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.
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