Are Home Warranties Worth it?
Home warranties can definitely be worth it for people that want to have peace of mind. However, some companies can cause you way more headaches than they are worth.
To discover if a home warranty company is a rip-off, look for these big red-flags to avoid:
1) Deductible Tricks
Beware of when your deductible will be charged. Some customers have had horror stories of being charged for just talking to a phone agent about whether an issue is covered. This can lead to $100s more in fees without you expecting them after you are already locked into a contract.
Here are the most common deductible tricks to avoid:
- Charge deductible for phone service only
- Charge deductible multiple times for same service provider and same issue
- Charge deductible for a service provider to show up to residence (but not repair or inspect)
2) Wait Times and Outages
There are some customers who have had issues with long wait times -- both on the phone and for service. There are times of the year that appliances and systems tend to fail so wait times happen, but they are sometimes used as a tactic not to serve customers.
Here are the most common wait time red-flags:
- Wait times of over 1 week for service
- Service provider outage in your residence area
- Hold times of over 2 hours to receive phone support
3) Service Issues For Part or Unit Replacements
The last most common red-flag is issues concerning getting parts or new units. Home warranty companies lose the most money on these types of requests as they have to pay the service provider extra for another visit and installation.
Some of the common red-flag tactics to be on the look out for::
- Lost part or unit in-transit
- Extra fees attached upon receipt
- Extreme delay in communication
- Multiple second opinions requested