AS is + Home Warrantee?

Question

I know a home warrantee is just an insurance policy. 
I am going back and forth on a FNMA property. They countered back that the property is sold as is. But, they are offering a home warrantee.
The house has some foundation sill plate rot, plus uneven floors from water damage. I would never dream of asking for a warrantee specially since it kind of counters the "as is" clause. 
What can I expect this warrantee to cover?
Thanks
Don

Don Hines · Answer

Thanks for the quick responses. I just couldn't see how a home warrantee would be honored in this case. The house has buckeled floors, rotten press bord, etc. The AC and water heater look fairly new. All of the kitchen appliances are gone. I was just hoping the warrantee might cover something like a roof if we find out it is bad (appears to be OK). All of the water damage looks like it was caused by carelessness to me. I was thinking I could maybe tell the seller i don't want the warrantee and get a little closer to an agreement on price.
Thanks again
Don

Mary R. · Answer

http://www.ahs.com/homeowners/plans-costs/plans-costs.html

An AHS Home Warranty is a homeownerâ€™s best defense against expensive repair and replacement bills.
An American Home Shield Home Warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of certain home system components and appliances. The service contract is a one year contract covering a multitude of systems and appliances needed for everyday life.

Here are a few of the key things to remember:

â€¢No home inspection is required as a condition to purchase*
â€¢The contract covers certain household system components and appliances regardless of age, make, or model*
â€¢You pay a trade service fee for each occurrence, regardless of the actual cost to repair or replace the broken item(s)*
Our Basic coverage includes:

Heating Systems   Plumbing Systems    Electrical Systems 
Water Heater   Oven/Range/Cooktop    Dishwasher 
Built-in-Microwave   Garbage Disposal     Exhaust Fan 
Ceiling Fans    Plumbing Stoppages      Ductwork

Or you can expand your coverage to include:

Central A/C Refrigerator Clothes Washer 
Clothes Dryer Garage Door Opener Well Pump 
Pool Spa

Several afforadable plans are available to fit your home and budget needs. These are the average replacement cost of some of your homes system components or appliances:

Other home warranty plans are probably similar.
I had a few different policies over the years, and probably would not buy another. The last one I had actually was AHS. I had 3 claims in a short time on a policy I had with them for several years, and they gave me nothing but grief. 
On the last one, a water leak repair at the clothes washer connection to the plumbing, the company they sent "repaired" it, but I refused to use the washer, because I didn't think the "repair" was safe to use. AHS refused to have them come out again. I called code enforcement. The man came, took photos, wrote up 3 citations on the work done, and suggested I call the plumber, and then to contact AHS about their plumber. The plumber did fix it, but he was not happy. He actually scolded me for not talking to them before calling code enforcement. The thing is, I DID, and the owner insisted it was okay. It wasn't.

One was the dishwasher which again had to be "repaired" three times. They would not replace it until the last fellow wrote up an itemized list of each part, including (he said) nuts, bolts, washers, and the prices, to make them understand repair was more costly than replacing. They finally did replace the DW, but I wish I had gotten the money, added to it, and bought one myself. 
The third was the  water heater which simply would not supply enough hot water. They said it heats the water. It did, but I couldn't even take a 10 minute shower. There was not enough for dishes...I finally replaced the 15 year old water heater myself and didn't renew the policy.

FWIW, , I was told by that code enforcement officer that  American Home Shield gave him problems, as well as other people he knew, and apparently are/were the defendants in (various) lawsuits.

J Scott · Answer

In my experience, not much.  It will generally cover minor things, like toilet issues, light/fan issues and maybe minor appliance issues.  Generally, it will cover basic repairs of the mechanical systems.

The big problem is that coverage claims can be denied if the warranty company determines that the item was installed improperly, has sustained damage beyond normal wear and tear, if there are code violations with the item, etc.

So, for an REO, definitely don't expect any big stuff to be covered, and also expect that some little stuff may be refused if the warranty company determines that the installation or maintenance wasn't proper during the useful life of the item.