Should I get a Home Warranty on my duplex

Question

I just purchased a duplex, should I purchase a Home Warranty?, if so can I get a few recommendations?

Mindy Jensen · Answer

@Kendall Green , the home warranty would have caused massive headaches, and you'd still have been out the $6k for the new unit, but days or weeks later. You saved yourself the additional cost of the warranty and all the hassle.

@Robert Bates , glad to see you've decided against it. Yes, agents recommend it everywhere, but it's false hope. It gives the appearance of protection, without any actual benefits if you try to use it.

Kim Meredith Hampton · Answer

@Robert Bates I wrote a small blog on home warranties. Hope this helps:

First, as a Property Manager for over 20 years I have found that Home Warranties to be an absolute nightmare when it comes to tenants, owners and warranty companies.

I find that most of the time they magically don't cover the item that you are calling about, and you end up paying a service call fee, calling another vendor and then paying for and repairing it anyway.

They also take forever to get someone out to take care of anything. I think that most of the time they make people frustrated and you end up losing money in the end.

Typically the vendors they send out undercut each other to get the work, but then end up making no $, so your job falls to the bottom of the list!

Waiting for them to replace or warranty is a real issue with tenants in the property. The tenant, the property manager or owner must pay for the service fee immediately, and then we play the hurry up and wait game!

If you do purchase, it's important to make sure that you know your policy inside and out, what does it and does not include.

Shannon Slade · Answer

Do not buy a home warranty service, unless you like arguing.  If you think you need a home warranty, you really don't.  If you know you need a home warranty, do not buy the house.

Just cash flow any and all issues that may arise, before you buy the house make sure to put aside 3-4% for reserves.  If you do not have reserves then your asking for punishment.

Congrats on the new purchase.

Bettina F. · Answer

Yes to LL + liability insurance, no to "home warranty" insurance.   These companies are notoriously bad investments, and hard to get them to pay.  You should save up until you have $3000-5000 to pay for unexpected expenses, like broken appliances, leaking roofs, and prolonged vancancies.

Robert Bates · Answer

THANKS EVERYONE, I'm in new Orleans and it seems like a normal thing for agents here to recommend Home Warranties

Should I get a Home Warranty on my duplex

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