Home Warranty – To renew, or not to renew?

I’ve been nibbling on this question for the past 3 weeks, and it seems that I still don’t have a 100% sure answer on it ;) Mrs. Budgetsaresexy and I had already agreed that we should NOT renew it, thus letting the expiration date come and go, but they JUST sent us another friendly reminder – sneaky marketers!

It’s hard because I usually go w/ my original instinct, which in this case says to renew it and have the peace of mind that comes along w/ warranties. But then the practical side kicks in and asks, “Will you actually recoup the costs?” I mean, it’s a valid question and one to definitely consider for things like this.

Last year it costs us $360, and we used it once for our leaky ceiling ordeal. While we tried to use it another time when our dryer went bonkers, we didn’t, and all in all we ended up spending a total of $460 (warranty itself + $100 deductible) for this one plumbing issue. Now, i’m not sure how much the actual costs would have been w/out the warranty, but i seriously doubt it would have come close. All they really put in was some new rubbery stopper thingie and told us what to watch for.

This year the warranty renews at $465! Same deductibles, and same coverage (quoted from their site):

“breakdowns in major systems like plumbing, electrical, heating and air
conditioning as well as washer, dryer, oven, refrigerator and other items.”

So what’s a brother to do, right? If 3 things happen (or 1 major thing), we’re pretty much covered. But realistically we’d be spending money “in hopes” something happens, and then shelling out another $100 each time it DOES. I dunno, it really just gives me a headache thinking of it all ;)

With the wedding coming up, and w/ sites out there like Craigslist & ebay to pick up new appliances, we have decided to pass (again) and keep this money in our Emergency Fund.

What would you guys do, though? Does anyone else use a home warranty of any sort? I’d be interested to see how others handle this little ditty…and unless we change our minds at the last second, fingers crossed that it all works out!

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