If a warranty on an existing home is a service plan that is supposed to protect against repair bills on major appliances, is it really a good deal for consumers?

A major problem is that their claims are denied because the warranty company insists the problem predated the contract. When you buy an older home of course the appliances are going to be older. How can you protect yourself?

Insist the warranty company examine all appliances that will be covered and get a statement in writing from the company that they are in good working order at the time of purchase of the policy. Of course, it is likely that the warranty company will refuse to do this. Our recommendation: self-insure. The $300 or $400 for yearly premiums, plus a deductible that is usually $100 plus a service fee, although lower than the going market rate, all add up to a hefty sum.

If you do buy a warranty on an existing home read it carefully, find out the timeline for response to your complaint, who you have to call for service, and what is excluded. And get it in writing.