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Old 02-15-2011, 02:24 PM
 
Location: Raleigh, NC
6 posts, read 48,134 times
Reputation: 12

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Our water heater went out on us last Friday. I contacted our home warranty service immediately to file the claim. They were courteous, prompt, and reminded us that - according to our current policy - any expenses outside of the cost of the water heater and its installation (pipes, expansion tank, etc.) comes out of our pocket. With that in mind, I completed the claim and started working with the local plumber to take care of the scheduling. Upon an inspection of the heater and to verify that it did need to be replaced, he noticed a leak in the tank, the expansion tank needed to be replaced, and several other items replaced to bring it all up to code and complete the replacement.

Well, their office comes back with the out-of-pocket cost: $511. This is for all the work surrounding the water heater replacement (cost of tank was fully covered). I feel like I could have paid for another water heater with that much money (and only 1.5 hours of work).

For those in the know or been through a recent replacement, did I just get hosed? This is for an electric ~50 gallon heater in the crawlspace of a 10 year old house. The original model was a State Select. I'm not sure what the new one is since I haven't been home to check it out (it was just installed a few hours ago). I should have investigated this matter earlier, obtaining estimates from other local companies, but considering that we're paying for a home warranty service and that I have a one year old to consider, I didn't feel like waiting ... except, it's already Tuesday afternoon and they just finished and waiting is exactly what happened. Ugh.
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Old 02-15-2011, 02:43 PM
 
Location: NE CT
1,496 posts, read 3,384,569 times
Reputation: 718
Let me get this right. The warranty paid for the cost of the tank but not the removal of the old one and installation of a new one? If that is the case, then ask the plumber to itemize the bill and account for his time on removal and installation including the cost of the expansion tank..
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Old 02-15-2011, 03:07 PM
 
Location: Cary, NC
792 posts, read 4,487,051 times
Reputation: 1351
Yes you got ripped off. That's how most of those warranty companies operate. You get substandard work, for high prices and long wait, with lots of "additional services" that aren't covered. I can't understand why people buy those warranties.
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Old 02-15-2011, 03:18 PM
 
1,828 posts, read 5,311,975 times
Reputation: 1702
Quote:
Originally Posted by dedratermi View Post
Yes you got ripped off. That's how most of those warranty companies operate. You get substandard work, for high prices and long wait, with lots of "additional services" that aren't covered. I can't understand why people buy those warranties.
Agreed completely.

I bought a house 6 months ago and the seller (bank) payed for a 1 year home warranty. One of my furnaces quit working so I busted out the warranty program. After reading all the ways I could be financially raped (loopholes getting them out, required proof of maintenance, etc.) I took my butt up to the attic, diagnosed the issue and replaced a defective pressure switch for $30 instead of the potential hundreds I could have been stuck paying for "warranty" work.
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Old 02-15-2011, 03:21 PM
 
Location: Johns Creek, GA
17,472 posts, read 66,002,677 times
Reputation: 23616
Yep, you got hosed!
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Old 02-15-2011, 03:49 PM
 
Location: NJ
17,573 posts, read 46,126,539 times
Reputation: 16273
Quote:
Originally Posted by dedratermi View Post
Yes you got ripped off. That's how most of those warranty companies operate. You get substandard work, for high prices and long wait, with lots of "additional services" that aren't covered. I can't understand why people buy those warranties.
Maybe I'm reading this wrong, but it sounds like he got hosed by the plumber, not the warranty company.
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Old 02-15-2011, 03:56 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,729,143 times
Reputation: 17831
Quote:
Originally Posted by manderly6 View Post
Maybe I'm reading this wrong, but it sounds like he got hosed by the plumber, not the warranty company.
I wonder if that's the same plumber I saw in a brand new bass boat the other day.
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Old 02-15-2011, 04:08 PM
 
Location: somewhere where i dont know where i am
73 posts, read 594,872 times
Reputation: 63
What youre describing is what everyone gets when they purchase a water heater. If your water heater fails and its still under warranty
(you can tell by reading the sticker on the side of the heater), you get a new tank from State but plumbers fees arent included.

FYI around my way that job would be roughly $400, depending on what stock he used.
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Old 02-15-2011, 05:19 PM
 
Location: Raleigh, NC
1,039 posts, read 2,653,302 times
Reputation: 1163
My opinion, no. A new water heater (one that will last, not the cheap one you pick up at Lowe's) will cost $600 +/-, installed.

And apparently there have been code modifications recently. I had a problem with the heating element in my water heater, and the plumber replaced it. He did tell me that my installation is not up to current code (my house is 10 years old).

So I don't know what the answer is. Did you overpay, perhaps, but "hosed"? I'm not sure. Just giving you the information that was provided to me.

I mean maybe my plumber quoted me on the high side. He,s a friend of a friend, so I tend to believe his quote.
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Old 02-15-2011, 07:59 PM
 
Location: The Ranch in Olam Haba
23,707 posts, read 30,730,816 times
Reputation: 9985
If the warranty company covered the tank (and probably some couplers) and the installation to install it then the plumber is the one who padded the bill. Get an itemization.

I've never heard of a county inspector coming out to inspect a home for a replacement water heater. So this having to do it to new code is just a way to upcharge you .

The only way I could see the warranty company hosing you is for them to pay for a ultra low cost heater. But I dont see them saving much. If you go into Lowes/Home Depot the tank (12 year), the labor, and removal of the old tank would have been under $900.
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