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Updated 11 months ago on . Most recent reply

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24
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Home warranty...scams or helpful?

Posted

Hey there, 

I've been house hacking for a year, which has been great, but I've had a few issues with the house. I need to fix the garage, garbage disposal, and there's possibly mold in the attic (don't know how true this is since the guy who cleared my vents was getting me to purchase his service for $2k). My realtor recommended I get a home warranty to protect against issues that could cost me $1000s of dollars. While my home is new, I'd like to maintain it well, and I plan to do this with all of my properties because I like taking care of my possessions. 

Any thoughts and recommendations on home warranties in Austin or Texas in general? I was recommended to get the Sears home warranty since it's more affordable and more effective, but I'd like any help in this department. 

Thank you!

Most Popular Reply

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9,155
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Drew Sygit
#1 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
5,825
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9,155
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Drew Sygit
#1 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
Replied

@Simone Montague-Jackson agree with @Charles Carillo and @Jordan Moorhead, that they aren't what the marketing hype claims.

Insurance companies are in business to make money, which requires them to have a hard stance on claims and incentivizes them to deny as many claims as possible.

In our opinion and 24 years of observations, it worse with warranty insurance products!

Can't think of one time, in last 24 years, that a home warranty has actually paid out a claim. Their systems are set up to "deliberately" delay claim filings, supporting service calls, claim approvals and scheduling actual work - such that an owner is usually forced to fix an issue to keep a tenant happy or for property preservation. This typically voids the coverage and the claim is then "conveniently" denied.

Check out what the nonprofit, Consumers Reports has to say about them:

https://www.consumerreports.org/buying-a-home/what-to-know-a...

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Logical Property Management.
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