Is it ever worth it to get a home warranty (you pay for)?

[cintinative]

We had one for the first few years in the old house, and gave it up because of expense. We had it the first year at this house (paid for by seller). We gave it up after that.

I just got a mailer from First American (I think we had them at the old house) $39 a month including furnace, A/C, plumbing, ductwork, appliances.

So here's the deal. The house is 19 years old. All of our appliances, plumbing, furnace, A/C are that old. The washer/dryer we moved here and it is 11 years old. Soooo. . . they will go out. And probably soon.

To me this is sort of a "gamble" like any sort of warranty. Will the pay out exceed the reward? It's hard to call. If any one of our appliances goes out completely it will pay for itself in a year. If everything is "fixable" and not broken completely they will only fix it and I will pay a $55 service fee for each visit.

Thoughts??? Normally I wouldn't consider this but if we did happen to have multiple appliances/major components go out in one year we would be in trouble financially. So I am giving it some thought.

[tinkinpink84]

I am in the same boat as you. i would want a detailed list of what they will cover with the $55 you have to give them to figure out if its worth it. sometime you might assume it covers it but then they have the specifics and fine print!

[kremsh]

I've had a home warranty the past 10 years....my house was built in 1959 and have had issues with heating and air conditioning every year. This last week the exhaust fan motor in the heater conked out so it had to be replaced. I asked the repairman what he would have charged for the service call and motor if I had no warranty. The service call $125...motor around $350....that's $475 total.

I pay $42 per month for my warranty, covers all appliances, heat, air, garage door, plumbing, etc., so $504 per year and $55 per service call.

The way I look at it, I've broken almost even with this one repair and I still have the rest of the year to keep my fingers crossed that nothing else goes wrong.

My opinion.....if your house and all the contents are not brand new, get home warranty!

[cintinative]

Kremsh, Thank you! At our old house which was built in 1942 we had an ancient history Williamson Furnace. It was like a tank. And it never ever died. Seriously. We ended up replacing it only because it was so inefficient but it never went out. It was amazing. I hold up a lot less hope for our 1992 era furnace. They just don't make them like they used to. And our A/C looks (and is) old!

One friend had a problem with her home warranty company in that her heat pump kept failing but they would only repair, not replace it. So eventually all the service call fees added up (plus the cost of the home warranty) to be more than just buying a new home warranty. The difference is that we have many more than one appliance/system that could go offline.

I'm interested to hear other opinions. Any one else have a home warranty?

[Spanelli8706]

We have had a home warranty on this house since we bought it 3 yrs ago. I actually just renewed it Tuesday. Our house was built in the 80's by 21 yr old guy all by himself... so things are old & not always done to code. We have used the warranty every year and it has paid for itself in the savings it provides, every year. I will probably continue to renew the warranty as long as we live here...or until everything is replaced. Lol. It has worked out for us.

[Spanelli8706]

Oh and a few examples on things we have used the warranty for... electrical stuff (indoors & outside- breaker, outlets, etc), Well/Pump, broken light fixture thing, heating (multiple times, we have 2 units), A/C (mulitple times, we have 2 units),water softener, duct work, attic fan, sewage back up (they flushed the lines & fixed a busted pipe). I am sure there are a few other things I am forgetting. Good luck on your decision.

[AnnoyinglyDomestic]

ABSOLUTELY! We live in a 1928 home and have only had to use it a couple of times, but it was well worth it. This past summer, we had to replace our whole A/C system. One of the quotes we heard was in the $10,000 range! What did we pay? $60. No joke. I happily wrote that check. Gleefully licked the envelope. Pranced to the mailbox. I'm still squirming with glee.

I'd never even considered having a home warranty until the folks we purchased from threw in the warranty as part of the deal. Old house or new, now I wouldn't be without a home warranty. What's really nice to me is that they take all of the bargaining and price shopping out of it - which is great when you have an emergency (like no A/C in 105 degree weather). Don't get me wrong, I love my bargain hunting...but not under THAT much pressure (a husband, myself, two kids and two long haired cats). ;) Anyway, it's nice to just submit a service request online or on the phone and have someone sent out within 24 hours and know that you're only going to have to pay $60 per project. When we move and rent this out in a few months, it'll bring peace of mind in another way.

[rachellepeters]

Definitely. I typicallly get them when I am sure something will go out in the next 6-10 months. I only do 1 year at a time...not on a continuous monthly payment. Had a few ACs/Furnaces replaced in my rentals over the years. THey are a good thing!

[cintinative]

Can you all tell me the names of your warranty companies if you can recommend them? I just did some research on this company that mailed me and they are rated very very poorly.

[Spanelli8706]

We have American Home Shield. We pay it at once, $572 for the year... but we also added a few things to be covered that weren't covered on their basic package. Service visits are $60. We have had great customer service.