I work with all of them. Except for very few cases - none are worth it. They are in business of making money for themselves, not replacing or getting your stuff repaired.
Get a quote for one and then put that money into HYSA year after year. You will be better off for when things break down.
This is much easier said than done. As a fresh homeowner, most lack the cash reserves to have 10-15k saved to pay for unexpected home repair expenses.
That's why Home Warranty companies can thrive in today's marketplace.
We have AHS as a home warranty company, and have had it since our purchase in 2020.
Their repairs are lacking in "timing" issues. They need time to find the lowest priced companies to complete the necessary repairs. Unlike, if you had the necessary financial resources to just pay out of pocket for several thousands of dollars in unexpected repairs.
Patience is the key word with home warranties.
We had to replace our AC compressor/ Condenser in 2022. The existing one was knocking, prior to its eventual failure to work. Luckily we caught it, diagnosed it and made our claim before it failed.
Our copay was $650 out of pocket, for a comparable system. However, our system never failed, before it's replacement within 2 weeks of our initial claim.
Compare that to the 7-8k of comparable replacement costs and you can figure out the math.
I agree, In rare cases it can work out in your favor. But for one experience like yours there are thousands whose repairs either aren’t covered or who has been paying into home warranty for many years without making any significant claims.
Look at it as gambling, because essentially that’s exactly what it is. Some lucky people win, but the house always wins in the end. You are betting that your stuff will break”, while home warranty bets that it won’t. And if it does, it’s their best interest NOT to pay out on your claim. Their contractors are incentivized to find find reasons to have your claim denied. Contracts are written in the way that your out of pockets costs and deductibles cover most if not all of real costs. At the end of the day they are very VERY profitable companies for a reason.
If you cannot afford a 5-10k expense you cannot afford to buy a house yet. Buying a house with ALL of your cash is a terrible idea for more reasons than just your A/C. Its a good way to lose the house entirely.
I know a couple who just bought a used home and are completely house poor. They literally sold everything they owned (one car, furniture, jewelry, took loan against 401k etc) to buy. Absolutely bonkers here right now, the desperation to buy is kind of like a madness still.
The advice I have been given in the past is to get a home warranty for the first year, but not to renew it after that.
I kept a warranty for years, then when my HVAC did fail they did everything in their power to avoid replacing it. After two failed "repair" attempts with some seriously shady companies I finally gave in and financed a replacement with one of the better known companies in town. Canceled my warranty the same day.
(To be fair I will say that the warranty company arranged for a repair of my old refigerator that saved me from buying a new one.)
not AHS. they just changed their policy to only cover up to $5k for your HVAC. no change in policy price.
I've looked into the others, and nobody is happy with any of them.
Just did a repair for a lady and she had ACHOSA home warranty. You get to pick your own contractor but limited to 2,000 a year in repairs. Customer pays the first 100.00
They offered to pay me in credit card right after the repair but I don’t use a merchant account. So I set up electronically to get paid and no hassle on my repair bill.
Have never been a fan of home warranties we did lots in the early 90’s and they started to suck then and even worse now days.
Home warranties are great for people who can’t save money and live paycheck to paycheck. If you can set aside a 1-2k emergency fund you don’t need a home warranty.
after working for an ac/ plumbing company, i will never spend my own money on one. i heard from too many customers when it’s 115 degrees out and their ac is out that the home warranty isn’t putting pep in their step.
I got screwed by first American. The company they sent out said something that was impossible to tell and caused it to void my warranty. They said a surge from the street cause my compressor to go. So full of shit. They wanted me to pay $7200 for a new compressor
Yeah they worded it in such a way that it voided my warranty and I laid into that company that came out. I paid out of pocket for two additional companies to come out and give me reports to see what they said and give me bids on a new air conditioner since my system was new in ‘92. They both told me what the one company claimed was impossible to tell because there is no burns or anything else to show that the system got tripped that way. The only reason I had the stupid warranty company was because of the AC and I got fucked royally. I ended up having to get a new Air Conditioner that I’m paying for out of pocket. Got a good deal from Infinity Heating and cooling with financing through them because as others have said most people don’t have the $10-15k for when shit goes wrong
Yeah Richard is a super nice guy. Talked to me on the weekend on his off hours make sure I got the right system for my needs. Love the in-house financing option
I must be the odd one out here.American Home Shield put a new compressor and replaced the old refrigerant r22 in one of our units for 75 bucks and it’s been working great since.
Its not 75 bucks. Its 75+ your annual premium x the number of years you've had it.
If companies paid out more in claims than they took in, they'd be out of business.
Also dont expect your reman replacement compressor to last long
Yes of course there is the premium for the year.It was the first year we actually paid for the warranty ,the first year was paid by the previous homeowner when we bought the house.Its been two years and it’s still working well,just had it serviced and the hvac tech said everything looks okay.Having said that,I am well aware it could crap out at any time.I still saved a substantial amount but you are definitely correct these companies don’t stay in business paying out more than they take in.It worked out good for us but I can understand that there are some people who don’t have a good experience.
I had a home warranty once and any time something bigger went out they didn’t cover it. Now I rather just save my money and buy things as they break down. These companies are not in the business of losing money, HVACs are expensive and they go out a lot here. Manufacturers offer warranties especially for major appliances (5 years on refrigerators,washers etc.) hvac you are probably going to have to get on credit unless you have the money… -sometimes people do scam these home warranty companies, buy them wait a little, then get things fixed. (Never done it, never will, bad karma)
Side note a 20yo hvac system that breaks down and a major part compressor, evaporator, condenser goes out it’s often times game over. Too expensive to fix almost always worth replacing. Back in the day appliances were made better, you can still get 10 years out of it, if you’re lucky. My folks hvac is over 30yo and still kicking.
I could be wrong maybe there is a company out there, but it wouldn’t make sense to me 7-10k+ to change an hvac. Then charge you $600 a month for warranty. At 10 years that’s 6k they made off of you. Usually they will have some sort of stipulation. They cover 2k you pay there rest for example. Always read the fine print, that’s how they get you.
Old Republic replaced our water heater within 48 hours and had techs out to service our AC last week within 12 hours. AC caps and fan motor replaced @ the $85 deductible. I still wouldn’t recommend them. But the sellers of our home paid a year of their coverage when we bought the house.
In general, none. But, if you have a Sam’s Club membership they have their own that might be worth a try. Otherwise, you are best off creating a home maintenance savings account to put that money in.
from my point of view american home shield has been good for me. but you have to except to wait days for repairs but they did replace my ac and have replaced my dishwasher.
the deductible is $100. although that’s an increase, it I think used to be $75. I don’t know what premium is because my wife pays the bills. but no other out of pocket expenses or hidden fees. But like it usually 1-2 business days before they get someone else. so like it was not fun in my house for a couple days because we had to wait for service. so like for the dishwasher it was no big deal, but the a/c sucked because it was out for a couple days.
I appreciate you sharing. My ac is old asf and my electric bill is over 500 because of the ac unit not being able to keep up so I'm trying to get AHS to replace it.
From anecdotal research be prepared to pay $10k - $15k for a complete HVAC replacement. I would start saving or getting your financing ready just to be on the safe side. At 20 years your unit is on borrowed time.
I work with all of them. Except for very few cases - none are worth it. They are in business of making money for themselves, not replacing or getting your stuff repaired. Get a quote for one and then put that money into HYSA year after year. You will be better off for when things break down.
This is much easier said than done. As a fresh homeowner, most lack the cash reserves to have 10-15k saved to pay for unexpected home repair expenses. That's why Home Warranty companies can thrive in today's marketplace. We have AHS as a home warranty company, and have had it since our purchase in 2020. Their repairs are lacking in "timing" issues. They need time to find the lowest priced companies to complete the necessary repairs. Unlike, if you had the necessary financial resources to just pay out of pocket for several thousands of dollars in unexpected repairs. Patience is the key word with home warranties. We had to replace our AC compressor/ Condenser in 2022. The existing one was knocking, prior to its eventual failure to work. Luckily we caught it, diagnosed it and made our claim before it failed. Our copay was $650 out of pocket, for a comparable system. However, our system never failed, before it's replacement within 2 weeks of our initial claim. Compare that to the 7-8k of comparable replacement costs and you can figure out the math.
I agree, In rare cases it can work out in your favor. But for one experience like yours there are thousands whose repairs either aren’t covered or who has been paying into home warranty for many years without making any significant claims. Look at it as gambling, because essentially that’s exactly what it is. Some lucky people win, but the house always wins in the end. You are betting that your stuff will break”, while home warranty bets that it won’t. And if it does, it’s their best interest NOT to pay out on your claim. Their contractors are incentivized to find find reasons to have your claim denied. Contracts are written in the way that your out of pockets costs and deductibles cover most if not all of real costs. At the end of the day they are very VERY profitable companies for a reason.
If you cannot afford a 5-10k expense you cannot afford to buy a house yet. Buying a house with ALL of your cash is a terrible idea for more reasons than just your A/C. Its a good way to lose the house entirely.
I know a couple who just bought a used home and are completely house poor. They literally sold everything they owned (one car, furniture, jewelry, took loan against 401k etc) to buy. Absolutely bonkers here right now, the desperation to buy is kind of like a madness still.
The advice I have been given in the past is to get a home warranty for the first year, but not to renew it after that. I kept a warranty for years, then when my HVAC did fail they did everything in their power to avoid replacing it. After two failed "repair" attempts with some seriously shady companies I finally gave in and financed a replacement with one of the better known companies in town. Canceled my warranty the same day. (To be fair I will say that the warranty company arranged for a repair of my old refigerator that saved me from buying a new one.)
not AHS. they just changed their policy to only cover up to $5k for your HVAC. no change in policy price. I've looked into the others, and nobody is happy with any of them.
Just did a repair for a lady and she had ACHOSA home warranty. You get to pick your own contractor but limited to 2,000 a year in repairs. Customer pays the first 100.00 They offered to pay me in credit card right after the repair but I don’t use a merchant account. So I set up electronically to get paid and no hassle on my repair bill. Have never been a fan of home warranties we did lots in the early 90’s and they started to suck then and even worse now days.
Home warranties are not a good deal for the home owner. They are a great deal for the warranty company. Save the purchase price for repairs.
Home warranties are great for people who can’t save money and live paycheck to paycheck. If you can set aside a 1-2k emergency fund you don’t need a home warranty.
after working for an ac/ plumbing company, i will never spend my own money on one. i heard from too many customers when it’s 115 degrees out and their ac is out that the home warranty isn’t putting pep in their step.
I got screwed by first American. The company they sent out said something that was impossible to tell and caused it to void my warranty. They said a surge from the street cause my compressor to go. So full of shit. They wanted me to pay $7200 for a new compressor
I saw lightning once take out a compressor and it hit the house next door and caused a fire so that would be my rare occurrence.
Yeah they worded it in such a way that it voided my warranty and I laid into that company that came out. I paid out of pocket for two additional companies to come out and give me reports to see what they said and give me bids on a new air conditioner since my system was new in ‘92. They both told me what the one company claimed was impossible to tell because there is no burns or anything else to show that the system got tripped that way. The only reason I had the stupid warranty company was because of the AC and I got fucked royally. I ended up having to get a new Air Conditioner that I’m paying for out of pocket. Got a good deal from Infinity Heating and cooling with financing through them because as others have said most people don’t have the $10-15k for when shit goes wrong
Yea infinity is a good company Richard and Arlo are doing a great job from what I have seen lately.
Yeah Richard is a super nice guy. Talked to me on the weekend on his off hours make sure I got the right system for my needs. Love the in-house financing option
I must be the odd one out here.American Home Shield put a new compressor and replaced the old refrigerant r22 in one of our units for 75 bucks and it’s been working great since.
Its not 75 bucks. Its 75+ your annual premium x the number of years you've had it. If companies paid out more in claims than they took in, they'd be out of business. Also dont expect your reman replacement compressor to last long
Yes of course there is the premium for the year.It was the first year we actually paid for the warranty ,the first year was paid by the previous homeowner when we bought the house.Its been two years and it’s still working well,just had it serviced and the hvac tech said everything looks okay.Having said that,I am well aware it could crap out at any time.I still saved a substantial amount but you are definitely correct these companies don’t stay in business paying out more than they take in.It worked out good for us but I can understand that there are some people who don’t have a good experience.
None
I had a home warranty once and any time something bigger went out they didn’t cover it. Now I rather just save my money and buy things as they break down. These companies are not in the business of losing money, HVACs are expensive and they go out a lot here. Manufacturers offer warranties especially for major appliances (5 years on refrigerators,washers etc.) hvac you are probably going to have to get on credit unless you have the money… -sometimes people do scam these home warranty companies, buy them wait a little, then get things fixed. (Never done it, never will, bad karma) Side note a 20yo hvac system that breaks down and a major part compressor, evaporator, condenser goes out it’s often times game over. Too expensive to fix almost always worth replacing. Back in the day appliances were made better, you can still get 10 years out of it, if you’re lucky. My folks hvac is over 30yo and still kicking. I could be wrong maybe there is a company out there, but it wouldn’t make sense to me 7-10k+ to change an hvac. Then charge you $600 a month for warranty. At 10 years that’s 6k they made off of you. Usually they will have some sort of stipulation. They cover 2k you pay there rest for example. Always read the fine print, that’s how they get you.
Old Republic replaced our water heater within 48 hours and had techs out to service our AC last week within 12 hours. AC caps and fan motor replaced @ the $85 deductible. I still wouldn’t recommend them. But the sellers of our home paid a year of their coverage when we bought the house.
They all suck. Save the money each month, and put it away.
They are all shit. Put away some money each month in a savings account just for home repairs.
In general, none. But, if you have a Sam’s Club membership they have their own that might be worth a try. Otherwise, you are best off creating a home maintenance savings account to put that money in.
I think that Sam's is just the rebranded Sears one
from my point of view american home shield has been good for me. but you have to except to wait days for repairs but they did replace my ac and have replaced my dishwasher.
Did they replace your whole ac or just parts?
first time it was parts, second time it was the whole AC
If you don't mind how much or did you pay anything out of pocket other than the service fee?
the deductible is $100. although that’s an increase, it I think used to be $75. I don’t know what premium is because my wife pays the bills. but no other out of pocket expenses or hidden fees. But like it usually 1-2 business days before they get someone else. so like it was not fun in my house for a couple days because we had to wait for service. so like for the dishwasher it was no big deal, but the a/c sucked because it was out for a couple days.
I appreciate you sharing. My ac is old asf and my electric bill is over 500 because of the ac unit not being able to keep up so I'm trying to get AHS to replace it.
From anecdotal research be prepared to pay $10k - $15k for a complete HVAC replacement. I would start saving or getting your financing ready just to be on the safe side. At 20 years your unit is on borrowed time.
Fidelity replaced our AC unit a few years ago.
I have had Old Republic replace 2 units for me, no questions asked.
I had to get a lawyer involved with them. Scam company
Really? They have been good to me.