We bought a condo last year in CA that came with a home warranty policy.We didn't care for the customer service nor the contracted repair shops that this complany sent out. The policy expires in a few days.

Do you find that most owners continue these policies? If this is the case, I need to find out who the top 2/3 co's are.I've searched on the internet and made calls, yet have not found any ratings comparison available-no of customers to complaints. Seems to be more info available on auto insurance and homeowner's insurance.

The policies are expensive and we would therefore like to know that we're contracting with a company that has highly rated customer satisfaction.

Are the home warranty co's rated so that consumers can intelligently compare them? If so, would appreciate where we might find this info. Also, if you are familiar with co's that are hands down a good bet.

Thank You!

The renwal price is usually signicantly more than the original contract amount. I find them to be good bargaining tools in establishing a deal, but in the long run, they are not really worth it. I don't think consumers renew them much past the first year. At that point, you pretty much have a feel for what is going to need repair/replacement.

Most likely, you are better banking the money you would be paying for the premium. Most people in your situation ask these types of questions when they suspect a system is going to fail soon. Understand that if it is something like the HVAC, you are not going to get the repair/replacement like you probably expect.

There is a reason you are not thrilled with the contracted companies. In a nutshell, you get what you pay for and the warranty companies are going to pay the least amount possible to get the job done. I would speculate that you don't see the best companies in their network.

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R,
David Phillips
A Marietta Real Estate Agent, 678-521-4680
The Georgia Mortgage Broker, 678-370-0190

Directly from the mouth of a home warranty salesperson, I was told that renewals is where they really make their money. That's not to say it's not worth it, however.

I tend to favor home warranties for homes that are 15+ years old, simply because the warranty will cover many items that tend to malfunction over the years.

I have client that have purchased home warranties. A majority did not use it once. I do have the exception, however, that have used it numerous times and have saved a significant amount of money. It really depends on the house, I suppose, though you can never gauge when something breaks.

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Steve Castaneda, Realtor
Keller Williams Realty
The MyHomeHouston Team

Specializing in Houston Real Estate. Feel free to visit my Houston Real Estate Blog or read about Real Estate Technology for agents.

I had a home warranty plan on my prior home for approximately 3 years. It was a great value for us due to the fact that everything in the home kept on breaking. We definitely got our money worth. Our renewal fees never went up. The policy was always the same price, of course we are in Arizona so I don't know how it works anywhere else.

That being said, in my new house all major items were recently replaced including new gas pack (A/C, Heat), water heater, washer / dryer, range/ oven, dishwasher, refrigerator etc.... So I did not feel the need to purchase a home warranty. In two years of ownership we have not had any problems. So far so good.

I don't know what plans are available where you are, but I have always had good luck with Service One and Old Republic . There is one that is terrible that I have had experience with, but I won't name names.

Here's the bottom line. If your real estate agent has a good relationship with a home warranty company and helps send a fair amount of business their way every year, things will be much easier for you if you have a problem with your house. Call the home warranty company first to come repair the item. If they give you a hard time and you think they are not doing what they are supposed to be doing, call your agent and have him drop the hammer . Ha. I have done this a few times for my clients and am always successful .

Good luck.

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Scottsdale Real Estate
McDowell Mountain Ranch Real Estate
DC Ranch Real Estate

RESteve,
Thank you for your helpful email! Because the condo is 23 years old, we can see that a policy may be helpful in next few years ahead. What co's do you tend to see the most favorable customer satisfaction? Your help is appreciated!

Barry C,
I appreciate your sharing your home warranty experience. We are in CA and there are many co's licensed here.The policy that came with the condo thru escrow was pretty bad and the agent did phone several times. But who wants to go thru that headache? The hold times were impossible as well. When incomes are limited and a place is 23-25 years old, perhaps the first few years are important; you can see how things are taken care of and what is original as well.

I will check out the co's you mentioned. What is the name of the co. you were not happy with so we can avoid? Thank you for all your help!

Northstar,

I would rather not name names on this. The company came into my office and talked the talk, but when push came to shove they didn't cover anything and it was like pulling teeth to get them to lift a finger.

I'm just not in the mood to have one of their reps see the post and then have to defend myself and get into an internet flame war. Haaa.

When you get a short list of companies that you are interested in, go ahead and post them for some feedback. If the company is on your short list I will most definately let you know.

Another company that one of my colleagues says great things about is First American.

Let me know if I can help you out further. Sorry I won't put a name to the bad company.

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Scottsdale Real Estate
McDowell Mountain Ranch Real Estate
DC Ranch Real Estate

I've also heard what Steve mentioned.

I'm an agent and we recommend these when people buy a home because they don't really know what they're buying. After the first year, it's up to the homeowner if they want to renew.

Personally, we self-insure instead of buying this. Around here, the warranty is around $400 a year with a $50 co-pay for every claim. With the exception of the A/C, Furnace and waterheater, I can replace almost anything in the entire house for $450. In 4-years, I can pay cash for a new A/C unit ... the most expensive item on the property. Given that A/C units are 20+ year appliances and waterhears aren't far behind them there doesn't seem to be much point to this.

But that's what "insurance" is. You're paying for coverage on an event that is unlikely to occur. They make money because on average, over time, most people won't spend more than $450 per year in claims.

Also, it's been my experience that, like medical insurance, these guys will just start denying every claim. It seems to go in cycles. Lately, the company we'd been using was having profitability issues and their solution was to not pay out .... ever. Insurance isn't worth much if your provider decides your scenario isn't covered. Sure you can threaten them and get legal but that's a lot of work. As agents, we have a good bit of clout with the companies so we make sure they honor our customers (legitimate) requests. When the customer calls initially, they are rejected and left frustrated and disappointed.

YMMV.

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