Home Warranties Again

[wuluf]

I just reread the thread on home warranties. I had a decent opinion of them based on past experience. But our 20-year-old A/C system crapped out, and it is the compressor motor. The fine print on my policy states that they do NOT cover electrical issues with the unit. This will cost us roughly 10K to fix, which is why I have the policy in the first place. Read the fine print, my friends..

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[rockquarry]

I just reread the thread on home warranties. I had a decent opinion of them based on past experience. But our 20-year-old A/C system crapped out, and it is the compressor motor. The fine print on my policy states that they do NOT cover electrical issues with the unit. This will cost us roughly 10K to fix, which is why I have the policy in the first place. Read the fine print, my friends..

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There are some exceptions, but much of what they cover seldom breaks down; much of what breaks down is not covered. If it is, it will be repaired or replaced by third-rate workmen if and when you can get them to come out.
Many of these companies should be prosecuted, not praised.

 

[Bajadoc]

Instead of buying a home warranty or a car warranty, put a dedicated amount of money, more than you want to, in a savings account each month. Do not touch this money except for home repairs or car repairs. In the long run, you will come out ahead just like the insurance companies.

 

[DWalt]

Instead of buying a home warranty or a car warranty, put a dedicated amount of money, more than you want to, in a savings account each month. Do not touch this money except for home repairs or car repairs. In the long run, you will come out ahead just like the insurance companies.

That is called being self-insured. Many businesses do something like that, and may have additional outside insurance to cover more unlikely catastrophic situations over a certain amount. I once worked for a company that self-insured, and had a small in-house risk management group that managed the operation. We had a great deal of expensive mobile equipment and facilities that was mostly self-insured against loss and damage, but legal liability coverage (we had a lot of liability risk) was obtained from outside insurance companies. I have some interesting stories about my involvement in liability situations which are too lengthy to discuss here.

 

[rockquarry]

Instead of buying a home warranty or a car warranty, put a dedicated amount of money, more than you want to, in a savings account each month. Do not touch this money except for home repairs or car repairs. In the long run, you will come out ahead just like the insurance companies.

Good advice, but this is something people should easily figure out without being told. I don't know how many save money these days, but I'll bet the percentage is comparatively low.

No aftermarket warranties, regardless of the products warrantied, are intended to benefit the consumer, but now and then they do, pretty much by chance and certainly not by design. If you are the one selling the warranty, you are almost always the only beneficiary.

Save your money to pay for repairs. You'll be way ahead in the long run. Don't give money to crooks.