American Home Shield Home Warranty Plan Review

I am a long time policy holder  of American Home Shield. They recently sent a repairman to my house to fix a water heater that was not producing enough hot water. The repairman informed me that I had to give him a check for $95 (this was $35 when I started with them) before he would even look at it. The problem was sediment in the heater and was not covered by my policy. The repair cost me $275 out of pocket. I have a policy i at my vacation home the the service fee is $ 0 and the service is done by the companies own technicians although the quality of the replacement appliances is "bottom of the line".

I pay just under $50 a month and I only keep the policy because I know that the minute I quit the heating system or the airconditioning system or some other major(costly) item will self-destruct.

If I had the ability to self-insure and actually put the $50 each month aside in its own account ( and not use it because that month I needed some extra money), I believe that I probably woul be way ahead of the game. But that's what insurance is all about and why they are profitable businesses.

I guess this applies to auto insurance as well because I pay a lot of money each year in premiums and have NEVER had a claim .