Join Early Retirement Today
Thread Tools Search this Thread Display Modes
House Warranty
Old 08-07-2014, 08:01 PM   #1
Recycles dryer sheets
Join Date: Nov 2004
Posts: 145
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 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-08-2014, 08:34 AM   #2
Full time employment: Posting here.
Join Date: Nov 2008
Posts: 728
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 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.

jerome len is offline   Reply With Quote
Old 08-08-2014, 09:47 AM   #3
samclem's Avatar
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
Originally Posted by Rob View Post
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).
samclem is offline   Reply With Quote
Old 08-08-2014, 09:52 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 25,181
I would not buy a home warranty. I had clients who wrote home warranties and they made a bundle.
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 08-08-2014, 10:54 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 10,188
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.
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 08-08-2014, 11:23 AM   #6
Recycles dryer sheets
Join Date: Dec 2013
Posts: 331
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.

Sent from my iPhone using Early Retirement Forum
FI by 2024 is offline   Reply With Quote
Old 08-08-2014, 11:38 AM   #7
Recycles dryer sheets
Life_is_Good's Avatar
Join Date: Mar 2007
Posts: 230
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!
Life_is_Good is offline   Reply With Quote
Old 08-08-2014, 11:54 AM   #8
Full time employment: Posting here.
Join Date: Feb 2012
Posts: 801
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 .
TrvlBug is offline   Reply With Quote
Old 08-08-2014, 01:01 PM   #9
Thinks s/he gets paid by the post
tryan's Avatar
Join Date: Mar 2005
Posts: 2,459
Home warranties are like buying insurance for hair cuts.
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 08-08-2014, 08:31 PM   #10
Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Laurel, MD
Posts: 4,846
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.
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 08-08-2014, 08:51 PM   #11
Thinks s/he gets paid by the post
Htown Harry's Avatar
Join Date: May 2007
Posts: 1,518
Originally Posted by jerome len View Post homes have the builder on the line..

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."
No doubt a continuous prosperity, though spendthrift, is preferable to an economy thriftily moral, though lean. Nevertheless, that prosperity would seem more soundly shored if, by a saving grace, more of us had the grace to save.

Life Magazine editorial, 1956
Htown Harry is offline   Reply With Quote
Old 08-08-2014, 08:52 PM   #12
Thinks s/he gets paid by the post
martyb's Avatar
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
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.

“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Harrassing phone calls over auto warranty virginia Other topics 45 10-18-2008 11:44 PM
Circuit City - Extended Warranty chinaco Other topics 5 07-15-2007 07:29 PM
Health care with a warranty! ladelfina Health and Early Retirement 4 05-17-2007 03:00 PM
New car extended warranty cost/value? rjk514 FIRE and Money 51 04-10-2007 09:45 AM
Costco and the forever warranty Dogcliff Life after FIRE 5 03-26-2004 08:38 AM

» Quick Links

All times are GMT -6. The time now is 09:33 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.