Home warranties

[Bruce A. King]

Can anyone provide written proof than any homeowner has ever received major repairs to an HVAC system such as a new compressor, new coil or total system replacement that the 3rd party home warranty provided at no more than the service call fee?

[Russel Ray]

Originally Posted by bking

Can anyone provide written proof than any homeowner has ever received major repairs to an HVAC system such as a new compressor, new coil or total system replacement that the 3rd party home warranty provided at no more than the service call fee?

Yes.

[mjones6]

Well there ya go.

[whandley]

I'll argue the home warranty con game all day long... If any of you deal with electrical, HVAC, plumbing and or roofing contractors on a regular basis, you'll notice that many of them have been subcontractors in the past for home protection companies. They all, and yes Russell, I mean all, say the home protection gig is one of the biggest cons and unethical types of business they've ever seen. I met my current HVAC contractor whom I use on my commerical inspections through a service call on one of my own rental homes. It was through "Old Republic". He explained to me how the billing would go down and that I'd be paying more than the $45 deductable. He was right , they wanted me to pay $165.00 for the repairs. I called my partner in the property who is a real estate agent, who then called "Old Republic" and threatened to discuss their billing practices at the next RE/MAX office meeting. All of sudden, we're back to the $45 decuctable....

[Russel Ray]

Originally Posted by whandley

I'll argue the home warranty con game all day long... If any of you deal with electrical, HVAC, plumbing and or roofing contractors on a regular basis, you'll notice that many of them have been subcontractors in the past for home protection companies. They all, and yes Russell, I mean all, say the home protection gig is one of the biggest cons and unethical types of business they've ever seen. I met my current HVAC contractor whom I use on my commerical inspections through a service call on one of my own rental homes. It was through "Old Republic". He explained to me how the billing would go down and that I'd be paying more than the $45 deductable. He was right , they wanted me to pay $165.00 for the repairs. I called my partner in the property who is a real estate agent, who then called "Old Republic" and threatened to discuss their billing practices at the next RE/MAX office meeting. All of sudden, we're back to the $45 decuctable....

Duh.

[Joe Funderburk, CMI]

American Home Warranty's language: "All mechanical coverage is limited to within the home's foundation and to a maximum of $500. All structural coverage, including foundation and roofing, is limited to within the home's foundation and to a maximum of $2000." I doubt you'd get a new compressor for $500.

Excluded from coverage entirely is: "Any climate control system, hot water heater, or covered built-in appliance 11 years of age or older."

[Joe Farsetta]

Joe is correct. I have their warranty program, as offered for "free" to inspectors through Brinks.

There ARE some warranties that DO pay for lots. They are typically quite expensive (like $600 per year) offered through American Home Shield. Many times, the Realtor purchases the initial warranty (which can be renewed year to year).

These are different than the warranties we offer as a part of the inspection.

[Russel Ray]

Originally Posted by jfarsetta

There ARE some warranties that DO pay for lots. They are typically quite expensive (like $600 per year) offered through American Home Shield. Many times, the Realtor purchases the initial warranty (which can be renewed year to year).

$600 is actually the cheapest policy out this way, and it is American Home Shield. Is that an area where "you get what you pay for"?

I have gone to bat for nine of my Clients in fighting their insurance companies. As I tell them all the time, insurance companies are in business to make money, not to pay claims. They make money by denying claims. I've been 100% successful with those nine Clients. All of them had American Home Shield policies. Why? Because, since it's the cheapest, it's the one that sellers provide to buyers. Someone like me, though, can come in, read the fine print, write a simple letter to the insurance company, and have it delivered by overnight delivery service with a copy to the California Commissioner of Insurance (CCI). It's amazing that two days later a check from American Home Shield arrives at my Client's doorstep, also by overnight delivery. My very first experience several years ago in fighting for my Client resulted in her having to pay a $50 deductible on a $12,500 plumbing bill. She called me up all excited because a check for $12,450 arrived two days after I was there talking on the phone with American Home Shield and then writing a letter to them with a copy to the CCI.

I think Jerry Peck said it best back in 2001 when I first read a post of his about insurance companies:

Originally Posted by Jerry Peck on inspectionnews.com (now inspectionnews.net)

... warranty companies are notorious for denying claims for any reason they can come up with, however, ...

You need to review your warranty carefully, as *they* accepted the warranted items condition when *they* accepted the premium payment. Had *they* done an independent inspection, *they* would have then had the opportunity to deny coverage, returning the premium, not issuing the policy. *They* did not do that, therefore, *they* accepted the condition as "warrantable" and issued the coverage.

Those rip off companies count on basically two things: 1) that you will give in and accept their rejection of your claim, and, 2) that your cost to get an attorney to whip their butts will be more than your cost to 'just go ahead and pay for the replacement yourself'.

In a state like California, with the type of insurance commissioners that we've had for the last 20 years, one need only to write a kindly letter to the insurance company with a copy to the insurance commissioner.

[Jeff Orcas]

All Warranty Companies need to manage their risks. American Home Warranty has repaired hot water heaters, furnaces and electrical outlets for my clients. I currently have a client who is trying to take advantage of them with some bogus claims which I hope they decline. Like any industry its a give take proposition.

jeff

[whandley]

$600? There are several policies in California available for way less than that. Here's some examples:

http://www.orhp.com/index.cfm?go=hom...BROCHURE%2EPDF

https://www.homewarranty.com/apply/p...pt=1&zip=92677

[Russel Ray]

Originally Posted by whandley

$600? There are several policies in California available for way less than that. Here's some examples:

http://www.orhp.com/index.cfm?go=hom...BROCHURE%2EPDF

https://www.homewarranty.com/apply/p...pt=1&zip=92677

I'm only familiar with San Diego, not all of California, and I'm only familiar with what the major brokerages are doing. American Home Shield is by far the most popular here in San Diego, and it's right at $600 for almost everything. I've seen it at $600 for a 1,000-SF Craftsman Cottage in North Park and for a 3,000-SF home in Scripps Ranch. Go figure.

This message has been approved by The Great Pretender.

[whandley]

[quote=rray]I'm only familiar with San Diego, not all of California, and I'm only familiar with what the major brokerages are doing. American Home Shield is by far the most popular here in San Diego, and it's right at $600 for almost everything. I've seen it at $600 for a 1,000-SF Craftsman Cottage in North Park and for a 3,000-SF home in Scripps Ranch. Go figure.

This message has been approved by The Great Pretender.[/quotehey ]

Now that is interesting Russell. The American Home Shield pricing system is automated on their website. I just ran three different examples from San Diego, Encinitas and Chula Vista. They only give the option of 5000'sf (Above or below). They ask for the age, which I varied from 1950 to 1970. Price was $356.00...

[Russel Ray]

Originally Posted by whandley

Now that is interesting Russell. The American Home Shield pricing system is automated on their website. I just ran three different examples from San Diego, Encinitas and Chula Vista. They only give the option of 5000'sf (Above or below). They ask for the age, which I varied from 1950 to 1970. Price was $356.00...

As with my own services, "prices start at...."

[whandley]

Actually thats the price of their "Standard" plan. In speaking with the local rep today, she states its their #1 selling product representing more than 75% of their policies. As best as I can tell the entire industry offers a standard policy with costs ranging from $250 to $350.

[Russel Ray]

Originally Posted by whandley

Actually thats the price of their "Standard" plan. In speaking with the local rep today, she states its their #1 selling product representing more than 75% of their policies. As best as I can tell the entire industry offers a standard policy with costs ranging from $250 to $350.

Probably the other 25%, the non-"Standard" plans are sold here in San Diego.

This message has been approved by The Great Pretender.