Home warranty companies promise substantial savings if something goes wrong with your refrigerator, furnace, plumbing, or other appliances and systems in your house. But do they provide this advertised peace of mind?
“We find that home warranties overwhelmingly are terrible deals, and simply are not worth their price tags or hassle,” said Kevin Brasler, executive editor at Checkbook.org. “Even after paying $400 to $1,000 or more per year for coverage, a lot of homeowners find that these warranties, when they have problems, that they’re filled with lots of gotchas. There’s lots of fine print exclusions that homeowners get stuck with paying most of the costs for the repairs or replacements.”
Keep in mind: With a home warranty, you don’t pick the repair service, the warranty company does.
“And complaint agencies receive thousands and thousands of complaints each year from folks who complain about service people who don’t know how to fix stuff,” Brasler said. “It’s clear that home warranty companies overwhelmingly do not align with the best repair people.”
More Info: Can You Trust Online Reviews for Home Warranty Companies?