Home warranty

[Sho]

I had previously discussed Home warranty, and it seemed like they were not very cost effective , but recently talked to few Friends after our appliances broke down , and they had very positive experience

Any Bogleheads using Home warranty ? If so , can you please share your experiences ?

[Dufus]

Our experience wasn't great. We spent more on the warranty than we benefitted from. The HVAC provider used by the warranty company in our area was pretty shady and has very poor reviews. A friend in another area had a positive experience, so I guess it varies by where you are.

[adamthesmythe]

I don't gamble in Vegas

I don't bet the sports book

(the house always wins)

I skip the home warranty

I buy avocados at the store

I omit the car warranty

In the end I'm ahead

(Burmashave)

[runner3081]

We did for two years, had a bunch of stuff done, but it was about a wash between what it would have cost us and what we paid in annual dues and "service fees".

It was a pain dealing with them and they send the lowest cost providers.

[PoorPlumber]

Nope. Don't mess with them.

[CAsage]

We bought a mid-60's house last summer, knowing it needed $$ and upgrades (basically, benign neglect and time). The seller paid for a "premium" home warranty, which frankly we doubted we'd ever use.
However.... now we found a real Issue - gas leak in the kitchen, unknown whether it's the range or pipes or ??? Total nightmare dealing with home warranty company American First something .... They have a robotic voice system, wherein you randomly try key words so they can guess what your issue is, then they assign the wrong fixit person, who doesn't do "that", then they cancel and reschedule or string it out. No customer service , so who knows how long this will take. In the meantime... the Gas Co has shut it off - no heat, no hot water, can't run dishwasher or dryer or take a shower. I would never subject myself to this voluntarily - but we got 9 more months of alleged coverage. There are code issues (no shut off valve for gas range, sigh) and we may get a replacement out of it. Eventually. Hmmm.
In general, it's wise to self insure for anything you can reasonably cover, as you will be ahead in the long run. So if your emergency funds or credit card can cover a broken (pick one), then skip. You don't want to ceded control of repairs. No extended warranty or extra insurance on anything.

[DarkHelmetII]

My AC stopped working on a hot July night. Called up 'my guy' and it was fixed less than 18 hours later. Doubt the warranty company could have produced results so quickly.

My point is: cost is not only in the hard dollars but in convenience and tangible benefits like getting an AC fixed asap in the heat of summer.

[Lalamimi]

We purchased Choice Home warranty Dec 2019, one year after purchasing our 1996 home. Todate:
Built in microwave - gave us $160 towards new one (DH got one for $25 on Black Friday that year)
Toilet - replaced
AC - minor work twice - he found that a service man we had for a "free" cleaning, etc, had reversed wires to cause a problem so we might purchase new unit...
2006ish Samsung washer and dryer - about 4 calls on each, repaired each time by reputiable repairmen. (different problems each call) The last call would have been $700.
Shower leak - we decided to just remodel the shower.
We have 2 older fridges, 2 older water heaters, garage door opener, spa tub, and AC unit (we did have one and the furnace replaced by our AC guy this summer)
Renewed for another 5 years back in April on a special - getting an extra year free. Did learn that we have a "legacy" plan that is no longer offered, still in effect for us. The $60 service call fee is going up to $100, but was told to call and request it be lowered. I need to do that this week...

[JupiterJones]

but recently talked to few Friends after our appliances broke down , and they had very positive experience

Biased sample. Try also talking to your friends who bought a home warranty but haven't had any appliances break down. See if they think it's been worth the price.

[Horologium]

We bought an older home (built in 1945) and the sellers provided a home warranty. Our experience was that a home warranty is worse than worthless.

A couple of months after moving in, a pipe in the basement developed a leak. We called the home warranty company and arranged for a service call (which cost $75). The guy that showed up spent a couple of seconds in the basement, and pronounced that the pipe had been installed improperly; therefore, the leak was not covered by the warranty.

I pointed out that the house (at that time) was 70 years old. How could the pipe have been fine for 70 years if it had been improperly installed? He did not have an answer and just got his stuff and left. We then hired a qualified plumber to fix the problem.

A friend who has an HVAC business later told us that by denying the claim, the home warranty company actually did us a favor. On the occasions they do honor claims, they generally use the cheapest, least qualified contractors who cut corners and use inferior materials. Our friend said none of the reputable contractors he knew will have anything to do with home warranty companies.