Any experience with Home Warranty contracts? (pool, Air Conditioner, phone, toilet)

[AAVC]

We are considering purchasing a Home Warranty plan with one of the better known companies. We've been in our home 5 years now, but would appreciate having our home repairs addressed with one phone call, while, ideally, spending less overall. We've never had a home warranty plan, so here's what our current understanding is:
1. A yearly fee is paid upfront (or through a payment plan).
2. For every repair needed, big or small, there is a flat fee of about $100 plus or minus - that varies, depending on the company
2. Some companies cover pre-existing conditions (for example, we now have a leaking toilet and the water pressure valve needs adjustment)

Questions:
1. Is our understanding correct? Anything else we should be aware of?
2. Do these types of home warranty plans save you money overall on home repairs? Are they worth it?
Because repairs can be expensive if one handles them one by one.
3. Which companies have you had experience with, and are there some that are better than others? A Forbes comparison of home warranty providers lists Select Home Warranty and Choice Home Warranty as top choices, with AFC Home Club coming close behind the top two.

Anything that you can offer to help us make a decision on getting one or not, it would be greatly appreciated.

[Parnassia]

I'd post your question under the House or Real Estate subforums. Do a forum search first. Warranties have been discussed there multiple times. IIRC, a few people found they could provide a benefit for a newly purchased home when some major unexpected problem an inspection didn't detect comes to light (something much more significant than a leaking toilet), but over time they weren't a great deal. Most find they're better off creating a dedicated account to fund home maintenance and repairs for themselves. Among other things, the fine print often restricts you to using their network of repair companies and they'll do whatever is most convenient that costs them the least. They might be the least desirable regional companies to deal with.

[AAVC]

Originally Posted by Parnassia

I'd post your question under the House or Real Estate subforums. Do a forum search first. Warranties have been discussed there multiple times. IIRC, a few people found they could provide a benefit for a newly purchased home when some major unexpected problem an inspection didn't detect comes to light (something much more significant than a leaking toilet), but over time they weren't a great deal. Most find they're better off creating a dedicated account to fund home maintenance and repairs for themselves. Among other things, the fine print often restricts you to using their network of repair companies and they'll do whatever is most convenient that costs them the least. They might be the least desirable regional companies to deal with.

Thanks, I did post there as well.

[MGS4EVER]

Some people love them, I think they suck. We had the seller pay for a home warranty. After 2 months, the pool pump went out. Well, too bad for us because the so called warranty had a 90 day waiting period before it kicked in. Then we had another issue. They send out "their" repair people to check it out. That cost $100. This repair person was pretty bottom of the barrel in my opinion and didn't solve the problem. So we were out $100.

To each his own, but I wouldn't buy one again or have a seller pay for one either. What a waste of $500. If I would've just taken the $500, my expenses would've only been $200. Instead I had to buy a pump (650) and a new part for the other problem (50).

[wit-nit]

OP waste of money. Put that $100.00 monthly warranty fee away into a repair fund at the bank for future repairs. You'll save in the long run.
These warranty company's use sub par contractor's who in many cases have no idea what they're doing using shoddy repairs and sub par replacement parts.
One of our neighbors got talked into a warranty service and it was a nightmare. They ended up after a hassle finally getting to cancel out. They had an air conditioner problem that the warranty people sent out someone to fix it. It was a simple repair but the contractor di not know what he was doing and It ended up worse than before and the neighbor ended up having to buy a new system.

[Parnassia]

Originally Posted by MGS4EVER

Some people love them, I think they suck. We had the seller pay for a home warranty. After 2 months, the pool pump went out. Well, too bad for us because the so called warranty had a 90 day waiting period before it kicked in.

Wanna bet that "waiting period" is imposed so the warrantor doesn't have to pay for some larger problem the buyer's home inspection didn't find? Major ones probably come to light pretty quickly after the purchase.

[K'ledgeBldr]

Ever heard that sayin’-

“Ain’t worth the paper they’re written on!”????

[rabbit33]

Think on the following questions and you will find the answer.

1) Are "home warranty" companies charitable enterprises, or businesses that require profit to continue operating?
2) What are the major sources of income for such businesses?
3) What are the major expenses for such businesses?
4) Does Profit = income - expenses?
5) What will the average consumer's experience therefore turn out to be?

[rational1]

Do a search on the topic. We get tired of trying to stop you from wasting your money.

[JJAF]

I'd rather run through hell with gasoline underwear on than purchase a home warranty if that clearly shows which side of the fence I am on.