I just got the bill for the home warranty for our rental property. It is $515.00. Gosh, let me see, last year the company says they saved us $253.00. But we spent $515.00 to save that. Plus, our tenants are responsible for the first $50 of repairs. We had two incidents last year, and then one wasn't even covered under the warranty.
I want a cheaper warranty, but can't seem to find one out there. I'm thinking of putting the $515.00 in an account each year for repairs or emergencies. Our rental is 15 years old, so thankfully we haven't had any major problems. I know something huge could happen and we could be out of alot of money. However, with those home warranties, what you think is covered isn't always covered. We tend to find that out at the last minute, and it's too late.
What about you, do you use a home warranty company for your primary residence or rental property? Know any good deals? If so, are you happy with the service?
I'm wondering if home warranties are a waste
August 15th, 2008 at 03:41 pm
August 15th, 2008 at 08:04 pm 1218830673
I tell you, in the first months, 3 things fell apart and we only spent $100 on repairs. We were unlucky on that front, but lucky we were well covered. (I remember we were moving in when a fuse blew in the heater, set off the smoke alarm, etc. I thought the place was gonna burn down before we moved in. Just freaky stuff like that).
That being said, I think those were the only repairs we ever had. We just had a fridge repair and we have been homeowners for 9 years (not sure if fridge is covered anyway - I know dishwasher was). We never bought home warranties ourselves. We are far ahead just putting away the money we would have spent on warranties, and having the cash for repairs.
I think one year warranty cost like $500 in 1999. We've had nowhere near $4500 in repairs. I am sure the cost has increased with time. Probably more expensive on a house than a condo?
It's one of those thing where if you have a run of bad luck you may come out ahead, but mostly not worth it. But a freak thing the only time we really needed it, we were covered.
August 16th, 2008 at 12:50 pm 1218891033