Home warranty

2 Replies

What are some essential items that a home warranty should cover? I am currently in the process of buying my first rental unit. The unit is a 4 plex with each unit being a one bed and one bath.  

Thank you

Mostly major mechanics. It depends on the insurance company. Is the seller paying for it? If not, save your money towards your capex reserves instead.

There are no guarantees that the home warranty will pay if something breaks. A lot of times, they wiggle their way out of paying. Especially when there is "existing preconditions".

@Raphael Waruinge There are A LOT of home warranty choices. Make sure you read the fine print. You can negotiate it as part of the deal and get the Sellers to pay for it. Coverage ranges from $300+ per year depending on the package. My clients that get home warranties are 50/50. Just make sure you carefully review coverage many warranty companies have so many caveats. During the inspection process maybe you can get the inspector to check the coils in the HVAC. I've had clients with home warranties that cover HVAC, however, if the coils are found to be rusted or dirty sometimes they will deny the claim due to lack of maintenance. Many inspectors don't open the furnace cover to actually look at the coils so you may have to request it or have HVAC company look at it (often times they just do the temperature readings/differentials). HVAC is just one common denial that I see with some claims (there may be others). Hope this helps.

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