; 02-17-2019 at 08:57 AM..
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500 avg
