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What I've learned is that locale really matters. Somebody may be great in my area, because the local contacts happen to be better. But they'd not be good in the next county.
Your best bet might be to call a few local HVAC or appliance repair companies near you, and ask them if they regularly work with home warranty companies and which ones. If there's a home warranty company with good working relationships with several of your local services, that's the one to go with.
Otherwise, ask real estate agents in your area, if any of them have experience with the home warranty companies after the sale. That will be a lot more useful than someone on the other side of the country.
I agree with calling local (good) HVAC, appliance repair, and plumbing companies to see if they work with home warranty companies and which ones. None of the tradespeople I used at my previous home (and mostly still use) worked with warranty companies due to their shady practices. That told me enough to know not to invest any $$ in a home warranty for myself. I did, however, purchase a one-year home warranty for the home I sold, simply due to its age (over 90 years), even though everything was in tiptop condition. In fact, the only fix I had from the home inspection was for the "weird" odor from the brand-new stove. It was the manufacturer's coating inside the oven.
Do? What every homeowner should do. Build and maintain a home maintenance accrual account and plan to pay for repairs yourself. Same as you would to fund repair and/or replacement of a car. A home built in 2006 isn't old, not by a long shot! I'd consider a house built before 1900 old. Unless the house you buy was one you built for yourself, every home you buy is a used product. None exist in a time warp. Nothing on the inside or outside of any house will last forever. Things that get used will wear out and break. It's called life. You go into a house purchase armed with as much information as possible (inspections) but some unexpected repairs will probably come up despite that information. Being able to afford a house is a lot more than the purchase price.
it can take yrs to build up a sizable reserve with home warranty a $500 a yr payment can typically mitigate a big disaster that is why I was considering it
I've had First American Home Warranty for years as my home warranty company. We have been very happy with them. They have repaired and replaced many things in 3 different houses over the years.
Do you think that "home warranty" companies are charitable institutions, or do you believe they are in business to make a profit?
How do you think they earn a profit?
Could it be that they plan to pay out less money than they take in?
Do you have special information that tells you that YOU will be among the minority who get more out of it than they put in, or is it reasonable to expect that you're NOT amongst that minority?
it can take yrs to build up a sizable reserve with home warranty a $500 a yr payment can typically mitigate a big disaster that is why I was considering it
Do you think ALL home warranties are useless ?
So, don't spend every penny you have buying a place. Being house poor isn't fun. Hold back reserves to build on. Then start saving as soon as you can.
I have heard lots of negative reviews about home warranties and their requirements to use lowest bidders for repair claims over the years. Never bought one. I've also heard that such a warranty can come in handy to repair something an inspection couldn't catch that came to light right after the home was purchased. Then cancel it.
Do you think that "home warranty" companies are charitable institutions, or do you believe they are in business to make a profit?
How do you think they earn a profit?
Could it be that they plan to pay out less money than they take in?
Do you have special information that tells you that YOU will be among the minority who get more out of it than they put in, or is it reasonable to expect that you're NOT amongst that minority?
ok so all home warranties are scams ?
health insurance and car insurance should be the same ,but millions in one way or another benefit from them
ofcourse there are individual cases where insurances screw up big time but thats what I'm trying to tease which one of the home warranties are worse than most [if you want a negative spin on it]
So, don't spend every penny you have buying a place. Being house poor isn't fun. Hold back reserves to build on. Then start saving as soon as you can.
I have heard lots of negative reviews about home warranties and their requirements to use lowest bidders for repair claims over the years. Never bought one. I've also heard that such a warranty can come in handy to repair something an inspection couldn't catch that came to light right after the home was purchased. Then cancel it.
even if i have the funds why should i spend out of pocket for every repair ?
isnt that why we get health /car/ boat/umbrella etc insurances
I've had First American Home Warranty for years as my home warranty company. We have been very happy with them. They have repaired and replaced many things in 3 different houses over the years.
Thank you
I'm in CA I will see if they are available locally
it can take yrs to build up a sizable reserve with home warranty a $500 a yr payment can typically mitigate a big disaster that is why I was considering it
Do you think ALL home warranties are useless ?
I don't believe they are useless. I do believe that they don't cover all of the things that you hope they cover. And I believe that it will not be easy to get them to repair things that are supposedly covered and that if they do repair there is a good chance it will be done badly.
If you do not buy up to the absolute limit of what you can afford, an appliance replacement will not destroy your budget. Furnace or AC replacements should be manageable using credit cards in the worst case.
And some things that are expensive are not covered anyway (roof replacement, sewer lines, etc.).
I've had them, but in some cases, they got added in as a part of the "deal" by the realtor.
On one I made out like a bandit, finding fault with as much stuff as I could within the prescribed time. They'll often fight you tooth and nail, or go the passive-aggressive route and ghost you, but it wasn't that bad.
The other I got nearly nothing out of it.
Would I buy one? No. True, it's like any insurance policy - you're betting they lose, they're betting against you. If you feel it's a good risk, have at it.
RM
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