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HOW HOME WARRANTIES WORK. WHAT YOU NEED TO KNOW!



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home warranty is a contractual agreement provided to an owner of a house by any of a number of different types of entities such as home builders, risk management groups, or others. The home warranty industry was founded in 1971 by American Home Shield.[1] In the strictest legal sense a warranty of any kind within the United States must adhere to guidelines set at the states’ and federal government’s levels. However, the words “home warranty” are not always used explicitly to mean a legal warranty is being conveyed. In many cases, at least in the United States, a home warranty is not a warranty at all, but rather a home service contract that covers the repair and/or replacement costs of home appliances, major systems such as heating and cooling, and possibly other components of a home, structural or otherwise. The home service contract generally covers home systems such as the home’s plumbing or electrical, and appliances like dishwashers that fail from old age/normal wear and tear. Coverage varies significantly across home warranty companies. Home warranty contracts do not cover all home repairs.

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21 Comments

  1. I had a warranty with shield home warranty for 3 years. after the water heater started leaking and shorted out they wouldnt replace it because after pulling the wires out of the water electrical box it still worked regardless of the fact that it was leaking all over with rust. after about a month or so my water bill went up. what a scam. just save your money for the expense don't be stupid. don't listen to anyone who tells you home warranty are good the BBB says they are all scams. none of them will pay out you will find out and be mad you gave your money away. dude you never said if you ever used it. so stop the BS

  2. I've had a SEARS HOME WARRANTY for at least a year now.
    I haven't had any issues with them at all.
    1. A/C
    2. Refrigerator
    These were the first 2 to get fixed after the initial waiting period and only because they offer a free home appliance check up.
    That's how I knew my A/C was shot and the fridge, well went out a week later.

  3. DON'T DO IT. Bought home and insurance FROM AMERICAN HOME SHIELD for piece of mind. They use access as excuse not to do repairs. So broken wire in wall cannot be seen so No Access.
    No repair. Needs new wire along same route, but they don't "reroute" wires either. 2 reasons to deny claim. I knew the wire was broken. Spent 75 dolllar fee for nothing. SCAM SHAM. I even offered to pay for the wire.

  4. DON'T DO IT. Bought home and insurance FROM AMERICAN HOME SHIELD for piece of mind. They use access as excuse not to do repairs. So broken wire in wall cannot be seen so No Access.
    No repair. Needs new wire along same route, but they don't "reroute" wires either. 2 reasons to deny claim. I knew the wire was broken. Spent 75 dolllar fee for nothing. SCAM SHAM. I even offered to pay for the wire.

  5. DON'T DO IT. Bought home and insurance FROM AMERICAN HOME SHIELD for piece of mind. They use access as excuse not to do repairs. So broken wire in wall cannot be seen so No Access.
    No repair. Needs new wire along same route, but they don't "reroute" wires either. 2 reasons to deny claim. I knew the wire was broken. Spent 75 dolllar fee for nothing. SCAM SHAM. I even offered to pay for the wire.

  6. DON'T DO IT. Bought home and insurance FROM AMERICAN HOME SHIELD for piece of mind. They use access as excuse not to do repairs. So broken wire in wall cannot be seen so No Access.
    No repair. Needs new wire along same route, but they don't "reroute" wires either. 2 reasons to deny claim. I knew the wire was broken. Spent 75 dolllar fee for nothing. SCAM SHAM. I even offered to pay for the wire.

  7. DON'T DO IT. Bought home and insurance FROM AMERICAN HOME SHIELD for piece of mind. They use access as excuse not to do repairs. So broken wire in wall cannot be seen so No Access.
    No repair. Needs new wire along same route, but they don't "reroute" wires either. 2 reasons to deny claim. I knew the wire was broken. Spent 75 dolllar fee for nothing. SCAM SHAM. I even offered to pay for the wire.

  8. I have not had anything good out of a home warranty company

  9. No wonder this guy would say good things about warranties. There are commission links to getting a home warranty quote right in the description!!! LOL! If a company is charging 45 a month AND giving a commission, please be realistic and consider how well it will actually cover you. (HINT: It will obviously do EVERYTHING it can to cover nothing).

  10. It is absolutely true- AHS does all it can to disavow a claim==>

    That is just so much B.S. – AHS had every opportunity to
    tell me that I had to reinstall the blade (dangerous as that would be) to
    qualify. Instead they chose to let me stay honest and sent a 2nd
    opinion tech out to repeat the observation and let me disqualify myself for
    reimbursement. Your people could have avoided this terrible screwup had they
    just said, “You need to replace the blade so our tech can see all parts are
    there.” They did not and even though your CSR said she would tell the tech that
    I had the parts, you let me lose out. 
    You record all calls, you should take responsibility rather than assign
    disqualifying blame.  A good Company
    considers its subscribers and help them to do the right thing. Safety concerns
    indicated the blade be removed, good customer relations indicate your people
    should have told me to rehang the blade so I will have to continue my campaign until
    you do the right thing by the subscriber who paid for this coverage. Next step
    to be added, I will be contacting the the Illinois Attorney General and
    Illinois Department of Financial and Professional
    Regulation, Division of Professional Regulation State of Illinois and online feedback
    Apps.

    Protection from Surprise expenditures is Why Home Owners
    should purchase A warranty service. As Realtors we sell and promote AHS because
    it WAS the most reliable available. I am now feeling I should have found
    a truly ethical, reliable warranty insurance. As a policy holder, I have made a
    legitimate claim for a ceiling fan that began to wobble & vibrate badly.
    Apparently, the cast aluminum (soft metal) bracket broke either because of the
    vibration or the vibration was because of the broken bracket. In either case
    the Fan is no longer serviceable; the parts no longer exist to replace the
    broken bracket or the other blades which seem to have twisted out of balance. (See
    pics)

    They sent out a “Technician” who called at the end of day
    and asked if he could stop by now (1630 hrs). I agreed and he rushed and came
    into the house, making it clear by his posture and attitude, he was not happy
    to be on such a mediocre (little chance to make $$) call. You can read his
    report (see pic) and read his displeasure with me, as a dumbbell who should
    read instructions. He also showed his intelligence by stating the fan blade
    could be fixed with EPOXY GLUE! How dangerous is that? He did note that the blade
    was not attached. At another place he mentioned the screws are missing. That
    screws are “Missing” is an immediate reason to decline the claim.

    I phoned AHS, very angry, because of the poor technician
    service and because of the misstating of the condition of the fan blade and
    screws. After several hours of calling AHS and talking with many, very
    difficult to understand telephone customer “service” reps (“CSR”) it became
    apparent they were doing their best to NOT honor my legitimate claim. Finally,
    I reached someone who asked if I was wanting a second opinion and said she
    would have a second company respond and provide a second opinion. I agreed and
    instructed her to tell the 2nd firm that I have the “Missing”
    screws. She said she would. A second technician made an appointment
    with me and came to the house.

    I showed him the fan, the other firm’s report about the
    missing screws and he exclaimed “what’s wrong with that dummy! You can’t safely
    epoxy, etc. etc. this fan can’t be repaired.” That made me feel good and
    vindicated, though he never asked to see the screws, even though he should have
    been instructed to do so, as the CSR said she would.  I spoke to the Technician after he sent in
    his report and asked him why he also wrote “Missing Screws” and he said they
    asked him about the screws and since he knew nothing about them and did not ask
    about them and since the blade was not mounted, answered honestly he did not
    know about screws and did not see screws.” So, of course, they jumped on that
    and declined the claim.

    Of course, I phoned in again, very VERY angry, because of
    the total mishandling. I Again told them that the screws are not missing, told
    them AGAIN, I had to remove the blade to make it safe to sleep under it without
    having to worry about the blade dropping off. Now I know these were not robotic
    CSRs, but the sure acted like they were. “The parts are missing”  – Me: No they are not, I have them right her
    with the blade! “The parts are missing” – Me: NO THEY ARE NOT! Shall I send you a picture?   “The parts are missing”  –  Me:
    No they are not, I have them
    right her with the blade! “The parts are missing” – Me: NO THEY ARE NOT! Shall I send you a
    picture?   Over and over again we
    went through this until she finally said, please hold – I need to speak to
    someone else. (PUT ON HOLD FOR
    35 MINUTES) When she came back on the line she told me that They were
    having the 2nd technician phone me to make an appointment to replace
    the fan. I felt pleased but apparently she just said that to end the
    conversation (Argument?).

    The next day, when I did not receive the call for
    appointment, I telephoned the technician asking why he had not called, he said
    he had only heard about the decline. I phoned AHS again and was told I would
    receive a call authorizing the repaid “tonight.” Tonight came and went with no
    call so I phoned again and was told again it was declined. This led to another
    4 hours of me calling and disputing. 
    They did not accept any responsibility for their failure to alert the
    second technician to ask for the screws… they simply wanted to not honor this
    legitimate claim.  They insisted “we do
    not have and email here to which you can send the proof pics and besides, we
    decline because the screws are missing and we were back to that robotic,
    repetitive screws are missing/screws are not missing circular argument.

    The long and short of it is, I alerted them that I would be
    spreading the word on Facebook, Twitter, Google… writing the Illinois Attorney
    General and Illinois Department of Financial and
    Professional Regulation, Division of Professional Regulation State of Illinois.  So, that’s the beginning of fulfilling my
    promise.  See the attached pics

  11. I new this guy was a SCAM because I had a home warranty and did not cover my ac unit part read the contract and you won't buy the home warranty does not cover a lot of the parts.
    SCAM.

  12. American Home Shield is a scam. don't buy them. they don't pay for anything, just have a home repair bank account.

  13. Who is good insurance to have that replaces AC is Hot water heaters? I need a good insurance.

  14. Fiderity national home warranty is the worst, they always come up with an excuse to not fix something

  15. Where's the link? Which company do you use?

  16. You use choice home warranty?

  17. Ive had a horrible experience with Home Warranty of America. Please do serious research before you buy!!

  18. But they won't do what you want them to do. They will probably take the cheapest way out instead of the best way. For example what if you feel the air conditioner needs to be replaced but they think they can fix it instead? Recently my AC broke down. I wanted it replaced because I knew it freon gas was soon going to be illegal and very expensive. They do not pay for freon.

  19. You're nuts—- You don't have to pay 1500 for a refrigerator unless you just want to be a fat person.

  20. Great informative video.I have the Sears home warranty.

  21. I've bought two houses that seller included warranty. First got me a replacement central air @$3,000 and second a $700 trash compactor both at no expense. I made one phone call to warranty company and unit replaced in 3 days. New units came with manufacturer warranty in my name.

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