Home Warranties: Are they worth the price?

Home Warranties: Are they worth the price?

We recently had an opportunity to use our home warranty on a vacation home that we have in Discovery Bay. We purchased the home in 2007 and we had the seller pay for a home warranty as part of the contract. At the end of 2008 we had to make a decision if we wanted to renew the home warranty or not. We decided that it would be a good investment of $350 for another year of total home protection. That year we had a very expensive dishwasher go crazy on us. I called Fidelity Home Warranty and they sent out a technician the same day. He spent over two hours at our home replacing parts and it only cost us $55. The $55.00 is the cost of a service charge and that is all you ever pay. We continue to pay for our home warranty renewal and it paid off in a big way the other day. We arrived at our Discovery Bay home on Friday and it was a very warm day. We walked into our home looking for a cold drink and we were greeted by a puddle of water on the kitchen floor. Low and behold the water was dripping from the refrigerator door. I opened the door of the refrigerator and realized that our cold drink wasn’t going to happen real soon.
I called the warranty company and they were able to get a technician out to us right away.
The warranty company got all the info on the model and serial number. The technician arrived and he was prepared with a new computer board. I asked him how much the charge would have been if we didn’t have the home warranty and he told me it would have cost well over $500. I asked him who the better home warranty companies were and he told me that the one that I have is the best by far. Based on how they reacted to any of our issues, I would have to agree with him.
I always make sure that I get the seller to pay for a home warranty for my buyers. Most things seem to happen in the first year after a purchase. Continuing to pay for a home warranty year after year may not be for everyone. I always have to think hard about paying the $350 every year for renewal. I can honestly say that at least for now I am glad I renewed my warranty in 2011.

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