Question:

Should I keep my home warranty?

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We live in a 20 year old home and have been in it for about 3 years now. When we bought the home, the seller paid for 1 year of home warranty and we have been renewing it each year at monthly payments of $56 or yearly permium at $672. The plan has a $60 co-pay whenever we need it also. So far we have used it for minor stuff, but nothing major. It is time to renew and I am wondering if we should renew or if we would be better off saving that money each month ourselves in case some repair is needed. Recommendations?

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  1. We had the home warranty on our 48 year old home.  The sellers paid for the first year.  In that first year we had to replace some plumbing and the furnace.  The home warranty would not pay for anything.  I would NEVER get a home warranty again.  It's just a way to get your money.  I'm impressed that yours actually paid for something.  Sit down and look at the expenses.  With our warranty, you had to use their recommended companies, and you had to pay $50 every time you had someone come look at something.  (And they STILL wouldn't pay).  So compare what the repairs would have cost you if you paid yourselves to what you had to pay out of pocket for the repairs plus the cost of the warranty and any other charges you had.  If you end up paying more for the premium and the co-pay than what you would pay to fix it yourselves, then you don't need it.


  2. I would keep it.  The home warranty covers the things that insurance won't like, normal wear and tear....I have a warranty too.  You should keep it.

  3. I think those things are a scam, from people I know, when it is time to payout for something large, the policies seem to exclude it.  I would consider what large of things you think might be going on your home and then find out if they will be covered by the policy.  If not, ditch the policy and save the money yourself.  However, if you think that something seems like it is on the verge of breaking and it will be covered, then it might be worth the cost of the policy.  So, I guess you know your home best, but if everything seems to be in good working order, I would get rid of the policy.

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