Right, Structure insurance to cover what one cannot afford to pay such as fire, major collision, cancer, death of a working spouse when younger with a young family, etc. etc. Adjust deductibles to what you can afford to pay out of pocket and lower your insurance premiums.

Insurance/warranty on smaller stuff like electronics and appliances is generally not a good value for the person and very profitable for those that sell it.

By the way, OP, read the fine print of the home warranty literature for what they actually cover and will do for you. It’s likely not what you think.

The US home warranty industry has annual revenues of almost $4 billion with a profit margin of about 12% —> annual profits approaching one-half billion dollars per year.

Home Warranty Providers in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)| IBISWorld.

We have bought and sold home with Home Warranties. We have found them to be very resourceful. Although it has been a number of years, we did get a new water heater and stove through our Home warranty. They can be pricey ($500. when we sold our home), but it is attractive to buyers. Would suggest weighing the cost of the home warranty verses cost of repairing or replacing the appliance.

And versus the expected timing when those things need repairing or replacing, and the time value of money.

And the warranty deductibles often stated in the fine print.

Many people forget about this kind of refund provision. I have something similar for another kind of product with a 4 year warranty. I need to remember to ask for the warranty money back after 4 years to get the benefit.

Right. It’s psychological comfort for a home buyer who just made one of the biggest financial purchases of their life.

For the home seller, it’s a trivial amount to pay to close the deal.

Home warranty plans
 

Check out Broward Factory Service they only use employees and provide great service

I've used Broward Factory Service for more than 9 years and very pleased with their service. Prompt, sometimes out within the hour. The cost of electronic boards in all appliances nowdays is out of sight and i'm covered. They usually have a clinic weekly where they go over cost/coverages.

They appear to be quite expensive

Home repair warranty
 

Not worth the paper they’re written on. The former owner of my CYV had her company repair her washer. They came told her it was all fixed and had her sign off. They had done nothing to repair the washer! That company was Broward

No. Appliance warranties are simply money makers for the insurance company. They offer substandard work, substandard substitution. With a long delay in the first place. If you buy your appliance from Costco, and they double your warranty period, that’s a go.

I currently have First American Home Warranty. Yes, it does cost me $53/ mo, but I think it is worth it for some peace of mind - my opinion. Have had them for approximately 3 1/2 years now and had the opportunity to utilize them three times so far, the latest being yesterday. You do have a co- pay of $85 and possibly additional funds but hasn’t been the case so far. Drawback - it is their choice of contractor. Two calls were for ceiling fans - two week wait. Was contacted by contractor within one day and have to work with their schedule. Easy fixes. One visit each, but I can no longer work off ladder, so great for me! Third instance - heat pump A/C. Two visits, one major component (evaporator replacement). Total fix took 2 1/2 weeks. Major part of that was waiting for part. Replacement took 2 - 2 1/2 hrs. Price $85. Drawback - happened middle of summer! Could I have gotten it completed quicker? Possibly. A/C working great 2 years now! We were hot. All things to consider when making your decision!

You absolutely could have gotten an HVAC system repaired quicker, probably within a day.

Not worth it. Home buyers won't care about it. They know it's frivolous. Spend the money on something that you will enjoy.

I know of only one person who had a claim under this type of insurance that paid off well. When hurricane Irma blew through here some wind blown debris damaged his air conditioner, and Broward home service promptly came and took care of it.

Realistically, if you have a home equity line of credit to draw upon should you need a repair or replacement that will not fit into your usual monthly income/expense cycle, that will be cheaper in the long run. The annual fee for the HELOC will be less than a month or two’s premium for the insurance, and you pay only simple interest until you retire what you draw. No problems, no payments.