Page 1 of 3 123 LastLast
Results 1 to 13 of 33
  1. #1
    Senior Tech Guest
    Went to a call today, home warranty deal, verified that yes indeed the heat exchanger on their 30 year plus Heil was cracked...in several places,(Sears actually called this one right!). A/C unit matches age...all of course horribly installed and oversized. Bottom line, warranty company is giving customer $600 towards the new furnace...you do the math, a genuine, royal, no vaseline type you know what...
    Did I mention...I HATE HOME WARRANTY COMPANIES!

  2. #2
    Join Date
    Aug 2001
    Posts
    1,936
    its time for an 80% gibson

  3. #3
    Join Date
    Jan 2003
    Location
    Beaufort, SC
    Posts
    2,821
    90 Plus anything

  4. #4
    Join Date
    Mar 2004
    Posts
    77
    Not a rip-off.

    Nobody dislikes home warranty companies more than I do. We refuse to do work for any of them. They will not pay a fair market value for repairs and are a general pain in the a** to deal with. That being said I think that is a fair deal to pay on a 30 year old system. Why should they be responsible for a 30 year old bad installation. If you drive a 30 year old car and total it out your insurance co. is not going to buy you a new car but give you whatever it's worth, probably $600. Insurance is a rackett for the most part, but it goes both ways. I had a customer with a leaking coil one time that wanted me to add freon to get him by until he could purchase a H.W. and then let them replace it. I'm no lawyer but that seems like insurance fraud.

    Again, I'm not taking up for the H.W. company but if you think about it $600 is fair.

  5. #5
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,635
    I don't get it. How does that explain hatred for the warranty company? Mind you, there are plenty of good reasons I'm sure. But that one? If they're giving the customer $600 then that probably means that's what the contract calls for. It may even be that the customer was going to get a free furnace out of it but instead decided to cash out. The contract says what it says. If the home warranty company is following the contract, then they've done the honorable thing. The dishonorable thing may have been when the realtor assured the buyer that the home warranty was more comprehensive than it really was - if that happened.

    Another dishonorable thing that happens is when people buy old homes with ancient equipment knowing full well that it will have to be replaced. Then they buy the warranty for $300 thinking that they're going to pull a fast one on the warranty company and get a $2000 furnace install out of it. There's always two sides to every story. Many home owners are as quick to screw the warranty company as it is the other way. They think themselves on the moral high ground because the warranty company is an "evil greedy corporation" and they are saintly and victimized private citizens.

    Also keep in mind that it is often the home warranty company's contractor that is the corrupt party. They can condemn a furnace and have the home warranty company pay them some crappy rate. Or they can make up some BS about code violations or lack of maintenance and get the claim denied. Then that contractor has himself a needy customer who'll pay full price to the contractor.

    I signed up with a single home warranty company after doing some research on which was least corrupt. In the six months or so that I've worked with them (a few dozen calls perhaps), I saw one denial due to rodent damage. That was certainly fair. I saw an evaporator coil that had rusted through with two HUGE holes in the condensate drain pan only a couple months after the house was sold. There was evidence that water had been pouring out for a LONG time. The inspectors all missed it. It was clearly a pre-existing condition but the warranty company covered that expensive repair anyway.

    I’m not claiming to know the truth of your situation. I don’t have enough information. I’m just pointing out that in my opinion the home owners, realtors, contractors (even inspectors to some extent) and home warranty companies all share blame for the crap that goes on.

  6. #6
    Join Date
    Aug 2001
    Posts
    1,936
    also dont insurance policies have a deductible that the home owner will pay, add that and the six hundred and its close to what a low end but functional furnace will cost.

  7. #7
    Join Date
    Feb 2004
    Location
    Midwest
    Posts
    9,932
    As someone said, what do you expect from a $300 (actually most of them are $400 now) policy?

    When we bought our house there was a $500 limit on the entire hvac system coverage by the HW co.

    Realistically, you can't expect them to cover pre-existing problems. The intent of the policy is to cover things which break down after the policy is in force. That system should have probably been condemned by the mechanical inspector when the house was bought.

    Yes, HW policies are a joke, but greedy realtors convince buyers and sellers that they will cover *anything* that comes up, knowing full well they won't. This eases the mind of the buyer and the conscience of the seller who knows the system's shot, *AND* the r.e. agent gets the commission!!!
    Life is goooood! *NOT*.

  8. #8
    Join Date
    Oct 2003
    Posts
    2,866
    Home warranty call = money to pay company bills
    Home inspector calls = money to pay company bills
    Don't love or hate.
    Isn't it better to be impartial?

  9. #9
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,635
    I love AND hate. Though I do my best to act impartial.

  10. #10
    Join Date
    Jul 2003
    Posts
    2,407
    Clearly anyone who buys a home warranty and doesn't read it front to back gets what they pay for. If the home owner purchased this warranty without reading it they should count themselves lucky on getting the 600 bucks. $600 for a $400 contract, they're still ahead of the game. I would advise them to upgrade their equipment now and take out the extended warranty and be done with it.


  11. #11
    Join Date
    Sep 2002
    Location
    South Dakota
    Posts
    6,579
    In an area where I use to live the local power company offered home warranties on the hvac systems through one of the large hvac warranty firms. Nobody even so much as came to your home to perform an inspection on the equipment. You just signed up and the power company added a $6.00 per month fee to your power bill and you were covered.

    I was a contractor at the time and the power company wanted me to sign up as one of the warranty service companies. I declined. Several months later, the home warranty company called me and asked me to go look at several systems that my competitors claimed needed to be replaced under the plan.

    After promising to pay me my regular rate to take a look I agreed to look at them. All of them were old systems that should never have been covered in the first place and they were ready for new systems.

    After reporting back to the warranty company I had a devil of a time getting paid for my time and miles. I will have nothing to do with such plans unless I am covering something I just installed myself and I can cover the system under my own plan or a plan from the brand I represent.

    Norm

  12. #12
    Senior Tech Guest
    Okay, I see everyones point...in reality they may be getting a decent deal, I guess I'm just prejudice against the home warranty companies because it's been my personal experience that more often than not they tend to screw the customer and then try to do the same thing to the service company...have you ever called and tried to make a claim only to have tham say, "Geez, why is that so expensive". When I have more time we can debate this more, but the bottom line is I don't like them, yes the realtor, inspector and more are also to blame...but in the end the insurance industry as a whole gets richer and richer while we the consumer pay higher and higher premiums for less, much less than what we recieve in return.

  13. #13
    Senior Tech Guest
    Originally posted by Edmund Forsthe
    also dont insurance policies have a deductible that the home owner will pay, add that and the six hundred and its close to what a low end but functional furnace will cost.
    Furnace for $650...not in my area, unless jack the local hack doe's it for beer money. (deductible typically $50)

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event