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geminiburner t1_je5qkpt wrote

Reply to comment by whiskeyjane45 in TIFU by forgetting about my home warranty for a whole month by Embarrassed_Band_512

We got a new HVAC system and our fridge was fixed. It hasn't even been a year so I'm almost hoping our downstairs HVAC goes out so we can get that replaced with our warranty too. I wasn't aware that home warranties have a bad reputation.

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whiskeyjane45 t1_je5slk7 wrote

Me either.

But apparently bad enough to get a snarky reply and a nonsensical reply after that lol

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richardelmore t1_je6ovxd wrote

Like all insurance/warrantees the company selling them pays out (on average) less in coverage than it collects in fees/premiums otherwise they would go out of business. So, they are good in situations where the most expensive thing they would ever cover would be more than you could pay yourself, otherwise you are better off being self-insured.

For healthcare or vehicle liability the chance of an extremely expensive event that could bankrupt you is a lot higher than for a car repair. For things like home or car warrantee you will generally be better off just putting the money you would have paid for the warrantee into a savings account and pay for repairs yourself as they arise.

Yes, there is the occasional situation where every appliance in your house dies in a short period of time and the warrantee works out but there are a lot more people who get little or no benefit from the warrantee. If there weren't then the companies could not make a profit selling them.

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