Home Warranty Coverage Markets?
- Thread starter 1reason
- Start date
- 2,705
That's because they already have deals with the real estate industry where the policy gets sold at close of escrow, probably at a fraction of the commission that an insurance agent would want. Realtors don't necessarily need an insurance license if what they are selling is a service contract and not insurance.
My wife and I are in the process of buying an older but well-maintained house under contract. The sellers are including $550 for a home warranty. Does anyone have experience with these? It feels like it might not be worth it, as getting the warranty company to effectively repair appliances seems challenging and potentially misleading.
We bought a house in 1982 that came with a one year home warranty. We looked at the policy and thought "what a POS!"
First heat wave of the year, the AC crapped out. They replaced it, $100 deductible. When heating season came, I began smelling raw fuel. Called the warranty company, they couldn't find a problem. After the warranty expired, I found the problem when I poked my finger through the firebox. Because there was a record of my calls while the warranty was in place, they replaced the furnace. Another $100 deductible. This was a large home warranty company that I have only heard negative things about but they surprised me.
First heat wave of the year, the AC crapped out. They replaced it, $100 deductible. When heating season came, I began smelling raw fuel. Called the warranty company, they couldn't find a problem. After the warranty expired, I found the problem when I poked my finger through the firebox. Because there was a record of my calls while the warranty was in place, they replaced the furnace. Another $100 deductible. This was a large home warranty company that I have only heard negative things about but they surprised me.
Elliot Becker
New Member
- 19
Which one was it? Also if I have equipment breakdown coverage on a homeowners policy would that cover the same type of loss, my HVAC going out?
Thank you!
-Special Agent Elliot Becker
I believe it was American Home Shield but what they did 40+ years ago might not be what they do today. As for your HO policy, read it.
- 2,290
Dont Know.
Exactly. This is a method that [In my opinion] realtors use to transfer risk away from themselves when they sell houses.
I personally have heard so many negative stories of home warranty companies, I avoid the entire industry.
- 2,282
My fellow agent had a policy and told me I must include in discussions until his a/c went out 2,3 times one summer and he asked why the repair was a simple weld and recharge instead of a new unit. He was told by Homeshield rep that they would continue to weld the cracks in the refrigerant line each and every time and not replace the line. He was paying the deductible each time. He NEVER mentioned selling their crap again
Elliot Becker
New Member
- 19
Hi all,
Will someone please answer my question?
Thank you!
-Special Agent Elliot Becker
tikibarrister
Guru
- 482
We've had First American since 2011. Paying $800ish a year. Every year it's paid for itself. Home was built in the 1968 and reasonably well-maintained before we bought it. Stuff breaks.
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