Home warranty - good or bad?

[ExFlyBoy5]

DW is in the rental management business and has quite a bit of experience with these "warranties"...and they seem to be a pain in the arse when you need something addressed. Overall, I don't think they are a very good deal and would steer away from them.

 

[flintnational]

For the average consumer, the premium exceeds the value of the repairs they receive. That is the way insurance and insurance like products work. IOW, they pay out less in repairs than they receive in premiums. A large portion of the premium dollar goes to profit and overhead.

 

[Sunset]

A relative had one, when something broke, the person would come out, charge about $60 trip fee, then couldn't fix the thing, so a few days later another person would come out and again charge a $60 trip fee.
Even when they came out, looked and said a new one was needed, they charged a $60 trip fee, Then when the new one came, yep, another $60 trip fee.

After a few years he cancelled it.

 

[Big_Hitter]

A relative had one, when something broke, the person would come out, charge about $60 trip fee, then couldn't fix the thing, so a few days later another person would come out and again charge a $60 trip fee.
Even when they came out, looked and said a new one was needed, they charged a $60 trip fee, Then when the new one came, yep, another $60 trip fee.

After a few years he cancelled it.

I only have to pay the $60 once, per issue, regardless of how many repair folks come to the house

 

[red714]

Thanks to all of you who provided some input on my question about Home Warranty plans. I do appreciate it.

 

[Gringoretirado]

Had one years ago included on a home purchase. Had a plumping problem and the co-pay for their plumber was $75. After 6 visits and him unable to properly troubleshoot the problem, I gave up on them and hire my own plumber who charged less than the co-pay at $70 and was able to properly diagnose the issue.

 

[Helena]

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Like my parents before me, I bought a Sears warranty on all my Sears appliances. I was happy with it until Sears stopped sending out repairmen in a timely manner. The final straw was when I was told I had to wait almost a week for a repairman. I canceled my annual warranty policy and stopped buying anything from Sears. Sears didn't die a natural death - it committed suicide.

.

 

[misanman]

Last week we visited DS and family. Their water heater went out on Tuesday. They wanted to make use of a home warranty that had been provided by the realtor. Long story short, fix was completed (thermocouple) late Saturday night after hours on the phone with the insurance carrier. I found out I don't like cold showers.

 

[BigMoneyJim]

Just reposting here my answer to a similar question elsewhere...

No. Home warranties are scams to make buyers more comfortable about proceeding with the sale. They don't want to talk to you or give you anything until it's time to renew/pay up.

I had an electrical fault in the main panel. The guy they sent out diagnosed it as corrosion in the main bus. Home warranty said "no" to fixing it. WTF?

Lived with the occasional brief half-home blackout. Eventually went out completely. Turns out the problem wasn't in the panel but in the outside box with the meter. The lug came off completely. So both the company and the guy they sent out sucked.

When the guy I called and paid myself (after reading reviews and recommendations) came, I told him to go ahead and replace the inside panel, too. He insisted it wasn't necessary and saved me at least $1500.