The industry has a serious principal-agent problem. The repairmen want a short-term fix at minimal cost while you want a long-term fix. I'm told warranty companies will send different repair companies to a house on each call to avoid recommendations of more expensive repairs. For the repair guy contracted by a warranty company, the first time he goes out, he'll do the simple, obvious things like replace the freon. If he's called out to the same house a week later, he'll know that already didn't work and will try something else. But, when the warranty company sends a different company each time, they keep starting over. So, you can find a well-reputed company, and maybe even a company that doesn't do that service trick on purpose, but I think the incentives of the product aren't properly aligned. Warranty companies can't make money if you cost them more than you pay them -- the value prop they're offering is protection from cashflow shocks of having to suddenly buy a new HVAC one day by paying a little each month. Of course, hiring for repair as needed has incentive problems of its own. The repairman here is incented to do the biggest repair job possible to maximize the ticket. Of course, if its a company that wants your continued business over time, they might deal honestly with you to earn your loyalty. An alternative that might work for you is to let a company finance your A/C for you. It's a fairly new thing but some companies offer a lease-to-own arrangement that is essentially a 10-year loan. You could probably get a better rate with a home equity loan from a bank, but that may be more complicated too. But, it gives you the same benefit as a warranty -- cash flow certainty -- without making a bet on whether or not your AC will break. It's probably a bigger investment overall, but you'll also have a big, shiny new AC to show for it instead of some old junker limping along.
Here is how it worked out for me. Sun - I learn the AC is out. Mon - Schedule an AC company I trust to take a look + one from the warranty company. AC company I trust quotes $1800 for new compressor or $2200 to replace "the whole thing". Home warranty's repair company says they need to reschedule. Tue - They make it out, the unit "gets too hot", the tech cant inspect it as hoped. He thinks he can fix the compressor instead of replace it. Reschedules for Wed. Wed - Decides to replace compressor. Reports to warranty company and thinks it'll take 3-5 days to get clearance on the part. His mistake. The warranty company wanted it fixed asap. He schedules it for Friday since he left. Home warranty company offers $60/night or $1650 cash. Friday - It's fixed. I owe $185. Experience with the home warranty folks = A+. AC folks = D+.
Thanks Ziggy. Seems like you've had good luck with oneguard. Did you get the Essential or the Ultimate package?
Do any of y'all have recommendations for companies/websites where I can purchase a new central AC unit from? Parents house has been having issues with the AC unit for the last 2 years and of cos First American refuse to replace it, usual crap with the AC techs they send out. Blah blah blah. Thinking we'll just look for a unit ourselves, pay for it and then get rid of the SH!TTY First American warranty.
If you don't get a personal recommendation that you like, start your research by looking for a company that uses NATE certified techs. A NATE tech will have passed a level of competence that the majority of techs out there have not.
You can buy Goodman A/C units direct from factory in Houston. My A/C went out at my condo last summer, I paid $800 for a 14 seer unit, and paid a repairman $400 to put it in. I wouldn't have a home warranty for an A/C because of how cheap you can get Goodmans.
Hey "Svpernaut", where is the Goodman factory in Houston? Do you happen to have the address and phone number? Is it Greengrass drive or Overmyer drive or is it at another location? Thx
My independent HVAC technician bought it from them directly (I saw the invoice), not sure where he picked it up from exactly. There are all kinds of resellers in Houston, and if you find a 2-ton 14 seer for about $700 that's basically factory price.
For every happy ending story like ziggy's, there are a few other horror ugly endings dealing with warranty companies. Know what's covered and what's not.
yes it is just like a complicated contract or agreement. This is straight outta your wonderful OneGuard's agreement on ac coverage, which is 8 pages long by the way: AIR CONDITIONING & HEATING SYSTEM COVERED: Electric central air conditioning systems, gas or electric central heating systems, heat pumps, and mechanical parts thereof including: condenser*, evaporative coil, air handler and detached drain lines, ducted electric wall air conditioners, metering device (evaporative coil piston and thermal expansion valve), leaks in accessible refrigerant lines, evaporative coolers, baseboard heaters and radiators. NOT COVERED: Window units, portable units, chiller systems and chiller components, boiler systems, solar heating, fireplaces and key valves, radiant cable heat, heat lamps, humidifiers, standard or electronic filters, electronic air cleaners, computerized HVAC management systems or zone controllers, flues and vents, transitions, roof jacks or stands, maintenance, cleaning, problems caused by dirty and/or clogged coils, condenser casings, deionizers, registers, grills, pre-coolers, non-ducted wall units, condensate pans, condensate line stoppages, supply lines and valves external to unit, pads or pad frames, automatic or manual dampers, refrigerant recapture and disposal, air conditioning with improperly sized systems and structural modifications required in connection with any covered repair. LIMITS: $1,500 maximum for diagnosis, repair, or replacement of glycol, hydronic, steam, or geothermal heating systems. Note: This residential service contract covers air conditioning and heating systems with a capacity not exceeding 5 tons per unit. https://common.oneguardhomewarranty.com/RealEstate/PlansAndPrices/TX
I think I meant it isn't LIKE reading a long complicated contract, IT ISSSSSS one. Get it now? Seems to me the service provider just reports back to the home warranty company any way they can to make the process work. I've used them for several things now, saving me a ton. I'm sure they'll be replacing the fridge soon enough. LOVING the warranty. NEXT
Got a question for y'all re. home warranties in general. When your appliance- AC, Fridge, whatever, breaks down and you get the warranty company to send someone over to repair the appliance. At a certain point if the appliance can't be repaired further and the unit needs replacing, does your warranty company replace it with an equivalent unit or cut you a check for what's left of your deductible after the repairs by the technician that they sent?
Depends on the fine print. Read it. It’s tedious but you might learn that something is covered you didn’t know about and it could save you money in the future.
We paid the first $75. That covered any issue whether it was a repair or new appliance after repair (one time payment per appliance issue). As far as replacement, no they don't replace with "same item", it gets you a base replacement and you can pay the difference to upgrade. We got one free with our home purchase as the seller bought it for us but we are not renewing. Had an A/C issue and the hired contractor stated he wouldn't be able to show for 3 days. They wouldn't approve another company. Just wasn't worth it.
Home warranties are a crapshoot, and most people I've talked to have either a good experience or a really bad experience with them. Sometimes they send over some knucklehead that doesn't know what they're doing, or they'll do everything in their power not to "pay up" or cheap out. For example, they'll do the "we can send someone over but there's a 2 week wait" when your AC is out in 100 degree weather or they'll patch up something that obviously needs to be replaced. I've even seen people have stuff installed incorrectly or some kind of shoddy workmanship because the person they sent over just wanted to move onto the next site quickly to collect. I decided long ago not to get one. I had a repair guy tell me he had good experiences with OneGuard, but then I've had people who have had AHS swear they'll never use a home warranty again after using them, and others that say AHS is great. lol. A lot of this is just the luck of the draw and who they decide to send your way. Keep in mind you're also paying monthly for something you may never need for a while, if ever. For example, a lot of new AC units are covered by things like 10-year warranties.
We bought a house in July and the seller included a year with a company called Super. I've never had a good experience with a HW company, but figured why not since it wouldn't cost us anything. Our oven door wasn't closing all the way. Called the warranty company and they sent someone out in a few days. This guy told us the hinges would need to be replaced and, due to COVID, it would take 2 weeks for the parts to come in. Next day the warranty company calls my wife at work and tells her this wouldn't be covered because, technically, the oven still worked....it's just the door that won't close.... I called our local appliance guy, he came out the same day. He opened the oven, readjusted the bottom tray and the door closed perfectly. Took him all of 30 seconds. I told him I was embarrassed and he said it was the last appliance guy that should be embarrassed for not seeing the problem. So yeah....I STILL have never had a good experience with a HW company....
I've also not had a good experience with HW. Luckily when I bought my house, I was able to get the seller to apply the $550 they would've paid for a year of home warranty towards the closing cost of the house. In general, home warranty just isn't worth it for the hassle and hoops you have to go through to get quality service.
