Is there a good reason to renew our home warranty?
February 21, 2013 7:04 PM Subscribe
My boyfriend and I bought a house together last April, which so far has proven to be pretty good idea. Along with the bazillion other really expensive things involved in buying a house, we purchased both homeowner's insurance and a home warranty shortly before the close of escrow. I might have been misunderstanding the legalities of everything, but I remember somehow arriving at the belief that both homeowner's insurance and a home warranty were required for the first year; however, renewing the warranty was optional.
posted by jesourie to Home & Garden (18 answers total) 1 user marked this as a favorite
So my question now is, should we renew? I've done some basic googling and I understand that homeowner's insurance and the home warranty cover different things, and my first instinct is to think that it could hardly be a bad thing to have insurance that will pay to replace our water heater if it dies. That's new homeowner financial panic talking.
But in general, I am suspicious of insurance in general, and suspect deep down that the whole thing is kind of a scam. I decline extended warranties, I carry only state-mandated minimum amounts of insurance on my car, and I never buy AppleCare. I just can't believe that for-profit insurance companies or warranty companies have my best interests in mind. They make money by taking in more in premiums than they ever pay out, so they exist to take my money and give me as little as possible in return, right?
So. Tell me about your home warranty experience. Did you renew after the first year? If so, why? Did you choose not to renew? Why? Have you ever needed to use it? Did the exceptions to coverage make it basically useless?
If it's relevant, we live in the East Bay. Our house was built in 1929 and none of the major systems are what I'd call "new." The yearly premium for the warranty is $370.00, which probably doesn't sound like a lot but would cover a month of payments for the new windows and is a lot if it's paying for something that will never do me any good.