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Is that home warranty paying off?

Posted at 6:48 PM, May 12, 2017

It's getting hot so it's the time some start asking me about home warranties.

Do they cover A/C systems?

Are they worth it?

I say yes and no.

Most experts say if you have a new home, with new appliances, don't waste the money.

But Barbara has an older home.

She writes me "we've been paying premiums because our appliances and A/C are aging. Our fridge went out. They recommended a new one."

A new fridge would be great  since the warranties run about $300-$600 a year.

It would pay for itself.

But that's not how these usually work.

Consumer Reports says even the best service contracts/home warranties typically aren't worth the money.

Take Barbara's case"because of the age and depreciation, they offered us $75. Our premiums are worth no more than a reduced service rate."

The problems I''ve seen include some warranties either don't pay what you need, consider it a pre-existing condition or they send out maintenance people who can't fix the problem.

Of course, there are exceptions.

And you can spend more to buy better coverage.

Before buying a home warranty, know what's covered and what is not.

But first consider buying reliable appliances.

Check manufacturers warranty periods.

And check your credit card. Some offer warranties for certain appliance purchases.