Home Warranties Bring New Headaches

If you happen to have a home warranty covering breakdowns in your air conditioning or plumbing leaks or electrical short circuits that you haven't used in a while, now may be a good time to call them up to make sure they answer the phone.

In the past few months, two home warranty companies have slipped out of business, leaving their customers out of luck with a broken appliance and out of an annual premium as well. United Home Warranty, based in Oakhurst, N.J., shut down overnight and disconnected its phones in March. U.A. Durr, a Metairie, La. warranty company closed its doors shortly after, blaming the lackluster real estate market for slumping warranty sales.

Traditionally, homeowners are first introduced to home warranties when they buy a property. It's common for a seller to throw in a warranty covering the basic home systems like plumbing, electrical and HVAC. At a cost of $350 to $700 depending on the level and length of coverage and the charge for a service call, warranties are usually considered cheap insurance for everyone in the transaction.

The Trouble With Problems

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