Submitted by StopOhThenWigleWitIt t3_12557r3 in pittsburgh
Currently using 2-10 Home Warranty. To renew, my annual fee will increase by almost $400 to around $940. Any recommendations for a $500-$600 annual warranty that covers aging appliances (hot water tank, fridge, washer/dryer)?
Agreed. They really don't cover much. Stuff in your home breaks and you gotta pay for it. All the warranty does is add a profit source to the company offering the warranty.
good article that suggests you put the premiums into an emergency fund instead -- https://www.investopedia.com/articles/mortgages-real-estate/11/home-warranty-worth-it.asp
This is the right answer. Drop the home warranty, save your money. Home warranties are notoriously bad value.
I've found all 3rd party warranty services expensive and predatory.
My realtor negotiated one year paid by the seller as part of our home purchase. Our furnace died in the first six months and the home warranty did end up covering about 2k of the cost to replace it. But - I didn't renew when the time came.
My recommendation is to skip the warranty. Go take a walk around Home Depot of Lowes, and see what your money can buy you. There are plenty of options to replace almost any individual appliance for less than $940, and you can probably find something for under $600.
When I bought my house a decade ago, it came with a one-year home warranty paid for by the seller. I have no idea what they paid for it, but my hot water tank started leaking within the period and it still cost over $400 to replace. The warranty company told us which local plumber we could use, so there was no shopping around, and only the tank was covered. They charged for the expansion tank, flue modifications, permitting, haul away, etc. I think you'd be better off putting that money somewhere where you can make a few bucks in interest, maybe an online savings account as they usually pay a bit better and there are a few extra hurdles in obtaining the money which would make you less likely to spend it elsewhere.
>it, but my hot water tank started leaking within the period and it still cost over $400 to replace. The warranty company told us which local plumber we could use, so there was no shopping around, and only the tank was covered. They charged for the expansion tank, flue modifications, permitting, haul away, etc. I think you'd be better off putting that money somewhere where y
One of my friends had similar experience getting a water heater replaced via warranty. You had to use whatever plumber they use. The one they got had alot of 1-3 star reviews, and probably would have been out of business if it wasn't from the warranty company.
Like you said they were charged for everything and anything that was not the tank, items that you would expect to be included in the installation cost. They also charged inflated prices for those items, to the point that using the warranty was almost as expensive as hiring a plumber yourself.
Thank you both. These are the first-hand stories I was hoping to gain from my post. The hot water tank is my biggest concern and likely the most costly appliance I'll need to replace. It is past its lifespan. My current plan does include haul away fees and the cost of the tank. I'll have to check on flue modifications, expansion tanks, etc. Very helpful!
My two experiences with local contractors assigned to past service calls were really positive but I realize those may have been outliers. Each contractor averaged 4/5 stars but as you mentioned, I wasn't able to choose them. It was also a plus to get a service call to my door within 24-48 hrs after repairs were needed. Over the summer, I scheduled some home repairs (not covered by warranties) that took weeks to months to get someone on-site. Most users are right to assume these companies are fraudsters, but in some cases they do benefit the home owners.
Thanks for the replies. I do realize most home warranties aren't worth it, however, I did benefit from having one this past year. Now I'm going into a new year with a few major appliances at the end of their lives. These appliances are covered (up to 3k) under 2-10s plan. If any one of them would fail this year, the warranty would more than pay for itself. At $550, it was worth the risk of not using. At $940, your recommendations of dropping it become more logical.
I don't think anyone is going to want to sell you insurance on a bunch of old appliances that you expect to fail.
Put that money in a special savings account that you can draw on as needed. Every time you withdraw money for an emergency be sure to replenish it with the money you would have had to spend on your deductible. Don't skip a month just because you got lucky for a while.
Talk to your home insurance company, I was pleased to find I could add coverage to my home owners for a MUCH lower price!
for $900'ish a year you can buy some very nice appliances
uglybushes t1_je2htad wrote
I’ve never seen any value in home warranties