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  1. #1

    Contractors and home warranty

    As a contractor, I'm considering signing on with a home warranty company or two to boost my business. I was wondering who has had any experience with home warranty companies,

  2. #2
    Join Date
    Aug 2011
    Location
    Eastern Shore, MD
    Posts
    798
    hate them. cheap, dont pay fast, no end replacement...and they'll shop you constantly

  3. #3
    Join Date
    Oct 2003
    Location
    las vegas
    Posts
    1,505
    do yourself a favor & keep considering this idea but
    stay away from them. if they were so wonderful
    everyone on this board would be working for them.

  4. #4
    Join Date
    May 2009
    Posts
    321
    You may not want to do that. They don't pay well.

  5. #5
    Join Date
    May 2010
    Location
    Statesville, NC
    Posts
    138
    X2 on what everyone else said. We were required to get approval on any repair over $90. It cost almost that much to just show up.

  6. #6
    Join Date
    Nov 2008
    Location
    Bristol Va.
    Posts
    488
    we did it in Ga. and they don't pay you much but you can get a boat load of advertising from the h/o's for free. in 4 years we droped them completely as we then had enough business to keep us busy. One of the best parts of it was the h/o's only paid a deductible so when temp's were mild you would still get calls. And if you got too busy with real calls you could call them up and have them put you on hold untill you slowed back down. Worked great for us. also when the h/o's did drop the insurance becouse they found out it was not that good then you had a customer that was paying normal rates. Again very very good for us.

    and they paid invoices every 30 days. which means you could get a check every day of the month and not just once a month.

    dogboy

  7. #7
    Join Date
    Jun 2008
    Location
    NW Florida
    Posts
    707
    Let me guess. They gave you the old: We want to be in bussiness with you crap. Let me give you an idea of what you will be running into: You will go to the HO house and diagnose. Then you have to call the insurance company for approval. They will usually approve something under 250. After they try to make you say it was caused by corrosion or some thing else that is not covered. (careful they are recording that call) Then you get the bill signed. Then a week or two goes by and the insurance company will call and tell you they get special priceing and want you to reduce the charges. Then there is the old: We will send you a unit to install for us and you can cover the warranty for us. And this is after the HO has set in a hot house for a week or two. The HO has been calling the insurance company and everybody else complaining about YOUR lousy service. While the insurance company is telling them: We have approved the quote. Passing all the blame onto you. Do you need more.

  8. #8
    Join Date
    Jan 2004
    Location
    Lancaster PA
    Posts
    68,114
    You can use them as a cash flow account.
    Contractor locator map

    How-to-apply-for-Professional

    How many times must one fix something before it is fixed?

  9. #9
    Join Date
    Nov 2008
    Location
    Bristol Va.
    Posts
    488
    Quote Originally Posted by meoberry View Post
    Let me guess. They gave you the old: We want to be in bussiness with you crap. Let me give you an idea of what you will be running into: You will go to the HO house and diagnose. Then you have to call the insurance company for approval. They will usually approve something under 250. After they try to make you say it was caused by corrosion or some thing else that is not covered. (careful they are recording that call) Then you get the bill signed. Then a week or two goes by and the insurance company will call and tell you they get special priceing and want you to reduce the charges. Then there is the old: We will send you a unit to install for us and you can cover the warranty for us. And this is after the HO has set in a hot house for a week or two. The HO has been calling the insurance company and everybody else complaining about YOUR lousy service. While the insurance company is telling them: We have approved the quote. Passing all the blame onto you. Do you need more.
    I love lyour attitude. Yes dealing with an insurance company can me a pain it the butt. However it worked for us, when I started on my own I had no customers (I DID NOT TAKE 1 CUSTOMER FROM ANY COMPANY I WORKED FOR) my first month on my own after putting out 300 to 400 flyers I had total sales of less than $150. The 2nd month was not much better the 3rd was better but still less than $1000 sales, and this was in the summer. Ok I was not in any phone books yet had no customer base and when fall came around it slowed down.
    When I signed up with an insurance company it was my decision and theirs. They sent me a pricing list of what they paid for each repair and no it was not much but it was something and if it was a compressor or evap coil you did get autho and they had the part orderd and waiting the next day. They never lowered any price and they never bad mouthed my company. Actually when the customer called the insurance company the call was dispatatched within 1 hour and we had a certain time to contact the customer and get out to the house. I am thinking we had to be there within 24 hours of them calling the insurance company except for weekends then you had till one day the next week during normal hours but it has been too long since i worked with them. They never refused a repair that i remember except if it was a major failure and it happened within 30 days of purchasing the policy or if it was maintenance related and I experienced no runaround as you describe. I know of no company that will diagnose a comp or evap and install it the same day but if you can do it I salute you as you are a much better tech than I am.
    Like I said it worked good for me not saying it will work for everyone. It was a good experience for me and I would work with them again.

    dogboy

  10. #10
    Join Date
    Dec 2005
    Location
    Cincinnati, Oh
    Posts
    5,044
    If I can be far away from a home warranty company for the rest of my life, I'll be a happy man.


    And I was just an installer.
    "Better tell the sandman to stay away, because we're gonna be workin on this one all night."

    "Dude, you need more than 2 wires to a condenser to run a 2 stage heatpump."

    "Just get it done son."

    Dad adjusted

  11. #11
    Join Date
    Jan 2011
    Location
    Ward, Arkansas, United States
    Posts
    839
    Quote Originally Posted by DOGBOY View Post
    I love lyour attitude. Yes dealing with an insurance company can me a pain it the butt. However it worked for us, when I started on my own I had no customers (I DID NOT TAKE 1 CUSTOMER FROM ANY COMPANY I WORKED FOR) my first month on my own after putting out 300 to 400 flyers I had total sales of less than $150. The 2nd month was not much better the 3rd was better but still less than $1000 sales, and this was in the summer. Ok I was not in any phone books yet had no customer base and when fall came around it slowed down.
    When I signed up with an insurance company it was my decision and theirs. They sent me a pricing list of what they paid for each repair and no it was not much but it was something and if it was a compressor or evap coil you did get autho and they had the part orderd and waiting the next day. They never lowered any price and they never bad mouthed my company. Actually when the customer called the insurance company the call was dispatatched within 1 hour and we had a certain time to contact the customer and get out to the house. I am thinking we had to be there within 24 hours of them calling the insurance company except for weekends then you had till one day the next week during normal hours but it has been too long since i worked with them. They never refused a repair that i remember except if it was a major failure and it happened within 30 days of purchasing the policy or if it was maintenance related and I experienced no runaround as you describe. I know of no company that will diagnose a comp or evap and install it the same day but if you can do it I salute you as you are a much better tech than I am.
    Like I said it worked good for me not saying it will work for everyone. It was a good experience for me and I would work with them again.

    dogboy
    I'm curious which home warranty company you did the work for?


    Years ago I did work for one...I think it was Cross Country Home Services. Not horrible but not worth it for me to continue being one of their contractors. I toyed with the idea of signing up with American Home Shield the other day as a favor to a real-estate client (who is unhappy with the other home warranty hvac contractors she has to deal with) but after 30 minutes on hold at 8am in the morning and never did get to speak with a human. I decided to stick with my gut feeling that I don't need the hassle.

    I can see where working for home warranty companies can certainly be a good place to start generating some revenue as long as you are prepared for a few headaches. It does put you into some doors and if done right...you'll sale service agreements which I understand are required maintenance when having a home warranty. Given the poor reputation many contractors seem to get for being "home warranty contractors" to me is another warning to not walk...but run from them whenever plausible.
    "Gentlemen. You can't fight in here. This is the War Room!"-Dr. Strangelove (1964)

  12. #12
    Join Date
    Jun 2008
    Location
    NW Florida
    Posts
    707
    Quote Originally Posted by Hunter844 View Post
    I'm curious which home warranty company you did the work for?


    Years ago I did work for one...I think it was Cross Country Home Services. Not horrible but not worth it for me to continue being one of their contractors. I toyed with the idea of signing up with American Home Shield the other day as a favor to a real-estate client (who is unhappy with the other home warranty hvac contractors she has to deal with) but after 30 minutes on hold at 8am in the morning and never did get to speak with a human. I decided to stick with my gut feeling that I don't need the hassle.

    I can see where working for home warranty companies can certainly be a good place to start generating some revenue as long as you are prepared for a few headaches. It does put you into some doors and if done right...you'll sale service agreements which I understand are required maintenance when having a home warranty. Given the poor reputation many contractors seem to get for being "home warranty contractors" to me is another warning to not walk...but run from them whenever plausible.
    I would like to know also. And by the way one of the ones I was describing was American Home Shield.

  13. #13
    Join Date
    Jun 2008
    Location
    NW Florida
    Posts
    707
    Quote Originally Posted by DOGBOY View Post
    I love lyour attitude. Yes dealing with an insurance company can me a pain it the butt. However it worked for us, when I started on my own I had no customers (I DID NOT TAKE 1 CUSTOMER FROM ANY COMPANY I WORKED FOR) my first month on my own after putting out 300 to 400 flyers I had total sales of less than $150. The 2nd month was not much better the 3rd was better but still less than $1000 sales, and this was in the summer. Ok I was not in any phone books yet had no customer base and when fall came around it slowed down.
    When I signed up with an insurance company it was my decision and theirs. They sent me a pricing list of what they paid for each repair and no it was not much but it was something and if it was a compressor or evap coil you did get autho and they had the part orderd and waiting the next day. They never lowered any price and they never bad mouthed my company. Actually when the customer called the insurance company the call was dispatatched within 1 hour and we had a certain time to contact the customer and get out to the house. I am thinking we had to be there within 24 hours of them calling the insurance company except for weekends then you had till one day the next week during normal hours but it has been too long since i worked with them. They never refused a repair that i remember except if it was a major failure and it happened within 30 days of purchasing the policy or if it was maintenance related and I experienced no runaround as you describe. I know of no company that will diagnose a comp or evap and install it the same day but if you can do it I salute you as you are a much better tech than I am.
    Like I said it worked good for me not saying it will work for everyone. It was a good experience for me and I would work with them again.

    dogboy
    Yes we do diagnose and repair the same day if parts are available. Just got through replacing a 6 inch flexible water coupling and replacing a 6 inch copper elbow on the main water line for the domestic water pump of a 23 floor condo. Worked from 11 pm to 7 am.

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