Clearly the Home Warranty, Inc. is aware of the general objections to home warranty service programs. One of their main differences from other companies is that they allow you to choose the provider of the service. Most companies prey on people’s insecurity about their ability to find a good electrician, or a good HVAC repair person. This company allows you to choose your own service provider, according to the website. Despite these claims, we always recommend a careful reading of the contract before committing.
Many Drawbacks to the Service Contract
Several factors about the Home Warranty, Inc. plans are objectionable. Initially, the decision to repair or replace is not up to the customer but the technician and the company. Secondly, the contract is very short term, so the price of premiums can go up every year. Thirdly, they do not cover “preexisting” conditions, which are defined in their contract. The service agreement gives the impression that it is up to the homeowner to prove that the existing systems and appliances are in working order before they are considered covered. Another problem is that each service call you initiate requires you to pay a $75.00 just to get a service provider to assess your system, let alone repair or fix it.
Many Exclusions, Extra Expenses and Conditions
Lots of expenses connected to repairs and replacements are not covered. For example, they do not cover the damage done to your house by that system failure, only the system itself. If a plumbing leak destroys your ceiling, they only fix the plumbing. They will not replace the tiles, they will not re-grout or even get rid of the old fixture or appliance – that is up to the homeowner as well. 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.