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Home Warranties Now Available To All

by Glenn Setzer on
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Home warranties, which have been around for years, originally gained popularity with real estate companies which used them to promote listing services. They promised that warranties would attract buyers and the seller would be protected from repercussions if appliances or systems broke in the days or weeks after closing. Agents also found that home warranties saved occasional sales when they purchased them for buyers spooked by an unfavorable home inspection.

Buyers appreciated the home warranty and they did offer protection to the seller from some post-sale problems, but they probably weren't a major factor in choosing a house or an agent. The early home warranty was also limited in coverage and loaded with restrictions and exclusions. For many years they were a niche product primarily associated with the buying and selling of property.

Now home warranties are bursting out all over, and marketing is no longer targeted to the home seller. Warranties are available for purchase at closing from real estate companies, whether or not they listed the purchased property. Agents are giving one year policies as housewarming gifts to high end buyers. Notably, agents, now familiar with the product, are buying them to cover their own homes. Home warranties are available to everyone and they may be an idea worth considering regardless of the age and condition of your house.

As an example of the current marketing push, Washington Mutual Home Mortgage (a mortgage servicer) is offering its customers the chance to enroll in a home warranty program from American Home Shield. For $27 per month, payable with the monthly mortgage payment, a homeowner can insure his home heating system or heat pump, plumbing and electrical systems (including plumbing stoppages), water heater, dishwasher, ceiling and exhaust fans and more than a half dozen appliances or house components. For another $11 per month the coverage will embrace central air, washer and dryer, refrigerator, and garage door opener Other amenities such as a pool or spa or a well pump can be covered for additional premiums.

When a covered problem crops up, the homeowner does not call his regular service provider but the home warranty company (American Home Shield claims that service calls are received 24/7) which then refers the call to one of its certified contractors. A service call through American Home Shield is $45, paid by the homeowner; anything additional is covered by the warranty, including replacement of the appliance or system. (Lots of * and s.

  • Check out the availability of service. One company we contacted offered no warranty at all in our semi-rural area but others may not be able to deliver truly full service. Ask a customer service representative if there are holes in their service availability or slow response time for certain repairs. If they lack a certified technician for a certain problem will you be permitted to contact an uncertified local tradesman?
  • Is it possible to finance the premium on a monthly or quarterly basis or must the entire year's premium be paid up front?
  • Finally, do an analysis of your appliances and your own attitude in these matters. With a bunch of ten year old appliances (except for the forty year-old dishwasher,) taking out a home warranty, particularly one that could be paid monthly, was a no-brainer. I might not benefit this year or next, but eventually I will be glad I splurged. As with any insurance policy you are playing the odds. Just ask yourself if you will be able to handle paying out $350 per year for five years with only a few covered service calls along the way or if you might be better off putting the premium each year into a special bank account for appliance emergencies.


    Comments

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    MJ
    on
    I've used the service for four years, and because we live in an older home with older appliances, it has been a life saver. Your mileage may vary, particularly if you have a newer home. Thankfully, and lucky for me, they can't cancel you for legitimate claims.

    Hope this helps.
    Joseph R
    on
    I have been with almost all major Home Warranty companies (American Home Shield, Mutual Warranty, Fidelity, Old Republic, and Aon) and service does vary. I'm with Mutual Warranty now and so far the service has been great for most calls, I've had my furnace completely replaced by them with little struggle... The most interesting program Mutual has is I have referred 5 customers, which results in 5 free months of coverage, i'm shooting for 12...
    Karen
    on
    I have had AHS home warranty for many years. For the most part they do a good job. However, the time lag between the request for service and the actual repair can be a while, especially at peak season. I had an AC problem take more than 2 weeks to get fixed in the hottest part of the GA summer! It was miserable! They were unwilling to make any extra effort to get the problem resolved quickly. That is one reason I am looking for a new provider. However, I would not be without a warranty!
    Collinlivan
    on
    When can I recieve the home warranties? Will I recieve it before next month? Do I have to pay any fee for the home warranty?
    anon
    on
    I have been with AHS for 2 years. I must disagree with the statement on "no depreciation" of appliances. I have a 10 yr old dishwasher that is acting up. AHS sent out 2 different service providers, and neither could find a problem. Yet my dishes remained filthy after washing. AHS supervisor finally told me that the problem was due to "the age of the unit" and that they could not authorize replacing it under my warranty. I will not be renewing with AHS.
    Marc S. Martens
    on
    I have been with AHS for 12 years .... and will not be renewing. The company used to be customer oriented and responsive to the person paying the bill. They have evloved into a company that caters to the service provider, "even when the provider is substandard, unresponsive and has absolutely no customer concern." I have been without a furnace for over three weeks now. AHS has not resolved the problem, returned my calls and refused to connect me with a supervisor. A formerly loyal customer
    Mehmood Cader
    on
    I will not renew my contract with AHS. Their service fee is one of the highest in the market and so is their premium. I am looking at Mutual but again the stories I hear are scary.
    anonymous
    on
    I have used AHS for 3 years and I will not be renewing with them. They do cater to the service providers. The service provider has all the control. I needed my ductwork checked out and I had to work around the service provider's schedule! The service provider had only two time blocks and they require you to choose the time block. It was 8-12 or 12-5 and you have to be home during these times. They were not flexible and for working people that's not good. AHS did nothing about it.
    William G
    on
    AHS: I've been w/them 3 years & each time I need service ... swear I will cancel...but we have an older house and I continue. It is an absolute fight and struggle each time I need service. The latest Central AC incident ...in AZ temps of 105 degrees....where they delayed a service response 48 hours and their reps were rude.....I can stand no more. I am cancelling and will fund my own repairs in the future. Beware. to provide service to my AZ home...where temps were 105 degrees
    S. Schacht
    on
    I have been with AHS for 2 years. When our AC quit during the hot Phoenix summer, I was told that my medical condition was not considered an emergency, so they could not (would not) expidite repairs. I will not be renewing with AHS.
    R.H.
    on
    I have had AHS for almost a year and I WILL not refer or use them ever again. They are horrible and I cancelled my service . Our AC went out and the sub they sent out was rude . Also, when our plumbing broke the wanted us to wait two days to have it fixed. We could not go two days without water, so I turned it over to my HO Ins. They fixed everything. What's the purpose of having a warranty if you end up repairing everything yourself. I'm currently looking for a better warranty company.
    John
    on
    Buying a home? DO NOT accept a home warranty from a company! Make the SELLER personally warranty the home. If you must buy a home with 1, DO NOT get your home "officially" inspected. That `VOIDS your warranty, especially on a furnace!! My well pump went out & 3 estimates average $1800. Warranty offers $600 max! My direct-wired garage opener died, new one installed but won't pay to give it power on an outlet! Realtors get kickbacks for selling warranties! BEWARE!
    Becky V
    on
    I had been considering signing a contract with AHS but all the negative comments here have changed my mind. I appreciate this website and those who have posted comments. Now, anybody have a warranty company they DO like?
    Gary
    on
    I am a Realtor who provides AHS Warranties to the buyer in every transaction. AHS has paid thousands of dollars in claims to my clients. I provide the warranty because new usage patterns on old systems tends to create problems. I also own 5 homes and everyone is covered by and AHS poicy that I pay for. I get no price break or "kickback" on these policies. In the last few months they have replaced an air conditioning condensor and a thermostat in a gas furnace. I am way ahead.
    scott carter
    on
    I do NOT trust Realtors who use AHS as I believe they ARE getting a kick back-AHS used to be friendly-was a 9 yr customer and until recently cancelled because the contractors they use do not have a flexible schedule-they make you take off the entire day to get your dishwasher fixed. I found a local company that was willing to work around my schedule. SERVICE MASTER owns AHS and I will not use THEIR subsidiaries any more. AHS lost focus on who really IS the customer. It appears not to be me.
    MH
    on
    I can't get a number to call Mutual. All brochure and website numbers are out of order or constantly busy. Are they still in business?
    Mary
    on
    I have a client who bought a home warranty from Mutual Warranty and now he has a claim and can't get in touch with them. I am looking for any information anyone has about this company. If you know anything please comment here here and I will check back. Thanks.
    Lee
    on
    I have AON and havn't been very happy with their service. It's been over month since our stove stopped working and their contractors have been incompetent. When I asked about money towards a new stove instead of spending a lot to repair our rather old one they offered to give me $50. My recommendation would be to put the cost of the monthly premium into a savings account and use that to fix your appliances. Warranties are over-rated and have too many exclusions. I won't be renewing ours.
    sheila r
    on
    I will be cancelling my AHS service contract ASAP! We had no heat and AHS claimed this was NOT a life threatening emergency (it was 5 degrees below zero outside). They said a contractor would call first thing in the morning and no one ever did (I am still waiting for a call, 2 days later). The customer service reps were rude and took no responsibility, blaming their subcontractors. Meanwhile, I paid out of pocket for emergency service to my furnace. My advice-steer clear of AHS!
    Anonymous
    on
    I work for a real estate company in TN and I know for a fact that AHS provides incentives for real estate agents. When the agent puts in the AHS order, they receive a check for $50 as a "thank you" for choosing AHS. If you were an agent would you go for a better warranty or a $50 check? Think about it... if the agent orders 10 AHS warranties a month, they would have an extra $500 income a month!!! I think AHS should use that money to improve service with the CUSTOMERS rather than the agents!
    Doug K
    on
    I too have been trying to contact Mutual Warranty to no avail. I get no response from website inquiries, and all phone numbers I can find for them are out of service. Does anyone have an update on their status? Doesn't look too good from here! Looks like I got scammed.
    Ann Ominus
    on
    Has anyone used Warrantech Home warranty? I am looking at a home with one and was hoping for feedback
    Michael
    on
    All warranty companies are the same. I have been through all of the above mentioned ones. The real problem is that the lag time for customer service from their vendors. There are several reasons but Most companies tend to their own clients since the profit margins are much higher then with a home warranty. Home warranty companies do not pay over time charges if you want service after business hours you need to pay for it. I still have a home warranty and always will.
    Marcella Lewis
    on
    My home warranty provider is Old Republic, and I have been very pleased. My water heater broke, and the contractor they sent was dragging their feet, so they got on the phone to them and expedited things. I was very pleased with how they worked on my behalf. Now it's renewal time, and I got an offer in the mail from AHS, but after reading all the stories on this post, I'm not taking any chances. I'm going to stick with Old Republic.
    AlbertZeroK
    on
    We have AHS. I agree that response time from service providers can lack. I have used the service 3 times in the first year. Electrical, heater and water heater. Only the heater did we use the AHS service provider. The other two, we got authorization for using an outside contractor. We pay the contractor, AHS reimburses us. You are right though, AHS is at the mercy of the service providers in your area. It sucks for them and us, but I understand the system and use it.
    Carol
    on
    We have Mutual Warranty and have been trying to get a response from them. All phone numbers are disconnected and only the automatic response comes from the internet inquiry. What a scam and an expensive one at that. They didn't let their customers know they were having financial problems. Our lawyer will be following up on this one.
    ter
    on
    I am considering purchasing a home warranty. It sounds like Mutual is out, and AHS has numerous upset customers. The only unchallenged positive I heard was for Old Republic. Any others, or anyone who can give more feedback on OR??
    Denis
    on
    I'm a Realtor who gave AHS warranties to my buyers,the cost of these came out of my commission at closing. One of my clients called AHS to make a claim for a broken cook-top on their oven. It took 2 weeks for a rep to come out and look at it. He was there for 7 minutes, told them it wasn't covered and wouldn't leave until he got his $100 payment to cover the deductible for his "service" call. I no longer give nor recommend home warranties for anybody. These companies are professional thieves!
    Nic
    on
    I have recommended First American Home Warranty to my clients and I have never heard of a complaint about the services of that company. I even have a plan for myself through them though I haven't had to use it. So, although I have no first hand knowledge of their service or lack thereof, I've never heard of any complaints either.
    Ken
    on
    I have had a policy with AHS for 4 years on a 40 year old house. I recently requested a repair for a leaking evaporator coil causing water to leak into by living room ceiling. My claim was denied because of "improper installation". How was I to know? When I tried to plead my case to the customer service representatives, they were rude and un helpful. Needless to say I do not get the "piece of mind" of having the policy and now will have to for out $2000. I will be canceling the service.
    J
    on
    This is for Ken who commented on June 6th stating he's never heard of a complaint against First American. Here's one. Our air conditioner has been out since Monday (108 degrees in AZ) and as of right now, nobody that is contracted with First American has bothered to show up at our home to look at the problem. 90 degrees in our home this week! Ken-feel free to google First American Home Warranty and you'll find a ton of complaints. I did. Please read them cuz what they are saying is true!
    pn
    on
    We bought a home in FL built by Peregrine. The're agent suggested a warranty, Home Trust/Florida's Choice. Online instructions were unclear. I was kept on the phone for over an hour & a half. Decided never to use them & the home has many problems. After personal experience and reading horror stories of others, I will never use any warranty co. Makes better sense, less stress to keep a savings account for potential break downs which allows you freedom of second opinions & repair options.
    Sue
    on
    We are a provider for Fidelity, I've read all of the stories, and I have to tell you that it is all on the techs that you get. You either get a good one that is there to help you and not the insurance company or you get one that is terrible. Frankly whenever we go out we are always there for the people not the insurance company, but you must understand that these companies work for the home warranty companies not for you. It is a shame that people have to be rude but it happens.
    Anonymous
    on
    For those of you looking for a number for Mutual Warranty, they have skipped town. This is according to a news broadcast that comes up if you Google Mutual Warranty. I too have been scammed by them. My air conditioner went out in AZ and when I called for service, the numbers were not working. It was my first time purchasing a home warranty, now I'm very leary!!
    John
    on
    I tried to get my a/c fixed with First American, and the tech they sent came out, looked at the unit and declared that it was undersized, so it is not covered. The guy never even took the covers off of the equipment, never took split temperatures, did not check refrigerant pressure,, no motor amp draws, did not look at the coils. Worthless!
    Ramie
    on
    I think that a home warranty is a great peace of mind. I do believe that the most important thing in having a warranty is to read your contract. You would no go and choose your life insurance or health insurance blindly why would you not read the policy for your home. I believe a lot of issues with home warrantys would be solved if people took the responsibilty to read ther contract. I also feel that because you have a warranty does not meen that you have expidited service!
    Lynn
    on
    We bought our home Jan 08 and our realtor recommended AHS as the best warranty coverage. Yesterday I tried turning on the central air for the first time and it didn't work. I called AHS to schedule a service call and was told it wouldn't be covered because the last homeowner was supposed to repair it in 06 and must not have done so if it is broken now. I explained that my policy covers the unit, unknown pre-existing conditions, insufficiently maintained equipment, and improperly repaired items. I was told that it was the same unit from 06 that was not repaired so it didn't matter what my contract said. Then I asked for a record of anything else that wouldn't be covered due to the previous homeowner and was told it was confidential information. When I started quoting my contract, I was interrupted and told maybe if I schedule a service call anyway and PRETEND it is covered it would allow me to feel better about the situation and get a good night sleep. I'm at my wits end. If anyone has any suggestions on how to handle this situation it would be appreciated.
    Mike
    on
    Warranties are ripoffs. Everyone in Sales knows that. They're designed to create extra income for the company and a little extra income for the salesperson. Doesn't matter if it's for your TV or your home. If you're truly worried about future issues, start a general emergency fund and save. Don't be a sucker.
    R.
    on
    Lynn, consult a lawyer!! I know someone who was told something similar, his lawyer told him that it should be covered. The guy went out and spent thousands of dollars on a brand new air conditioning system and the warranty company ended up paying... with a little prompting from the lawyer!!
    TC
    on
    We own a company that provides service for AHS.I see alot of comments that are blaming the service techs. In all honesty for what AHS pays contractors(which is next to nothing),thats why you get the service that is provided.Its all a numbers game with AHS. If contractors go over a certain cost per job , they cut the contractors call volume.Our company only takes a few call from them here and there. At one time we were doing over a 1000 per year but they got mad because our techs were doing what they were trained to do and replacing equipment and AHS got mad and drastically cut our call volume. A word of advice for any of you who have AHS, maintain your equipment, because these techs that they send out are basically told to get claims denied for lack of maitenance or we will cut your call volume.
    on
    We also own a company that provides service for multiple warranty companies. The call average issue is correct although there are some really good warranty companies still providing great service that wants to take care of their customers and backs up the service techs as well to repair or replace when needed. It seems the current economy is far reaching more so than in the past. What is sad is that service providers for some of the warranty companies that have been with them for years are the ones that get their call volume cut because new vendors get signed up and lowball the vendors that have been with the waranty company for years. That's ok though, when those guys go out of business, we'll still be here. Quality service, timely arrivals and fair prices will keep us here. I re-iterate - read closely what your policy covers with a fine tooth comb before purchasing and remember if you do some checking there are some great companies out there so don't give up. Best of luck.