The Truth About Home Warranty Companies The TRUTH is that the home Warranty Company is to blame for the new crappy business model, these companies have not only shifted the burden of LIABILITY onto the contractors shoulders but have also gone to a FLAT RATE pay structure that shifts the financial burden onto the contractor shoulders as well. Not only does the contractor have to pay out of pocket for all compressors they diagnose bad, but if they condemn a condenser or furnace or package unit as NEEDING TO BE REPLACED they have to buy and pay for that equipment out of their pocket. This is why VERY FEW people will ever get a NEW UNIT. The contractor is payed a FLAT RATE of around $200 per job buy the home warranty companies for each completed job and has to MAKE UP ways (NON-COVERED COSTS) to offset the cost of the compressor and labor to install (average $500) just to break even, AND the Home Warranty Companies APPROVE of this, or it would not be allowed. FLAT RATE has RUINED most if not by now all, home warranty companies. You should cancel your home warranty policy if you are waiting for them to replace your system because it is NEVER going to happen… EVER. And now a word about the QUALITY of the home warranty hired contractor and the service tech’s that they can AFFORD to hire, and the DAMAGE that these so-called service technicians do to your expensive HVAC system. 1. These contractors work on volume and pay their service clowns a FLAT RATE per call as well, what does this mean to you? typically the service guy is young, inexperienced and a believable liar that will baffle you with technical terms and jargon that in reality make no sense, he is in and out of your home quickly so he can get payed, the result is he will be back on the same issue … soon, because he did not fix the problem (HE DOES NOT KNOW HOW TO) and yes you will owe another deductible. 2. EVERY TIME an inexperienced service clown attaches his refrigerant hoses to your system you run a very high risk of CROSS-CONTAMINATION, that is the introduction of contaminates (air, hydrochloric acid, hydrofluoric acid, other refrigerants) that are catalyst that WILL cause long and short term damage to your system. I call it venereal disease. 3. Used parts are the rule not the exception, WOW you say, this can’t be true! AND there is no way for you to prove that the part is used. 4. Without home warranty companies… these CRAPPY CONTRACTORS WOULD BE OUT OF BUSINESS!!! 37 years in the HVAC business and i know that everything above is TRUE. YOUR HOME WARRANTY IS A SCAM… PERIOD.
Cooling & Ventilation, Heating