I just bought a house with a HMS warranty. Our pipe clogs in our sink and we called HMS to use our insurance. The lady on the phone said no problem send a guy out ASAP. Once he guy gets there, he calls up HMS, mind you he hasn't even stepped foot in the house. HMS says the repair isn't even covered. I talk to CSR and she say blockages are not covered, however you can have the guy service you pipes anyways for $400 or pay the $75 service charge. Basically it is the ol' bait and switch. When you look at the terms and conditions of the "contract" basically they can weasel out of any repair they can imagine. The one of the biggest scams I have ever seen.

Home warranties are nice for the seller to incentivise the buyer and give them the warm fuzzies of having a "security blanket."

The problem with home warranties is that the policies are usually selected and paid for by the seller, the seller's agent or the buyer's agent. These three groups have a great incentive to see that the deal closes but they have the least interest in what happens to the property once the closing occurs. They are therefore going to look for the cheapest policy available, which most likely means the policy with the most exclusions and the least consumer friendly terms. If the home warranty is really important to you, insist on reviewing the company and terms before you make your first offer. If it is not critical then just look at it as a nice extra but nothing to rely upon.

If the home warranty was issued on a new home, then depending on the state laws you might have a claim against them for coverage even if the warranty terms exclude it. The reason is that some states do require home builders to provide certain warranty coverage and the state law would trump the home warranty exclusions.

On the plumber, if the home warranty company sent them out you probably owe nothing on the service call IF you declined to use their services. They sent the plumber out to your house, not you. Once they tell you that the service isn't covered you are probably on the hook for any additional services they provide.

Routine maintenance isn't covered. It's usually for things like the AC needing to be replaced.

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http://bible.cc/1_corinthians/13-11.htm

If you are selling you can use it as a sweetener for the deal. But if you are buying and it is offered, ask instead for cash off and stick it away (or buy your own policy at a lesser cost)

I will take money in the place of some service or frill anyday.

idontlikebeingrightaboutshitlikethisbutiam



Edited 21 time(s). Last edit at 5/31/1967 05:57AM by WingNut.

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