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WWYD: Is a home warranty worth it for us?

We just moved into our first house, which is about 6 years old, almost a year ago. The home warranty we got as part of the deal is about to expire, so we're wondering whether it's worth it to continue. The total cost would be between $360 and $470 a year depending on the options you choose. Usually I'm a better safe than sorry type, but we're looking at paying for regular AC/furnace maintenance and wonder if we really need the extra coverage since most things in our house are relatively new. I've also heard bad things about companies building themselves loopholes to get out of really costly repairs or hiring really shoddy service companies that try to milk your policy. On the other hand, we know nothing about most major appliances, and a warranty could really come in handy if the plumbing or the dishwasher suddenly had a problem. What would you do?

Re: WWYD: Is a home warranty worth it for us?

  • A new dishwasher would be about the same price as a one-year warranty.  I would say save the money if you've been in the house for a year already.  By now you should be somewhat familiar with the condition of your home's systems and appliances.  Myabe read through the homeownders manual/ guides to look at annual and regular maintenence to make sure you aren't overlooking anything.

    Also, your homeowners insurance will cover catastrophes, like plumbing.

  • I would renew.
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  • Although your home is pretty new, I would probably renew your warranty. The second year I was in my house I had my AC go out the during that crazy streak of about 60 days over 100 degrees and then that winter my heater quit when it got down in the teens. For both repairs we were only out the deductible which was awesome. Oh and my house was only 7 years old when I bought it.
  • I would renew and plan on it when the time comes.  We bought our house in May of last year and it was 5 years old.  We got a warranty included in our contract.  Since May of last year, our AC needed repair and our dishwasher and microwave had to be completely replaced. 

    The AC repairs retailed over $1000 because the builder actually screwed something up 5 years ago and it had caused a big issue for us.  However, we only paid $60 with the warranty. 

    Our microwave required repairs twice. The first time we paid $60 and since it broke within 60 days the second time the guy came out we didn't get charged and he said it needed to be replaced.  Once that was filed with the warrant company they gave us the option of 1. having a contractor bring a new microwave and install it, 2. take a Sears gift card that would be the cost of the microwave, cost of delivery, and the cost of installation plus 5% extra from sears, or 3. take a check that would be the cost of the microwave, cost of delivery, and the cost of installation.  The same thing happened with our dishwasher.

    So, long story short.  Our warranty cost $400 plus 2- $60 service charges ($520).  We recieved a $377 gift card for our microwave, something like $420 for our dishwasher, and our AC repaired.  So, we saved a ton of money, thanks to the warranty.  I'm very grateful for having it.

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  • We just renewed ours and I'm glad to hear y'all recommend it. Our house is 38 years old and the dishwasher, stove and ac are several years old. We didn't use it last year, but we figure the ac is going to go out soon.
  • I would renew it.  We've been in our house less than a year.  It's about 6 years old and was made really well.  (The previous owners expected to be in it forever so they went all out in using really good materials, appliances, etc.)  We had to have our oven repaired earlier this year because a circuit went out in the display.  It cost us $60 through the warranty.  The part alone was about $400. 

    I'm glad we have it and we'll continue to renew as long as we can.

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  • We've had two in the past, different companies, and we got screwed on both of them.
  • When we bought our house it was already 14 years old.  We got the home warranty and have kept it for the last 5 years in the event that we needed to replace any appliances.  Mainly the AC unit.  5 years later, nothing major has gone out and the few small things that we have had to call the home warranty company out for was such a headache.  We had them come out and look at our water heater.  The tech they sent out didn't do something properly when installing a new part and the flame was out of control.  It took DH calling Lowe's to walk the guy through what he did wrong to get it to be a more controlled flame that won't burn down our house.  In the end we replaced the whole water heater through another company after the pilot light went out again after the new part install because there was no way in he!! we wanted that same company back out to fix our issue.  They also will RARELY replace the unit.  They will just keep sending techs out to patch the problem.  So we'll just sock away the money we would have paid for that warranty for future appliance replacements.
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