Home Warranties
How good are home warranties?
The reason I ask is because I am about to purchase a personal residence, which needs alot of repairs. Amung the needed items are new appliances included hot water heater and the a/c unit. These are functional, but I can tell they wont be for long.
I am told that the home warranty will conver these items if they are in working condition at closing. However, I fail to see how a company (for $200), can warranty a hot water heater, an a/c unit, a stove, washer/dryer, dishwasher and refrigerator that are in very bad condition. Furthermore, I understand that the 2nd time they come out to fix the item in question they will replace it.
It seems like a losing bet on their end. Why would they warranty an item that will obviously need to be repaired or replaced.
I am factoring my cost of these improvements into my calculations, but have any of you had positive or negative experiences with home warranties?
Thanks
Read the policy. What you think you understand may vary greatly.