American Home Shield Warranty Service - Good or not?

[Eaglesfan27]

When we bought our house last year, it came with a warranty program run by American Home Shield which had some restrictive terms I didn't like, but since it was free to us, I was glad to have it. Our home is now just under 2 years old. We didn't have to use the plan at all during the past year. As I'm paying bills, I find myself debating on whether or not to renew this program which runs just under 500 dollars but would cover our Range/Oven/Cooktop, eletrical system, air conditioning, trash compactor, built in microwave, heating system, water system, ductwork, dishwasher, plumbing, and garbage disposal (with some limitations on quite a few of those.)

Has anyone ever had to use their AHS Warranty? How was the service? One reason that I'm considering not renewing is that I don't like being bound to use their service providers, but I'm really curious to hear any feedback positive or negative on this. Thanks in advance for any feedback.

[JonInMiddleGA]

I don't have any experience with AHS or these sort of plans, but I'll throw in my .02 as a homeowner.

In over ten years of home ownership with new appliances in both houses, the only things I've replaced that you mentioned was a built-in microwave that got struck by lightning. Everything else you listed has only required routine maintenance (although I did have multiple service calls on our 'fridge & a new washer/dryer combo, but you didn't list either of those). That makes me leery of paying $500 a year for what sounds like "appliance insurance".

To me, just based on your description, I'd be hard pressed to think it's worth the price, especially if there's restrictions on what service providers you're allowed to use (since I expect their motivation to be timely is going to be limited by their presumably negotiated rate with the warranty company).

[cartman]

I don't have that particular company, but I do have a similar plan from another company. To me, the biggest things it covers are the AC and septic system. Those can both be high-dollar items. Right after I moved into my new house three years ago, the AC system took a dive. They had to replace the outside compressor and blower unit in the attic. $5K worth of parts and labor, and all I had to pay was the $75 service call. I recently had to call them because the motor in the jacuzzi tub was randomly turning itself on, which is not good with an empty tub. A $600 motor was replaced, again for the $75 call. But since the house was built in 2001, and sat empty most of its life before I bought it, I don't expect much to go wrong with the other stuff.

I think the key is to closely examine what is covered, and any restrictions there are on the repair work. There are several companies out there that provide this kind of coverage, maybe even from your mortgage provider.

[Shkspr]

The two years I had an AHS warranty, I had two problems (our house is 24 years old now). The washer had a major leak, which ended up causing the tile in our utility room to buckle as the leaking water wore away the adhesive under the tile, and the air conditioner conked out.

A closer look at our AHS contract revealed that neither of the conditions that caused our loss were covered under our warranty. It probably isn't coincidence - the things that are likely to go wrong on your appliances are the things AHS doesn't cover. Our wait for an approved tech to come out to fix things was three to four days, as well, and we still had to pay the techs that came out ourselves just for the service call. (We found other solutions when the time came to fix the problems.)

The only part of AHS's operation that impresses me is the diligence of their sales department when it's time to renew.

[gstelmack]

I had one on one house we bought, and my brother has had one. They are more important on an older house where things are likely to fall apart (A/C being a big one), but be aware that they are going to go the cheapest possible route, including fixing something that should really be replaced. If you don't have much money for home repair and are just going to need SOMETHING to get by, that is what they are good for.

If you have a 2-year-old home, you are better off putting the $500/year into the bank so that when something does go wrong, you can get it fixed right.

[bryce]

I have Nations Warranty on the home I bought 6 months ago. I've had to replace my furnace, but I still had to pay $1000+ out of pocket - supposedly the warranty company covered another grand (the HVAC service company claimed this was a $2000+ job.) I also had to replace my pool filter, which was not covered at all - another $1000. I recently dated a girl who bought a house right around when I did, and she had hot water heater problems - cost her $500, again not covered by her warranty.

The crappy thing is with these warranty services is they make damn sure they don't cover any high dollar jazz, or don't cover much of it perhaps is more accurate. The crappier thing is that since they have contracts with service companies, the service companies are complete shit - they don't give two craps about the job they do, the customers, or anything else b/c they have guaranteed revenue all year long from the warranty company. (The HVAC company came to my house FIVE TIMES to fix/replace my furnace - that's five days of work I had to leave, but, again, what do they care? They have more work than they can shake a stick at, and we, as customers, have no power over them at all - want to go to a different service company? Ok, but now NOTHING is covered at all by the warranty company...)

[pbot]

Originally Posted by Shkspr

The only part of AHS's operation that impresses me is the diligence of their sales department when it's time to renew.

I agree.

We had AHS for the first three years after purchasing our house (built in the late '70s). Finally the wife and I decided we'd be better off banking the $500 each year and using it whenever something inevitably breaks.

[CU Tiger]

just an interesting stat for ya.

As a whole the home warranty business spends roughly 60% of all revenue on marketing and advertising. And 27% on salary and profit.

Leaving 13% to actually cover claims.

So, 87% of the time it is not beneficial to purchase a home warranty. If you can get one free on a new home, or have a seller throw one in on a deal, then sure take it. But I would never buy it, To me it ranks right beside an electronic exteended warranty. Save the cash and self insure.

I understand someone may come out ahead, but not likely. Even in the above example, a house built in 01, that AC unit is still under warranty. I know of no HVAC manufacturer in the industry with under a 5 year warranty. Maybe you saved the convenience of calling your home warranty company and not calling Trane/Carrier etc. But you really didnt save any money.

So that leaves only appliances. At $500/year you are counting on 1 major failure every 1-1.5 years. Not likely IMHO

[cartman]

Originally Posted by CU Tiger

I understand someone may come out ahead, but not likely. Even in the above example, a house built in 01, that AC unit is still under warranty. I know of no HVAC manufacturer in the industry with under a 5 year warranty. Maybe you saved the convenience of calling your home warranty company and not calling Trane/Carrier etc. But you really didnt save any money.

Since the house was a foreclosure before I bought it, the manufacturer's warranty expired on everything in the house once the bank took possession of the house. So I definitely saved money in this instance.

[Fonzie]

Originally Posted by Shkspr

The two years I had an AHS warranty, I had two problems (our house is 24 years old now). The washer had a major leak, which ended up causing the tile in our utility room to buckle as the leaking water wore away the adhesive under the tile, and the air conditioner conked out.

A closer look at our AHS contract revealed that neither of the conditions that caused our loss were covered under our warranty. It probably isn't coincidence - the things that are likely to go wrong on your appliances are the things AHS doesn't cover. Our wait for an approved tech to come out to fix things was three to four days, as well, and we still had to pay the techs that came out ourselves just for the service call. (We found other solutions when the time came to fix the problems.)

The only part of AHS's operation that impresses me is the diligence of their sales department when it's time to renew.

+1

[Eaglesfan27]

Thanks for all of the feedback, guys. This helped confirm my thinking. I'm going to just put that money into the savings which is there if something major breaks down anyway.

[Kodos]

Our experience with it was that it was utterly worthless.

[CU Tiger]

Originally Posted by cartman

Since the house was a foreclosure before I bought it, the manufacturer's warranty expired on everything in the house once the bank took possession of the house. So I definitely saved money in this instance.

Really?
I have never heard of a state that allows a manufacturers warranty to end at time of foreclosure. That would be a neat law.

So I sell you a product with a 10 year warranty the bank takes it (cause you dont pay) and I tell the bank F-off I wwont warrant anything for you... Not saying you are wrong, but I would really like to see this legislation...thats very odd to me.

[cartman]

Originally Posted by CU Tiger

Really?
I have never heard of a state that allows a manufacturers warranty to end at time of foreclosure. That would be a neat law.

So I sell you a product with a 10 year warranty the bank takes it (cause you dont pay) and I tell the bank F-off I wwont warrant anything for you... Not saying you are wrong, but I would really like to see this legislation...thats very odd to me.

If you read the fine print of the warranties tied to home products, many times they are not transferable to a new owner.

The reasoning behind the foreclosure clause in particular in Texas was explained to me that if someone wasn't paying on their mortgage, they probably weren't spending any money on the upkeep of the house either. That tied with the amount of time a house sits empty with no use, inspection, or maintenance was enough to declare any warranties invalid. It was very much a pro-business law, not a pro-consumer law.

[Logan]

Originally Posted by CU Tiger

Really?
I have never heard of a state that allows a manufacturers warranty to end at time of foreclosure. That would be a neat law.

So I sell you a product with a 10 year warranty the bank takes it (cause you dont pay) and I tell the bank F-off I wwont warrant anything for you... Not saying you are wrong, but I would really like to see this legislation...thats very odd to me.

I'm 99% sure that warranties don't transfer on sales. And that goes for all products. If I buy a TV from Best Buy and get the extended warranty for $x, it won't transfer to the new owner if I sell it on ebay.

edit: cartman hit it while I was waiting for 24 to end to post .

[CU Tiger]

I understand transferability, but a TV and a heat pump are a little different.

Hell the few I have dealt with you call the man. With a serial number and they will issue a Authorization For Repair over the phone. never heard of them asking for a "receipt" etc.

now a fridge or stove I could see, but not a heat pump/AC unit....

*off to research

[MrBug708]

Going through an issue with my A/C. Bought the house last year, and the A/C hasn't been working the past few days. Called the home warrant service (Home Republic) and they sent someone out today. Of course the first day it works is today. The tech spent most of the time telling how getting it fixed would be without actually doing anything. Naturally my claim was denied as it was in "perfect working condition".

Basically need to hope it breaks down in the 90 degree heat to call and expect a tech to come out in 2-4 days to look at it before deciding whether or not it needs to be replaced. Having a wife who is 2 weeks from her due date isn't helpful either..

[MrBug708]

Stupid archive thing