Are any home warranty companies actually worth the money?

homeownershipreal estateadvice

Plamen_25

Joined:
18.01.2024
Posts: 1179

Topic Starter

03.01.2025 05:50

I'm a first-time homeowner and keep getting bombarded with mailers about home warranties. I've heard so many horror stories about companies denying claims for the smallest reasons or using low-quality contractors. Does anyone here actually have a positive experience with one, or is the consensus that they are all just a scam? I'm trying to decide if it's worth setting aside a dedicated emergency fund instead of paying a monthly premium. Any advice from people who have successfully navigated a claim would be appreciated.

11 replies in this topic

agata_k

Joined:
19.09.2021
Posts: 1818

23.02.2025 14:18

Honestly, skip the warranty and build that emergency fund. I paid for one for three years, and when my water heater finally died, they claimed it wasn't 'properly maintained' and refused to cover the replacement. Total waste of cash.

Selekcioner

Joined:
01.03.2020
Posts: 1405

08.04.2025 02:36

My experience was actually decent. I had American Home Shield when my HVAC went out last summer. It took about four days to get someone out, but they covered the majority of the repair cost. You just have to read the fine print very carefully.

Bobi_J

Joined:
05.06.2021
Posts: 716

10.04.2025 13:53

In reply to a previous post

I agree with the first poster. Those companies are notorious for using the cheapest contractors in town. You're better off finding a reliable local handyman and paying them directly when things break.

mati_123

Joined:
07.03.2025
Posts: 2122

23.04.2025 18:42

It really depends on the age of your house. If you bought an older home with ancient appliances, it might be worth it for the first year while you get settled, but don't renew it after that.

Alan_K

Joined:
26.08.2020
Posts: 198

23.05.2025 20:17

In reply to a previous post

Exactly what @user2 said. I used mine for the first year just as a buffer, but once I realized how much they charge in service fees every time a technician shows up, I canceled it immediately.

Kaya_J

Joined:
11.12.2022
Posts: 820

12.06.2025 11:18

They are a scam. Save your money and put it into a high-yield savings account. You'll be glad you have the cash on hand when you actually need a real repair.

Toni_M

Joined:
13.11.2024
Posts: 2321

01.07.2025 13:01

I think the 'horror stories' are actually the norm, not the exception. The business model relies on people paying premiums and then making it impossible to actually get a payout.

Oli_S

Joined:
12.06.2022
Posts: 351

28.08.2025 00:31

If you are handy at all, definitely skip the warranty. Most of the 'repairs' they send people for are things you can fix yourself with a YouTube tutorial and a $20 part from the hardware store.

Stasi_B

Joined:
19.10.2023
Posts: 788

03.11.2025 00:21

In reply to a previous post

Wait, did you check if your home insurance policy covers any of this? Sometimes people forget they have riders for things like pipe bursts or electrical issues.

ZlatnaRuka

Joined:
04.06.2021
Posts: 910

07.03.2026 18:28

I've had a positive experience once, but it was purely because I fought them on the phone for two weeks straight. It's not worth the stress, honestly.

robert_d

Joined:
11.10.2024
Posts: 516

08.03.2026 07:36

In reply to a previous post

Don't bother. The monthly premiums plus the 'service call fee' usually end up costing almost as much as the repair itself. Just start an emergency fund today.

Are any home warranty companies actually worth the money?

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