Ok guys, What's the low down on these guys. They have a Love Hate relationship according to hundreds of posts I've read on the internet about them. More hate's then love's. A Majority says stay away from this company. It made them seem like the Cross Country Bank of Home Warranty Companies. Let me know. I just signed up with them before doing more research and am compelled to cancel immediately after the horror stories I've read.
It is a love hate relationship. I quit offering it to my clients and went with another company. If you are short on savings after the new home purchase, it is somewhat of a cushion, but they seem to exclude more things then they include. My sewer got clogged - we don't cover tree roots. My diswasher died - It would cost $125 IF they could get the part, which was no longer available. So, I had $125 to replace DW with. Read the A/C coverage (big issue in TX) - most of the expensive stuff isn't covered. Plumbing busts under the slab - the will repair, but will only replace to "rough in" status. Would your homeowner's cover it? Ask yourself these questions. How old is your house? What items are you worried about (age of HW heater, kitchen stuff, etc)? What would it cost to replace? Did you buy the policy at closing? Who recommended? If you just picked it, call your realtor and ask them whom they recommend. They don't get a piece - so nothing in it for them. With home warranties, you will find a love/hate relationship with them all. Kind of like, if you looked long and hard, you would find somebody that likes Cross Country.
Do you recommend a company? My seller is providing a policy for my purchase in Austin but I get to choose the prrovider.
I opted not to get them in my case. They did not cover the roof. And the deductible for everything else was $500 plus a $50 service call for each time. IN my case, the only major thing that I would have wanted to have had an AHS warranty for was already covered under warranty (HVAC including compressor and heat exchanger) or cheap enough that the $500 deductible would pay for the repair outright. So, I opted not to get it.
I liked both Old Republic and Texas Home Warranty. But, I've been out of the biz for a year, so things may have changed. If you are using a realtor, my suggestion would be to ask them - they usually have their brochures in the office so that you can compare coverages and costs. If you don't have a realtor, check with the title company that is doing the closing - they should be able to help you as well.
Something else to consider - check their termite coverages. Sometimes they are a deal well worth it in TX. Our home was about 2600 sq feet, and when we had to have it treated it was over $2K. Termite companies here have all just about stopped annual contracts for stucco homes (the type where the stucco laps over the foundation - not the newer styles). If you live in TX you have about a 110% chance of having termites sometime during the ownership of your home!
I used to sell it. Clark Howard had an interesting way of putting it. The basic plan costs about 400 per year plus a 45 dollar service call (deductible). Over five years if you dont use it thats about 2000 dollars. If you have one major breakdown ie. fridge, dishwasher, etc. with the amount spent over the years you could have replaced them yourself.
I agree - that's why I mentioned it is a cushion for those that are short on savings because of a new home purchase. When I worked with buyers, I always put it in the contract for the seller to provide one the first year. Worked about 90% of the time. Its more for peace of mind the first year, after that I say stay on your own.
