Home Warranty: Scam?

[jonnyGURU]

Some of you know that I bought my first house.

The house came with a warranty.

Well, it didn't COME with it. I know essentially I paid for it. Especially when I overpaid on my escrow by $20 and the Coldwell Banker agent stated that if I forked over $25, needing an additional $5, I could also get the washer and dryer covered by the home warranty.

Here's what I've found out in the first 3 months of my home ownership.

Pre-existing issues are not covered. Essentially, if it wasn't spotted during the home inspection. You're screwed! For example: If the wall in the bathroom has been filling up with water and JUST NOW started leaking out of the wall, it is not covered.

Plumbing is covered, but fixtures are not. So, if the faucet busts off and water squirts everywhere, you're screwed! But, if the pipe breaks, you're covered.

Secondary damages are not covered. The pipe bursts and water damages the wall. The plumbing is covered with a $35 deductable. The part to fix the plumbing costs only $2.50 and you can fix it yourself, but the water damage is up to $300 and warranty does not cover it. Home Owner's insurance covers it, but that has a $2000 deductable.

Can someone PLEASE tell me what this "warranty" is good for? I've never seen a "warranty" with so many loop holes!

 

[Ornery]

Thanks for the tip. I think when I sell my house, I'll look into offering that warranty. Probably doesn't cost much, since it doesn't seem to actually cover much. I have a feeling your homeowner's insurance will pick up where that one leaves off, minus your deductible.

I don't think auto warranties are much different. Everything you want them to fix turns out to be a "wear" item or some such :|

Oh well, treat your house like your computer. When something breaks, upgrade it. Plumbing ruins the bathroom, remodel it. Washing machine pukes, buy a better one. Water tank rusts through... new floor in the laundry and new tank. Like I said, your home owner's insurance may even help out there.

 

[yakko]

It is good for them making $25.

 

[sharkeeper]

<< Home Owner's insurance covers it, but that has a $2000 deductable >>




My gawd, I thought my $250 deductible was high! :Q

Cheers!

 

[purplehayes]

jonnyGURU - I bought through Coldwell-Banker 6 years ago and got the warranty. It saved me within the first year because the outside fan on the air conditioner died withing the first year and it was covered with only a $35 (I think) deductable.

You just have to wait until something breaks that is covered. Keep an eye out for things that look like they are on their last leg and then you'll know what to pray for!

Hang in there, homeownership beats the heck out of renting. Don't forget that whopping big tax break you'll get this year when you file for 2000. You'll feel much better after that.

PH

 

[jonnyGURU]

I'm pretty sure it's a $2000 deductable. Maybe it was $500. Crap. I don't remember. All I know is I don't have crap.

The roof is new, the AC is new, the water heater is not too old. Appliances are in check. Guess I'm pretty lucky. I've just had some plumbing issues piss me off and there isn't crap anyone will do for me.