Home Warranty for a Rental Property

[Cali Skier]

I can ask the seller to purchase a home warranty or I can back it out and reduce my loan or closing costs.  

Questions:

Can you make claims on a home warranty when you have renters in the property?

Is there any value in having one?  My other properties and my personal home do not have one.  I do all the repairs myself, except Air conditioning.

[Bill B.]

90-99% of people with extended warranties would be better off without the warranty. (Those few are buying a very old house or a house with known problems.). If you wouldn’t buy an extended warranty you should never take a warranty plus. A boat load of interest and a higher payment instead of cash  (unless you’re out fo state and don’t mind overpaying to not have to deal with it and plan to keep paying for it and if you know that going in.)  just expect it won’t pay for a vital repair fast enough and you’ll end up paying for the repair out fo pocket or paying for the tenant to stay in a hotel. (Imagine a couple days to look at an AC unit in 110 degree Vegas. They come out and say yup it needs a part, I’ll get the ok and I’ll order the part. I’ll have it in a couple days and then schedule to come out in a couple days. Same thing with a water heater or a furnace in the winter.) if it’s your own house you put up with it or you stay with friends. If you’re renting it out, it suddenly isn’t habitable and you have to provide alternative housing.