Septic backup, Home warranty, and amazing tenants

[Jordan Thompson]

Hi all, 

I recently had both of my (amazing) tenants report septic backup through their toilets.  Each side of my duplex is 2/1.  I called the septic company that did the original inspection 18 months ago at the acquisition, and they pumped the tank (only around 60% full) and tried to scope the sewage line, but couldn't since the tank was old and they couldn't reach the line from the lid.  Anyway, I called a plumber, and they got the backup cleaned, found the line, popped an "emergency" diagnosis hole in it so they could scope and found the 4" cast iron line rusted through in the bottom which was causing the periodic blockages.  It's being replaced as we speak from the house to the tank, hopefully under the slab is in better condition.  So, all in all, I'm about $7,500 in the hole with more to come depending on what they find, but my home warranty company has been less than helpful.  No portion of the claim was approved, and they have so much red tape on pre-approving diagnosis, approved corrections, etc.  I think my insurance will cover a lot of the interior damages, but general life cycles of plumbing (and other) systems I believe are on the homeowner.

Has anyone here had any good luck with a warranty company?  Do they all seem as scammy?  I need to understand how to better protect myself from the inevitable breakdown of equipment and systems aside from the routine maintenance they require.

My tenants have been more than patient with this - couldn't ask for better!

Thanks!

[Charles Carillo]

@Jordan Thompson

I always suggest to investors, and homeowners to avoid home warranties.

"the typical home warranty costs $450 annually, and only 25% of premiums are paid to homeowners. The company providing the warranty keeps most premiums as revenue and profit."

https://www.ramseysolutions.co...

https://www.zanderins.com/dave...

Every time I hear about property warranties is when something major goes wrong, and the tenants are complaining (rightfully so), and the warranty company is taking their time accessing the situation, and then they tell you there is a deductible, they only will cover so much, you need to use their preferred company, and it will take 3 weeks. All the while, the AC is out, and it is July.

It is much better to just have a reserve fund, and add to it monthly. If you know that something major is going to need replacement in the future, increase the monthly amount you are depositing into your reserve fund. When something goes wrong, you can find the best contractor for the job, who can make the repairs right away, and now your tenants are happy, and you have minimized the time you would have spent speaking to your tenants about the delay or fighting a warranty company.