Home warranty..is it useful to minimize maintenance cost for landlord

13 Replies


I would like to know whether anybody has used Home warranty as means to reduce any major maintenance cost. I am wondering whether its another "insurance" where, they are nice when e buy it but when the real repairs come in, the companies gives 1001 reason not to cover it ?

If you think its beneficial for landlord, then can you recommend few companies. Please highlight their qualities.


Not useful. Take the $600 you would have spent on it each year and put it in a maintenance fund. 

Not useful at all!!!! While you get the "occasional" happy customer. Most people will tell you how much of a rip off they are. I personally buy them just when I acquire a new home. I have the seller purchase it. It is good insurance for the first year. After that NOT worth it. Most policies will only replace up to the year the appliance. PLUS they are not quick. When it is 100 degrees out and you have no AC NOT fun. I have had much better experience saving the money for the "ohshoots" that come up. While I do have repairs I have not had repaired exceeding $2500, and that would be the price to just get all of my houses the policies (5 *500). That is not even including deductibles or the cost of everything they won't cover.

The brain damage to get what you should out of the policy is not worth it. They typically hire the people who don't have a reputation or are beginners because anyone who has a reputation can get paid more.

Also, they are painfully slow to respond and they will always have an excuse as to why they don't have to have someone there for a day when it is critical. Then if it is a big job or appliance replacement they will want a second opinion and you need to wait a few days for that to happen and a decision to be made.

@Dawn Brenengen  Elizabeth Colegrove 

It's interesting to see the response i got from the thread. First it was "not useful" and then "Not Useful at all" and the last one is "You will get brain damage". I can bet the next response would be "you will die".

Ok I am forgetting about "Home Warranty". Just does not make sense for the business to exist at that particular yearly annual rate.


James and Shanti Kandasamy That made me literally laugh out loud.  Yes, if you use a home warranty, you will suffer a slow, painful death.

IMO its not worth it. I have been LL for the last 5 years and had the warranty on all my rentals for the first three years-an absolute waste if I do the math -not counting the brain damage:).

I bought fidelity home warranty ~$450 before. NOT USEFUL at all. 

Below are all the items I encountered in ONE property only. The fidelity fix NOTHING. NOT a SINGLE ITEM.

- water leak from bath tub

- dryer didn't vent properly

- stove range ventilator is not ventilating

- bath fan work, but the fan spin very weak

Believe me, every single visit, I have to pay $60, they came in and check the issue, give me a report, and then, tell me, "oh, it's not covered by the warranty".

So, $450+$240. and NOT a single thing being fixed. 

Another warranty I had did fix my disposal though. I got brand new disposal.  But, in my opinion, the cost just kind of break even. 

regarding the water leak make me laugh. I asked what kind of leak is covered? They told me if the leak is from the pipe, then, it will be covered.

My guess is if it leak from your valve, bathtub, sink, faucet... I doubt it will be covered. Very ridiculous. it has to be specifically from the pipe? Doesn't make sense.

James and Shanti Kandasamy 

They are in business to make money, not fix your home.  That being said... If you decide to purchase one you please test your yourself first.   Before clicking the mouse button with credit card info and to ensure brain damage, face a brick wall and bounce your forehead off it numerous times.  If killing you is the goal then click "submit" on the payment button and it won't be long :)

When I bought my house the seller included a home warranty. It paid most of the cost when my oven and refrigerator each needed repairs. 

But we had to suffer though hours on the phone with them. We would call, make an appointment with them for them to send someone over, wait several days to a week for the appointment, and then no one would show up. Then when we called them again they claimed to have no record of an appointment. They did this not once, not twice, but three times! Finally we got them to agree to let us find our own repair person and reimburse us. 

Needless to say we did not renew the warranty.

Needless to say, these policies exist to make money for the issuer. No profit, no product. Keep your money in a maintenance account & do your own due diligence.

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