Are Home Warranties worth buying?

According to the AHS website " A home warranty is a service contract that covers the repair or replacement of many of the most frequently occuring breakdowns of home system components and appliances." I was offered the opportunity to purchase a home warranty on my home and I declined. Eight months after moving in the HVAC system failed and it cost me $2400.00 to replace the system. The plan I was offered, not through AHS by the way, would have cost me $365.00 and a $50.00 fee for the service call. Overall savings would have been $1985.00, in this economy that would be a nice windfall to have.

For many people their home is the largest financial asset they will ever invest in. Eventually every homeowner has to face issues with plumbing, heating, air conditioning, major appliances or electrical systems. One of the biggest concerns is to find a qualified and honest contractor to diagnose and either fix or replace the damaged or defective system. The Home Warranty companies have taken care of this concern by having a network of contractors that will provide services to their clients. 

Of course not every part of a home is covered and I strongly urge people to read thoroughly through the contract before signing anything, but in these times of economic uncertainty having just a little more piece of mind can make all the difference.