OneGuard has saved me over $3,000 already (so... not a scam). Easy to work with, attentive customer service. Just don't expect repairs to be completed efficiently or very fast. I recommend them. Just make sure you read and understand what you're getting.
One of the house I bought came with a home warranty. I had to use them. They hired the cheapest contractor who did quick and sloppy work. I had other things go wrong, but I made my own arrangements. The next house I bought came with a home warranty. I threw away the policy after closing. Life is too short. IIRC home warranty policies exclude major things like electrical problems. Replacing a garbage diposal is an electrical problem not a plumbing problem, even though a plumber is the one who will fix it. All in all, a full blown scam.
The seller's realtor puts it into the contract, since the buyer's realtor demands it. The realtors are just covering their asses.
I also had a home warranty when I bought my last house. American Home Shield I believe. They replaced part of an A/C unit, which would have been very expensive. However, the installers were terrible, and damaged my ceiling in the process. I had to hire another company to come back and fix the mess from the home warranty company. It was probably worth it for the parts, but not worth it for the labor.
Responses in this thread so far capture the effectiveness of home warranty providers IMO: 1 person had good experience while 3 didn't. Personally I chose to not get one but I have heard of cases where having one was very helpful.
Never used it myself, but a friend of mine used it to repair his air conditioner and replace a hot water heater on an older home that he purchased. Seemed like a good deal to me.
make sure to cancel it once it's over. put your monthly fees to a black box and open it when you need it for repairs.
Old Republic always provided me great service. I kept it well past the first year in my last house because the a/c was 16 years old. While I never had to use it to replace the a/c, it did help cover many other issues we had. Paid for itself a few times over. If you're buying an older house, I'd suggest it.
Another vote for Old Republic. Had them for two 20-year-old houses, paid off in spades. New AC, Dishwashers, garage door openers, plumbing issues, hot water heaters, etc, etc.
Another vote for Old Republic. We've had them for about 8 months so far, and they've done a good job, never asking questions trying to get out of doing the work. Replaced the electrical part of the dishwasher (where all the buttons are), they also fixed our garage door (although they had to come out twice). So far that's it, but it's good to know they're there, just in case. Also, be sure to read everything in the policy before you sign up, there's quite a few things you have to add on the side, even if you go with the more expensive policy. Edit: also, it's $60 each time they come out.
I forgot, when I complained about the A/C, American Home Shield sent someone out who said it wasn't a problem. I had to pay a different contractor to come out and demonstrate right in front of the AHS contractor that there was a leak. Only then did they replace the part. Each visit I had to pay AHS and also the competent contractor. I don't remember what the parts would have cost me, so I'm not sure if I saved any money by using the home warranty. But I was very unimpressed with the quality of the contractors AHS sent out.
I have American Home Shield, and I've had to use the service only once, for a leak in my ac drain pan. The contractor was very responsive, did a bang-up job, and worked quickly within my schedule. I think home warranties, as with many other services, are very hit or miss. It largely comes down to whether or not they send a contractor who is competent. But, honestly, you'll run into the same issue contacting some random contractor via Yelp. Only difference is, that way, you get to pick and choose the contractor. Downside: you'll probably pay more.
I had a contractor come out for my hot water heater and the guy tried to tell me that the rust color in the hot water was from the brass pipes. I told him he was full of crap and to replace the heater. As with anything else, it's buyer beware, smart consumer wins. I suppose this guy might have been hourly or may have made more money per hour blowing me off ($60 trade fee) than replacing the heater.
I have AHS also with mixed results. My house is old so I have used the service ten times or more. In most cases, I was disappointed by one or both of the service person who came out or AHS itself. I actually decided to cancel the service last week and this thread has reminded to pick up the phone and take care of that.
I use Allied Home Warranty and I'm very happy with it. I've used it to make repairs to my washing machine, refrigerator, oven, and most significantly, a new AC unit that would've cost me thousands if I didn't have it. It's paid for itself ten times over for me by now.
I've used Old Republic for almost 15 years now, and it's generally been a good experience for me. As mentioned previously, there are times when service has been really good and other times when it's been pretty shoddy - but that's typically dependent on the contractor that gets assigned to the service call. But it's no different than trying to find a good contractor on your own. Additionally, if you have a contractor that you like, you can specifically request them and if they're not on the warranty company's preferred vendor list, they'll attempt to add them. Having said all of that, they will try to repair it the cheapest way possible, and they can slow things down since the contractor may have to get additional approval to replace a part. But I know next to nothing about home repair and it's been a net positive for me over the long haul. I've had several major repairs done (hot water heater, A/C unit) and many minor ones, and it's been both a financial and stress-relieving benefit.
In Minnesota, Home Service Plus is great. My parents had AHS in Houston and it was not worth the money they spent. Nothing was ever completely covered and it seems they always had to pay a deductible.
