I have a basic problem with home warranties on used homes. It’s simple: they don’t cover anything.
Let me explain.
How it plays out
Say you pay a $900 premium. It’s based on the home having 10 appliances plus a furnace and central AC.
A few months later, your dishwasher dies. You call the warranty company. Their repairman says it’s a “pre-existing condition,” meaning the problem started before you owned the home.
Claim denied.
Six months later, another appliance breaks. Same story: pre-existing condition.
The catch
You never really know what’s covered until something breaks. The only damage covered is sudden, new damage after your closing date.
Any previous wear, any previous owner abuse, any earlier damage that contributed to the breakdown? Not covered.
So you think you’re covered on 10 appliances, and you’re paying for 10, but you may be covered on one. Or none.
What the warranty company is really saying is: “Pay us now, and we’ll tell you what’s covered later.”
That’s just plain wrong.
A better way to buy one
Demand that the warranty company inspect every appliance when you buy the warranty. Based on condition, each item is either covered or excluded, up front.
That way you pay for exact coverage instead of “pay now, find out later.”
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