WEST ALLIS — Buying a home is likely the biggest purchase you'll ever make. According to Zillow, the median price of a home in the U.S. is now nearly $354,000. So with that price tag, it makes sense that you'd want a little peace of mind.
Warch: New homeowner in West Allis warns others after warranty disappointment
Worries about unexpected major expenses are why many people turn to home warranties. But Melissa Medek, a new homeowner in West Allis, says you should read the fine print before signing up, or you might end up disappointed.
Medek emailed TMJ4 after she ran into some trouble when she tried to file a claim under her home warranty.
"The best part is just having a house and space to call your own and being able to decorate for holidays, which I love Halloween. Christmas is nice too, but Halloween is my ultimate favorite holiday," Medek said.
But she's found that home ownership also comes with a few headaches. After moving in, Medek and her husband discovered the central air had quit. But she didn't panic, assuming her home warranty would cover it.
"And then I get a call from the home warranty company denying us, saying that the problem was external pipes, and that's not covered in the warranty," Medek said.
Medek got a second opinion from a company that had serviced the home's HVAC unit in the past. They determined the problem was internal and should have been covered. When Medek relayed that to her home warranty company, she pushed for compensation.
"I got a call from somebody saying, OK, we're investigating it, and I told her I wanted my money back. I wanted the deductible I had to pay. I wanted the money that I had to pay for another company to come out here," Medek said.
A majority of the complaints the Better Business Bureau receives about home warranties involve misunderstanding service and repair issues.
"You really need to read the details of that home warranty contract. It sounds tedious, but it's going to help you down the road," said Lisa Schiller, BBB senior director of investigations.
Before signing up, Schiller says ask yourself a few questions.
"Have they responded to complaints, and what has the response been? Do they generally cover the items that you know that need repair or replacement? You know, and that's another thing. Is it just repairs that are included or replacement as well?" Schiller said.
Medek was able to get her $200 deductible refunded and has decided that moving forward, a home warranty isn't worth the cost.
"We're just going to let this home warranty die out, which is August of next year, and we're not having any plans to renew it. That's like almost $700 that we're just going to take and save, and we can use towards payments for the new AC and furnace unit," Medek said.
So, is a home warranty worth your money? Ultimately, that's up to you. The biggest takeaway is that you should be sure to read the terms and conditions very carefully before signing.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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