My First Property - AHS Warranty?

Question

I will be closing on my first property in less than a month and have been looking into getting an AHS home warranty. Does anyone have an opinion or experience they would like to share? Are they a reputable company/easy to work with? Are there any other companies I should look into for a warranty? Any input on this topic would be appreciated.

Debra Holmes · Answer

I have not had good experiences with AHS. I had it for 2 years on my first home and every time I had a problem with the HVAC- it was always something that was not covered or a quick fix was done and the unit still didn't function well. The unit was at least 25 years old. I eventually replaced it on my own. I had a problem with my water heater not heating and guess what? Once again- the problem was the result on a non covered issue. I ended up buying a new water heater because it was old and on it's last leg anyway. I decided not to deal with them ever again. Now it's several years later and my Realtor paid for AHS on a home I purchased as a rental property. I told her I wanted the heater either replaced or come up with some type of deal with the owner- but that didn't work out so instead of me walking away from the deal...my Realtor purchased the AHS for me knowing that I would need the boiler replaced. It worked for a few weeks last winter and eventually would not light up anymore. Now that it's getting cold outside I called tried to light the pilot without success so I called AHS.  The contractor said a new system is needed as this one was so old- they don't make parts for it anymore. Guess What?!?
AHS let me down once again. This time I was told that there is an upper limit on the replacement value and I would only receive 1/2 of the cost of a new boiler. Plus I had to pay not only the service fee but a diagnostic fee as well. 
All of this is in the very, very, very , very, very small fine print of the contract but NOT in the information provided when you first apply for the warranty.
Needless to say- I will not waste anymore money on AHS.

Dave W. · Answer

Excuse my ignorance, but what it AHS?

Ryan D · Answer

American Home Shield:

http://www.ahswarranty.com/

Dawn Vought · Answer

If your property is far away, it will probably be cheaper than paying your property manager to do the work.  It also depends on the current condition.  If you think there may be a lot of unknowns coming your way, I think it's a good idea.

I have it on my personal house, but have not had to use it yet.  An investor friend of mine had it on one of her rental houses (that was actually local to her), and they promptly replaced a Cental A/C unit (and changed the associated duct work to accommodate the new unit) without asking a question.

She can't say enough good things about the company.

Christian Malesic · Answer

First, make sure they apply in your case.  Is this YOUR home or as an investment?

Second, make sure you can hire the professionals YOU BELIEVE IN to fix issues which may arrise.

Third, look at the value.  Might it be better to set that money aside as a fix-it fund.  It is hard to advise you on the details, unless we know some of the details you are considering.

Generally, they are a good company (to my knowledge), though I would personally pass as I am very handy and have many contacts in the construction industry locally.  I would save the money.

Mark Brian · Answer

I used them for my personal residence. I can fix most things but looked at it as cheap insurance since it was an AS-IS REO. No power so I wasn't sure about HVAC, well pump, etc.

In general, I would use them as a selling tool to reassure potential buyers. I would not recommend for most investors to purchase a home warranty unless you are not capable of doing it yourself.