Should I get a Home Warranty for New Duplex?

Question

Hey all! Has anyone ever purchased a home warranty? I just closed on my first duplex today and was thinking about getting one for at least the first year. Someone I was talking to said you can find them for around $500 or so. Would this be a smart move to make? If so, does anyone have ay recommendations?

Bruce Woodruff · Answer

Generally rip-offs. They will find a way to exclude most repairs and use cheap labor and parts when they can....

Michael K Gallagher · Answer

I have had two home warranties on two different properties I purchased that had been renovated.  What i learned is that pretty much if your place has been renovated and is new, then basically nothing is covered under the home warranty, as they claim its "improper installation" and was not working in the first place.  So all the annoying little things flippers forget or don't do correctly won't be covered.  If you are getting into a duplex with aging mechanicals, and other systems it would be worth it, but I'd make sure that there is a way that you can pick the contractor, most companies I've dealt with that send out their contractors are using....well lets just say they have not been the sharpest tools in the home repair shed....

Ned J. · Answer

No.... total rip off. if you had the property inspected properly, there shouldn't be any major surprises.... but even a great inspection cant predict everything

Home warranty will do everything to deny coverage and defer costs...... they hire crap contractors to do the most basic "band aide" repairs.

If anything make the seller provide one as a contingency for purchase...... use it for the year and then not renew.

Caleb Brown · Answer

I have heard mixed feelings. I have heard many stories of it being a rip off. Honestly I would probably not but research both sides. I have one for my personal home but I haven't used it and probably won't renew it. How did the mechanicals run during inspections?

Jenny Bertagna · Answer

I agree with the posts above, for sure have the property inspected. Home Warranties can be great, but keep in mind most of them come with a service fee. And when something needs replaced (say for example the AC Unit), you get a deductible towards a new one, not just a replacement. Just make sure you understand the ins and outs - depends on the situation - for $500 it may be worth it - or you could be better off handling issues as they come up.

Melanie Thomas · Answer

Managing over 1000 SFH's they are a waste of money in my opinion. No good has ever come of them to be honest. I would steer clear of them and save your funds. Good luck, happy investing!

Greg R. · Answer

My only experience with home warranty involved an HVAC issue in a duplex. These were identical side by side units. One unit had very strong air flow and the other had incredibly weak air flow, almost non existent  - it was a huge difference. The problem was somewhere in the ducts.

So the home warranty sent out a very bad HVAC company, they had 1 star Yelp reviews (over 50 reviews). These guys were a joke, they claimed that there wasn't any issue and that the system was performing exactly the way it was designed. I then took the guy next door to the other unit and showed him how strong the air flow was there, but he still insisted that the unit was performing as designed.

I keep grilling the guy and asking why two identical systems in a duplex would be designed to perform differently. He ended up getting pissed off and leaving.

No resolution from the home warranty company. So in my experience they are a scam.

Nicholas Salman · Answer

Hey, Thomas, congrats on closing on your first duplex!  That's a great feeling, I remember that like it was yesterday.  Honestly I didn't get it.   I had heard that it wasn't as great as anyone makes it out to be and was a waste of $500.  That was 2 years ago though so maybe things have changed.   Would love to connect and hear more about all that you have going on!

Taelonn Harper · Answer

Prior to getting a house warranty, have an inspection performed. If the right actions had been taken, it's likely that you would never have to utilize a warranty. If you only intended to use it for the first year, you might want to get an inspection done instead. If there are no warning signs, everything should be fine. Ultimately  the decision is dependent on  your risk tolerance, as is most investing.

Should I get a Home Warranty for New Duplex?

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