We cancelled our home warranty after the first year on our new house. The ac acted up and the kid that came out to look at it I had to show him how to read a wiring diagram. Our dryer's rear tub bearing went out, while the repair guy worked on it he shorted out the control board, that they replaced that but then would not work on the dryer anymore. It is cheaper to put 50 bucks in your savings account every month and then use that money when something happens to anything in your house.
If you knew how to read the wiring diagram better than the technician, why would you call the warranty company and pay the service fee? I admit the above may sound harsh, and that wasn't on purpose. The example I thought of is if you had a bad light switch, and you know how to do them, and a new switch is a few bucks at home depot, most people would (or should) just fix it rather than spend the $75 or $100 claim charge, just because you have a warranty.
Thanks for sharing. It almost takes an attorney general or contractor to sue them. If the homeowner doesn’t “opt out” of the arbitration clause in the contract, the homeowners waive their right to sue in small claims, class action or jury trial court. That kind of stuff written into a contract is shady business.
Thank you for the video. Many years ago, I bought an old house it came with a home warranty. One day I had a leaky faucet, so we called the company, and they sent a plumber to fix the leak. He came and changed a washer. We were charged $100. For each visit we were charged $100. A few days later, the faucet started leaking again. I took matters into my own hands and investigated. The internal of the faucet metal parts were worn out and chewing up the rubber washers. I replaced the faucet since it was a lot cheaper and there no parts available to fix the old faucet. Since then, I have decided never to deal with home warranty companies. Like they say if it's too good to be true then it probably is. Why would anyone accept all my expensive house equipment problems? Even my own family does not want to do that.
I had a technician once come out refuse to fix my heating because he was scared of crawl spaces. Left me without heating in one of the coldest years recorded
one guy suggested suing them, If a repair on a item is 3K file a lawsuit in small claims court, more in likely the warranty company will settle instead of trying to defend the case in court costing a lot of money
The company you mentioned that was being sued, has since changed their name to "RELY" and that is all that has changed. They are as slippery as snake oil... Yes the contractor still may or maynot get paid, I refuse to work for any of them because of the contractor reviews, ... Thank you for sharing!
Thanks for taking this time to do this video..we bought a new build home in 2022 and we have decided not to have home warranty because at the end if the day you are coming out of pocket regardless..its not right to pay monthly and on top of that now pay for them to come out and your deductible
Both times I bought a house my mortgage broker gave a free year of home warranty. Its just me but I never get extended warranties on anything and always come out ahead when doing the math especially when you can put that money in an interest bearing account.
I had a water heater go out on a purchased home and the last owner paid for a year warranty. I tried the warranty and they sketched me out. They said they would replace my broken heater but refused to tell me what they would replace it with. To quote: "we reserve the right to replace it with what we want" and they gave an open ended pocket book clause. 'You'll pay this much now, but if there is more found on installation the contractor will bill you more. I noped the FK right out and hired my own plumber. Seeing this vid, I'm glad I did.
As a long term plumbing, heating, AC contractor I agree wholly with how Born Handy has represented the realities encountered by both home owners and legitimate service contractors. It's generally a big mess & letdown with negative emotions after the facts. As to real estate agents, they really do not care at all. Nor do they want any honest assessments of the property prior to the sale. While home warranty inspections services are a separate business service I find their value on a scale of 1-10 at about 3. They do find some problems, but very very often ignore major issues. Don't want to kill the goose laying the golden egg. Mostly real estate sales tools. In that arena do yourself a favor by finding well qualified HVAC, Electrical, Plumbing, and other trades, pay them for an inspection. Likely they will give you very honest reports for a very good price. They value good customers & want long term healthy relationships based on good service.
Also stay away from auto warranty companies for the same reason. Warranty companies don't cover collateral damage. On a consumer afairs program, a transmission cooling line broke causing a loss of fluid and a destroyed transmission. The warranty company said that the cooling line caused the damage to the transmission and they'll only cover the cooling line. Another customer, same show, was denied coverage on his dishwasher - due to faulty maintenance. The consumer activist got that one reversed for him. I bought a new centgral air unit for my home. To keep the 10 year warranty in effect, I'd have to pay $65 for each of 2 visits a year for their technician to do a systems check for heating (winter) and cooling (summer). Guaranteed to cost more for "more freon". Maybe I was an exception, but I never had anyone do a systems check in those 10 years. Saved over $1,300. It finally faild about 6 months after the warranty would have ran out. Cost me $465 to get it fixed. Do the math. By the time you pay for the monthly premiums, plus the co-pay on uncovered items and shop supplies, you could have saved youir money and paid out of pocket, probably cheaper. How can any warranty company issue a policy without checking or knowing the condition of the item they are covering?
The company your were referring to in denying AC repairs is Choice Home Warrenty ! I have been dealing with exactly what I am dealing with on my AC unit! Everything you said is exactly the same reason they are denying ! Don’t know if I can win but I am taking them to Small Claims court ! I just paid $10,000 for a new unit being installed next week! They denied first clone service valve not covered. We paid to have the leak fixed .They gave me $500. Even though it wasn’t covered. Broke down again in 3 weeks . Compressor is no good! Denied as we continued to use the unit and burned up the compressor . The unit was unplugged until the leak was fixed. Going to try we will see how it works out. I am also calling the insurance commissioner.
My personal experience with a home warranty company was calling them out to fix a refrigerator. Tech came out, put a new evaporator fan in, and charged me a $99 deductible... Fast forward a few months and the same part fails again. This time, rather than take a day off of work and wait around to pay someone $100, I decide to replace it myself for about $30... I tear it all down and discover a kernel of corn obstructing the defrost drain, which was causing it ice over and seize the fan. This was incredibly obvious once I got there. So... After throwing out 2 refrigerator loads of food, a vacation day, and $130, I finally got the actual problem fixed. Obviously it wasn't worth it to me to renew the policy... and yes, my warranty was included with the sale of what turned out to be a junk home. 🙄
@@eheheh3263 Yes, and yes it was. 🤣 It's a long, long, story but the short version can by summarized as: The new owner works in construction, his father owns a construction business, and after almost 6 years the house is still being repaired from problems it had 10 years before that on the day I bought it. I, unknown to me until it was too late, bought it from a "flipper" who did the worst work imaginable, hid everything they could, and had 2 realtors willing to tell me every half truth possible right up to the edge of what was legal. If they had included just _one_ additional picture in the listing photos I would have sued them (another long story). I lost about 60% of my money on it when I sold it, but I sold it honestly. I would have lost as much, if not more, by repairing the issues myself... plus the headaches. I'm still glad it's gone. 😁
@@wendyjin1424 I can fix literally anything myself if I should choose to do so. That doesn't at all change my experience with the warranty companies being a pretty large waste of time and money.
100% agree with this video. I had a horrible experience with AHS and it was my realtor that recommended them. I tried select after. They weren’t as bad but definitely not worth it. I like they concept of home warranty but don’t trust any of these companies to operate with business ethics.
A salesperson has been trying to convince one of my siblings to sign up for a home warranty and I have been trying to explain the negatives. I have repaired their appliances before. They seem pretty hooked by what the salesperson has told them. It is sad.
As a witness to a company I worked for, the reason why there's so many positive reviews is that their own employees go on and post bogus reviews to make it look like their 5 stars. But this is just mere speculation on my party what these Home Warranty cvompanies MIGHT be doing. I never give a 5 star review as there's ALWAYS something that can be improved on.
Every homeowner should budget for repairs. My rule of thumb is to annually budget 2% of the home's value for repairs and maintenance. If your home is worth $400K, then you should be putting $8K aside every year, that's $666/month, or $153/week. Forget the home warranty and extended warranty on appliances. Eventually when the AC fails, and it will, and the house needs painting, and it will, there's money ready to pay for it. If you can't afford to budget for repairs, then you can't afford the house, buy less expensive. Bring on the haters!
You probably have a good income if you put $8k aside a year probably after you maxed out at 401k, otherwise I don't see why I would just block $8k from depreciating due to inflation year over year
@@car9167 The $8K in the example above is not for depreciation, it is for maintenance and repairs. If you can't afford to put enough aside for this, then you need a less expensive house. Otherwise you will eventually have a house being destroyed by a leaking roof because you can't afford to fix the roof when it starts leaking. If you say "I'll get a loan for the roof", how will you afford the loan payments, and still repair the water heater when it goes, and the refrigerator when it quits. All of these things, and more, will fail at some point in time.
@@SpynCycle57 Fair enough. I went with AHS and my external compressor broke so I spent the time to find what I need to have to be compliant so they don't reject my claim and I ended up paying some $200 for the external compressor but yes they checked all sorts of things like the pad leveling, the outside breaker box, the caps on the refrigerant lines,etc. I made sure I have those compliant before calling them. So for me at least in this case saved me money
@@car9167 Sounds like you, or someone you know, went through a claim and got denied. What I posted is "my" rule of thumb. It's worked well for me. Others have their own ideas. I'm probably over budgeting, but better to have unspent money than not enough, again my philosophy.
Do I need to renew my home warranty if I am applying for a deed in lieu of foreclosure? My house has a few problems but I am soon returning the house back to the bank so do I still need home warranty?
I already added 2 more and this is directly/indirectly implied in 1 of them but this could be a stand-alone reason. Since the warranty company's contractor is going to jack-up their estimate to cover the "reimbursement" from the warranty, you're going to pay much more "net" for the same repair/replacement to a shyster contractor who IS IN the warranty company's pocket than you would have just paying a reputable contractor who IS NOT. It's like getting a big discount on a new car but getting peanuts for your trade-in to more than cover the discount. HOME WARRANTY SHELL GAME...WANNA PLAY?
Thanks for this great info one question if you're purchasing a a home with appliances and air conditioner being 20 years old can a home warranty be good in this instance?
There is one home warranty company that does great work and abides by the customer, Americas Preferred Home Warranty company, would be my best recommendation. They allow the homeowner to choose a local licensed contractor to come and inspect the issue, and even do the work on the spot if they can accept credit card over the phone and it is a covered repair! My brother had them and he swears up and down about how great they handled every situation he had.
I met a property manager who has been using Old Republic home warranty for 30 years and he has been happy with them. Anyone familiar with that company?
The truth is not all Home Warranties are the same. I have used 4 different ones over the last 10 years. There is one that I have renewed 2 times on the house that I live in now. I will not touch any others. Also, if you have a preference of which service tech to use, mine allows me to pick the one you want as long as they are on their approved list. I have 2 HVAC\Heat Pump units in my house replaced, a water heater replaced, an outside hose bib in wall leak fixed, and a 220 electrical line replaced as well. The money I spent on the home warranty has paid off for me. Your mileage may vary
I'm not sure there is a "one size fits all" answer for that. I just know that as a general rule, home warranty companies are looking for any excuse to deny claims, but are happy to take your payments.
We cancelled our home warranty after the first year on our new house. The ac acted up and the kid that came out to look at it I had to show him how to read a wiring diagram. Our dryer's rear tub bearing went out, while the repair guy worked on it he shorted out the control board, that they replaced that but then would not work on the dryer anymore. It is cheaper to put 50 bucks in your savings account every month and then use that money when something happens to anything in your house.
If you knew how to read the wiring diagram better than the technician, why would you call the warranty company and pay the service fee?
I admit the above may sound harsh, and that wasn't on purpose. The example I thought of is if you had a bad light switch, and you know how to do them, and a new switch is a few bucks at home depot, most people would (or should) just fix it rather than spend the $75 or $100 claim charge, just because you have a warranty.
We got an ad for one of these companies today. We figured it was a scam but thank you for the details.
ALL insurance is a scam.
Save your own emergency fund money and you'll have more of it.
Thanks for sharing. It almost takes an attorney general or contractor to sue them. If the homeowner doesn’t “opt out” of the arbitration clause in the contract, the homeowners waive their right to sue in small claims, class action or jury trial court. That kind of stuff written into a contract is shady business.
Thank you for the video. Many years ago, I bought an old house it came with a home warranty. One day I had a leaky faucet, so we called the company, and they sent a plumber to fix the leak. He came and changed a washer. We were charged $100. For each visit we were charged $100. A few days later, the faucet started leaking again. I took matters into my own hands and investigated. The internal of the faucet metal parts were worn out and chewing up the rubber washers. I replaced the faucet since it was a lot cheaper and there no parts available to fix the old faucet. Since then, I have decided never to deal with home warranty companies. Like they say if it's too good to be true then it probably is. Why would anyone accept all my expensive house equipment problems? Even my own family does not want to do that.
I'm a retired A/C contractor, every word he speaks it true. A.H.S use to and might still have videos for contractor on how to deny claims.
I had a technician once come out refuse to fix my heating because he was scared of crawl spaces. Left me without heating in one of the coldest years recorded
one guy suggested suing them, If a repair on a item is 3K file a lawsuit in small claims court, more in likely the warranty company will settle instead of trying to defend the case in court costing a lot of money
Thank you for your honest video. I was about to renew the warranty and you made aware the quality of service they will provide. Thanks
The company you mentioned that was being sued, has since changed their name to "RELY" and that is all that has changed. They are as slippery as snake oil...
Yes the contractor still may or maynot get paid, I refuse to work for any of them because of the contractor reviews, ... Thank you for sharing!
Thanks for taking this time to do this video..we bought a new build home in 2022 and we have decided not to have home warranty because at the end if the day you are coming out of pocket regardless..its not right to pay monthly and on top of that now pay for them to come out and your deductible
Both times I bought a house my mortgage broker gave a free year of home warranty. Its just me but I never get extended warranties on anything and always come out ahead when doing the math especially when you can put that money in an interest bearing account.
I agree 100%.
I had a water heater go out on a purchased home and the last owner paid for a year warranty. I tried the warranty and they sketched me out. They said they would replace my broken heater but refused to tell me what they would replace it with. To quote: "we reserve the right to replace it with what we want" and they gave an open ended pocket book clause. 'You'll pay this much now, but if there is more found on installation the contractor will bill you more. I noped the FK right out and hired my own plumber. Seeing this vid, I'm glad I did.
American home warranty opps sounds familiar.
As a long term plumbing, heating, AC contractor I agree wholly with how Born Handy has represented the realities encountered by both home owners and legitimate service contractors. It's generally a big mess & letdown with negative emotions after the facts. As to real estate agents, they really do not care at all. Nor do they want any honest assessments of the property prior to the sale. While home warranty inspections services are a separate business service I find their value on a scale of 1-10 at about 3. They do find some problems, but very very often ignore major issues. Don't want to kill the goose laying the golden egg. Mostly real estate sales tools. In that arena do yourself a favor by finding well qualified HVAC, Electrical, Plumbing, and other trades, pay them for an inspection. Likely they will give you very honest reports for a very good price. They value good customers & want long term healthy relationships based on good service.
Also stay away from auto warranty companies for the same reason. Warranty companies don't cover collateral damage. On a consumer afairs program, a transmission cooling line broke causing a loss of fluid and a destroyed transmission. The warranty company said that the cooling line caused the damage to the transmission and they'll only cover the cooling line. Another customer, same show, was denied coverage on his dishwasher - due to faulty maintenance. The consumer activist got that one reversed for him.
I bought a new centgral air unit for my home. To keep the 10 year warranty in effect, I'd have to pay $65 for each of 2 visits a year for their technician to do a systems check for heating (winter) and cooling (summer). Guaranteed to cost more for "more freon". Maybe I was an exception, but I never had anyone do a systems check in those 10 years. Saved over $1,300. It finally faild about 6 months after the warranty would have ran out. Cost me $465 to get it fixed. Do the math.
By the time you pay for the monthly premiums, plus the co-pay on uncovered items and shop supplies, you could have saved youir money and paid out of pocket, probably cheaper. How can any warranty company issue a policy without checking or knowing the condition of the item they are covering?
I knew it was all too good to be true.
I subscribed because your videos have very useful information, thank you.
The company your were referring to in denying AC repairs is Choice Home Warrenty ! I have been dealing with exactly what I am dealing with on my AC unit! Everything you said is exactly the same reason they are denying ! Don’t know if I can win but I am taking them to Small Claims court ! I just paid $10,000 for a new unit being installed next week! They denied first clone service valve not covered. We paid to have the leak fixed .They gave me $500. Even though it wasn’t covered. Broke down again in 3 weeks . Compressor is no good! Denied as we continued to use the unit and burned up the compressor . The unit was unplugged until the leak was fixed. Going to try we will see how it works out. I am also calling the insurance commissioner.
I would encourage you to reach out to your state's attorney general as well. Best of luck.
Thanks for the video.
Thank you! Everything you said is true!
Thank you!
My personal experience with a home warranty company was calling them out to fix a refrigerator. Tech came out, put a new evaporator fan in, and charged me a $99 deductible... Fast forward a few months and the same part fails again. This time, rather than take a day off of work and wait around to pay someone $100, I decide to replace it myself for about $30... I tear it all down and discover a kernel of corn obstructing the defrost drain, which was causing it ice over and seize the fan. This was incredibly obvious once I got there.
So... After throwing out 2 refrigerator loads of food, a vacation day, and $130, I finally got the actual problem fixed. Obviously it wasn't worth it to me to renew the policy... and yes, my warranty was included with the sale of what turned out to be a junk home. 🙄
Junk home??? Did your home turned out to have a lot of problems? Just curious because that would be a nightmare
@@eheheh3263 Yes, and yes it was. 🤣
It's a long, long, story but the short version can by summarized as: The new owner works in construction, his father owns a construction business, and after almost 6 years the house is still being repaired from problems it had 10 years before that on the day I bought it.
I, unknown to me until it was too late, bought it from a "flipper" who did the worst work imaginable, hid everything they could, and had 2 realtors willing to tell me every half truth possible right up to the edge of what was legal. If they had included just _one_ additional picture in the listing photos I would have sued them (another long story). I lost about 60% of my money on it when I sold it, but I sold it honestly. I would have lost as much, if not more, by repairing the issues myself... plus the headaches. I'm still glad it's gone. 😁
Home warranty is used for the big problems that you can not fix yourself.
@@wendyjin1424 I can fix literally anything myself if I should choose to do so. That doesn't at all change my experience with the warranty companies being a pretty large waste of time and money.
100% agree with this video. I had a horrible experience with AHS and it was my realtor that recommended them. I tried select after. They weren’t as bad but definitely not worth it. I like they concept of home warranty but don’t trust any of these companies to operate with business ethics.
Some states are having class action lawsuits realtors are getting kick backs from them which is illegal
A salesperson has been trying to convince one of my siblings to sign up for a home warranty and I have been trying to explain the negatives. I have repaired their appliances before. They seem pretty hooked by what the salesperson has told them. It is sad.
I do HVAC as well and I agree 💯
Thanks for chiming in.
Auto and home owner’s’ insurance will make money as well. But people still feel more secure to have one than don’t have.
As a witness to a company I worked for, the reason why there's so many positive reviews is that their own employees go on and post bogus reviews to make it look like their 5 stars. But this is just mere speculation on my party what these Home Warranty cvompanies MIGHT be doing. I never give a 5 star review as there's ALWAYS something that can be improved on.
Shysters 🤬
Every homeowner should budget for repairs. My rule of thumb is to annually budget 2% of the home's value for repairs and maintenance. If your home is worth $400K, then you should be putting $8K aside every year, that's $666/month, or $153/week. Forget the home warranty and extended warranty on appliances. Eventually when the AC fails, and it will, and the house needs painting, and it will, there's money ready to pay for it. If you can't afford to budget for repairs, then you can't afford the house, buy less expensive. Bring on the haters!
You probably have a good income if you put $8k aside a year probably after you maxed out at 401k, otherwise I don't see why I would just block $8k from depreciating due to inflation year over year
@@car9167 The $8K in the example above is not for depreciation, it is for maintenance and repairs. If you can't afford to put enough aside for this, then you need a less expensive house. Otherwise you will eventually have a house being destroyed by a leaking roof because you can't afford to fix the roof when it starts leaking. If you say "I'll get a loan for the roof", how will you afford the loan payments, and still repair the water heater when it goes, and the refrigerator when it quits. All of these things, and more, will fail at some point in time.
@@SpynCycle57 Fair enough. I went with AHS and my external compressor broke so I spent the time to find what I need to have to be compliant so they don't reject my claim and I ended up paying some $200 for the external compressor but yes they checked all sorts of things like the pad leveling, the outside breaker box, the caps on the refrigerant lines,etc. I made sure I have those compliant before calling them. So for me at least in this case saved me money
@@car9167 Sounds like you, or someone you know, went through a claim and got denied. What I posted is "my" rule of thumb. It's worked well for me. Others have their own ideas. I'm probably over budgeting, but better to have unspent money than not enough, again my philosophy.
@@SpynCycle57 Right. That's how I knew what I need to have to not get denied, had a friend going through that.
I've had good experiences, and a Really bad one, cost me 11,000 for a new HVAC, now some of that was do to an upgrade, but a bad company
Do I need to renew my home warranty if I am applying for a deed in lieu of foreclosure? My house has a few problems but I am soon returning the house back to the bank so do I still need home warranty?
I already added 2 more and this is directly/indirectly implied in 1 of them but this could be a stand-alone reason. Since the warranty company's contractor is going to jack-up their estimate to cover the "reimbursement" from the warranty, you're going to pay much more "net" for the same repair/replacement to a shyster contractor who IS IN the warranty company's pocket than you would have just paying a reputable contractor who IS NOT. It's like getting a big discount on a new car but getting peanuts for your trade-in to more than cover the discount. HOME WARRANTY SHELL GAME...WANNA PLAY?
Since home warranty contracts are sometimes not recommended on existing homes; is it better to purchase a new build with a 1.2.10 warranty?
Thanks for this great info one question if you're purchasing a a home with appliances and air conditioner being 20 years old can a home warranty be good in this instance?
There is one home warranty company that does great work and abides by the customer, Americas Preferred Home Warranty company, would be my best recommendation. They allow the homeowner to choose a local licensed contractor to come and inspect the issue, and even do the work on the spot if they can accept credit card over the phone and it is a covered repair! My brother had them and he swears up and down about how great they handled every situation he had.
#1 rule: READ YOUR CONTRACT !! Everything is not covered.
Same that care extended warranty.... save that same money in a high interest account and in few years you have money for everything.
I met a property manager who has been using Old Republic home warranty for 30 years and he has been happy with them. Anyone familiar with that company?
I will say that my experience with them was mostly positive.
It's all bad salespeople that set untempered expectations
The truth is not all Home Warranties are the same. I have used 4 different ones over the last 10 years. There is one that I have renewed 2 times on the house that I live in now. I will not touch any others. Also, if you have a preference of which service tech to use, mine allows me to pick the one you want as long as they are on their approved list.
I have 2 HVAC\Heat Pump units in my house replaced, a water heater replaced, an outside hose bib in wall leak fixed, and a 220 electrical line replaced as well. The money I spent on the home warranty has paid off for me. Your mileage may vary
What company do you have your warranty with?
What is the name of the company you are satisfied with? Please, thank you
You appear to have deliberately have not stated the name of who your warranty company.
Because he is lying, lol
And a lot contractors and companies to fix the problem for you charge a lot money and not do a good job. Unless you know the contractor well.
My relative just told me their home warranty paid to replaced the 17 year old AC but they only got the warranty last fall. Sounds somewhat suspicious.
Why?
I don't do purchased warranties but that sounds like a success story.
HomeServe is the same
Stay far away from AHS. Ripoff, will find every reason to deny major AC repairs
Same with LHG.
I can’t save 😂 so I need the home warranty
@Born Handy What's a better alternative then?
I'm not sure there is a "one size fits all" answer for that. I just know that as a general rule, home warranty companies are looking for any excuse to deny claims, but are happy to take your payments.