Home Warranty Policy

Has anyone bought/used a home warranty that will pay for repairs and replacement of major systems like AC, plumbing, appliances?

Worth the investment or a waste of time?

 

Bought them with both houses theat we have bought. Needed them both times and they worked out well. It just seems like a fairly cheap way to cover stuff that you couldn't have known about going in.

I vote yes,

 

It can come in handy, but be prepared to pay extra if your central air or heating goes out. If there is a way to upgrade so you can be protected in the event you have an ancient AC unit then definitely do it.

 

We had one with our old house, which was used (we are the first owners of our current house). The seller usually should pay for this, and in this sense, they're certainly worth the money. They're probably worth it anyway, at least for the first year or two. After that, you know if stuff's going to last or not.

 

You need to consider the condition of the house when you buy it. The home inspector (who is working for you and is not the enemy) should give you a fairly accurate appraisal of the condition of the appliances, etc.
Then you have to decide if it's worth it. If the AC, heating or water heater goes out, then it's worth it. Try to find out how old those things are.
In all 3 of the properties I have purchased over the past 20 years, the home warranty was included in the sale price (paid for by the seller) for one year. I have called twice for service. The first time, in House No. 2, the garbage disposal went out. The fix-it guy found a dime, accidentally dropped in there somehow. That was considered our fault and not covered, so I had to pay for the entire service call, about $75. The deductible, if I remember right, was $35, so I was burned for another $40.
In House No. 3, the turntable in the microwave stopped working. It was covered. I tried to bag a new microwave out of it, but he wouldn't go for it. He did fix the turntable for the deductible. The icemaker in the freezer was not covered.
I re-upped the home warranty twice more in House No. 3, but let it lapse this year. They called and begged me to stay on. I told them I thought they were a sketchy company -- you're not awful, but not the greatest, either. When she asked what I meant, I pointed out that my main water line needs to be replaced (I have had it patched once) but it is not covered because it is not inside the foundation of the house. It's actually about 2 feet away. I told her that was bullshit, it is part of the house and should be covered. But the stipulation if being inside the foundation is absolute and it's not covered.
Bottom line, in my current house (built in 1979), I have spent more than $1,200 for the home warranty insurance -- $400-plus for three years -- and used it once for a minor espense that probably would have cost me about $100 without the warranty.