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Home Warranty Recommendations?
Question:
I am a first time buyer of a condominium. I lived there as a tenant for over 7 years and now I am buying it. I’m looking forward to building equity instead of throwing money away and the tax deductions but am scared to death of any major repairs that might come my way such as plumbing, air conditioner, etc. I’m told that you can buy a Home Warranty (sort of an insurance policy) that will cover any unexpected expenses of homeownership. I was also told my mortgage broker that most of them are more trouble than they’re worth. She said they have all kinds of loopholes and hoops you have to go through and usually end up not covering the repairs at all. She said if I do get one to be sure to study it thouroughly. Does anyone out there have any thoughts on the subject? Any recommendations of good companies to deal with for this type of product? Thanks.
Response:
I just received an American Home Shield Warranty along with the purchase of a house. I thought it would be a pretty good thing to have until I received the policy and saw all the things excluded from coverage. I have serious doubts that these are a good value. Also, as a condo owner, you may already have some "coverage" via your maintenance fees for some things covered under the home warranty.
– Hide quoted text — Show quoted text – I am a first time buyer of a condominium. I lived there as a tenant for over 7 years and now I am buying it. I’m looking forward to building equity instead of throwing money away and the tax deductions but am scared to death of any major repairs that might come my way such as plumbing, air conditioner, etc. I’m told that you can buy a Home Warranty (sort of an insurance policy) that will cover any unexpected expenses of homeownership. I was also told my mortgage broker that most of them are more trouble than they’re worth. She said they have all kinds of loopholes and hoops you have to go through and usually end up not covering the repairs at all. She said if I do get one to be sure to study it thouroughly. Does anyone out there have any thoughts on the subject? Any recommendations of good companies to deal with for this type of product? Thanks.
Response:
- Hide quoted text — Show quoted text – I am a first time buyer of a condominium. I lived there as a tenant for over 7 years and now I am buying it. I’m looking forward to building equity instead of throwing money away and the tax deductions but am scared to death of any major repairs that might come my way such as plumbing, air conditioner, etc. I’m told that you can buy a Home Warranty (sort of an insurance policy) that will cover any unexpected expenses of homeownership. I was also told my mortgage broker that most of them are more trouble than they’re worth. She said they have all kinds of loopholes and hoops you have to go through and usually end up not covering the repairs at all. She said if I do get one to be sure to study it thouroughly. Does anyone out there have any thoughts on the subject? Any recommendations of good companies to deal with for this type of product?
Congratulations on your purchase. Hope it serves you well, and that you enjoy having your own place. RE: home warranties. Like any kind of insurance, home warranties are a mixed bag, but could be worth it depending on your situation. It sounds good to have coverage against possible problems in the future, but remember that insurance companies stay in business because they make more money off the premiums than they have to pay out. So a bunch of people are buying peace-of-mind and not getting much else back. But in the right situation, a home warranty is a real value. You usually pay a deductible per service visit ($35-50), so it’s not free. But if your oven goes out or you need a rooter service, you start breaking even pretty quick. Is your condo new, or pretty old? Obviously, the older things are, the more likely you are to need covered services. And remember, things like refrigerators, washers, and dryers are either not covered or are an additional charge. Be prepared for them to resist your claims. Even though most of these warranties supposedly cover replacement on things like furnaces, dishwashers, built-in cooktops, etc, I’ve never heard of a case where they just replaced it without trying to offer cash at a lower amount than the appliance would cost. They can also deny claims on items that are incorrectly installed. It’s all part of the game. If they are courteous, helpful, and pay without any hassle, let us all know, as I think many of us would welcome that kind of service.
Response:
We had an American Home shield warranty on our first house and had to make 2 claims. One was for the timer on the dishwasher and the other was for the AC freezing up. Both were dealt with quickly and professionaly. In fact because my wife was pregnant at the time they expidited the AC repair and someone was there on Sunday to get it fixed! Just keep in mind that you do have to pay a fee for the service call; $35 three years ago. I would get a warranty again on another used house. Hope this helps, Thomas – Hide quoted text — Show quoted text – I am a first time buyer of a condominium. I lived there as a tenant for over 7 years and now I am buying it. I’m looking forward to building equity instead of throwing money away and the tax deductions but am scared to death of any major repairs that might come my way such as plumbing, air conditioner, etc. I’m told that you can buy a Home Warranty (sort of an insurance policy) that will cover any unexpected expenses of homeownership. I was also told my mortgage broker that most of them are more trouble than they’re worth. She said they have all kinds of loopholes and hoops you have to go through and usually end up not covering the repairs at all. She said if I do get one to be sure to study it thouroughly. Does anyone out there have any thoughts on the subject? Any recommendations of good companies to deal with for this type of product? Thanks.
Before you buy.
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