Red Pear Realty said:
Home Warranty companies are like casinos. They both make money by paying out less than they take in. Period. The end. Yes, you hear about some people that "win", but I'm pretty sure they both let people "win" just enough so that everybody else keeps coming back.
Every for profit business is like a casino.
When it comes to home warranty companies, in exchange for allowing them to profit, and willingness to play by their rules (which includes sub standard service at times, and having to use who they choose, and a realization that code violation type techniques are going to occur), I retain the OPTION to use their service in the event of a failure of many things in my home. It's no different than any other company you do business with.
I don't miss the $70/month premium, but I sure like knowing when I have an $8000 AC go out, I have an option to consider (with trade-offs) other than paying that amount. I don't love warranty companies... I just like having them available should I need them.