The gentleman who owns the regional franchise of a national warranty company stopped by the office today to remind everyone he’s here.  His company is great in that I’ve never EVER had a claim denied when problems arise.  They will probably go up in price in the near future thanks to their coverage of the 13-Seer Heat/Air unit, but for now their one-year home warranty only costs $395.

Mr. BIll said something else, however, that really caught my attention.  But first a disclaimer… I don’t know who. Other warranty companies are starting to stumble.  One has made repairs through a third-party and then not paid the third party.  Another pays referral (or administrative fees) to the firm that writes a warranty on their behalf (i.e., a Realtor orders a warranty for buyer and receives a $60′ish referral fee).  Those checks have begun to bounce.

So if you’re considering buying a home warranty, do some research first.  Ask for a list of references from the company and find out how many claims are honored each year and how many are declined.  You don’t want to pay $400 – 500 for a warranty from a company that closes down.