Insurance - Homeowner's Warranty providers ?

Hello everyone,

My homeowner's warranty expires in a couple of weeks. I was planning to call them to renew, but they beat me to it and called. I was really happy, untill I heard that their price went from $325 a year, to $489!!! I nearly fell of my chair when I heard that. This insurance policy came with my condo when I bought it a year ago, so I had no previous experience, nor did I do any research.

Well, I did research now! Found a huge number of providers, but it all boils down to a few top ones. The best, by far, from price to coverage, appears to be Home Warranty of America. Pleasant on the phone, informative, no hesitation when answering, most coverage of ALL companies - they cover EVERY appliance in the standard contract ... and all of it for $405 a year!

It alsmost seems too good to be true, especially when compared to some of the insurers out there. My concern: they are not members of Better Busines Bureau, and I was not able to check them out through BBB.

Does anyone have experience with this company? Any "horror" story or complaint about HWA? I'd like to know before I make the final decision and purchase their coverage.

Thanks for your input in advance!

Jelena

No. Didnt research but need to cause I was thinking of it( HW)but not educated enough to spend. If I get to the search sooner Ill post results..

Kale

Count me among those who consider these insurance policies a racket. "Home Warranty" is a gross misnomer.

Their primary advantage is as a policy purchased by home sellers to make their property more attractive to nervous buyers. I always insure the homes I sell for just that purpose. They provide peace of mind for that aging water heater, repaired roof leak, etc. Cheaper for the seller to insure the stuff than to rerplace them.

But once the hook is in, the buyer is offered a renewal at the end of the term for a much higher premium. Then they offer add-ons for items you thought were covered but weren't. The premiums these companies collect (along with a cut of the service fees charged per visit) far exceed the amount paid out in repairs. That's how they stay in business.

If you decide to renew, find out if you are permitted to choose who does the repair (as most reputable auto insurers allow). If they force you to go with their service companies only, you know it's a racket, not a true "insurance" policy, much less a "warranty".

Bought a new house recently and the dishwasher's motor assembly went out. HWA told me they would do nothing to remedy it b/c it corrosion wasn't covered. Nevermind that the repairman said nothing about corrosion in his report. Guess I'm headed to court again, another shady company to sue...

If youre appliances are new. Theres no need for home warranty insurance. But if more than 6 or 10 years older. I would advice on saving on appliances. Cause if somethings happen to the hvac, water heater, something major. They will give you a hard time replacing the unit. There there to make money not give. SO MY ADVICE IF YOUR APPLIANCES BREAK DOWN BUY IT CASH OR SAVE THE MONEY.

Home warranty companies are worthless! period! end of story! Things usually break due to corrosion, electrical problems, water leaks etc etc etc etc and they don't cover these things. If your appliance did not die due to one of those things then its old age which again they don't cover!