Home warranties have come a LONG way since their first inception, but they tend to leave a bad taste in consumers' mouths due to misinformation. Here are the Top 3 myths I hear on a regular basis...
1) Home warranties will fully cover repairs/replacements.
NO! Always make sure you review your selected company's materials to review what they will or will not cover. Usually, the home warranty companies are pretty good about repairing systems for only the trade call fee. However, if a system needs to be replaced (Like your AC, water heater, etc.) there are expenses that will NOT be covered. Make sure you educate yourself before lodging a hefty complaint. In my opinion and experience, even when I have had to pay for some of these additional "non-covered" fees, the warranty is still WELL WORTH the expense of the policy.
2) The home warranty company will do everything they can to AVOID covering your repair.
I feel like this is where the majority of the companies have made huge improvements in recent years. Personally, due to the number of rental properties we manage, I make claims at least once a week. Ha! I've actually made two already today! Rarely do I have issues getting repairs made or replacements installed so long as my request is actually in the realm of the company's contract. Again, always make sure to educate yourself about your policy and know what to ask for when you make your claim. Believe it or not, the warranty companies WANT you to use your product-- the more you use it (and the happier you are), the more likely you are to renew your policy.
3) The home warranty company is a faceless organization.
Again, HUGE improvements in customer service have been made. When you are selecting a company, choose one that has a LOCAL REPRESENTATIVE. Locally, we have REAL PEOPLE available for Old Republic, Fidelity, and First American services. These people live and work in our community and can be great advocates for consumers when needed!