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House Warranty
Old 08-07-2014, 09:01 PM   #1
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House Warranty

I have a new house of 8 months. I have the standard warranty in case anything goes wrong in the house, and so far, the only concern has been a leaky faucet, which was fixed.

I am curious about whether it is possible to buy a house warranty, which would cover items not covered by my home owners insurance. My new house is on a slab. After reading about a home owner (on another thread) having to pay for the the repair of plumbing under the slab, it has me wondering. It seems that home owners insurance will only cover the repair if the pipes burst or leak suddenly, rather than gradually.

Are there many of you that have extended your warranty, and is it worth it? I look forward to sharing your experiences on this matter.

Rob
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Old 08-08-2014, 09:34 AM   #2
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I've been given a home warranty with the purchase of my last 3 homes......the warranty you get on a new home is far different than the service contract on a used home......new homes have the builder on the line, used homes do not have the former owner responsibile.

So, enjoy your new home warranty, I wouldn't waste a dime on a used home warranty....I've filed 3 or 4 claims.....they always had an excuse or an exclusion.....didn't ever collect a dime!!!!!! Used car service contracts are different. my FIL bought one a couple years ago....paid $850 and collected $1700 over the next two years......I'd buy one on a used car.
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Old 08-08-2014, 10:47 AM   #3
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Are there many of you that have extended your warranty, and is it worth it?
If it were "worth it", the insurance companies would lose money on every policy they sell.
I buy insurance only for potential losses that I cannot handle on my own. Home warranties, vehicle extended warranties, appliance extended warranties, etc are net money losers (unless you know something the insurance company doesn't know about your risk of loss. And trust me, they've already padded the price enough to cover even a majority of those cases).
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Old 08-08-2014, 10:52 AM   #4
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I would not buy a home warranty. I had clients who wrote home warranties and they made a bundle.
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Old 08-08-2014, 11:54 AM   #5
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From what I have heard, the used home warranty is a plus if the seller can offer it to the buyer. It helps to sell the house. But, for the buyer to pay for one is dubious. I hear that it is hard to actually collect on some of these warranties.
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Old 08-08-2014, 12:23 PM   #6
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My story is way too long to write on the iPhone app, but bottom line I'll never buy a home warranty for myself again. If it comes with the house fine, but both of mine have been complete wastes of both time and money. In one case, I spent ~50 hours trying to collect on a claim. Even after they approved the refund they never sent me a dime. They conveniently went out of business a few months after that. I suspect they just changed phone numbers and name and continued their scam.


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Old 08-08-2014, 12:38 PM   #7
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i bought my current (used) home which included a 1 year home warranty purchased by the seller. The day I moved in, the HVAC unit was not pumping cold air into the house during a hot summer day. I called the home warranty dealer who promptly came out and fixed the problem. I was charged a $50 deductible for a $300 repair. As a home buyer, the warranty was great!
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Old 08-08-2014, 12:54 PM   #8
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The purchase of our 8 year old home in 1997 included a home warranty. While on vacation in Dublin, we got a call from the house sitter that the water heater broke. 75 gal water heater was replaced by the warranty company. Soooo, I decided to renew the warranty and did so for a number of years. The company got way more than the cost of the water heater back in my premiums. I finally wised up and self insured .
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Old 08-08-2014, 02:01 PM   #9
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Home warranties are like buying insurance for hair cuts.
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Old 08-08-2014, 09:31 PM   #10
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We bought our house new 14 yrs ago. Although I never thought I would do it, I purchased a home warranty about 18 months ago. We've filed about 3 claims and it has worked out very well. Even with the positive experience, I am still a bit skeptical. The clincher for me was the warranty includes 4 inspections per year (Heating, Cooling, electrical, and appliances). These inspections are worth more than the premium. This warranty does not cover things like the roof, foundation, or voids under the slab as far as I recall. I know from acquaintances our experience is not typical. Most of them had a bad experience after a bit and cancelled the warranty, but they weren't getting the free inspections.
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Old 08-08-2014, 09:51 PM   #11
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...new homes have the builder on the line..
Maybe.

A buyer would be wise to closely check the purchase contact and the law in his state.

In my state, the builder's lobby carries a big stick with the legislature. The normal new home buyer's protection is something like "if it breaks in the first year, the contact says we may fix a few specific types of problems. However, that will happen only if we feel like it or you win an arbitration case in front of a panel where we pick the abritators. After that year is up, you're on your own with no legal recourse."
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Old 08-08-2014, 09:52 PM   #12
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I don't have a home warranty on my current home, built in 2007 & purchased by me, used, in 2013. However, I've had home warranties in the past, though not in the last 7 yrs or so. I've dealt with American Home Shield, and my experience has been yes, it's about the same as any other kind of insurance or warranty. It only seems worth it if you have to use it. In my case, over a 3 or 4 yr period, I've had AHS replace a clothes dryer, a heat pump unit (outside), 2 garbage disposals, and a water heater. The price of an AHS warranty is a bit higher now than when I was using their services, but what hasn't gone up over the years? Anyhow, if I were looking to buy one of these types of warranties, I'd probably look first at AHS. I don't remember having any issues with getting them to hold up their end of the deal. Whether it's a good deal or not will depend on & how much you have to use it. I don't have anything negative to say about this particular company.
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