With limited funds available, how do you all save or prepare for home repairs? Do you use home warranties? I am thinking about purchasing a warranty in case something breaks and I can't afford it.
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I used a home warranty while in my Chapter 13. While it was on the expensive side, because I had a pool/spa and a detached in-law apartment, it was worth it. I can certainly say that it saved me thousands in repairs of A/C units, washer/dryer fixes, pool fixes, plumbing fixtures fixes, garbage disposal fixes, dishwasher replacement and a myriad of other things. The only thing was that I usually waited until I had 3 issues before asking for service so that I bundled the fee.
Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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It is difficult to get them to replace something that needs replacing. It did take me 6 months to get my dishwasher replaced. Mind you, that my dishwasher did work, but they couldn't get the display to tell me what it was doing. So they eventually replaced it after having 4 different company and then Sears themselves come out to take a peek.
Other than that, they even fixed a shutoff valve for my main water line... twice. One of them was inside a concrete wall in the garage and they did all that work.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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I was told by a heating & air guy that came out ( under warranty) to service the air conditioner that warranty companies almost never replace a thing . Just stall and repair till it’s up.. surly there are some decent companies , do your homework and read reviews.. don’t rush in . I’ve never bought one but it came attached to the home when purchased.
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Layla, they all just repair, repair and repair. After they repaired my dishwasher with more than 8 visits from 4 different companies, the last guy (Sears) was told that he had actual authority to determine whether it should be replaced. SO repairman #8 asks me "so what do you want?" I smiled and said, "a new dishwasher." And just like that, a new one arrived in less than 2 weeks and installed.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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Originally posted by Layla55 View PostI was told by a heating & air guy that came out ( under warranty) to service the air conditioner that warranty companies almost never replace a thing . Just stall and repair till it’s up.. surly there are some decent companies , do your homework and read reviews.. don’t rush in . I’ve never bought one but it came attached to the home when purchased.
Typically, home warranty companies would have a price sheet which dictates what they will pay for standard truck-stock parts, and the technician would have to call for authorization prior to completing any repairs if the parts and labor will exceed a certain amount (often $200). For major repairs, or unit replacements, they would purchase the equipment, or major parts, under their own account and ship it/them to the contractor--thus denying the contractor any opportunity to profit on the parts or equipment. Then, the contractor would be paid for labor only according to the plan's labor guidelines.
Some home warranty companies, such as American Home Shield cost-shift all of the risk onto the contractor, by paying a fixed amount per service call--regardless of what is actually wrong--and it is up to the contractor to pay for any parts, labor, or replacement equipment. As a result, in order to avoid losing money, a contractor needs to stall and return for multiple service attempts when expensive repairs are needed, as they get paid the flat-rate again per service attempts. Also, if the contractor is able to write the claim up as a denial, for example due to alleged lack of maintenance, they still receive the flat-rate without having to spend any money repairing/replacing the unit.
My advice to anyone considering a home warranty--or a third-party "extended warranty" on their car or truck is literally "save your money". Instead of wasting money on this overpriced pseudo-insurance, which may not even pay out when the need arises, I'd suggest putting $50 or $100 each month into a bank account to pay for the inevitable home repairs or car repairs. Then when the need arises, you will be able to pay the contractor or repair facility.
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bcohen I've had bad experiences with extended warranties with many multiple repairs on appliances that really should be replaced. Repair, repair, repair, repair is always the plan no mater how many times it's been repaired. I've never had the warranty replace anything.
But we are in a bankruptcy forum. Despite how terrible these extended warranties are, I would argue it's much better to devote DMI to a monthly home warranty payment rather than unsecured creditors. On a financed car, the extended auto warranty can be put into the auto loan to soak up a little more DMI. Of course if there is no DMI available (due to non-exempt property or arrearages), then yeah I agree saving $50-$100/month is a much better plan than these stupid warranties. In the end, if there is DMI available, I rather pay the home warranty company rather than Amex or Citibank.
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