Do I Need a Home Protection Plan?

Do I Need a Home Protection Plan? - Real Deal with Neil

My air conditioner sadly succumbed to an injury this past Friday.  It was only a year and a week old.  Being as “cold” as I am, no pun intended I wiped away my fake tears with the knowledge that my home builder provided me with a home warranty that covered systems for 2 years.  What I didn’t know was that this warranty only included one type of injury to air conditioners, and that was if it leaked Freon.  Any other kind of defect was not covered and I was on my own.  The repairman who diagnosed my A/C unit said that I had a compressor problem, and not to worry because the part was covered under the manufacturer’s warranty, but the cost of labor to repair it would only be a measly $968!, but if I purchased their preferred customer package for only $169, the cost of the repair would go down to only $860.

This is the part of the story where you would expect me to explode and run amok like I was transforming into The Hulk, but alas, I did not.  I calmed down and reviewed the facts.

1) I closed on my home on August 25, 2012
2) The air conditioner broke on August 31, 2012
3) Carrier air conditioners carry a 10 year parts warranty
4) My home warranty means nothing if the Air Conditioner doesn’t leak freon.

After numerous phone calls to my builder and to the air conditioning company that installed the thing, I was finally able to convince them that it was in their best interests to treat this as if the air conditioner broke before August 25th.

This could all have been averted if I just purchased a home warranty that actually covered the repair or replacement costs of an air conditioning unit.  If you’re not familiar with Home Warranties, I would recommend doing a little bit of research on them so the next time a repairman says it will cost $968, you can be relieved that you don’t have to cover that whole cost.

One of the companies that I have worked with in the past is “American Home Shield

They offer a number of home protection plans that cover things like your appliances or systems like electrical, plumbing, HVAC, etc.

A lot of people confuse their homeowners insurance policy and a Home protection plan.  Here’s the difference:

A home protection plan is simple. It’s a one year service contract that covers the repair or replacement of many of the home system components and appliances that typically break down over time.  Homeowner or hazard insurance covers private homes. This type of policy combines various personal insurance protections, which can include losses occurring to one’s home and its contents.  To put it more plainly, unlike homeowners insurance, a home protection plan covers your major systems and appliances when they break down.

If you’ll excuse me, I’ve got to get back home and enjoy some good ol’ fashion air conditioning.


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