Warning: that cheap home warranty I bought cost me double in the end

Honestly, I thought I was being smart when I grabbed a $500 home warranty from one of those big companies. My AC unit died in July and they sent a guy who took one look and said it was a pre-existing issue. So they denied the claim and I was out the $75 service fee for nothing. Then I had to pay $2,800 out of pocket to a local HVAC guy to replace the whole condenser. The warranty ended up being a total waste because they found every excuse not to cover anything. Has anyone else had a warranty company actually pay out for a major repair?

2 comments

2 Comments

danielmartinez3d ago

Pre-existing issue" - that's their favorite. My buddy's water heater went out and they claimed the rust on the tank meant it was old damage, not a sudden failure. He ended up paying twice what a new one would have cost.

matthewperry3d ago

Tbh danielmartinez, your buddy's story hits close to home. I once had a leaky pipe in my basement that I ignored for like two months, and when it finally burst, the plumber was like "oh yeah this is definitely pre-existing damage." I was just sitting there with a wet sock and a blank check feeling like the biggest idiot in town. So yeah, insurance companies love that "pre-existing" excuse almost as much as I love pretending I know how to use a plunger.