Our mortgage company recently announced the availability of SystemsProtect
in our area. The plan apparently offers full repair/replacement of HVAC,
plumbing system, clothes washer and drier, garbage disposal, electrical
system, and ceiling fans. 24/7 service availability. There is a $60
deductible per occurrence, and a $29.95 monthly fee. SystemsProtect is not
affiliated with our mortgage company. They are simply offering its
availability as a courtesy.
There are certain restrictions which seem reasonable. There is also a
broader service plan that includes kitchen appliances with a $34.95 monthly
I'm asking for opinions and/or personal experience because we are in our
60s and probably not capable of making most of the repairs ourselves, nor
financially able to pay for or replace the big ticket items on a moments
notice. We could afford the monthly fee easily within our budget.
What say ye?
There's absolutely no reason for your mortgage company to do this for
you "as a courtesy." They are getting paid one way or another.
I took a quick look at their sample plan. With the monthly fee, $60
deductible, and numerous limitations and exclusions, it doesn't seem to
offer much benefit. If you have a claim every year you might break even.
For example, if your water heater breaks in a way that's not excluded
from coverage, you'll get a maximum of $500 toward the installation of a
"base model that meets all applicable federally mandated minimal
manufacturers standards." For this $500 coverage you've paid $360 in
You can find the expected customer horror stories if you search for some
of the many names they do business under:
If you can easily afford the monthly fee then you can easily start
setting aside that amount each month in case you _do_ have a big ticket
repair. If an appliance dies and you don't have enough saved you can
always get a monthly payment plan (read: store credit card) from any of
the big retailers.
They want $420 a year. How much have you spent on repairs in the past 10
Put $35 a month is the bank and you have a good head start. Your mortgage
company is making it available because they get a cut of the profits on
sales, not because they like you. Most home warranty companies use cheap
labor, cheap appliances and often leave people very unhappy.
firstname.lastname@example.org had written this in response to
Systems Protect home service plan is a Rip Off. In their marketing letter
it mentions that they pay for repairs of major home systems and appliances
" no matter the age, make, or model", but when my air conditioner stopped
working, they did not cover the cost because, "it showed signs of rust".
Wayne Boatwright wrote:
Building Construction and Maintenance Forum
and RSS access to your favorite newsgroup -
alt.home.repair - 364948 messages
No, Mark, I'm not promoting this in the least. I really wanted advice.
From the 3 other responses, it's clear that this is *not* in my best
interest, and I now have no intention of buying into for myself.
We could afford the monthly fee easily within our budget.
3rd party insurance schemes seldom are a good deal for anyone except the
First, you may want to make sure that your homeowner's insurance covers
damage to your household goods at replacement value (not depreciated value).
Hopefully your insurance will also cover damage from a nearby lightning
strike that caused an equipment-fatal power surge.
Second, consider adding a whole-house surge suppressor, since aside from
floods, tornado or hurricane storm damage the most likely cause of having
more than one appliance fail at a time would be a power surge due to
lightning. This could also give you a discount on your homeowners'
Third, you could probably handle replacing one item if it became
necessary -- and in fact you'll probably want to replace an air conditioner
unit or a refrigerator some time in the future.
To make sure you have the funds for that, instead of paying for the service,
arrange to deposit $29.95 each month into a savings account -- pay yourself
instead of the company. In two years you'll have about $750; four years
about $1600, etc. Within a few years you'll have enough capital to cover
almost any appliance emergency, or you can upgrade to better items if you
want. If you're worried about the discipline, set it up so the amount is
automatically deposited before you even see the money.
replying to Wayne Boatwright, Joe wrote:
Yes, last year our HVAC unit went belly up. The compressor had an internal leak
so was not cooling properly. The system was 17 years old. I called the required
number, late in the day, and within 15 minutes received a call from a local
provider who came the next day. The system came from out of town so had to wait
an extra day for the unit to be installed. Because of the age of the system they
installed a completely new condenser unit. Getting a $2000 unit for $75 was a
bargain in my book. Both the SystemProtect and Service persons were friendly,
knowledgeable and knew what had to be done quickly. The service company was
prompt and performed the work in a professional manner. The system had been
working just fine in our 100 plus degree heat. I would recommend them in a
Yes you are right, so we got a $2000 unit for $75 and another $319.50 in
payments for the plan.
Still better than $2000 plus the service call and labor that I would have been
charged if not for the
plan. Do you know what it costs just for some one to come out to take a look? I
am keeping track of
payments versus benefits and so far I am way ahead. When it comes to all the
appliances and other
items in a household you have to be prepared in one way or another. How many of
you will keep
that money in a special account for that rainy day? That is why we have auto
insurance and fire
insurance too. How many of you can put enough money aside to cover everything
within a reasonable
time frame. It would have taken 6 plus years of savings just to cover the cost
of the unit and that
does not include the service call or the labor. Just depends on how you look at
the bigger picture.
You did well. For every one of you, there are thousands that do not.
I've been a homeowner for 50 years now. I've never paid for extended
warranties and I don't know that I'd ever have collected. Like you, I'm
thousands of dollars ahead, just that I'm on the other side. See where
you will be in another 10 or 50 years of paying premiums.
In the early yr]ears, starting a family it was not easy to save money,
but over time, you'll see how it adds up to save those premiums and be
able to pay cash for any repair or replacement.
On Saturday, June 6, 2015 at 10:30:42 PM UTC-4, Ed Pawlowski wrote:
What's still missing here again is the rest of the story, ie how
long it took to run up the $320 in payments for the plan.
Obviously the failure occurred in the early years.
I'm not totally against extended warranties. There are rare
exceptions where they can make sense. As an example, I was
shopping for a dehumidifier and I know they typically only
last a few years. I had researched the prices online and
had found one that I could buy for a good price, I think it
was about $175. I went to
a local appliance store. In negotiating, the manager finally offered
a deal that was about $30 more than the online price, with
a 3 year extended warranty bundled in. Because they have
a relatively high failure rate and combined with the fact
that I could walk out with the unit right there, bring it
back there if it blew up, etc, I bought it.
Two years later, it was kaput and I brought it back. And
of course that's when the next game begins. They no longer
have that model. The closest model they have is a slightly
larger one and they want $35 more for it. I ask about
just getting the existing one fixed. Answer is they have
to send it out, don't know when or if it will ever come
back. So, given the options, I paid the $35 extra and
wound up with a new one for the $30 + $35 = $65. In that
case it happened to work out.
But overall, I'm with you. That's the only extended warranty
I've bought. The comparison he makes with insurance is a
good one. The big difference is that it's difficult or impossible
to self insure a house or insure a car for liability.
You could have a $200K+ event, which is two or three orders
of magnitude larger than any home system repair. And even
with insurance, I self insure when possible. When I have
collision insurance on a new car, I have a $2000 deductible
and when the car gets older, I'm looking at the cost of the
collision insurance versus the value of the car, looking to
drop it when it doesn't make sense anymore.
And I've heard plenty of bad stories with the warranty
companies. When you have it, you're subject to doing whatever
they are willing to do. If you want to do something else,
then what? Suppose you had a basic AC system and 15 years in
it has a bad compressor. The warranty company could decide
to just replace the compressor. If they replace the whole
thing, then you get what they will give you. How about if you
want a more efficient unit, better unit, etc? I'll bet
then the games begin because you're not in any position to
negotiate. So, to each his own, but I'd rather steer clear
of that added expense and drama.
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