Got this in the mail with my mortgage payment
This company offers for 324.00 yr. or 27.00 per month
to fix these items or replace for a 45.00 initial service
call fee.
Heating system
heat pump
ductwork
plumbing sys.
plumbing stoppage
sump pump
toilet tanks and bowls
built-in whirlpool motor and pump
electrical sys.
water heater
range/oven
cooktop
dishwasher
built-in-microwave
garbage disposal
ceiling fans
exhaust fans
and for an additonal 11.00 a month they will cover these items
central a/c
kitchen ref.
garage door opener
clothes dryer
clothes washer
They say they are able to take your service request 24/7 and
have a licensed prof. to call you within 4 hrs to set up a service time.
I can cancel at any time, and does not cover pre-existing conditions
Does anybody have any experience with this type home warranty?
If so is it worth it or a sham, you know what they say
“if its sounds to good to be true, it probably is”
Edited 4/30/2005 5:53 pm ET by butch
Replies
^
Depends on the age of of your appliances. If you are expecting soemthing to "go up" in the next year, it might make sense. When you buy a house, sometimes the seller will pay for it for a year ot two, since you will probably be strapped for a while.
My house is 40 yrs old and the heater is original, so I'm expecting to have toreplace that at anytime. The a/c was addedon about 20 yrs ago.My main intent for posting this was to seeif anyone here has this type insurance and ifso, had they used it(made a claim).With the huge responces I'm getting it doesn't look like there are many here that have it.
One thing you need to look at is the details of the polices.They aren't really meant for "replacement" but rather breakdowns.Look for exclusion on "older" equipment. And the terms of replacement might only give you the depreciated value of like equipment in working order. So it would be very little on 20 yo AC and 40. furnace.Don't know if that policy has such terms or not. But that that is the type of exclusion that they have.As some one mentioned, they are basically designed for newly purchased homes so that the buyer does not get a hit the first year.I wonder what the renewal rate is. I suspect very low.
Thanks Bill, the only fine print they have is that the productin question should have some sort of mant. schedule,so if they come out and you haven't changed your filteron your furnace and it breaks down they won't cover it. But as far as I"ve seen there was no details on depreciationThey just have a repair/replace stipulation.
In my area home sellers usually purchase one as a selling aid. I told the seller they could drop it from the offer if the wanted to, but they kept it. The real estate firm had a financial interest in the warranty company.If you have older equipment, would you want it repaired? Or would you want to replace and upgrade? If you just want some piece of mind, maybe it is worth it. But most extended warranties have too many "outs" for my comfort level.
Not worth it. I suspect they make their money through realtors as a home selling aid. Read the fine print. No emergency response. You can't choose repair source. Has a deductible. So, when the furnace goes out on Saturday and it's ten below outside, what will be their value to you?
Alot if you get a furnace for the price of a deductable. You aren't gonna get a furnace replaced on a Saturday anyway unless you pay out the wazoo.
I don't know anything about the company. But I wouldn't let that kind of thinking cloud my decision.
Who Dares Wins!
Gunner,
You obviously haven't read their policy, so you're in left field with an opinion. The few people who've collected probably far out weigh those who have. It's like the Best Buy or Sears extended warranty -- the company makes the money overall.
They have rebuilt my 5 ton gas pack replacing several dif parts.rebuilt my washing machine 3 times before replacing it completely.my water heater twice been replaced twice,fixed 2 broke pipes.
My dishwasher is about to go so that will be next and my frig will need work on the ice maker all though I think there is an exclusion for ice makers.
They won't fix the well or septic system.
For me it has been well worth the money and I sure enjoy watching somebody else fix my stuff after fixing somebody elses all day.
ANDYSZ2I MAY DISAGREE WITH WHAT YOUR SAYING BUT I WILL DEFEND TO THE DEATH YOUR RIGHT TO SAY IT.
Remodeler/Punchout
Is the same company that I'm talking about(AHS)?Was your service call(deductible) 45.00?I see from your profile your in Memphis, what part are you working in?Thanks for your info, that is what I was looking for.
Yes the same company and yes 45$ deductible.
I own a small remodeling company work mainly in the Shady Grove area.
ANDYSZ2I MAY DISAGREE WITH WHAT YOUR SAYING BUT I WILL DEFEND TO THE DEATH YOUR RIGHT TO SAY IT.
Remodeler/Punchout
If you had to deal with the washing machine yourself, would you have repaired it three times before replacing it, or would you have replaced it at the first repair? This is my point about repairing old stuff. There was a cost to you (above the $45) in dealing with the repair (lost usage, contacting AHS, waiting for the repair person) I think they just try to get you past the warranty period, and only really knowledgable people can deduce whether they will make enough use of them to make it worthwhile, particularly regarding re-enrollment.
So far they paid for a new A/C unit, kitchen disposal and a water heater for me.
Might not be the best for everybody but they do pay off.
"Tell me again, Mr. Ledbetter. What's a Mississippi Flush and how's it beat this hand?
It's a small revolver and any five cards."
Thanks for that replyDo you have the same company?Was there a deductible?The deductible with this one is 45.00 service feeper occurrence
American Home Shield. They have a deductible, something like $45, I thought it was $50.
The condition is that the item had to be in working condition when the coverage was purchased. No big problem.
They have repair people they call. Won't pay for top line products but get pretty close to what you had, you can pay extra for an up grade.
They did pay off without a hassle for me.
They never tried to just repair something that needed to be replaced.
"Tell me again, Mr. Ledbetter. What's a Mississippi Flush and how's it beat this hand?It's a small revolver and any five cards."
Edited 5/2/2005 12:05 pm ET by intrepid_cat
I have them. It came with the house when we purchased it 2 years ago. The fan motor in the HVAC went out in the middle of winter. It was a 30 year old system and the motor had to be specially ordered at about $110, I paid the $45 deductible. It hasn't paid for itself, but it was better than paying for the motor and labor on an emergency call basis. They referred the call to a local contractor and they came out on a Sunday and did everything they could to fix the problem. Not sure if I will renew the policy, because of the cumulative cost. It may be better to simply self insure.Frank
Here in Southern California, realtors have begun offering American Homeshield as part of what they call a home Warranty. The only problem is that it simply is not. We bought our house with just such coverage and when we experienced a plumbing failure (the branch line to the kitchen rusted through) Homeshield dispatched some kinda trainee plumber and notified us that they would cover none of the bill because we had what they termed a pre-existing condition. I did a bit of snooping around and discovered that this is the standard response for every claim attempt. I don't just view their coverage as being not worth it, I think that it more closely resembles a crime. Try putting the same money in your own savings account.
I pretty much agree with the preceeding posts, this kind of insurance isn't worth it.
Insurance, by definition, protects against catestrophic loss. It should be an event that is unlikely, but financially devistating if it occurs, such as death, long term disability, personal liability or major health care needs. Well, nobody gets financially devistated if their water heater goes out or a pipe leaks. Ok, a few hundred bucks...but for most, that ain't devistating.
If it weren't for realtors, I don't think this kind of 'insurance' would exist.
BruceM
I have not had any problems with them trying to get out of doing the job.
Replacing my gas pack unit if it fails will be around 4 grand so I would consider it well worth it.
The washing machine was a cheap model that the repair man had fixed the bearings on twice and told me to ask for a replacement on the third tme they didn't cover the full cost on my upgrade to a set of maytags but close enough.
The pipe in my shower head broke off inside the nipple and was not suppose to be covered under warranty but the plumber fixed it anyway and wrote it up differently.
I guess it is where you live as to wether the repair companies that are sent out try to gouge you or not.
My dishwasher is on the way out and I will probably be replacing it in the next couple of years.
I would say that I am on the up side on my monthly payments verses work done and thats over a 10 year period plus One big repair cost could keep me ahead for 4-5 years so I think I will keep my warranty.
ANDYSZ2I MAY DISAGREE WITH WHAT YOUR SAYING BUT I WILL DEFEND TO THE DEATH YOUR RIGHT TO SAY IT.
Remodeler/Punchout