On 04/14/2015 I paid out-of-pocket $3,700 for a new water heater when there was no clean water to drink, cook or shower. There was no hot water. The water heater was covered in my premium home warranty contract (apprx $900/year). I put in four service requests for the same problem prior to being forced to buy and install a new water heater myself.
The warranty plumbers each had a different story for the rust in the water pipes and the problem continued for four months until I put in a new water heater. The problem was resolved immediately with the new water heater. I had had the water quality technician for the Town of Hillsborough check the incoming water supply because one plumber said the problem was construction somewhere nearby (there wasn't any) the water sample (checked twice was fine). None of the warranty plumbers suggested it might be the ten year old water heater.
The worse part was that the supervisor of the claims department told me it was not covered because it was a maintenance issue and that their cost to replace the water heater would have been $300 because of "national buying power." I have two home warranty contracts currently on two properties, am a licensed real estate broker and am not going to renew my contracts.
Home Warranty Contract #10183533110 Work Order: 606116377