Hello All, I was wondering what your thoughts were surrounding Home Warrantys. The allure of being able to cap major expenses for an AC or Heat pump at 450$ a year plus 100$ per incident charge seems like a good way to keep your costs fairly predictable.
I suppose, if you pay this thing for 10 years, and have some minor things like a dishwasher/ AC issues/ Heat pump issues and they fix it, could be a wash more or less. But makes expense more predictable, no major hits at one time, pay it over time. Also, I'm wondering if the premium a Prop Management company charges could make this even better than with your primary residence. I think most property managers would charge you something just to go out to the property and deal with finding a contractor.
Has anyone actually ever used on on an appliance and gotten it paid out? Is this a strategy you guys use to keep your expenses predictable?
Also - if anyone has any recommendations on plans/companies that do this.
I am personally not a fan. I got one that was paid by the seller on my SF for the first year. It sounded nice, but I wasn't crazy about the $100 deductible for looking at an AC issue, and the fact that I had to pay that again for the same issue since the first technician they sent didn't fix it. The second one didn't fix it well either, by the way. I signed up with a new company instead of renewing. This new one comes with a lower premium and deductible, but I'm still dealing with being assigned to technicians who don't show up on time, if at all, and having to explain my issues to representatives who don't seem to know that much about home issues.
I got them for the peace of mind, but honestly, I'm finding that when I do my own work on finding referrals through forums and referral sites, I'm better off. I'm actually cancelling my membership this month. I'd rather put that premium money away now that I've learned about cap ex from Bigger Pockets.
Now of course, this is just my experience so far, and there's probably much better companies out there, but I'd rather not spend on premiums that don't get me very much, if I don't have to.