Home Warranties - Good or Bad?

[oldskool]

Just wanting to check if others have had positive or negative experiences.  For many years I've had a home warranty with a particular company (don't know if allowed to indicate the company?) with fair results.  For routine appliance repairs I've had better results in recent years. Some years back - my wall ovens had a problem in the electronic controls causing frequent error codes that could not be resolved and eventually  (3.5 months) the ovens were replaced by the warranty company at no cost to me, with much persistence on my part.  This summer the AC has gone out 3 times and remains broken.  Found out the 1st contractor botched the system by putting the wrong motor in the condenser outside, which failed two weeks later; 2nd motor installed failed 24 hours later; warranty company didn't like the recommendation of replacing the unit; sent 2nd contractor who also said the unit needed to be replaced but indicated that the wrong motor had caused damage to the compressor.  Now, 4 weeks later, still not repaired, 2nd contractor now states uncovered charge of $425 for ductwork modification that I would be responsible for to install new AC?  When I asked for time and materials that comprised the cost, calculations were unknown and I was advised that it's a flat fee.  I asked if it was 4 inches or 4 feet of duct work modification, but was told it didn't matter.  Now the warranty company has escalated the matter to the "investigative" side of the operation, but I've not heard further.  We've been using multiple window units to cool the house temporarily, but how long should this take?  After this is resolved, I will most likely end the home warranty.  They seem to have contractors of poor quality and questionable competency.  One of the service guys talked to me, after I'd explained what I was going thru, he stated that this would probably be his last year doing work for the same company because he gets sent to repair all the other incompetent contractors work.   Because his rate is higher, they don't sent him on the calls first, but someone they can get cheaper. 

 

Any recommendations. 

 

Has anyone else had similar or experiences of good with home warranty companies?

 

Thanks

John

 

[arbilab]

I got a new DW when the old one under seller's warranty rusted through the tub. Took 3 different guys and time off work letting them in but at least I didn't get shuffled. I let the warranty lapse. It only covered basics. To extend it to really expensive things like AC was.... really expensive.

My brother carried home warranty and was very satisfied with it. Prompt competent service and he used it regularly. Sorry, don't have the name for you.

 

[combo52]

Home Warranties

Almost always BAD. It is amazing that people would complain about the government making your health care decisions and yet many people pay someone so they can make your appliance decisions.

 

[moparwash]

Yes!

They are a good idea...in the 5 years we have owned the house, it covered a new water heater, furnace fan and a repair to the garage door opener..it more than paid for itself so far!

 

[travis]

I have a home warranty for another six months.  I got it because the central a/c is 19 years old and wouldn't start.  I called, they sent a technician out who changed a capacitor.  It's been running fine unfortunately.  I wanted a new a/c unit!

 

There could still be an issue with the boiler.  I didn't bother to turn in the repair on the washer.  I fixed that myself.

 

I think you'd have to start bugging them.  They obviously don't want to pay for a major repair.  It's just another insurance policy, but they never want to cut you a check.

 

[moparwash]

Yes!

They are a good idea...in the 5 years we have owned the house, it covered a new water heater, furnace fan and a repair to the garage door opener..it more than paid for itself so far!

 

[wayupnorth]

I had one

ERA real estate had a "limited" one year warranty on a place I bought several years ago. I found structural damage needing immediate repair after the inspector said it was perfect, and I got the "too bad, so sad, thats not covered" story. Wished I had a real Mike Holmes Inspection.

 

[tolivac]

I have gotten "offers" in the mail from these outfits-funny-the offers I get cover all appliances EXCEPT---HVAC,Washer,water heater.and the coverage would cost $500 per year-for that money will weild the screwdriver myself or pay for a service call myself for something I can't do.and that $500 just might even pay for a machine that died.That amount could get me SEVERAL older washers from the swap shop for instance.

 

[whirlcool]

Just take the money you would pay in insurance premiums and put it in a separate bank account. By the time something breaks down you'll have the money to buy a new one.

And from what I have heard the third party auto warranty businesses are a real scam.

 

[combo52]

Home Owner Warranties and Other Ripoffs

Allen, Amen, save your money, it is always stupid to buy insurance on products that you can afford to fix or replace, and if you cannot afford the repairs you should not own the item.....No one ever got ahead in life buying service contracts.

 

[oldskool]

Thanks

Thanks to all for the input/perspectives/advice.  It's all appreciated.

 

Their latest offer is to pay a cash settlement for replacement value, of course at their deeply discounted rate.  $1797 for a complete 5 ton system.  Yeah right.  Not realistic, but this may be the best path for me, then terminate the service completely.  Their discounted rate cannot be beat by several contractors I've called.  Additionally, while replacing the unit, I would be better off in the long run to buy up from the offered 13 SEER to an 18 SEER system.  The 18 SEER AC system will require also upgrading the furnace to one with a variable speed blower to accomplish the higher efficiency.   Anyone with knowledge about the "communicating" 2 stage furnaces and AC systems that can shed some light, would also be appreciated.

 

And I agree, just setting aside the money for future repairs/replacements would be better all the way around. 

 

John

 

[tolivac]

$1797 WOULD NOT pay for a replacement HVAC system here.So you end up paying yourself-or see if your home insurance plan would cover the new system.

 

[mattl]

I would get several estimates from reliable companies and present them to the insurance companies. tell them that is what it will take to make this right. Then, let the battle begin.

We were quoting out a system a month or so ago, basic 2stage furnace 18 seer air, if I recall 3 ton system. Material cost was $1900 alone without labor and modifications . This was just a generic No name system.

Get what you can out of the insurance company and don't look back.

 

[tolivac]

Was able to get my home insurer to pay for a new roof and trim for my place-they were good about it-worked with me and the contractor-was elegible for more than what I thought-so the same with HVAC equipment-try to see if the insurer can help!I figure that they would rather "insure" a new system rather than one who is 30yrs old!Now if I get any storm or other damage-will call the insurance Co immediately!

 

[mark_wpduet]

This is something I considered

But after researching I decided against it. The person who said to take the money you would pay them and put it in a separate bank account was correct....

However - It is a gamble. That may not be enough. You could come out WAY ahead OR nothing will go wrong. What if 8 things go wrong that year. The 400 per year you would pay them may be far less than the 2000 in repairs had you been covered with them.

Will they cover the repair or is it not covered?

I do know my friend Mary has one and she got a brand new HVAC unit out of them. Others I've heard haven't been able to; that they will take the rusty thing and duct tape it and as long as it's working to keep from having to replace it.

 

[whirlcool]

It's really the luck of the draw.
When calculating the cost of insurance you have to factor in how many months it would take you to save the amount needed to replace your oldest appliance.