Home Warranty--Is it worth the $$$

KevinTodd · 12-07-2011, 10:54 AM

I purchased this when I built my most recent home 6 years ago and have been renewing every year for over $500.

I admit I have used it a few times to my advantage---twice involving A/C compressors.

Service call is $50--parts and labor covered after that on most all systems on home.

Do any of you have these and do you think they are a good expense?

Jrboulder · 12-07-2011, 11:25 AM

It seems like it might be a good way to hedge your bet on an aging rental (not that I would go down that road). I like fixing things around the house too much to get one for my own house though.

Jackson

Rick Lee · Rick Lee's Garage

Mine paid for itself the first month I was in the house. Of course, they jacked my rates for renewal, but I'll pay it until the 15 yr. old a/c goes out and gets replaced.

Porsche-O-Phile · Porsche-O-Phile's Garage

I had 2 years "free" included with the purchase of my place. I've never used it and I've fixed a lot of stuff. That's how I am - I just don't like other people in my home and I don't like them touching my stuff (house, cars, whatever). I always believe I'll do a better job and care more about the finished product than a so-called "professional" who's just looking to slam the thing out and get onto the next job.

YMMV - I'd never pay for one out of pocket but I guess if the boiler decides to explode or the roof leaks or the electrical panel decides to grenade itself I'll take come comfort in that it's one less thing I've got to deal with.

99.999% of foreseeable problems are things I'm going to do myself anyway, but since they threw it in for free with the purchase, what the hey...

EarlyPorsche · 12-07-2011, 12:06 PM

Quote:

Originally Posted by Rick Lee

Mine paid for itself the first month I was in the house. Of course, they jacked my rates for renewal, but I'll pay it until the 15 yr. old a/c goes out and gets replaced.

I have ahs and it's ok. If you're waiting for a major replacement you better make sure they won't just dive you a 1500 coupon toward a new unit.

Groesbeck Hurricane · 12-07-2011, 12:18 PM

I had one with the purchase of my home, never needed it. What was wrong was not covered (home stuck in 70's, not in a good way).

People who bought our old home got one also, all new everything so nothing went wrong. They never used it.

Rick Lee · Rick Lee's Garage

Quote:

Originally Posted by EarlyPorsche

I have ahs and it's ok. If you're waiting for a major replacement you better make sure they won't just dive you a 1500 coupon toward a new unit.

It's not like they're gonna tell me over the phone if I ask a hypothetical. The contract language says they'll fix or replace.

EarlyPorsche · 12-07-2011, 01:44 PM

Quote:

Originally Posted by Rick Lee

It's not like they're gonna tell me over the phone if I ask a hypothetical. The contract language says they'll fix or replace.

No I don't suggest a hypo I suggest examining the language. Mine says repair or replace unless replacement is above a certain price at which point they give an upgrade credit.

Rick Lee · Rick Lee's Garage

There's no dollar amount specified in the contract. I've looked this over pretty thoroughly, though I agree, they'd likely try to get away with a buyout or credit.

FWIW, when I had a leak that was not covered, it took some considerable drywall demolition to determine the cause and that it wasn't covered. And they did send me $250 for the drywall repair, which more than covered it.

red-beard · red-beard's Garage

It depends. In general, I see these as a bad bet, or they would not make money. However, for people that aren't handy, these are a very good.

I replaced both of my A/C units in my House this year, total cost $3000. I replaced a washing machine and had to fix a refrigerator over the past 7 years. At $150 per month, it would have cost me $12,600 for the service. I haven't spent that much.

I think it is good for my neighbors across the street because they are not handy at all. They have a problem, they have 1 number to call.

When I sold my house in San Diego, I bought a year Policy for my buyer, so that if anything went wrong, they were covered. I think they are great for that!

legion · 12-07-2011, 05:56 PM

We insisted on the seller providing one when we bought the house earlier this year. We bought one for the buyer on the house we sold. 1-year term in both cases.

When I've seen them advertised on a house for sale, it is generally a red flag that many of the mechanicals on a house are old.

Would I buy one for myself? Never.

Christien · Christien's Garage

Each time we've renewed our mortgage, we've got a free year of coverage (2 different companies). The first time, we'd done the mortgage through my SIL. Our furnace was being flaky and I happened to mention it to her in passing. She mentioned the coverage thing, and sure enough we had about a month of coverage left. $50 and we were back in business - took the guy 2 or 3 hours to fix it. A few years later, same thing, but this time the blower isn't working. We had about 10 days of coverage left. (mortgage renewal is beginning of March, so both of these occurrences were in February when it was a million below zero out). A team of 2 guys spent 2 days working on our furnace, and by the time they'd finished, they'd replaced the entire guts of the furnace - the only thing original was the chassis and burners. He said we should get another 15 years out of it.

So these programs do have their upside! Of course, we didn't renew after that - the furnace was the only thing covered that I was concerned about going. We need a new a/c compressor, but we'll just pay out of pocket.

KevinTodd · 12-07-2011, 06:26 PM

Thanks for the feedback.

I do a lot myself but when I reach the limit of my talents it is somewhat comforting to be able to summon a pro if needed (and not pay full price)

Still not decided......

john70t · 12-08-2011, 08:15 AM

As part of the property transfer, the title company snuck in an American Home Shield warentee for me to pay, probably to limit their own liability.

I read somewhere A.H.S. recently settled a class action lawsuit.

Erakad · Erakad's Garage

We have one on our rental that we manage from overseas, it has simplified our lives when an appliance or pipe has busted and also has paid for itself in costs and piece of mind. True, we're very selective on our tenants, but.....Piece of mind.......Priceless!

onewhippedpuppy · 12-08-2011, 09:10 AM

I wish I had bought one a few years ago when we bought our house, it already would have paid to replace our 20 year old HVAC units. Instead I've been nursing them along until I'm ready to bite the bullet and spend $$$$$ to replace them.

If I had a new house - no way. Unless I was totally unable to fix anything.

red-beard · red-beard's Garage

Matt,

I replaced both of my condensors for about $3K. The parts are available, even for older R22 units, for $900-1300, depending on the size of the unit. Installation: Find an apartment super who know A/C and willing to moon light. If you want the website, send me a PM.

onewhippedpuppy · 12-08-2011, 09:35 AM

Quote:

Originally Posted by red-beard

Matt,

I replaced both of my condensors for about $3K. The parts are available, even for older R22 units, for $900-1300, depending on the size of the unit. Installation: Find an apartment super who know A/C and willing to moon light. If you want the website, send me a PM.

I actually have access to HVAC wholesale companies through a family business, but I'd be interested in the website as a plan B. I have experience installing and servicing units, I'm just dreading actually doing it. We have two units for our two story house, with the upstairs heater in the attic. That's going to require a lot of beer.......