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"The warranty claims 'access to a trusted network of more than 40,000 pre screened service professionals,'" Torine said. "But not one in North Jersey?"The days would pass and Torine would call for updates, but the many customer service reps he spoke to couldn't find a company to do the work, he said. At times, he said, it wasn't clear what company was taking his calls. The warranty was marketed as a Sears Home Warranty, and Sears partners with a warranty company named HMS National for the warranty. Some of the reps Torine spoke to identified themselves as Sears, others said they were HMS, and still others said they worked for Cross Country Home Services CCHS. Finally, a repair company was located.

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01.14.2007 | 34 Comments

ANSWER: Never buy them. Don’t buy home warranties. Don’t buy extended warranties. Don’t buy any of those kinds of things. The reason is very simple. About 85% of the home warranty amount is absolutely profit and commission to the people. It is unbelievable—the vast majority. About 12% of the extended warranty or the home warranty or the electronics warranty is actually the risk that you’re taking. In other words, the cost of the average item breaking down within the warranty period usually runs about 12%. The rest of what you’re paying is profit, commissions, overhead and marketing costs. I would rather just take the chance.

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01.14.2007 | 16 Comments

AHS came with my home, and the evaporative cooler stopped working within 30 days of buying my home. The contractor said it was the cooling pads, which was not covered. The AHS contractor failed to answer my questions in a knowledgeable way, and I hired another contractor who stated the problem was the motor. For a fair price, he replaced the motor and pads. Motor replacement was specifically covered in the AHS warranty, but AHS continued to deny the claim. I got some good advice for sellers of homes: put up a $1500 escrow fund for the buyer when you sell a home the typical maximum amount for home warranty companied with appropriate terms and conditions for use of the funds for 6 months to 1 year after sale. Of course, fully disclose any work or replacement that needs to be done when you sell the house. That's a better deal all the way around than a home warranty company. I use PSEandG Worry Free Service. only for big ticket items. Furnace/Air, Fridge, and leave the rest uninsured.