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[geegerbee]

Last year I took out Home Serve insurance through my water dept. because I suspected I would soon need a water heater replacement. You had to keep it for 90 days before you would get a replacement. I had it for 9 months and then my water heater started to leak, so it was replaced. My question is, why wouldn't I now want to cancel my Home Serve insurance. I won't need it anymore. But, how do they make money if someone gets a replacement then cancels. Seems the company would lose money. I must be missing something. Any ideas?

Since you asked, it only cost $7 a month added to my water bill. I knew that my 25 yr old water tank would need to be replaced soon and it lasted until Sept.  So I only paid 7 x 9 or $63 for the replacement tank. Labor was included. I called on a Friday that it was leaking and they came on Monday to replace it. Guaranteed 5 yrs and not top of the line but probably equivalent to an average water tank that you could buy for around $500. Plus it would have been $100 for labor.  I had to be an additional $150 because they said my policy provided for $850 and the charge by the installers was $1000. Anyway $150 plus the $7 a month was a lot better than $600 from Home Depot. So I am very satisfied. But now I want to cancel. There wasn't a big policy with fine print, so I don't know if I can do it or not.

[Foxxee]

@geegerbee 

That's a good question.  Is there anything in the mouseprint...the tiny print only mice can read that states you can't cancel for a certain period of time?

I saw an ad on TV last night by this company.  Wondered whether it was fly-by-night or good.

Evidently, you are happy with the work they did and didn't have to pay anything extra.   

[January121]

How much did you pay for the insurance? & did you read the contract? .... also, was the water heater the only thing covered? .... how about the heating system?

I have so many questions about this!!

[Desertdi]

I thought those policies covered ONLY PIPES BEYOND YOUR PROPERTY LINE.............????????

[Pook]

@geegerbee   Easy - for everyone that uses it there are way more that pay and pay and never use it!  The majority who sign up for these services never use them at all.  It is not feasible to sign up for them if you have newer appliances and the amount many pay over the years is way more than if that money would have been set aside for replacements and repairs.     

[Desertdi]

@Pook    I bank away what I think would be an estimated "car payment" every month............Then when I have enough, I can pay CASH for a car.....not worry about "payments".......and NO INTEREST.    I also keep enough emergency money, even tho it may "hurt".......in case something IMPORTANT breaks down.......

[DecorDiva]

@geegerbee  - I used Home Serve for many years for the water heater and appliance programs.  They have a separate program for each type of system/appliance.  I did use it to replace my hot water heater within the last year and then dropped it.  The company acts as a "go-between" between you and the contractor, which can be problematic.  I went without hot water for 5 days while Home Serve tried to find a contractor to do the work.  Also, I have heard that less qualified contractors do this work because they can't get enough regular business.  If you need service on a weekend, which I did, many of the contractors on their list don't work on weekends.  Bottom line, I would use them only if you couldn't afford the repairs. I see it now as a waste of money.

[software]

One of their marketing points is emergency service.

If it took 5 days, I would ask for my money back, breach of contract.

That insurance is a waste of money, just prepare for breakdowns & know who's available for reliable service.    

If you are worried about something like  sewer line failure, talk to your insurance agent.

[VaBelle35]

My last hot water heater replacement (gas) was 2 years ago.  For the hot water heater and the labor, it was just under $1000.

It has a 7 year warranty, the last 2 lasted 15 years and 10 years each.

Similar to what others do, I put away 1% of the value of my home each year for maintenance and repairs.  I have a townhouse and it is 28 years old, but in the last 2 years I've replaced major stuff (new roof, gutters, windows, washer, dryer, oven, heat and air conditioner).  All that is left now is the dishwasher and refrigerator.

Same with the car.  It is 2 years old, so I have a sinking fund for the next car.