Is a home warranty worth it? Or just extra money if you are already paying for homeowners insurance?

Home warranties cover systems such as plumbing, electrical, HVAC, and appliances. This is totally different from your homeowners insurance which covers hazards such as wind, hail, and fire.

Many of my clients have benefited from having a home warranty by Old Republic.

If you think your ACs are end of life, maybe. Also if you have a lot of expensive appliances. You do have to be willing to put up with crappy service, not always at fault of the service men. Basically, the warranty likes to patch things as long as they can. Fine, but eventually they will pay for an entirely new system.

Example, we've gotten multiple ACs, $3K ice maker, $3K range, dryer, dish washer - across multiple homes…

Premium said:

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If you think your ACs are end of life, maybe. Also if you have a lot of expensive appliances. You do have to be willing to put up with crappy service, not always at fault of the service men. Basically, the warranty likes to patch things as long as they can. Fine, but eventually they will pay for an entirely new system.

Example, we've gotten multiple ACs, $3K ice maker, $3K range, dryer, dish washer - across multiple homes…

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If you got not so flexible income, an old house, not in the market for buying new when stuff breaks and can't fix stuff yourself very well, then it's great.

AgStuckinLBK said:

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Premium said:

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If you think your ACs are end of life, maybe. Also if you have a lot of expensive appliances. You do have to be willing to put up with crappy service, not always at fault of the service men. Basically, the warranty likes to patch things as long as they can. Fine, but eventually they will pay for an entirely new system.

Example, we've gotten multiple ACs, $3K ice maker, $3K range, dryer, dish washer - across multiple homes…

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If you got not so flexible income, an old house, not in the market for buying new when stuff breaks and can't fix stuff yourself very well, then it's great.

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Damn good advice by AgStuckinLBK. The very simple answer is that home warranty companies are NOT making the profits they do by the majority of folks having a positive experience with claims - whether its a denial of claim, high deductible, non-covered items, etc.

Having one paid for by the seller in the first year makes sense to me as you are new to the home, likely used cash reserves to buy / furnish the new house.

You will be at the bottom of the list of the bottom of the contractor pool, and thats even if they entertain a claim. You also have to factor in the hassle factor in dealing with a warranty provider whose entire existence is to take in as much money whilst paying the least in claims.

I have heard unicorn stories as Premium describes, but that is absolutely not the normal. If you have good luck in claims being approved and /or have time to diligently hunt down and have battle with the warranty company, then great.

Remember that some people will make 10 trips to Vegas and come back a winner every time. And those folks will generally be the ones sharing their stories. But they did not build those hotels and casinos by losing money to the players. Most people lose on the home warranty than win.