Home Warranties does anyone use them? Or a scam?

15 Replies

Has anyone used any of those Worry Free or home insurance things. I was checking this one out from Sears https://www.searshomeservices.com/home-warranty/compare-home-warranty-plans

I'm debating if it's worth it since they charge $75 a month and $100 deductible per claim up to 10K per issue with 50K annual cap. 

Total scam........ they are often expensive, don't totally cover the items, the companies they use to "fix" claims are often crap and they will band aid the issue until the end of time......

The single benefit is if you are OOS, you call them and they handle the claim, so you don't have to find your own repair people etc.....so its ease of use...... but you often have to manage the insurance company as they jerk you around, stall and band aid the actual issue.....

Had one when I bought a rental in TX and then continued it when the initial expired..... regretted it to this day.

I'll take one as part of the deal when I buy.... but wont keep paying for it myself.

Better off building a network of repair companies you trust

Not really a scam, but totally useless. I have no idea why people pay for these. 

I had one on my current home when I bought it.. Not even sure why, but the seller offered to throw it in and I was like, sure why not. It was from one of the big well known places. 

When a small issue did come up, it was impossible to even claim it. Their automated system told me my account number was not found, and I couldn't find a way to talk to a human (at least not in the 10 minutes I tried). 

I kinda wondered (but really did not care) whether the seller actually followed through and bought it... Until the home warranty place called me a year in, to sell me a renewal 😂

@Julie Verardi

I had choice home warranty on my prior personal residence, absolutely useless. I had an issue with my fridge they didn’t cover what ever specific part actually broke. Dryer stopped working again they didn’t cover it. I canceled after that.

@Julie Verardi - I use American Home Shield for my primary residence and it is worth it. Last year, I got a brand new refrigerator after 3 repair work , the brand new refrigerator is worth $2500( I bought it for $1000 during Black Friday 2010). Then this year our washer and drier finally stopped working. I also got a brand new model worth $2500 for both( I bought it for $1200 during Black Friday 2010) after the repair company can’t find a parts or can’t do the repair. I am paying $34 per month with $125 call per service . Paid $250 dollars and got $5000 worth of appliances and so far I paid only for 3 years worth of monthly fee( more or less $1200). I came up ahead .

However for my 2 SFH rentals, I don't think it is that useful since I got the property management company taking care of everything. I paid for 5 yr warranty upon purchase of refrigerator from Lowe's for both properties.

Originally posted by @Julie Verardi :

Has anyone used any of those Worry Free or home insurance things. I was checking this one out from Sears https://www.searshomeservices.com/home-warranty/compare-home-warranty-plans

I'm debating if it's worth it since they charge $75 a month and $100 deductible per claim up to 10K per issue with 50K annual cap. 

Home warranties = Garbage.

 

Every now and then people that have a home warranty hit a home run and get a bunch of replaced items for pennies on the dollar...... but for every one of those, there are 100x more that get jerked around and lose $$ in the long run. That's how insurance works.... that's how they make $$.....LOTS of $$.......

How do you think the insurance company stays in business when they paid for 5k worth of appliances when you only paid a couple of months of premiums? Because they are making 10x that on all the other customers

@Julie Verardi in my experience they nickel and dime you with fees, etc. Also, it was my experience that they will attempt to repair, repair again, and re-repair again and again...charging you a fee each time...before they ever actually replace anything.

Originally posted by @Noel Serrano :

@Julie Verardi- I use American Home Shield for my primary residence and it is worth it. Last year, I got a brand new refrigerator after 3 repair work , the brand new refrigerator is worth $2500( I bought it for $1000 during Black Friday 2010). Then this year our washer and drier finally stopped working. I also got a brand new model worth $2500 for both( I bought it for $1200 during Black Friday 2010) after the repair company can’t find a parts or can’t do the repair. I am paying $34 per month with $125 call per service . Paid $250 dollars and got $5000 worth of appliances and so far I paid only for 3 years worth of monthly fee( more or less $1200). I came up ahead .

 You're the exception, not the rule.

I used to have AHS, and they denied EVERYTHING. All I got were bandaid fixes.

Somehow, the technicians had no incentive to request replacements, because the dirty secret is, the more claims that contractors push through, the more AHS penalizes them by giving them fewer and fewer referrals. AHS incentivizes contractors to do the minimum amount of work.

This is the LA area, where contractor competition is fierce. They're fighting for every AHS referral. I assume you live in an area where there is hardly any competition, so contractors are more likely to be generous.

With the money I saved by not paying AHS, I came out ahead. The premium used to be $600 per year. 

Since cancellation, I've spent $1200 on a water heater, $300 on a plumbing issue. The old toilet used to clog sometimes, and I got tired of wasting repeated $75 service charges, so I spent $100 to put in a new toilet, and no more clogs.

Things don't break as much as you might think.

First Ask them to send you a copy of their disclaimer forms . They will send you a book that looks like a New York City phone book of fine print on how they get out of paying for anything And everything 

I had one for a personal home I bought when I moved to AZ many years ago.  The air compressor did not work.  It was well over 100 degrees, it took 3 days to get an appointment.  They had to order a part and return after the weekend.  It was a week with no air conditioning in the hot desert.  The repair lasted less than a week.  Repeat 3 times.  Its hot!  During this time I bought a window air unit in one room for survival and we all slept and lived in the one room.  After the third time the repair failed in less than a week and this had been now going on for well over a month I called a regular HVAC repair company.  It needed a new compressor, it was not fixable.  So I paid for it.  Gave the warranty company the information, but they denied, as I expected.  It was worth me paying just to get the repair done, not miss work waiting for a repairman.  I just wasted a few hundred dollars in the process for their co-pays.

Useless!  Wasted my time, money and quality of life!

Julie Verardi,

I've had American Home Shields for about 10 years now and believe that it's worth it.  I use it for 3 different properties and haven't had any issues with them.  They've replaced furnace, washer, dryer, AC refrigerant and refrigerator.  I say you'd have to know exactly what would and wouldn't be beneficial to you and what will work best for you.

Originally posted by @Tanisha Thompson :

Julie Verardi,

I've had American Home Shields for about 10 years now and believe that it's worth it.  I use it for 3 different properties and haven't had any issues with them.  They've replaced furnace, washer, dryer, AC refrigerant and refrigerator.  I say you'd have to know exactly what would and wouldn't be beneficial to you and what will work best for you.

 How much is your total yearly premium for the 3 properties?

Furnace is ~$2000. Washer dryer $800. Fridge $1000

5 copays $250-350?

In 10 years, have you paid well over $4000 in premiums?

if so, how is it worth it if it costs less paying out of pocket for all the appliances ?

@Mike Franco not sure where you’re coming up with those prices but that’s neither here nor there. The same reason I have full coverage on my vehicles would be the same reason I pay for a home warranty service. Experiences and beliefs differ from one human being to the other. It’s worked for me hence I gave my opinion end of story. My response wasn’t for you or anyone else to criticize, thank you.