Should I buy home warranty? Help me decide (rental, appliances) - Houston - Texas (TX) - City-Data Forum

trekbiker · 11-03-2014, 10:35 AM

Hi all,

I just got a notice that my current home warranty with 2-10 is about to expire. Let me back up a bit - I just bought a 10 year old house last year, and it still has the original roof and HVAC. We also installed an in-ground pool with a pump.

I thought about renewing with 2-10, but then when I saw reviews of that company (which were rather nasty and vitriolic), I decided to look into switching to a different company.

I found Old Republic, and it seems to have the best customer service and a lot of people are happy with it. BUT they are expensive.

Since my HVAC and roof are both 10+ years old, I decided I want to go for the highest possible coverage plan which has a base price of $575. But even that doesn't include limited coverage for roof leaks, pool pump and equipment, refrigerator, washer or dryer. If I include all these coverage options (except W/D because I bought mine from craigslist for cheap), it's gonna push me over $900 per year!

My wife is going back to school in the near future, so our budget is going to be tight, so will buying an extensive warranty policy help us save money in the event that something happens to our HVAC or roof or pool equipment in the next 5-6 years?

Please help me decide. Thank you.

diggity101 · 11-03-2014, 10:41 AM

I wouldn't renew. Those warranties are not going to help with your roof, which should have another 10 years of life (unless there's been major hail damage or something) and they will do the bare minimum for your HVAC.

Take that money and get a bi-yearly maintenance plan for your HVAC where they come of and clean the system. Take the rest and put it towards a rainy day maintenance fund.

Meyerland · 11-03-2014, 11:16 AM

We have had several different home warranties on various homes and they have never paid for a single repair. There is always some reason it's not covered. We won't get another one. We could have saved the money spent and actually paid for some of the repairs ourselves.

marksmu · 11-03-2014, 12:23 PM

I am generally 100% against these warranty companies....I hear the horror stories, I hear they never cover anything, they always charge too much, etc - but I bought a rental property last year and we got an American Home Shield warranty on it as part of the closing...I have used that warranty twice both toilet related, and I've got to say their sub did a great job, showed up, fixed it, and left both times...the first time was for two slow filling toilets, they replaced the valves, and the second as for a leaking toilet - they replaced the toilet...I paid $75 the first time, and the second time it was free b/c it was the same toilet that had a new valve so they considered it a repeat job...I was $475 at the time we bought it, and I can definitely say it paid off this time...Heck they replaced it with the same toilet that was removed, and it was an $800 Toto toilet, so we certainly got our money out of that one.

I may even renew the warranty based on my level of happiness at this point...which is shocking for me to even write - b/c I hate the idea...I have always been a believer in setting aside the same amount in a rainy day fund for the house and letting it build over time...

So its up to you....I think in the long run your better off without them, but if it gives you peace of mind, there is a price for that as well.

cheryjohns · 11-03-2014, 01:44 PM

My favorite is Old Republic, as to trustworthiness. It starts getting expensive when you start adding all the extras, though. Your main concern is your AC, plumbing and electrical. Don't add appliances, the appliances themselves carry a warranty to the point in time that it is no longer worth worrying about. No warranty is going to do you much good on the roof. With the age of your AC, it's not really worth adding the extended coverage on the AC - that's mostly for older units where a lot of things will have to be modified if it has to be replaced. Just go with basic coverage at $375.

Meyerland · 11-03-2014, 02:07 PM

It was a bitter pill for me to swallow when they wouldn't cover our AC repair on two different units and our dishwasher. I can't remember what the excuses were, but it infuriated me that we had paid all this money and it wasn't covered. I also had to pay for the technicians to come out and tell me that the repairs were not covered.

One guy took pity on me and did the repair for free and didn't report it.

They tried to get us to renew it again, and I basically said...is anything actually covered by this agreement? Then I listed several things that might go wrong, and they said no to each item.

So...no they won't be seeing another dime from me.

It might be a good deal if the house comes with a fridge and washer/dryer. Our home didn't have those things, so they also weren't covered by the warranty. My friends had those things covered and they were actually paid. I think they just had to pay $60 or so for each time the technician came out.

cheryjohns · 11-03-2014, 02:28 PM

Quote:

Originally Posted by Meyerland

It was a bitter pill for me to swallow when they wouldn't cover our AC repair on two different units and our dishwasher. I can't remember what the excuses were, but it infuriated me that we had paid all this money and it wasn't covered. I also had to pay for the technicians to come out and tell me that the repairs were not covered.

One guy took pity on me and did the repair for free and didn't report it.

They tried to get us to renew it again, and I basically said...is anything actually covered by this agreement? Then I listed several things that might go wrong, and they said no to each item.

So...no they won't be seeing another dime from me.

It might be a good deal if the house comes with a fridge and washer/dryer. Our home didn't have those things, so they also weren't covered by the warranty. My friends had those things covered and they were actually paid. I think they just had to pay $60 or so for each time the technician came out.

What warranty company? Yeah, they are not all created equal. There are several I could name that just take your money. I have heard good things about Fidelity, too, but just stick with the one I know does a good job.

Meyerland · 11-03-2014, 03:22 PM

I think one was National and the other was American Home Shield.

vwgto · 11-03-2014, 04:25 PM

Don't do it. Not worth the hassle.

p0opstlnksal0t · 11-04-2014, 08:00 AM

Our previous rent house had American home shield through the owner. they came out multiple times for very small minor appliance repairs and once a clogged sewer line that needed roto rooting. right before we bought our current home the rent home AC went out. they denied the coverage to fix it stating that the coils were dirty. they were actually spotless and an AC company came out twice a year to clean and upkeep the system... I personally wouldnt waste my money on one.