If you’re considering buying a home warranty, a service contract that covers all of your home appliances and many other routine home repairs, you may be better off taking the money that you would have spent and sticking it in a savings account instead. The New Jersey Division of Consumer Affairs says that one home warranty company in that state collected fees, but wasn’t keen to pay for any actual repairs. [More]
Back in November 2009, we featured the story of Adam and his wife, who bought a house and were under the impression that this house included a one-year warranty. You can’t blame them for having this impression, since it was included in the purchase and was supposed to be paid for by the listing agent. When the house’s heat pump broke and they actually needed the warranty, they learned that the paperwork was never filed, and the promised warranty didn’t exist. He asked the Consumerist Hive Mind for advice, and the Hive Mind delivered. But how did things turn out?
United Home Warranty, which has disconnected its phones, taken down its Web site and left no forwarding address, has vanished, leaving an unknown number of policyholders holding worthless home warranties, authorities said.