Question about Home Warranties

[IrishSteelhead]

Been in our house for two years now, was built in 2004. A lot of the appliances are nearing the end of their lifespan (HVAC, water heater, etc.) because they are original. My wife wants to get a home warranty in case they hit the skids here.

Is this a good idea or waste of money?

 

[wizards8507]

Never Buy a Home Warranty - Posts - Ask Dave - daveramsey.com

 

[koonja]

Been in our house for two years now, was built in 2004. A lot of the appliances are nearing the end of their lifespan (HVAC, water heater, etc.) because they are original. My wife wants to get a home warranty in case they hit the skids here.

Is this a good idea or waste of money?

I bought a 15 month one when I bought my house. Cost me like $400 for the 15 months. Had an above range microwave go out that I replaced, and after my deductible, they'd only contribute like $70. So check your deductible in comparison to the individual costs of the appliances you are covering. In hindsight, it was a waste because a microwave (low cost) went out. But I have a very expensive dishwasher/fridge/stove, and if one of those went out, that warranty would have saved my life.

 

[BleedBlueGold]

Meh. I could see where they'd come in handy, but it's probably better to just have a savings account dedicated to repair/replacement of appliances/systems/roof.

 

[Monk]

I bought a 15 month one when I bought my house. Cost me like $400 for the 15 months. Had an above range microwave go out that I replaced, and after my deductible, they'd only contribute like $70. So check your deductible in comparison to the individual costs of the appliances you are covering. In hindsight, it was a waste because a microwave (low cost) went out. But I have a very expensive dishwasher/fridge/stove, and if one of those went out, that warranty would have saved my life.

I think that may be a slight exaggeration.

 

[wizards8507]

Seriously, do not by one of these things. It's a terrible financial product. About 15% goes to actual risk aversion while the other 85% goes to profit and commissions.

 

[IrishSteelhead]

The only reason I'm entertaining the idea is our AC is old, and sounds like a lawnmower when running at a comfortable temperature.

 

[wizards8507]

They're not going to cover something that's already defective. That's the whole point of insurance.

 

[IrishSteelhead]

They're not going to cover something that's already defective. That's the whole point of insurance.

How's it even work? Do they come inspect before it takes effect?

 

[koonja]

How's it even work? Do they come inspect before it takes effect?

No, they didn't for me.

 

[Southside Sully]

I am a realtor and they are a waste of money, but give people piece of mind when closing deals. The warranty companies send out their preferred vendors who rig up the appliances or mechanicals to work just for so long, and then they take a crap.. You'd be better buying the extended warranty from the store you get the new stuff from.

 

[wizards8507]

No, they didn't for me.

Classic Koon move. Commit fraud as long as there's no inspection to prove that you're committing fraud. WOOLY!

"Covered items must be properly installed, properly maintained and in good working condition at the time of application in order to qualify for coverage. Pre-existing conditions are not covered under the Home Warranty plan."

I am a realtor and they are a waste of money, but give people piece of mind when closing deals. The warranty companies send out their preferred vendors who rig up the appliances or mechanicals to work just for so long, and then they take a crap.. You'd be better buying the extended warranty from the store you get the new stuff from.

That's also a crap product.

 

[koonja]

Classic Koon move. Commit fraud as long as there's no inspection to prove that you're committing fraud. WOOLY!

"Covered items must be properly installed, properly maintained and in good working condition at the time of application in order to qualify for coverage. Pre-existing conditions are not covered under the Home Warranty plan."


That's also a crap product.

Per what company's policy? I had American Home Warranty, and they never came out.

 

[wizards8507]

Per what company's policy? I had American Home Warranty, and they never came out.

"In most situations we will not repair or replace an item that was broken prior to the start of the home warranty coverage. Some plans that are purchased as part of a real estate transaction will protect you from unknown pre-existing conditions - if at the time the coverage begins the defect is not known or could not have been reasonably observed by looking at or operating the system or appliance."

 

[koonja]

"In most situations we will not repair or replace an item that was broken prior to the start of the home warranty coverage. Some plans that are purchased as part of a real estate transaction will protect you from unknown pre-existing conditions - if at the time the coverage begins the defect is not known or could not have been reasonably observed by looking at or operating the system or appliance."

Again, per what compay's coverage? You're pulling some quotes out of one policy and acting like this is a federal thing. Regardless, you indicate that you know of no issues at time of policy effective date, and anything you don't indicate is covered, per the one I had with AHW.

 

[wizards8507]

Again, per what compay's coverage? You're pulling some quotes out of one policy and acting like this is a federal thing. Regardless, you indicate that you know of no issues at time of policy effective date, and anything you don't indicate is covered, per the one I had with AHW.

Dude, it's standard boilerplate language in every single one of these policies and filing a claim contrary to the agreed upon terms is known as fraud.

 

[koonja]

Dude, it's standard boilerplate language in every single one of these policies and filing a claim contrary to the agreed upon terms is known as fraud.

When did we start filing claims contrary to agreed upon terms? I'm just telling you your required 'visit and inspection' is not accurate.

 

[wizards8507]

When did we start filing claims contrary to agreed upon terms? I'm just telling you your required 'visit and inspection' is not accurate.

What are you talking about? I never claimed they'd visit and inspect. My point is that it would still be fraud even if they don't inspect.

 

[koonja]

What are you talking about? I never claimed they'd visit and inspect. My point is that it would still be fraud even if they don't inspect.

What?

 

[wizards8507]

What?

Try to follow.

1. Steelhead knows that his AC is on the fritz.
2. Steelhead buys a home warranty, which does not cover preexisting conditions.
3. Steelhead files a claim with home warranty company to replace his AC.
4. Steelhead has committed fraud, even if they didn't inspect his AC and can't prove that it was defective at the time the policy was purchased.

 

[IrishSteelhead]

Try to follow.



1. Steelhead knows that his AC is on the fritz.

2. Steelhead buys a home warranty, which does not cover preexisting conditions.

3. Steelhead files a claim with home warranty company to replace his AC.

4. Steelhead has committed fraud, even if they didn't inspect his AC and can't prove that it was defective at the time the policy was purchased.

5. Steelhead buys home warranty
6. Steelhead deletes thread

 

[koonja]

Try to follow.

1. Steelhead knows that his AC is on the fritz.
2. Steelhead buys a home warranty, which does not cover preexisting conditions.
3. Steelhead files a claim with home warranty company to replace his AC.
4. Steelhead has committed fraud, even if they didn't inspect his AC and can't prove that it was defective at the time the policy was purchased.

Gotcha. I wasn't speaking specifically to steelhead's issue with his AC, I'm talking about the policy and how it works in general.

 

[koonja]

5. Steelhead buys home warranty
6. Steelhead deletes thread

LOL reps.

 

[wizards8507]

Gotcha. I wasn't speaking specifically to steelhead's issue with his AC, I'm talking about the policy and how it works in general.

Yes, the way any policy works in general is that you can't buy it with the intent to replace a thing that you already know is broken at the time of purchase.

 

[koonja]

Yes, the way any policy works in general is that you can't buy it with the intent to replace a thing that you already know is broken at the time of purchase.

I'm aware, I misunderstood and thought you were saying a visit/inspection is required. And it's not - it's more of an honor code, at least in my experiences. Now, if you try to replace an appliance that is 15 years old 2 months in, and you indicated 'no prior issue', I bet there's an inspection.

 

[IrishSteelhead]

Question about Home Warranties

I'm aware, I misunderstood and thought you were saying a visit/inspection is required. And it's not - it's more of an honor code, at least in my experiences. Now, if you try to replace an appliance that is 15 years old 2 months in, and you indicated 'no prior issue', I bet there's an inspection.

Isn't the whole point of getting one though is because appliances are old?

Our refrigerator, washer, and dryer are brand new, and still under store warranty.

 

[koonja]

Isn't the whole point of getting one though is because appliances are old?

I think it's more to protect against the unexpected, but I'm no moral police. I'd google 'how to get a new AC from a home warranty' and see what the use cases say. I'd say you have about 5 more minutes before the usual moral officers mount their high horse to tell you you're a horrible person .

 

[BleedBlueGold]

Isn't the whole point of getting one though is because appliances are old?

Our refrigerator, washer, and dryer are brand new, and still under store warranty.

Companies are in business to make a profit. If they allowed people to just buy warranties/insurance whenever they KNEW they were going to need it, they'd be paying out all the time and losing their ass. It's not how they roll.

 

[Southside Sully]

Classic Koon move. Commit fraud as long as there's no inspection to prove that you're committing fraud. WOOLY!

"Covered items must be properly installed, properly maintained and in good working condition at the time of application in order to qualify for coverage. Pre-existing conditions are not covered under the Home Warranty plan."


That's also a crap product.

I know it is, i was being facetious

 

[Rack Em]

Try to follow.

1. Steelhead knows that his AC is on the fritz.
2. Steelhead buys a home warranty, which does not cover preexisting conditions.
3. Steelhead files a claim with home warranty company to replace his AC.
4. Steelhead has committed fraud, even if they didn't inspect his AC and can't prove that it was defective at the time the policy was purchased.

Obama said that's not true.