Professional Phoenix, AZ on Apr 24, 2012

Do you think home warranties are a good investment? I haven't found a Home Warranty company with good online reviews.

I would like to purchase a home warranty if there was a company I could trust. I don't trust paid advertisements, and the online reviews I have seen look bad. Does anyone have good experience with your home warranty company, or a warning about one to avoid?

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22 Comments

Clay B Chesapeake, VA

Read article at link: http://www.clarkhoward.com/news/clark-howard...
ALSO, FROM my OWN Experience, they only do the bare minumum as far as repairs go. If your AC needs replacing, and a new one costs $500, and a repair will cost $499, they will repair, rather than replace. Better off saving your own money.

on Apr 24, 2012 · Like 0
Homework Remodels ~ Tri-L... Phoenix, AZ

Thanks Clay, This is why I was posing my questions. I have known people in the past who have had success with home warranties, but I don't know the companies. According to your article they are all a rip-off.
I would like to see what others have to say.

on Apr 24, 2012 · Like 0
Plumber26 Thomasville, NC

They are similar to insurance companies, in my humble opinion, in that they can indiscriminately decide what they will and will not "cover". Also, you may or may not get the best quality workmanship due to the likelihood that said home warranty company is going to choose to sub the work to the lowest bidder. I have actually had customers tell me that they turned down having the home warranty contractor perform the required repair/ replacement due to appearance, personality, etc. Your best ...»
results would come from finding reputable, quality tradesmen in your area who are reasonably priced and offer 24hr service. You may actually have to pay for something but, in the end, you pay anyway regardless what you do.

on Apr 24, 2012 · Like 1
Pam D Alexandria, LA

I bought my condo 10 years ago and had a HOW through American Home Shield. At first Iwas happy with them however, I hardly ever had to use them with the exception of a couple of electrical outlets and a gasket change in my kitchen faucet. Then for the last 5 years I had air conditioner problems. I kept the insurance cause I knew tha my central air and heating unit was installed in 1987. The warrenty stated that if they could not repair they would replace it. Weell every year the cost ...»
increased and the deductible was also raised to $80 for each service call. Last year I had to call them for a repair man every 2 moths for freon as I had a bad leak. They sent a different A.C. service company each time and the serviceman advised me that they will never replacemu unit they will bandaide it everytime. Well all those deductibles were adding up. I cancelled the warrenty, purchased a new heat and air units. My utility bills have been considerly lower as thenew unti does not have to run constantly. The air is cleaner and te new unti is so quiet I can't hear it running. An expensive lesson learned. Take what you want from this.

on Apr 24, 2012 · Like 1
Susan L Orlando, FL

I'm using First American Home Warranty Co. and have been very pleased. The villa I purchased had many upgrades, all working, but I didn't want to take a chance if something broke down (sub zero refrigerator drawers, built in wine cooler, large built in ice machine etc.). My first claim was about the double oven, I paid the standard $55 when the repairman came, they couldn't find a part to fix it and I got a whole NEW double oven! Second call was about the central air, again paid $55, now ...»
it works like new, people complain because it's too cold. The company has basic plans that start at $14/mo., then there are upgrades and/or add-ons. I pay $57 a month - a small price to pay for peace of mind... PS, the reason why I chose this company was because the previous tenant used them and they were very happy with their service.

on Apr 25, 2012 · Like 1
Chrysanthevonne G Atlanta, GA

i had american home warranty and when i had a plumbing problem they did not want to fix it so i had to pay a plumber on my own and i cancelled the policy

on Apr 25, 2012 · Like 0
Chrysanthevonne G Atlanta, GA

american home shield was the name

on Apr 25, 2012 · Like 1
Kevin M. Veler, Law Offic... Alpharetta, GA

I have had to represent a few consumers with claims against warranty companies for construction defects. It can be a frustrating and costly battle. Warranties are often used to lull consumers into complacency rather than doing their full due diligence to check out a contractor.

on Apr 25, 2012 · Like 1
Kathie M Hagerstown, MD

I bought a house last July. The realtors suggested AHS also. I took it, and have had plumbers here twice, once they paid to have the toilet removed and snaked, the second time they said it was not covered because it was stopped up in the bathtub also, and I did not have a clean out on the first floor. In my county a clean out is not required, as removing the toilet is considered a clean out. The plumber even tried to get them to pay for clearing the stoppage if I paid for removing the ...»
toilet, but they would not budge, and said our building codes had nothing to do with it. Then I had a furnace problem, had to have the motor replaced and they paid for it, I have a $60.00 deductable, and the bill was over $400.00. All in all the warranty more than paid for its self. Only problem is they didn't have a plumber or anyone in their network to fix the oil furnace. I lucked out with the furnace because they used the company I suggested (I have a maintenance contract with them, and he had already been out to check out the problem, but that warranty with them did not cover the motor). I sure wish I could remember the name of the company we had at our other house because they were really great. As soon as I get time to go through the old papers I'm gonna use them again. I feel it is wise for a woman living alone to have one, but make sure you go over the contract with a fine tooth comb before you purchase it!

on Apr 25, 2012 · Like 1
Kathie M Hagerstown, MD

I forgot to state that my house was built in the 50's, so I wanted to make sure if anything major happened I would not have to pay for it out of my pocket, especially the first year since anything could happen!

on Apr 25, 2012 · Like 1
Linda S Cunningham, TN

have old republic, in tennessee, bought house last june. heat pump when out last winter, they were great. got right on it. fixed quick. dishwasher went out 2 months ago. 4 years old 600.00 plus to replace with same. they offered us 350.00 and they walk away. we paid 75.00 deductiable so they were really giving us 275. we had to install ourselves. no way. said go ahead and fix it. we have been stood up at least 4 or 5 times waiting all day, he doesn't call or show, we call says he got wrong ...»
part. s2 months now it is half fixed waiting for other part. we could have gotten part in 2 day. yep we checked into it. he's suppost to be here friday. we'll see/ they are only as good as the people the work with. ok here>s my update after warranty ran out so did fixed dishwasher. they even had the audacity to bill us for another year which we did not do. would never get a warranty again; everything they paid was less that our payment to them. and all they did was bandaid.

on Apr 25, 2012 · Like 0
Plumber26 Thomasville, NC

exactly, Linda S, and they'll never get quality contractors to work for the low-ball prices they want to pay them. The reason they're in business is for profit and their bet is that people will sign up and not have too many problems. When someone does have a problem, all they'll want to do is "bandage the wound" rather than "cure the disease". And when they run into a situation that they absolutely do not want to pay for, they will flat out refuse to do so for whatever reason they want to ...»
invent. I can't understand how people think that by having them that they aren't "paying out of their pocket". Of coarse you are. Imagine having the plan for, let's say, 6 years w/ no problems @ the hypothetical rate of $15 per month. All the sudden, your dishwasher breaks. Guess what, you just purchased a dishwasher for over one thousand dollars. RIDICULOUS!

on Apr 25, 2012 · Like 2
Pam H

We have American Home Shield, they have repaired our furnace twice. When my dishwasher quit working, they replaced it. When we moved from the city to the country, we had to change our natural gas stove to propane gas. We did the stove top ourselves, but had trouble getting the oven to work correctly, they sent someone right out to take care of it. I would highly recommend them.

on Apr 25, 2012 · Like 1
Kelly H Luling, TX

We also use AHS. Electric heat pump went out 2nd year after we purchased our home. They sent an AC company...I say company..but it was just one man, and he tried to screw us out of all kinds of unneccesary things. Since I grew up in the contruction industry, I was at least somewhat knowledgable about what he was trying to screw us for. AHS replaced the unit, but the contractor was a joke. 2 years later,(this was last August in TX with 110 degree weather) the new unit developed a leak. ...»
They sent another company out, who tried to tell me the evaporator coils were dirty and wasnt covered under the warranty. Called in my own contractor..found the leak in under a minute. Coils were NOT dirty. Due to the contract..had to go with the original repair company. Ended up getting another brand new unit. Again, the repair company tried to charge me all kinds of extra stuff that was unneccesary. I can't really complain about AHS, but the level of workmenship that they hire leaves MUCH to be desired. We probably will drop the contract at the end of this term.

on Apr 26, 2012 · Like 0
Clay B Chesapeake, VA

I bought a condo once, seller included a AHS warranty. After band-aiding the AC twice, a major repair was needed, one where anyone would just replace the unit, they would not, so I asked how much they were going to pay to repair, and talked to the person who would do it, and I did get them to install a brand new unit, where I paid the difference between the repair AHS was going to spend, and the new unit. I just wanted a reliable unit, tired of breakdowns. It's good for AHS in the end, no more service calls on the old unit.

on Apr 26, 2012 · Like 0
Karen E Birmingham, AL

When we bought our last home it came with an American Home Shield Warranty. This was in 2001. Every time they came to the house for a visit it cost $60.00. We had major problems with our upstairs AC cutting off. They would go in the attic and it would be leaking water and that would have shut off the safety valve. So they would clean out the pipe, get the water drained and told me to add Clorox once a month to a pipe that would keep it clean. Our AC cut out on us 6 times in 3 months. That ...»
was a $360 investment and each time they told us that it was just stopping up and to keep it clean. The 7th time, I called my own company, they came out and said we needed a new condenser on that unit. We paid them a good amount (over $1,000) but it fixed the problem and has not failed us again in the past 10 years!!! So I agree with most of the folks, they will only band-aid, so they can take your money, and refuse to acknowledge the real problem.
They are doing this to make money, not lose it. I will never get a warranty again.

on Apr 26, 2012 · Like 3
Rachelle D West Des Moines, IA

We bought our townhome in 2008 and it came with AHS. I thought maybe we would keep it for the year and then let it go. We called them out 5 times for a variety of issues, and yes, it was $60 for the visit, but without the warranty it would have been at least twice just to get someone in the door. We renewed. The second year we had to call them out a number of times, they fixed our clothes dryer twice, replaced our garage door opener, fixed a persistent electrical problem, and fixed a ...»
plumbing problem. So far I am very pleased and very much appreciate the service. I will say that I do believe it all depends on the location, management of the regional office, and the contractors that they use. I am in Iowa and I know several people who have been extremely happy with AHS.

on Apr 26, 2012 · Like 1
Pam D Alexandria, LA

Before I opted out I was paying $588 per year and $80 for each service call whether they fixed the problem or not. Put the money in the bank and pay cash when you have to call someone for service. I did meet a few very nice service people whom I call when I have a problem and I pay them directly. They liked me so much I had to call for a plumber emergency call on a Saturday and they changed me for a regular weekday service call. The only perk to having had AHS.

on Apr 26, 2012 · Like 1
Nyomi R Hillsboro, NH

This has been a very interesting and informative discussion. My husband and I are planning on buying a house within the next year and this was something that we had discussed. Now, thanks to all of you guys, I have a better understanding of what to expect. Thank you for everyone's input!

on Apr 27, 2012 · Like 0
VP J Norcross, GA

AHS came with the purchase of my townhome.I used it 4 times the first year and renewed because i was having so many problems with water heater and plumbing. The truth is it I would never get a warranty again. there are too many problems as has already been mentioned. Save money for rainy day and find a good RELIABLE repair person.

on Apr 27, 2012 · Like 1
Jennifer B Decatur, GA

As a contractor who checked into working for home warranty companies, I know they pay the contractor at such a low rate, you are unlikey to get a good one. Once you have an established business and decent customer base, warranty companies pay too low to be worthwhile.

on Apr 27, 2012 · Like 1
Clay B Chesapeake, VA

Yes, save your money, put the annual fee in your own seperate account for repairs. With the deductable on top of the annual fee, you can get quite a few service calls per year for the same price, and get better repairs to boot. I got a small account a credit union, I direct deposit about $100/week into it. It just accumulates until I need it for repairs, or a TV or something unexpected. Or take the $600 fee, plus several service call deductables, divided by 12, and save that amount. You ...»
will be glad you did. Also, be weary of contractors who charge $80 or so must to come out, provide a quote, and it costs you $80 whether you use them or not to fix it. I'd rather pay by the hour, and pay for what needs to be done. When you use a "Pay by the job" type place, you are almost paying for the worst case scenario everytime.

on Apr 30, 2012 · Like 0

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Do you think home warranties are a good investment? I haven't found a Home Warranty company with good online reviews.

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