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They never called or showed up," Torine said. By now it was May 14. Torine called the warranty company again and was given a new repair guy to call. "I called immediately," Torine said. "He said, 'Why does Sears keep giving out my number?I'm not licensed for air conditioners. '" Curious, Torine did a quick search to see how many air conditioner repair companies he could find in Morris County: more than 75 during a three minute Google search, he said.

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Call your state insurance department and ask them what the loss ratio is for warranty coverage in your state. As an example, the industry average for after market auto warranties is 8%. That means for every dollar the warranty company collects from their clients, they pay out 8 cents on the dollar for claims. You can actually get better odds in Vegas. I received a home warranty when I bought my home from the estate of the previous owner. It proved valuable, since the previous owner had not kept up maintenance for some years.