Do home warranties make sense?
But are home warranties a good idea? Some MSN readers think so. One poster on the Your Money message board said his Fidelity National Home Warranty policy paid for an $800 electrical panel replacement, a $1,200 compressor for his air conditioning unit and then a $3,500 replacement of the A/C system itself — more than paying for the cost of his policy. Others report that they struggle even to schedule a service call and find it all but impossible to get aging systems repaired or replaced. Among the problems: The contracts come with loopholes. You need to read your service agreement carefully to determine what is and isn’t covered. Coverage for plumbing, for example, typically ends at your home’s foundation, so leaks or breakages beyond that would be your responsibility. “Pre-existing” problems typically aren’t covered, nor are breakdowns that result from poor maintenance or improper installation. The contract also may require that a system be upgraded to current building code standards
Related Questions
- Common sense dictates that a 3 inch blanket of polystyrene around my home will make it much easier to heat, but can filling the cavities lead to moisture crossing to the inside wall?
- Does it make sense to buy or sell a home with current real estate conditions?
- What is the Ontario New Home Warranties Plan Act (the "ONHWPA")?
