An awesome business model
 

Home warranty companies sure have an awesome business model:

Sell home warranties for like $500. Then when something goes wrong with the house, charge $55 to send someone out to tell the homeowner that the thing broken is not covered under the warranty. If, against all odds, the thing broken actually is covered under the warranty, then offer to replace the broken thing with a cheap and tacky substitute that the homeowners will refuse to have in their home. As an alternative, offer a cash buyout that amounts to about one-tenth of the actual replacement cost of the broken item. Grrrrrr. I hate First American Home Warranty.

when I was digging out my gas line in my backyard, and without hot water for a month, I recall thinking I wish I had bought one.

Not to mention it takes FOREVER to get something fixed. The contractors have to get permission from the warranty co. to blow their nose. Our AC went out in July - it took the good folks at First american nearly THREE WEEKS to get it fixed. We're talking 95 degrees in the house. We saved money, but boy it was miserable.