To cover the "non" pre-existing conditions....

I have had a bunch of people use them. One even got a new heat pump.

It is not as bad as it sounds. I have had buyers who got  a new water heater because it was covered within a month of settlement. A buyer called me and thanked me because her washing machine broke down and we had requested the seller provide a home warranty.

An honest question, but no, home warranties are very valid and pre-existing has to be proven or obvious. I have had clients get new & FREE (minus deductible $55-$70) clothes dryers, HVAC units, dishwashers, fridge, water heaters and many repairs too.

This also give the buyer some assurances and the seller too, anything that goes wrong during marketing or escrow is covered. I have sold them or offered them as perks since 1999, I believe they are valid and American Home Shield (with the discount appliance program) is the best.

Regardless of the limitations, a home warranty can sometimes increase the comfort level of the home buyers.

Have you ever seen a warranty that covered pre existing conditions? 

Out here, where temps reach 120+ in summer, having coverage for that HVAC alone will pay for itself each year. It is going to depend on the HW company and reading that contract thoroughly. Also, buying the best coverage you can afford. I have rarely seen a pre-existing condition rejection. But states are different.

I have ceased to be a fan of these. We had one on our personal home and two years ago it was cheaper to replace the H/A sustem on our own as going through the warranty company. It also proved to be faster not using them as well as getting better service people.

If used properly, some home warranties are very worthwhile and a benefit in helping sellers move their homes. I have one buyer who received a home warranty from us as a closing gift and they have already replaced their water heater and pool pump with both only costing them a total of $150. Tell me that is not a good value?

We don't have them up here!

I have clients use them very successfully. I recommend them every time and write it in the contract for the seller to pay for 1 yr. It depends on the company but AHS has paid for water heaters, dishwashers, HVAC's etc. for my clients. Definitely peace of mind at closing.

I have a warranty on my home and it's saved me a ton of money, including the full replacement of one the air conditioners in my home last spring for a total cost of $100 to me. The warranties have paid off well for many of my clients over the years.

Not true at all in the warranty companies here...and we recommend them every time...and have one on our house with a green upgrade !  What would you rather do...spend $500 on a warranty or ....buy a new furnace, ac system....stove...they are jsut the best !  You need to find a bteer company...we use HWA  14 policy and loive it as do our clients.

I have had clients use them very successfully, such as when the water heater breaks down within the year or the dishwasher etc.. I agree with Roy that there is a comfort level that the buyer feels when they close with one.  But I will also say that I am surprised what some home inspectors don't/won't inspect in their reports in recent years, perhaps due to so much litigation heaped on the industry.

I am not a fan of any warranties.

There are some companies that don't have a pre-existing condition exclusion, although most limit what they will pay for big items, like a dead HVAC system. 

TeamChi - Complete Home Inspections, Inc. I'd say, home warranties do help! At least on few occasions, I got my heating system this season and central air last season fixed - just with co-pay!

I am not handy and these service calls are just a phone call away.

I never had that happen!

They still cover a lot and many of my clients have cashed in on this

We've had many clients make successful claims for new appliances. Money well spent!

Michael,
With certain rare exceptions I educate my clients that home warranties are a set up for disappointment.

The American Home Shield warranties don't have these.  At least, the last time I checked.

All insurance has small print that protects their bottom line which is to stay in business. Now, protect your bottom line....

I have love/hate relationship with home warranty just because those ''pre-existing'' conditions and exclusions. 

It is a CYA for the seller to cover anything that goes wrong that isn't excluded.  The ones I deal with don't have many exclusions and have even replaced water heaters shortly after COE.

I have had good results with Warranties, but you are correct, read closely there are many exclusions!

TeamChi - Complete Home Inspections, Inc. I think they have their place. Buyer feel comfortable with one.

They're still worth the $4-$600.00 price for what they cover, and give buyer and seller some peace of mind. But, I've actually had agents try to tell me that the warranty would cover the cost of new shingles on the roof.

They pay off. I get postcard alerts whenever a claim is paid and most of the buyers that have gotten a home warranty have had a paid claim. It gives them peace of mind to know where to turn when a problem occurs and keeps the agent out of the loop. That is priceless.

My first office manager encouraged me to buy warranties for homeowners to intice them to list with me, so in that case it was a marketing ploy. PS I did not.

I purchase one year after year on some of my rentals that have older equipment.  They include pool equipment, water heater, washer & dryer.  Then I don't have major unexpected expenses.

So far they have been worthless as they dont cover much and the high deductable was mor ethan any repairs. Perhaps there is a better warranty that should be used

Just like the extended warrant on vehicles in my opinion a waste of money!