Just spent $7,000 on home warranties..?? 😫😳

[Julia Hagen]

I have a daughter in college with a 4yr tuition bill that will total $120,000 plus. So, while money is tight I thought it would be a good idea to purchase home warranties for our 3 homes (10 individual units in total because of attached granny units and subdividing).  So, I paid $7,000 cash for 6 yrs of full coverage on each home from Home Choice. (🤯😱🤬)

But, it’s been a total nightmare. I was hoping that we could continue investing this way because we wouldn’t have to worry about big, unexpected costs while dealing w/tuition.  What should I do now? Get a refund? Switch warrenty companies?  Is it advisable to purchase home warranties on rentals? 

Note:                                                                       - Roofs are all OK
- Two furnaces will need replacing w/in 5-8 yrs.                                                              - Interior/exteriors are OK (new carpet and paint eventually, in one home)                             - About 5 appliances will probably need replacing w/in next 5 -10 yrs

Thank you!!

PS

Some shots from a few of our units 🤗

Garage StudioNewest HomeCollage of photos from biggest rentalWalk in closet we converted into kitchen in master bedroom to studio conversion, newest homeBathroom in master bedroom we just converted into a studio, newest home

[Nathan Gesner]

Home warranties are good for the company. They charge you fees up front. They charge another fee any time they respond to a request. They are slow to respond. They send low-quality contractors. They don't cover nearly as much as you think they do. They make slow repairs rather than replacements.

Get rid of them. Keep a reserve and you'll be better off.