Home Warranty Woes – Please don’t waste your money

April 27, 2023

This week alone I had three separate Home Warranty companies refuse to cover items for my client’s homes. Soooo frustrating!!!

1. Microwave tripped the breaker continuously. We placed the claim on the owner’s behalf as their property manager. The Home Warranty company said we would need to create and pay for two service issues. One for an electrician and one for an appliance repair technician. The owner was charged for the electrician who simply called the tenant and advised them over the phone that it was not an electrical issue and stated the microwave needed to be replaced. The appliance repair technician said it was the electrical panel on the microwave and the unit was too old and they don’t make that part any longer. He said the unit needed to be replaced, but the Warranty Company requires they still place the request for the part and wait for 30 days before they have confirmation it cannot be found anywhere in the world. We waited for 30 days. The part was nowhere to be found and then the home Warranty Company refused to replace the microwave and offered a $25 gift certificate toward a new one. So – the owner had to pay two service calls @ $65/ea. totaling $130 for a $25 gift card and still had to pay for a new microwave. Not to mention, the tenant, (rightfully so), was furious as to how long it took to get the issue resolved. The owner then called the Home Warranty company to inquire why he was paying for a policy when they would not cover the microwave and they lied to him stating they didn’t see where we placed a claim. The owner thought we were trying to pull one over on him until we provided him the eight call recordings we had with the Warranty Company and the technicians they dispatched and he received two credit card charges for each of the claims.
2. Dishwasher would not drain. Home Warranty company dispatched a technician who said they needed to order a part. The technician stated he knew the part was no longer made, but was required to wait two weeks. Two weeks later, the tenant had stagnant water in the dishwasher that was becoming a smelly mess.  The technician could not find the part. The Warranty Company refused to replace the unit stating it was too old and original to the home.
3. Annual “Free” A/C Check Up. The homeowner asked us to contract their annual a/c checkup through the Home Warranty as this is a “free service” they provide as part of their plan. A technician was assigned but refused to schedule with the tenant stating the work order was closed in their system with no notes. They refused to re-open the work order and stated we needed to place a new claim and get assigned a new technician. Called Home Warranty company and they said it was not closed and we needed to schedule with that technician. The vicious cycle of pointing the finder and we can’t get this on the books. In the meantime, the owner was charged $85 for the “free” service.

I stopped paying for Home Warranties on my personal rentals years ago. Why? They refused to replace a leaking water heater because it had rust. Hmmm – it’s metal and contains water. Do you think it could rust? Another Home Warranty refused to replace the a/c unit that stopped working because it was “too small for the home”. This was despite the fact that it had worked efficiently, providing more than adequate cooling for the home for 20 years prior.

If you are considering a Home Warranty, I recommend you set the money aside you would pay for the premiums and the service calls. It is likely you will come out ahead and save money and frustration in the long run.