Do I need a home warranty?
Remember those old home warranties that the seller threw in to sweeten the deal when you bought your first house? The idea is great. If an appliance peters out in that first year, it is covered. However, if you have ever had your AC die on a 100-degree summer day, you probably realized that warranty wasn’t all it was cracked up to be.
Most warranty companies require that you utilize their network of professional contractors. This means that you must wait until that contractor is available to come out to diagnose the problem. Then you must wait for that contractor to receive the parts. Then you must wait on that contractor to get you on the schedule to come back for install. Meanwhile, you’re sweating to death.
To avoid this frustration, we would offer one of two solutions for you to consider. First, on your homeowner’s policy, you could ask for the Equipment Breakdown Endorsement (or something similarly named). This add-on to your basic homeowner’s policy generally covers permanently installed systems such as air conditioners, furnaces, water softeners, hot water heaters, etc. if they mechanically breakdown after you have met a $500 or $1000 deductible. It is usually pretty darn inexpensive and if it ends up working out for you, it is a winner. However, there are a few small draw backs to consider:
They generally don’t cover appliances but rather permanent systems that require a little demolition to get them out. It isn’t going to cover your state-of-the-art Viking fridge that can be unplugged from the wall.
Most of the time corrosion is excluded. In other words, if it rusts, forget it.
If the item is old, the coverage is likely to be reduced. For example, your AC unit is 16 years old. If it broke down at 14 years, it would have been covered up to $50K. Now at 16 years old, the max coverage is $2500 after a $500 deductible.
When you file a claim, will it be considered a claim on your homeowner’s policy?
The second option is to purchase a home warranty which is a bit more comprehensive. We offer one through Tend which is updated to avoid some of the old pitfalls. The cost is $31.99 with a $500 deductible or $38.99 with $250 deductible. It covers your appliances plus you plumbing, electrical, HVAC, etc. It covers a lot. The biggest benefit, in my humble opinion though, is that it is a reimbursement product. In other words, you choose your licensed contractor, pay them, and Tend will reimburse you within days before the credit card bill arrives. This feature avoids the old “wait for their approved contractor” misery. However, there is a little fine print to note here too:
If the item is old, the coverage is limited here as well.
If your chosen contractor charges a “service call,” you will also be responsible for it.
There is a 30 day wait before your policy can kick in.
If it isn’t obvious, for my money, I tend to prefer the Tend product. (See what I did there! Ha ha!) It just covers more and when it comes to a broken washing machine, dishwasher, fridge, furnace or yes, air conditioning unit—no one likes surprises! Here is the link if you’d like to learn more https://partner.mytend.com/shepherd or of course you can always call at 316-869-1235. We are happy to help provide details and answer your questions. Until then, stay cool out there!