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(Landlord Question) This cost for bringing a water heater up to code seem right?

Posted on 7/19/16 at 11:19 am
Posted by StringedInstruments
Member since Oct 2013
18407 posts
Posted on 7/19/16 at 11:19 am
First off, frick American Home Shield. I had a water heater replaced in 2011, and the shite arse company they sent filed paperwork that said it was a 2010 water heater. Except it wasn't. It broke a few days ago and the technician said it was definitely a 2002 and was the cheapest American water heater possible.

They also didn't do anything in 2011 to bring anything up to code, and AHS says they won't cover it.

They're charging $750 to bring it up to code. That includes a stand, some pipe shite, and some copper wires.

The new water heater is covered as is labor. $750 is just for the parts to bring it up to code. I'm sure labor is actually factored in because AHS sets the price.

Does that sound like a reasonable price compared to using a company outside of AHS? I figure if I went with someone else, it would cost $350 at least for a heater plus installation ($150?) plus parts for bringing it up to code and labor for bringing it up to code.
Posted by Napoleon
Kenna
Member since Dec 2007
69088 posts
Posted on 7/19/16 at 12:45 pm to
When I first started out with my Appliance Repair company I did work for these people. I can say that the pay is bad that most who do take AHS jobs constantly look for an upsell.

You are being charged too much for this. Can you post the numbers (serial and model) and I can give you the age. AHS is a problem, but the real problem is the only people who take their calls are new companies hurting for work, very large companies who couldn't give two shits or scumbag parts changing monkeys.

You would be MUCH better off buying the unit and just having a company you contract install. Unless you are really bad out of code. (depends on where you live)
Parts only $750 is crazy. If it's just a stand, copper pipe and wiring.
Should be like $50 for the whip for wiring (maybe as high as $75) say high end stand $150, and pipe maybe $100.

I would like to see their breakdown. you can ask for a price breakdown.

A new 'scam' in the industry is to give a predetermined all inclusive price. This allows us to make a higher profit, the problem is you don't get an itemized inventory of what was purchased. I like listing every item, I think that's how it should be done.

It sounds to me that they ARE charging you for the heater (partially at least) and the labor, and in two months when they get paid by AHS they will get reimbursed for the labor and the heater.


Posted by StringedInstruments
Member since Oct 2013
18407 posts
Posted on 7/19/16 at 1:30 pm to
I could call them back and get a list. They did give me an itemized list of parts needed to bring it up to code.

But their wait times and dealing with their customer service reps are too much for me to deal with now.

We have someone coming out for a second opinion tonight.

It was a rather long list of things needed. I may be saving money, but it seems like every time I deal with AHS, it leads to more headaches in both the short and long terms.

Why the hell did the first company install a nine year old water heater and claim it was brand new? Why would AHS not give a shite about that? Why would they quote the contract to me and pretty much say, "frick you. This is your problem"?

I'm not upset that my heater needs to be brought up to code and that it might cost money. I'm pissed that I shouldn't have had to deal with this for another ten years if the first company installed an actual new water heater instead of one that was probably gathering rust and dust in the back of their warehouse.

Hopefully the second opinion is cheaper.
This post was edited on 7/19/16 at 1:34 pm
Posted by CHEDBALLZ
South Central LA
Member since Dec 2009
21924 posts
Posted on 7/19/16 at 2:47 pm to
My mom just got a water heater replaced from a handy man that charges $25 hr. He did it for $75, that includes going pick up the water heater and delivering it to her house. I'd say $750 is way over-priced.
Posted by tiger94gop
GEISMAR
Member since Nov 2004
2916 posts
Posted on 7/20/16 at 12:26 pm to
You can get a top of the line water heatr for $400, another $200 to install if it is very intricate. If you are handy, you can save yourself some money. How is it not code compliant? Is it gas? Whole lot of things could make it cheap or expensive. Is he sayng you need a platform and room around it? Is he changing supply lines? Not much to a water heater.

I fogot in New Orleans, there is a requirement to have it inspected by an HVAC /Plumbing inspector and something else. THat could be the extra, but don't quote me.
This post was edited on 7/20/16 at 12:29 pm
Posted by StringedInstruments
Member since Oct 2013
18407 posts
Posted on 7/20/16 at 2:42 pm to
I ended up getting a second quote, and I'm glad I did. He told me that I could get a $350 rebate through Alagasco and that he thought the upgrades for code compliance would only cost $250.

The heater, his labor, and the code compliance parts totaled $750.

Minus the rebate is $400.

I chose the cash-out option with AHS. I'm not sure how much they will offer but even if it's just $100, that will still be a savings of $450.

Glad I got the second opinion.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37105 posts
Posted on 7/20/16 at 2:53 pm to
My sister had AHS contract on her house. Her A/C system has failed 7 times in the last two years. It takes, minimum, 6 days for a repairman to show up, who then does the absolute cheapest BS blank-rigged fix to get it running for a month or two, then it craps out, rinse and repeat.

AHS is only going to pay pennies to the repair company, so they are going to do the repair as cheaply as possible. They will also take full-paying customers first.
Posted by withoutdelay
Member since Aug 2017
1 post
Posted on 8/29/17 at 6:45 pm to
How did the cash out option work out with them, I am in a similar predicament. AHS said they will pay for the new heater and labor, however not the "code update" the guys they sent out want $825 to bring it up to code!
Posted by eng08
Member since Jan 2013
5997 posts
Posted on 8/29/17 at 8:33 pm to
I paid $750 for a brand new hw heater a few years back. They also moved it from a closet to the attic and the old hw heater was like 30-40 yrs old.

I'd get another quote and quit AHS.
Posted by iknowmorethanyou
Paydirt
Member since Jul 2007
6547 posts
Posted on 8/30/17 at 12:38 pm to
That shitty house strikes again!
Posted by GoIrish02
Member since Mar 2012
1390 posts
Posted on 8/30/17 at 1:43 pm to
Best of luck to you in your situation. Sounds like your second opinion plus cash out is the best option.

For everyone's mutual benefit, don't buy home warranties. It is a very expensive price for a very limited insurance policy. It is cheaper and more efficient to put the cost of the warranty in your pocket than paying ~$500 to insure against a $~5,000 possible loss.
Posted by iknowmorethanyou
Paydirt
Member since Jul 2007
6547 posts
Posted on 8/30/17 at 1:49 pm to
The average joe won't save the premium. That's the only issue I have with your post. The sentiment is sound.
Posted by baldona
Florida
Member since Feb 2016
20452 posts
Posted on 8/31/17 at 11:30 am to
This thread parallels basically every and all issues with home warranty companies. The only thing they are really worth, is for a questionable AC system. But if that's truly the case, you need to price that into the home. In other words, price a replacement in.

Almost everything else a home warranty covers, you can replace yourself for the cost of a home warranty especially used or scratch and dent from Lowes.
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