Home Warranty – Are they worth it?

Question

A couple of months ago we closed on a house and it had a home warranty through AHS. We had issues with our hot water heater that took almost 2 weeks and a lot of money out of our pocket. Today, we had issues with our AC and they barely cover anything. Worthless and very poor customer service from that company.

What is your experience with home warranties – are they worth it – of did they (sellers) purchase from a bad company?

Bryan Blankenship · Answer

Short answer: No. Long answer: Noooooope. LOL

Seriously, it depends on a few factors: 1. Age of the house and any updates done, 2. How much the policy is (often you can just set aside the funds you would spend on a policy for needed repairs and you actually spend LESS money overall). 3. If it's a rental, how patient are your tenants?

I have 9 bad experiences with warranties for every good experience. Usually something happens to the HVAC at the changing of the seasons, then you have to use one of the warranty company's approved vendors and wait for them to actually be able to schedule with your tenant, then they come out and diagnose and it's another two weeks before they come back to really fix it and they end up doing a bad patch job and have to come back out 2 months later, etc.

Also keep in mind the limitations of a warranty. Know what is covered and what isn't, and how the warranty company can disqualify something you believe SHOULD be covered. Hopefully you have better luck with them than I've had! :)

Account Closed · Answer

Back twenty years ago when I was a real estate broker we sold them because we got a cut. I can confidently say that this was the only reason they were sold.  Today I sell storage insurance at my self storage facilities.  Ask me if I get a cut.

Ingrid Femenias · Answer

I recently bought a house in Sedona, AZ that was built in 1979, and the RE agent gave me a warranty through First American.  Shortly after, the Furnace went out.  For $75 AFW replaced the motor.  AF sent out the HVAC guy and he got it working temporarily and then he went back once the new motor came in to install it. The entire process took time and my tenant was very helpful because I live in CO, but for $75 there is a new motor!  I’m grateful for that.  Many of the appliances and systems are older, so I’m sort of hoping everything will break this year so AF will help fix them!

I have six other rentals and have never had a Home Warranty before, but I might get one on another older house.

John Teachout · Answer

I personally wouldn't buy one but I'm a handyman that fixes my own stuff. I have a friend in the HVAC business and he will no longer do work for any of the companies. I know another guy that was a plumber and most of his business was for one of the warranty companies. (he was an employee of a plumbing company, not independent)

I will say that the advertisements and people's actual experiences as far as timeliness and scope of repairs seems to have a disparity.

Home Warranty – Are they worth it?

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