Although Old Republic Home Warranty is a traditional home warranty company, they do seem to realize that their service is much more attractive to real estate agents, property managers and home SELLERS, rather than individual home owners. Any individual homeowner who read the service agreement realizes that the contract has more exceptions, conditions and limitations than it actually has coverage for appliances breaking down or major home system failures. However, when large property management systems offer a warranty as part of the purchase of a new home, it makes the investment seem safer, since all big replacement and repair bills are theoretically covered through the first year of ownership.

Fear Appeals

Most companies tend to misdirect the potential customer with the very specific lists of appliances and systems that their warranties cover. The limitations, conditions and exclusions are never emphasized. Home warranties are pitched by preying on the fears of a large repair bill. The number of systems in your house that you couldn’t fix yourself has multiplied over time. If nothing else a warranty claims to offer people the “peace of mind” that if a system breaks you can get it repaired or replaced without having to bear the financial burden in the moment. However, there are still many costs associated with big repairs and replacements that will not be covered. For example, they are not designed to cover pre-existing conditions or to remedy building code violations, and they are usually short term agreements only lasting a year.

So Many Repairs….So Little Coverage

Old Republic home warranties do not cover the damage done to your house by a system failure, only the system itself. If a plumbing leak destroys your ceiling, they only fix the plumbing. They also require you to pay a service fee every time the technician or service provider visits. The fee is payable to the service provider regardless of whether a repair or replacement takes place or not. Very few repairs are actually totally covered and none escape the “service fee”.