Home Warranty (Specifically for AC)

I had American Home Shield for a while and had some A/C problems. Every fix we had would have run us about $300-$400 if we didn't have the warranty but never anything major. We paid $60 for the deductible, but it was small stuff like regulators and switches. They might give you trouble if you dont have it officially serviced every year. I had several of their A/C contractors come by over a 3-4 year span, some were really cool and others were a pain to deal with. One tech even offered to condemn my old unit (it still worked pretty well) so that it would be covered and we could get a new one. The only thing they ever actually completely replaced was our microwave (in the wall above the oven) and it was not a bad experience.

 

I have had AHS as well, and it just depends really. Basically, no one really wanted to find / fix the real problems, and we went through 2-3 years of ac going out, calling, paying the $75 service call or whatever (on top of monthly dues), and having them temporarily fix whatever the symptoms were .

A bit nightmarish, but it always worked better until the next symptom of the larger problems they weren't fixing. After replacing several blown capacitors and even a compressor, eventually we got someone who was willing to not only look into the source of the problem but to recommend replacement of the evaporator coils... which they did after so much trouble.

I don't know if you'd call it economical over the long haul, but it got us through when we should have probably been springing for a new system (and probably couldn't have very easily). We put up with our AC going out quite a bit for a while, but they did eventually replace the coils for a fair price (forget what the charge was). These days it is probably steeper, as I don't think they cover recharging old RF-22 systems anymore (ours was leaking and that stuff is getting expensive as those systems are being phased out.

Company was fine to deal with, (have dealt with them on other appliances too) just the contractors were not always encouraged to find the root of the real problem or replace things when they should, and came out with band-aids, dragging the problem out for longer than need be.

 

I have had allied for a couple of years. They replaced the fan motor each of the last two years until now finding the problem (i think/hope). I imagine it saved us a little on the motors but they are "saving" you from their own ridiculously high prices. I think it was around $180 with the deductible. Without the insurance they quoted something like $400 or $500.

It has paid for itself in other areas though. Got a $300 credit for a new washing machine after it went out. Also, paid the majority of the new water heater when it crapped out.

 

I moved into a house a month or so back. We have a home warranty through 2-10. Of course, AC unit breaks 2 days after moving in. With 3 kids mind you. In early July. So I call 2-10, and they are pretty quick. It was later in the day when I called, and we have ceiling fans, so I said not life and death. Guy comes in the morning, fixes it in 30 minutes, $60 "co-pay" and off he goes. By afternoon, stops working. Call guy back, he comes back the next day, fixes something else, works again, early evening it stops. At least I didn't have to repay the $60 co-pay. This happens one more time until the guy gives up and basically says your stuff is old... which is fine, it was old, and i knew that from the home inspection report pre-closing on the house. He says he'll put in the order for the replacement. I say ok. But this is Saturday now. 2-10 doesn't get the order until LATE MONDAY. Why, because they're slow and I have to call early afternoon Monday to push them. They put the order in...

... but say it might take a few days. By Tuesday morning, after about a week of no A/C... I'm getting kind of tired. I call 2-10 back for an update, they route me through 3 or 4 people, finally get an update. Now I start asking logical questions. What exact hit are they ordering, etc. Also, I have to pay about $200 out of pocket for things that aren't covered.

Well of course they are replacing with the cheapest "new" condenser they can find. Another day passes and I give up. I call 2-10 back, and b****, and they mention a buy-out option, where they'll write me check for the portion they would cover and I can go my own way. I jump on that. Of course, they're portion is like $870. I say are you sure, because $1,070 (my $200 plus they're $870) seems a little light for parts and labor ... but they say yes. I say whatever, cut me the check.

I went to yelp and called the highest ranked A/C place and left a message. They called me back in 20 minutes. Came out, did a "little" upselling but it was needed... the unit was 20 years old and the house had been expanded a little over the 20 years and a 2 ton unit was kind of small. They did NOT upsell me for crazy seer rating. Just standard 14 I think... which made me feel good about the company... all the articles out there basically say there is no return in crazy high SEER... upfront cost is too much. But since i need more tonnage, and because they show me how the furnace inside is also equally old and putting an new condenser on will work, but the furnace will ultimately have to be replaced, and you save by doing them both at once since they don't have to come back out with crew, etc... well I ended up increasing my tonnage and doing a new furnace as well with a whole-house filter up there, too. They finished about 8:30 pm that day.

Yes, I spent a lot more than I would have if I just let the home warranty fix it. But a week+ later, for one, I didn't care, and for two, I probably ultimately spent less, given I ended up with a much better product.

And finally I did get the buyout. HOWEVER, still waiting on the check to arrive. They did say it would take a few weeks... but I do need to call back to check on it.

Long-story short, it's worth it, but expect A LOT of managing and headaches, and consider the "buy-out" approach every time, if something is in need of replacement... and just get the product and service you want from someone trustworthy.

 

I'm in the same boat with Old Republic. They'll usually try to find the cheapest way possible to fix something. It's sometimes annoying, but it has saved me literally thousands of dollars over the years (even accounting for the annual renewal fee and deductibles) in a replacement water heater, AC unit, and a few other minor things.

 

Old Republic Platinum FTW. Had them with my last house, ended up replacing my entire AC system, inside and out, for about $1200 out of pocket. Also dishwasher, garbage disposal and two garage door openers.

New house- new hot water heater, garage door opener repairs, and three plumbing calls.

Great service.

 

My parents had a home warranty, and still just had to pay out of pocket over 10 grand for a new A/C. Apparently the standard warranties don't cover it if you need a whole new system. I previously had a home warranty, and when my A/C went out the home warranty repairman said it would be 4 days before someone could come out. I ended up just calling someone else, because no way in hell was I waiting 4 days in July with no A/C. I think they're a huge rip off, and will never purchase one again.

 

I will find out. It definitely wasn't poor upkeep. They ended up having to replace the unit after the warranty repair had been out there 5-6 times in the years leading up to it, each time claiming it was a different part that had to be replaced or repaired. I think the house was built around 2003.

 

Warranty work will replace the broken parts because that is the cheapest solution short term. You will almost never get a new system even though that may be the logical solution long term. When you have a 1 year relationship with a company, short term is what they look at.

 

I got one on a rental property. Went into it feeling like what they offered on the AC was pretty weak. I wouldn't expect them to cover a new unit, I'd cross my fingers, but wouldn't expect it... aside from that, they cover a decent number of items that I would like to address. And I don't need any of those things rushed.

If I lived in the home I probably wouldn't bother with it. Maybe for a year, get things straight, then cancel.

 

You haven't done your homework. Not all home warranties are the same, just as with any other competing product. You can pay a bit more for better coverage. Just because your folks got screwed by company X doesn't mean that company Y isn't vastly superior. Buyer beware and be an educated consumer- a few hours of research and reading policies and reviews can save you five figures.

Also when my AC went out, it took a week to get it replaced. I bought a window unit for a couple hundred dollars and my family camped out in the master bedroom. I then sold it for a good price. If you're smart there are alternatives to being miserable. That's true of almost any situation.

The part about only replacing parts is not true at all. As posted above it depends on what you're paying for. There are options out there. Also, the competition in the Home Warranty field is very steep. As with any company that has a brand and has competition, they need to think beyond short term- their brand and reputation is everything. These businesses (or any, for that matter), wouldn't be able to keep their doors open if they neglected these things.

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As with anything else you pay for, Home Warranties are a tool and you need to know how to use them to maximize value. If you buy them and don't use them, it's the purchaser who is failing, not the company.

 

I'm glad your situation worked out, but your's is far from the norm.

The replacing parts is true. It's a business. If an old fan motor goes out, they replace the motor, not all the other parts which are old but still working. Now if they can't replace the part, then you can get lucky and get more. You can also get lucky if your part cost more than the replacement cost (usually not true for AC work). But a warranties business is to repair, not upscale you on the cheap if something goes out.

 

bottomline, for most, it's a scam or ripoff. Try it for a year and you'll realize aint worth the 400, 500 a year and 70+ bucks each time, not to mention you have to read the fine print to see what's covered and what's not, it's like reading a long complicated contract.

 

It isn't like reading a long complicated contract, it is one. Just like any other insurance agreement.

Mine covers a lot more than the AC. For me, in a rental property, it made sense.

 

Lulz. AC went out on my tenants (I was expecting it to go out soon). We'll see what happens.

 

Waste of money. Save the premium.

 

I have OneGuard. Looked at Angie's List today, it's rated pretty damn highly.

 

I've had Allied for about three years. The first year I had it my A/C completely gave out. I paid $1,200 out of pocket for an $8k job. I'm in a condo so the unit was on the roof, it required renting a crane to take out the old one and install the new one, big big job.

I only used it a couple of times after that one job, but it's practically paid for itself for the next ten years. I like to keep it in case something major happens again.