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just an interesting stat for ya.
As a whole the home warranty business spends roughly 60% of all revenue on marketing and advertising. And 27% on salary and profit.
Leaving 13% to actually cover claims.
So, 87% of the time it is not beneficial to purchase a home warranty. If you can get one free on a new home, or have a seller throw one in on a deal, then sure take it. But I would never buy it, To me it ranks right beside an electronic exteended warranty. Save the cash and self insure.
I understand someone may come out ahead, but not likely. Even in the above example, a house built in 01, that AC unit is still under warranty. I know of no HVAC manufacturer in the industry with under a 5 year warranty. Maybe you saved the convenience of calling your home warranty company and not calling Trane/Carrier etc. But you really didnt save any money.
So that leaves only appliances. At $500/year you are counting on 1 major failure every 1-1.5 years. Not likely IMHO
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