Home Appliance Insurance scams (alternately "skate goes BIG BEAR")
- Thread starter skate323k137
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Warranties are all a scam.
...unless you are buying a Range Rover, then you should have one all the time.
They prey on your fear. I've definitely fallen victim to it when making big purchases. Never again.... unless I buy a Range Rover.
...unless you are buying a Range Rover, then you should have one all the time.
They prey on your fear. I've definitely fallen victim to it when making big purchases. Never again.... unless I buy a Range Rover.
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Yeah ones like this for sure are scammy, preying on new homeowners.
I weigh my options with electronics purchases etc. Usually I don't get the extra coverage. But when best buy was selling DJ gear like 10+ years ago, they warrantied my DJ mixer against everything (accidents included) for like 35 dollars. I took that coverage, it was like a 3 year term. 2.5 years in one fader starts acting up; best buy gave me full retail value of my mixer at the time of purchase back (and I had bought it on massive discount already). Bought my first HDTV with that $$
I weigh my options with electronics purchases etc. Usually I don't get the extra coverage. But when best buy was selling DJ gear like 10+ years ago, they warrantied my DJ mixer against everything (accidents included) for like 35 dollars. I took that coverage, it was like a 3 year term. 2.5 years in one fader starts acting up; best buy gave me full retail value of my mixer at the time of purchase back (and I had bought it on massive discount already). Bought my first HDTV with that $$
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“Home warrantees” are a scam. So are extended warranties on cars.
Think about it. If you own something out of factory warranty and it breaks then you have a problem that a repair guy will fix for money.
In that same situation you can insert an insurance guy in the middle…why? He’s only there to make money, where does his money come from? It comes from YOU and the repair guy.
The very idea fails against the slightest scrutiny. They usually don’t cover parts anyway and sometimes not even all of the labor. What actual $$$ good is it?
In the auto mechanic world they pull the same scam. Something most Americans don’t quite understand is that there is flat rate and there is warrantee rate. Mechanics get paid LESS for the exact same work if the car is under warranty. You read that right. So if a car blows an engine and it’s brand new the mechanic makes less. Instead of 1.0 hours paid you get 0.8 or whatever. With extended warranties on cars you now have a guy working for warranty rate on a rusty filthy ten year old POS. Do you think he does better work when you rip him off like that? Probably not usually. The flat rate system already makes it almost impossible to be an honest mechanic.
Before you worry about the quality of anything, ask yourself if the thing itself is the problem, If it could ever work in any situation. I don’t these scams ever work. Quality repairs cost a certain amount. There isn’t any way to save money on that with insurance and private contractors unless it’s a ponzi idea, in which case the shit will eventually hit the fan.
Think about it. If you own something out of factory warranty and it breaks then you have a problem that a repair guy will fix for money.
In that same situation you can insert an insurance guy in the middle…why? He’s only there to make money, where does his money come from? It comes from YOU and the repair guy.
The very idea fails against the slightest scrutiny. They usually don’t cover parts anyway and sometimes not even all of the labor. What actual $$$ good is it?
In the auto mechanic world they pull the same scam. Something most Americans don’t quite understand is that there is flat rate and there is warrantee rate. Mechanics get paid LESS for the exact same work if the car is under warranty. You read that right. So if a car blows an engine and it’s brand new the mechanic makes less. Instead of 1.0 hours paid you get 0.8 or whatever. With extended warranties on cars you now have a guy working for warranty rate on a rusty filthy ten year old POS. Do you think he does better work when you rip him off like that? Probably not usually. The flat rate system already makes it almost impossible to be an honest mechanic.
Before you worry about the quality of anything, ask yourself if the thing itself is the problem, If it could ever work in any situation. I don’t these scams ever work. Quality repairs cost a certain amount. There isn’t any way to save money on that with insurance and private contractors unless it’s a ponzi idea, in which case the shit will eventually hit the fan.
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You do realise this is how all insurance works right?
You don't agree with any kind of insurance? You don't have insurance for if your house burns to the ground?
I mean sure, you'll likely be alright but for me some things are worth insuring against.
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It’s somewhat close to how health insurance works (which doesn’t really work…) it’s nothing at all like how fire insurance works.
Your house may stand for 300 years without burning down. Agreeing to cover it is a risk but only a risk. The bank may just get premiums for three centuries. IF it burns down you get a million dollar check to buy new everything. You won’t have to buy the wood and bricks and find a cut rate carpenter. It works better for the bank of course but it’s peace of mind for the customer.
However your furnace WILL quit eventually. There is no chance it will live forever. It dying it absolutely assured. Not only does it happen, it happens one after another forever. After 300 years your your house might need 10-20 different furnaces and 60 different dish washers. Therefore the reality is that these kinds of things are a maintenance issue and you can’t insure against fixed costs.
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For what it's worth if they actually honored their policies it covers parts and labor for a flat 100 dollar deductible. It's quite enticing but this particular insurance is definitely scummy. Like for 50 dollars a month they claim to cover your heat, AC, small appliances, garage door openers... all sorts of shit. They sell you the world and deliver squat, but what can you expect?
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I'm 40 years old and have never replaced or repaired a furnace in my life. I've lived in double figures homes in that time. Somebody during those 40 years has but it wasn't me - I got lucky and didn't live there at the time. Are you suggesting everyone lives in the same house their whole lives?
And having insurance on that furnace, should it fail, will make a big difference on your decision of whether to repair or replace.
Look, I'm not saying you're wrong that it's a waste of money as personally I don't take out insurance on appliances but to say the idea of it fails against the slightest scrutiny is incorrect.
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I don't usually buy warranties on electronics and such, but I did have it work out in my favor back when PS1 was a thing. My original Playstation died, I didn't want to buy a new one at MSRP since it was well known Playstations were piles of shit. I bought a cheap used one from EB for like $30+ $5 warranty. Then when it died I went back and got another, and another. Number 3 I think ended up lasting.
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When we were moving every 4-5 years we always had the seller pay for the home warranty as part of the deal. We just paid the deductible($75) on a new A/C unit, 2 garage doors, septic pump, double oven & dishwasher. Seemed like a no brainer for our situation, we didn't pay for it and if we used it great if not, oh well.
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For shits and giggles do you remember what company it was?
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All furnaces break. Either the PCB takes a dump, or a sensor dies, or the blower fails, or the fuel inlet/hopper breaks.
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I certainly have enough documentation to pursue legal action; I have video of us trying to call on 2 separate phone and their IVR repeatedly dropping us, as well as video of their client area being inaccessible. I have the work orders for diagnosis and replacement, so I'll probably send them a threatening letter at the least.
Their site is still so broken I can't download my contract to review their loopholes. I got them on twitter to mail me a hard copy as they legally have to.
Their site is still so broken I can't download my contract to review their loopholes. I got them on twitter to mail me a hard copy as they legally have to.
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I can dig through some paperwork later
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That's why my main furnace is from the 80's. No computer. No PCB. Changed the blower motor to make it quieter. I get an annual inspection, and the HVAC guys always get excited to work on a classic
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The furnace at my old townhouse was rock solid, from that Era.
This one was manufactured in 2000 I think.
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Our house is also 100 yeas old, but it's solid, built in a lumber town at the time. I knew the furnace and AC would go eventually, and if something is too good to be true....
Aside from that though, I really like the house, it could use a little more duct work and insulation here and there, but all the windows are brand new. It's a 2700 square ft house with a full basement, and we only lost 10-15 degrees overnight with it being 20 outside.
Aside from that though, I really like the house, it could use a little more duct work and insulation here and there, but all the windows are brand new. It's a 2700 square ft house with a full basement, and we only lost 10-15 degrees overnight with it being 20 outside.
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My brother had an external boiler and the pipe lines to the house got all messed up.
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The BBB system is about as effective as the BB system.
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This is my favorite
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Not sure what that is, but for what it's worth, I was able to fight a finanicial dispute with a gym who fucked up my billing and came out on top thanks to BBB.
Its the next best option before considering legal action.
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I'll hit up the BBB before I write up a demand letter, sounds like a logical next step.