Home Warranty Buyer’s Guide
A home warranty is a service contract that protects homeowners against the cost of unforeseen covered repairs or replacement of their well maintained major systems and appliances that stop working due to normal wear and tear. While coverage varies from company to company, in general the idea is same: to help save some money and provide speedy repairs.
Whether you are a first time buyer, seller or existing homeowner, a home warranty is an inexpensive way to preserve peace of mind and to guard covered items for your most precious asset!
When shopping for a home warranty you must evaluate different policies and build up a good understanding of what is covered and what it takes to get a repair made. Remember, not all home warranty companies and home warranties are alike. Why look through the yellow pages searching for a reputable service technician? At homewarrantyreviews.com, we try hard to find the most honest, reputable vendors to service your claim.
Home Warranty: Benefits for Sellers and Buyers
According to a poll, maximum percentage of buyers and sellers rate home warranties as one of the most essential features when buying or selling a home, aside from location, design, and financing options.
For the buyer, home warranty service has noticeable profits in saving money. Particularly when you are a new home buyer, you generally won’t have a lot of extra cash after such an expensive purchase. The final thing you want to do is to spend what you have left on most important appliance repairs. Having a warranty will take care of such repairs and have you paying less in the future.
Of course, there’s also a lot of advantage if you are the seller purchasing the home warranty plan. First, you are going to draw a group of buyers to your property. They will be more concerned in a home where they won’t have to bother about moving in and having old appliances break down that they can’t manage to pay for.
Whether you are buyer or seller, there are a lot of benefits to opt a home warranty plan. It’ll save you riches on one hand and aid you sell on the other.
Important Things to Remember
Home sellers and home buyers equally need to learn and comprehend the mechanics of home warranty so as to get the maximum out of it for their benefit.
- Analyze the Customer Service: Before committing to any policy, explore the home warranty company and carefully go through the policy. Your first call to the company will talk volumes about its customer service. If the customer service and the sales people are unwilling to give you the information or do not return to you in a timely manner, this must be your first red flag. If they are approaching about coverage limitations and open to your questions, that might be indication of reliability and honesty.
- Coverage Limitations: Plumbing, heating and appliances are usually covered for an annual fee ranging from $250 to $600, as of 2011. A policy may shell out for itself after just one repair provided the repair is incorporated under the policy’s terms. Certain items, like roofs and swimming pools, are typically not covered if not they are added to the policy for an added cost. Policies are destined to cover normal deterioration and not unusual conditions like weather-related damage. If you are worried about a precise type of maintenance issue, it is good to inquire it at first rather than finding out later that it is not covered. Assess the fine print carefully for any exclusions and loopholes. Pre-existing conditions are generally not covered and deciding what succeeds as pre-existing may be complex.
- Contractors: Policy holders do not have the freedom to call the contractor as per their choice but somewhat use the local repair companies contracted with the policy issuer. Request for a record of service providers before buying a warranty and call a few of them to observe how easy it is to fix an appointment. Some dissatisfied warranty holders have criticized that it is almost impossible to schedule a visit, so do some extensive research before you finalize.
- Cost Assessments: Contrast the yearly policy fees, but watch out whether the cheapest policy also has the most exclusion. Also compare the deductibles as they can differ from policy to policy and can be as little as $25 or as much as $100 or more per visit.
- Regulation and Oversight: Some states such as Texas and California, control home warranty companies. Verify with your state’s Attorney general’s office, better business bureau, insurance regulator to know whether the warranty company you are bearing in mind has any complaint records. In case the industry is not regulated by your state, request a real estate agent for a suggestion. Go through consumer review sites to see if the firm you are allowing for has had a large number of complaints.
Home warranty protection is a vital tool you can always access particularly during the hassles inside the house. It is crucial to make sure that your home appliances and systems are functioning properly so as to easily do your daily activities in the house without delay and worries. With the correct warranty company to offer you with your distinct needs, you are sure that you are confined from the maintenance worries and financial losses due to your appliance malfunctions and home repair.
Existing homeowners, buyers and sellers alike all over know that repairing a household can be a huge expense. With home warranty, you can rest trouble-free knowing that you and your family are in safe hands.
Home warranties are obtainable for acquisition by all consumers. You do not need to be in a real estate transaction to purchase a home warranty. Current homeowners and even renters are eligible to purchase a home warranty.
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We just tried out our home warranty with FIRST AMERICAN HOME WARRANTY…
1. Problem: furnace not powering on.
2. Furnace contractor said he needed to scrub the burners, but didn’t think this was covered.
2. We asked First American Home Warranty if scrubbing the burners was covered: First American Home Warranty said ‘yes this service was covered’.
3. The furnace contractor completed the service and submitted his paperwork to First American Home Warranty. First American HW told the contractor that this service was NOT Covered.
4. We again called First American Home Warranty to ask about the coverage: First American HW NOW said this service was not covered, only if the burners were replaced!
I conntacted them on 5-7 and they sent there air conditioner contractor out late on 5-8.The older of the two men started complaining about the unit being in the attic.They took out the blower motor.They could not make it to the supply house in time.The supply house also had them on “credit hold” ,because of $ issues.I had taken all of 5-8 off from work to wait on them to show up at 4 pm.They contacted One Guard to get approval.Now One Guard has asked to see my home inspection report to see if the home had pre-existing conditions (and it does not).Never have I heard of this.One Guard told me that they would schedule a 5 pm appt. Monday to replace the motor.And now has decided that they cannot authorize “over time”.One Guard is not a member of the “BBB” that I can find out.However J&L Svc. is and I will be fileing a complait.Beware of One Guard Home Warranties Co.
DO NOT USE ONE GUARD HOME WARRANTIES!!! I have had the same problem as others with this home warranty. They Have you pay for the warranty and when its time for them to actually do the work they will not authorize the work to be done. They will think of everything they can to get out of paying for the work that has to be done. They came out to work on my AC and I ended up having to pay $500.00 for the services because they found every excuse they could so they did not have to cover it. I would look into another company because this one is basically a scam.
I have just finished my first year with Sensible Home Warrenty and in the last year have filed a claim for a water heater and a furnance repair. When I called the company they were quick, polite and very responsive. Today when I filed my second claim, I also renewed my policy for another year.
I have several properties with OneGuard home warranties.
Recently one had kitchen sink leaking. I filed a claim
and they did send a technician on time, but he told me the
leaking came from the faucet, and that was not covered,
to fix that i need to pay them $200, i can easily get any one to fix it within $75, so refused, then they ask for $69 service fee.
In their plan they list almost everything that get covered, including plumbing system, but when it is time for their service, they tell you faucet leaking does not belong to plumbing system
It seems to me these guys can try everything to get your money but avoid responsibilities. I am tired of the hassle. I will never
claim again ( i guess this is what they want) but of course i will never use their warranties
FIRST AMERICAN HOME WARRANTY
I purchase the ‘spa’ package on my home warranty. All of the things listed as covered: timing, switches, relays, above ground electrical are indeed not covered at all because of my in-ground installation, they combine together and form a “control management system” which is not covered under their limits of liability for “electronic system management”. So the controls for my spa don’t work, it is accessible, it is due to normal wear and tear, and since they are located 3 feet away from the actual in ground spa they are totally not coverred at all. There is nothing else to cover in my opinion, its just a spa, not a rocket jet, it has a button, it turns it on, its broke and they don’t cover that. Basically the limits of liability that claim to not cover electronic, computerized, pneumatic and manual system management means that overturns all of the warranty and they don’t have to pay for anything electronic, computerized, pneumatic, or manual. Is there anything else?
I see a lot of complaints about home warranty coverage. As a mechanical contractor with over 30 years of experience I would offer this bit of information for you to consider. Looking at normal service calls (cash customers); here is what we have found to be true. The majority of service repair calls involve maintenance issues. The lacks of maintenance issues include dirty condenser coils, dirty evaporator coils, clogged condensate drain lines and dirty condenser coils. Any of these maintenance issues can cause the system to not operate correctly. Sometimes maintenance is the only issue we find, other times the lack of maintenance caused another system failure. In the former we just need to do the proper maintenance to correct the problem. In the latter, we have to perform the proper maintenance and then correct the problem the lack of maintenance caused. My understanding of most but not all home warranty coverage is limited to normal wear and tear failures. This means that maintenance is not covered, and some system failures attributed to the maintenance problem would also not be covered. I also understand that any preexisting conditions would not be covered. This to me means any maintenance issue, any improper installation, any part failure, any improper equipment sizing basically any problem that existed prior to the policy being taken out. My experience with EMP inspections, which one would think should cover these issues, is as follows. EMP inspectors in general are not licensed mechanical, electrical or plumbing contractors. This means that limits of what they are allowed to do or can do is limited. EMP inspectors are not allowed to remove equipment panels; they do not carry refrigerant gauges that are attached to the system or electrical equipment to determine any electrical supply or control issues with the equipment. We have been on numerous service calls involving a home which has just been sold, where an EMP inspection was done, but a have a mechanical failure. We have found parts missing, low refrigerant charges indicating leaks, rust and corrosion issues etc. EMP inspections with the mechanical equipment fall far short of insuring there are not any electrical or mechanical issues with the equipment. Only an inspection by a licensed mechanical contractor can come close to insuring the equipment is in good working order or if repairs and or maintenance would be needed. In addition EMP inspectors in general get hired by a real estate agent. This real estate agent makes money by selling the home and any costly repairs to the mechanical equipment may stop the sell of the home. EMP inspectors know that finding too many problems or an expensive problem may cause problems for the real estate agent who hired them and repeating this for several homes could mean the agent would find another inspection company to hire the work out to. One last item is the contractor requiring the owner to be present, not a young child, neighbor, friend, or the renter. The service technician can find a problem that would require the removal of some sheet rock or some other issue that could cause damage in order to gain access to the equipment. This would need the approval of the homeowner not the approval of a child, friend or neighbor. In addition, since only normal wear and tear issues is covered, the technician may find a problem that is not covered by the home warranty and would need approval of the additional charges. This approval cannot come from a child, friend or neighbor, but only from the homeowner.
PLEASE AVOID ON GUARD AT ALL COSTS!!!! DO NOT USE ONE GUARD.
Have had issues with the AC unit over 7 times in the last year and a half. Their contractors are bad, One Guard’s customer service is horrible. Filed a complaint with BBB. This company is a rip off, take your money somewhere else!!!
I have made 4 claims now with One Guard and they have really been the best warranty company I have ever dealt with. They have fixed our oven, replaced our disposal, done maintance on our AC and now are replacing the oven since something else broke on it.
I did have one rep get pissy with me when I asked why it was going to take 3 days to get someone to look at our oven. that sucked but I think I just got a bad rep, all the others have been great.
From all the techs I have asked and my mom is a realtor as well, only heard great things about One Guard. So, guess it is a crapshoot
Some good comments here. It is easy to point fingers when it doesn’t go our way. My comment about home warranties is related to understanding their purpose and scope wrapped inside cost. I would guess that home warranty companies would love to charge more money in order to cover more items, but the market will not let them. There is a reason they are $350 for basic coverage. The general public doesn’t want to pay more for them. Therefore you are going to get as much as the $350 will let the warranty company cover and still stay in business. There are always limitations in life. Look around your house. Do you see any item that is guaranteed? If your answer is yes, please let me know as I would like to get one. Anyway, typically we get just enough info to buy something, but not enough to know it inside and out. We don’t have time. Everything is instant gratification and immediate. The other thing to keep in mind is facts. Negativity is spread much faster than Positivity (new word?). Take this post for example. More negative. What you need to keep in mind is the fact that there are several people who get treated fine by their warranty company and don’t have time to write about it. They are generally in the majority. So my suggestion is to think a little before acting, call a rep from the company to get a better understanding and then go for it. More often than not, home warranty company’s do what they are in business to do. Some do it better than others more consistently.
First American. Whoops, now I really appreciate AHS. First American was given to me with my home purchase. Had a flood in the kitchen. FA sent plumber, who said it had been piped wrong. FA then said it was not covered because of this. Same with shower leak. They’d pay for the the $20 diverter that was causing a leak but not the $200 worth of service required to actually reach the diverter. The piping passed my home inspector’s test. I probably won’t waste the 75 fee on this fake warranty again.
Our realtor suggested First American (FA) when we bought our first home ever. We had our water heater (WH) replaced after long multiple debates with multiple customer service reps (CSRs)and their supervisor and w the help of our real estate agent’s contact. I did a little research and my state required codes for water heaters installation that were enacted since the previous water heater was installed (these are found in the plumbing codes and civil codes) such as required bracing and in some areas drain pans which keep accidental flooding if something blows that drains to the outside of the house if your WH is inside the main house. CSR first denied that the pan, parts and bracing for WH were covered and my initial estimate for replacement was $500 (outrageous…what’s the point of insurance at this price?) So after educating the CSRs on legal codes (which upgrades due to codes was covered) they agreed to some of these being covered. Then I checked my City’s website and found that my City requires a water heater installation permit and inspection, which the CSR rep told me that I didn’t really have to get. I scheduled the City Inspector and he found things that needed to be fixed for my City. I sent the City write up to FA along w/ receipt for the permit and they resent the plumber to fix to City requirement and reimbursed me for permit fee that I paid for separately. Both times the plumber came around 4pm and stayed until 8pm after it was dark it was very inconvenient. It was a long and arduous task to get my out of pocket costs down to a third of the costs, but it was very time consuming, frustrating and full of written documentation. FA & the plumber refused to tell me the warranty on the replacement WH, so we’ll see. One tip is if this warranty came within the first year of purchase, maybe your realtor can help talk to the warranty company through any contacts they have as they probably have an ongoing business relationship with the company they are recommending to their buyers. Kind of long, but hope it helps others.
I was reading through other reviews & it reminded of another thing about my experience w First American and the WH. The initial plumber that came to diagnose the problem, misreported the problem and diagnosis. It took several discussions with both the plumbing company CSRs and educating First American CSR on the real problem which was covered. Shouldn’t have to be this way, but sometimes I guess it just is.
Prior to today, I would have recommended a Home Warranty. I’ve had a policy with Nations Residential Home Warranty for over 8 years. After today…save your money. Seriously…save the money you would pay the home warranty company and deposit it in a savings account. In the long run, you’ll come out ahead and with less grief. In 110-degree heat my a/c broke. Called on a Sunday morning, was told their a/c provider would call Monday. Talked to a/c provider on Monday, set up repair time for Tuesday afternoon. Repair took 1.5 hours to change fan motor, then 2 minutes to fuse the fan motor to the fan due to a warped fan housing. Now I’m told it will take 3-5 days to replace the warped fan housing. So right now we’re at 3 days with a/c (did I see the temperatures are 110?) and 3-5 more days to repair the problem…again. When I called the Home Warranty company to request assistance to accelerate the repair of the a/c, they reiterated that the repair would take 3-5 more days and that the Home Warranty company was not an emergency service. I can’t stress strongly enough: save the money you would pay a Home Warranty company — put it in a savings account. In the long run…less grief…more peace of mind.
People write reviews when things go wrong, and I am no different. Hope it will help somebody decide the right company. All home warranty companies seem to have no regulation in how they do service. BBB is not enough!
My experience with First American has not been very pleasant. Once for plumbing – a leak in the ceiling, they said the leak was in the shower and they do not cover. After a few weeks, when the leak worsened, we called an outside company and the leak was because of a different plumbing issue and we had to pay for plumbing as well repainting the ceiling. These companies do not take any responsibility if the contractor that they send is wrong.
My second experience was with my AC unit. They asked to get an invoice from an outside AC company to even decide if they should send their contractor, and when I got one (paid out of pocket), they said the invoice was missing some information and I was asked to get a detailed invoice again( pay again to some outside ac company).
You decide if you want to put your hard earned money with them.
Not a good company to have a home warranty with. They don’t care about repeat customers. They don’t understand the meaning of long term customer relationship. Really frustrated with their service team.
Would not reccommend one guard on my dog house, let alone my house. Our air conditioner went out on Oct 11, 2012, got in touch with one guard, was told somebody would be out on the 15th, had a friend who owns a Air Cond. business took him approx 1 hour to inspect, troubleshoot the problem, my wife and I decided to use our home warranty being that this is what we are paying for, bad move right there. Tech, arrives at the house for approx 4 hours, cannot fix or even find the cause of the problem, blows fuses, circut board, and god knows what else, call one guard, they sen top tec out the following morning, two hours latter, i am notified that my circut bord is what the problem is, Am told circut board will be in on Thursday A.M they will call me,2:00 pm rolls around no call, no circut board, no dam A/C i call them, response is oh we just got off the phone with the vendor, parts not in, truck is lost or some other B/S excuse, still no A/c,response will call you right back, no call back, i call them, parts not in, absolutly NO CUSTOMER SERVICE WHAT SO EVER. Finally at 4:00PM i get a call saying part is in, be there in about 2 hours to install, cant do that due to i work 2nd shift, told them to be at house first thin in the A.m. lets see what happens, would not reccommend this for anyone, not even my worst enemy, should have spent the money to have it fixed right the very first time, Talked to One guard customer service at 3:00, am told we will call you right back with a solution to your problem, here it is 4:30 and still no call back, imagine that, piss poor customer service.
Very useful comments. Our home was a resell and the sellers bought 2-10, and we filed several claims, very polite and prompt, but now price is doubled to renew. Any thoughts on AHS, I’ve had them in the past in CA, CO, and TX.
Thanks,