Any Thoughts Home Warranty Plans Good or Bad

[Bob & Sue]

Last night went out to the garage noticed water on floor by the hot water tank the copper cold water inlet pipe had sprung a leak, 2 hours later it was fixed cost $14.7 this would have cost around $400.00 for a plumber to do it. My neighbor has American Home Shield they swear by them I looked them up their B rated by the BBB. They've had a hot water tank, dish washer and freezer replaced in the last several years for a $100.00 deductible. I'm tired of doing my own repairs. Does anyone have any experience with any company good or bad?

 

[Boater420]

A quick google search turned up loads of complaints ranging from bait & switch to shoddy repairs and long waits.
Read for yourself...
http://american-home-shield.pissedconsumer.com/

 

[Jeremygavin]

I flip houses for a living and we offer 1yr home warranties on all of our properties we sell. It is a different company than American home shield. For a buyer it is piece of mind that the house they bought will not cost them much after they buy it for the first year and takes away the fear question of the quality of the remodel so it s a no brainer for us to offer it at $399 per house. Keep in mind that only buys them 1 year of coverage. The reality is that we get reports showing who has used the warranties we have provided and most of the time it is not used. A lot of the time we receive calls form our buyers and they say that the warranty company refused their claim or couldn't come out to fix it for days and days. My opinion is that it is much like any other warranty/insurance, most of the time you are not going to get your money back because the warranty company wouldn't be in business if you did. Most of the time the repair will be refused because of some loophole they come up with or they will drag it out long enough that you will go else were to have the part operating again. IMO most of the cost of repairs on houses for problems like bad water tanks and plumbing leaks are the damage it does to the house and the repairs that you have to do to fix that damage. Usually the repair itself is not that expensive such as the issue you stated above. If the water supply line was the only problem you had then you should be able to get any plumber off the street in there at a full hourly rate of around $90hr plus parts so maybe that was a $150 repair tops.

As a disclaimer I am not a believer in warranties in general as I find it easier to get the work done and spend the rest of my time working to earn money to pay for the repair than fight with the insurance company to come get the repair done. I just don't have a lot patience for that sort of situation. My father in law on the other hand loves warranties and will outlast the warranty company and they will give in to him over time but that is after many many phone calls from him but he is happy to do it.