Home Warranty for rentals yes/no?

[Westton Geer]

For those that are buy and hold investors is a warranty a good idea. I recently got a price of $564 annually from 1st American with a $100 service call fee. It covers all major repairs and replacement. Plumbing, electrical heat and AC

Do you think this is a good strategy in generally

And do you think this is a fair price ?

Thanks Pocket pals!

[Kim Stofan]

Hi @Westton Geer!  Here's my 2 cents... Home Warranties are not worth the money usually. They have many exclusions. A lot of policies will not cover existing problems. The company can deny any claim you make based on the assertion that it was a pre-existing problem. Most policies will not cover you if they believe you or your tenant have insufficiently maintained the item. They will use this rationale to deny many claims. You will still need to pay a service provider fee and will have no say in who your service provider is. The warranty will also only cover a small portion of the cost.