Are Home Warranties Worth It?

[Chase Parks]

In the middle of closing on my first rental property and have a question about home warranties. With the market being so hot we waived the home inspection as a contingency. It’s a newer home about 11 years old and from my real estate agents walk through everything looks sound. I’m wondering however if it would be worth it to get a home warranty for a year in case anything pops up that would have been caught in the inspection. I’ve read some of the cons out there about home warranties being a hassle to work with but curious if anyone’s had any success or not out there. Thanks in advance!

[Rick Albert]

Most people I know that have used it successfully have been for HVAC systems.  Outside of that, it's been neutral at best.

Assuming everything is original, most of the systems over the last 11 years are going to be near its useful life, so depending on the home inspection it might be worth it IF you foresee problems in the very near future.  

Plus, the warranty company's first goal is repair, not replace, and even then it would only be for a fraction of it.  Chances are it isn't worth it.