Looking for Reputable Home Warranty companies.....

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Looking for Reputable Home Warranty companies.....

Mike Stone
Member since 2018 · 44 posts · 12 votes

Hey folks,

I'm looking for a solid "home warranty" company for a duplex I own in the Riverside, CA area. One that also covers sewer/water lines from the structure to the street. Most of them have a checkered history with property owners; are there any out there that are pretty solid?

Thanks,

Mike.

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    1d

    A few thoughts:

    1. A home warranty can be a useful tool when trying to sell a home, especially an older home where the buyer may be a first time home buyer. They are novices and not entirely comfortable with home ownership in general. So, the "idea" of a home warranty can have value as a marketing tool.

    1. I lump purchased warranties into the general category of "insurance". Any kind of insurance makes VERY GOOD money for the company and pays out MUCH LESS to the customer than they pay in over time.

    1. Does it ever make sense to buy optional insurances and purchased warranties??? Yes! However, IMO only when the loss you are insuring is not one you can stand. Where the loss might cause you severe hardship and where it might lead to additional consequences.

    1. If you are in a situation as described in #3, I think a high priority is to make a plan to get out of that poor financial situation.

    1. Ideally, you can skip ALL optional insurances and purchased warranties!!! If you can identify the risks, budget for them and have ample reserves, you can do this. You may get bit once in a while with an expense, BUT over the long run you will on average be VERY MUCH AHEAD!

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  • Mike Stone
    OP
    Member since 2018 · 44 posts · 12 votes
    1d

    Thank you Kevin, I just had a water heater break, spewing out water everywhere and the cost of replacement and clean-up was about $1300. That's roughly the cost of an annual warranty, so if I'd paid the warranty for 12 months I'd be out of pocket the same amount. My concern: the duplex is an old Craftsman, split down the middle into two units. It was built in 1939, and I've already this year had to pay around $7000 to repair/replace sections of the old cast iron sewer line. The water lines are predominately galvernized. I'm seeing large bills down the road, due to the age of the property. So I take a chance - pay around $1200 a year for the warranty, and maybe nothing big happens for a couple of years (so wasted money), or forget about the warranty and keep my fingers crossed.

    Your thoughts?

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  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 514 posts · 181 votes
    15h

    @Mike Stone With a 1939 duplex you're already finding the expensive stuff. We don't use home warranties much, but we've used America's Preferred Home Warranty (aphw.com) before, and clients have appreciated how they've handled things. We'll occasionally buy one as a closing gift, or for buyers who don't have much cash left after reserves. The important part is not buying it just for the coverage. Look at the asset first, get a sewer scope, and have a plumber check whatever cast iron and galvanized is left, so it doesn't turn into a CapEx nightmare. Most policies cap or exclude exactly those lines, so read the limits closely.

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    • Mike Stone
      OP
      Member since 2018 · 44 posts · 12 votes
      9h

      Thanks Matthew, `yes I've had the place since 2012, it's not just the sewer/water lines, but HVAC, etc. It all boils down to: which will be the biggest cost - the $100 a month or so over time, or fix-ups and repairs? Crystal ball time, but I see the general consensus is not to have the warranty and go it alone with cash reserves, of course. Thanks for your time!!!

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