I've been selling real estate in the Charlotte, NC area for over 17 years and have recommended 2-10 Home Buyers Warranty for the past 10 years. Over the last 3 years I've seen a HUGE decline in 2-10 paying for major replacement of systems. All of my clients who have them and made claims have complained that 2-10 wants to put a bandaid on their A/C or Furnace.
Face it, this is the main reason you get this warranty if you buy an existing home. The other repairs are usually very minor and not worth what you paid for the warranty.
Look at the facts, you pay $400.00 for the warranty and say you've had one claim during the year. Your claim cost $120.00 but $60.00 of this is the service call. You saved $60.00 for a repair but you've paid out a total of $460.00? It doesn't make since unless it's for a major system, primarily the A/C, Furnace or Heat Pump. This is where you will have a problem with 2-10. When you call them, they want one of their "preferred" contractors to come out and diagnose. Being in the business, I know these "preferred" contractors cannot get regular business because they're either very new in the business or very crooked and dishonest in the business. The contractors that do a lot of business with 2-10 know to do whatever it takes to put a bandaid on that HVAC system so it won't need to be replaced. Usually they won't do much more than the $400.00 amount you paid for the insurance. This way, you'll either drop the coverage or you'll pay toward the maybe 3 years the system will possibly last. When they exhaust all efforts, like send out three of their own contractors and none can figure out how they can bandaid with a compressor, 2-10 will tell you they'll give you the amount of the compressor and you can have replaced yourself! This happened to one of my clients. The system needed to be replaced for $3,500.00 and all they wanted to pay was $800.00, the cost of a compressor. Also, the client said the representative did everything they could to stall in order to wear out the client so they would say the heck with it and pay for replacement themselves. This works well when its the A/C and the temp. Is 105 degrees outside. Also, if you dispute, they'll recite all of these sections and clauses that basically says they're not liable for weather or time related issues or health concerns. This is their legal jargon that most people dismiss because its so small. Also, HOMESELLERS KEEP YOUR MONEY! Paying for a 2-10 warranty will not help sell your home anymore than not offering it. Your better off paying for a home inspection so you'll be prepared for any repair issues. Its about the same cost as the warranty and much for effective.
SAVE YOUR MONEY! Start a MOW fund or (My Own Warranty) fund and put the warranty amount in a bank savings account. If you don't have any repair issues for the year, add $60.00 to the fund. If you have any issues from the year, use the fund but only after you've paid $60.00 of your money first. You will be surprised how much money you'll accumulate over 5 years and when that system goes out, you'll have more of a sure thing with MOW than you will with 2-10!
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