Got an offer from my mortgage company for a home warranty, company name id
Total Protect or Home Sure in some states. Is anyone familiar with these? My
home came with American Home Shield and it was not worth the paper was printed
on. The parts it actually covered was very small. Would like to hear from some
people who have dealings with this company.
The main benefit of a home warranty is that the company selling it makes a
What is the premium? Put that money into a savings or investment account
and over the years, it will be more than you'd be getting back from the
insurance company. Use that fund for your "covered" repairs. Five years
from now you'll be very happy.
The same with auto insurance and extended warrantees, except auto
insurance, and home insurance on a financed home, is mandatory in most
No one needs any insurance, until they do need it, unless you're rich
enough not to need it, but then you have to post a bond.
Most states require insurance to register an auto. Same applies for
collision insurance though, for most of us. If I banked the premiums I'd be
way ahead. In the case of liability loss though, that could be tremendous.
In the case of house insurance, a heater can last for 20 or 30 or more
years. The replacement can be covered by the homeowner much easier than a
$1million liability in a car crash.
Bank those house premiums and they YOU get to pick the heater if it needs
replacing, not the cheapest available that the insurance company will
You're confusing a home warranty with homeowners insurance. The former
is usually offered with a new home, and offers some protection if the
builder screwed up, and something breaks within a specified time period.
A home warranty is usually about as useful as an "extended warranty" on
most items - it's expensive, and chances are you'll never need it. If
you do need it, it probably won't give you the benefit you thought it
Homeowners insurance is a completely different story - it's usually
mandatory if the home is mortgaged, and is protection against
catastrophic damage to the house (fire, flood, major theft, etc). This
kind of insurance is usually fairly cheap for the amount of coverage, and
is essential unless you've got the money handy to purchase a new house on
the spot if your old one burns down.
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