Best Home Warranty type companies?

Question

I have a SFH rental in North Carolina and I'm looking into getting some type of home warranty plan for the appliances and HVAC systems. Does anyone have a company they recommend? I would prefer one that doesn't charge for service calls. I currently use HomeSmart by Xcel Energy on my Minnesota SFH rental, and I like their service. But they are not available in NC. For $35/month all of the appliances are covered for minor repairs, no charge for service calls, and appliance replacement coverage with a small deductible. I really don't want to pay for service calls because it seems like most of the time they are for little things that the tenants are neglecting (not cleaning filters, etc). I appreciate any input!

Jeff Bridges · Answer

If you want no deductible, you need to go with the electric utility company service plan coverage. These plans usually do not cover full replacement of your furnace/ water heater/appliance for example, but they will repair/bandaid it until parts are no longer available. At that point, you will need to pay for a new furnace etc. Assume you have duke? Theirs is below. never used it so use at your own risk.

https://www.duke-energy.com/homerepairplans/

Home warranty plans can cover replacement of appliance/ HVAC etc up to the terms and conditions max amount (assuming a repair fails or no parts are available), but they also have minimum maintenance requirements and other disqualifiers for claims like rust etc just like the energy providers. Pick your poison depending on how old your appliances/HVAC are and if you prefer no deductible and higher up front cost or lower up front cost, deductible and possible replacement coverage if not repairable. Or self insure in a savings account. Also, plan to have once a year planned HVAC basic service if you get a home warranty to prove you did the bare minimum in maintenance in case a claim is made. keep your invoice.

If you don't mind a smaller deductible $45/$60 for example:

Delta home protect: (They have an systems only (HVAC/Water heater/ plumbing/ electrical) plan and a full house plan, their phone sales folks will haggle and give you a $45 deductible in exchange for a 2 year contract vs 1 year). My systems only plan is $250/year with $45 deductible (2 years paid in full). Their online reviews for claim/customer support are surprisingly good, and that says alot in the home warranty space. I know my heat pump is near end of life so replacement coverage from a HW is more important to me than the local energy company service plan coverage, which does not offer replacement coverage if not repairable. I've evaluated both carefully.

http://www.deltahomeprotect.com/

Robert Melcher · Answer

As a property manager, we always recommend to any clients that have a home warranty to let them lapse.  HW are specifically tailored for owner-occupied properties and depend heavily on minimum expenditures/life extensions for failing home systems.  The HW fees are essentially charging for the same services a PM performs as part of his/her duties, and delays in replacing these systems is better for the HW company, not necessarily better for you as a landlord.

An owner may tolerate these (often frequent) band-aid repairs, but most residents will tire of them and vote with their feet.

Rex King · Answer

I have used HWA for aome clients in MN before