American Home Shield?

[Rosston Smith]

Anyone have any thoughts on purchasing an extra Home Insurance service like American Home Shield?

I'm a new investor, 21 years old, and I don't have the biggest pockets. Currently occupying my quadplex with three tenants. Here are the rates I was quoted.

Essentially you pay the monthly rate, and then if you have a problem you pay a service fee, and they will come out and fix it for that service fee. Also, they will replace appliances up to $3000/yr in appliance replacements. 

[Jeremy Brown]

We only used one of those warranties once. We had a pipe in the wall spring a pinhole leak. They charged us the $40 service fee, sent out a plumber who cut 2 holes in the wall and soldered on a $1 fitting at the leak. Then, they called it done. After I complained enough, they sent out another plumber to repair the hole the first guy cut in the wall. Yes, they sent a plumber to do drywall repair. He did a horrific job. They did nothing about the carpet that was ruined by the leak. So, I had to take 2 days off work to pay someone $40 to a bad job on a repair with a $1 material cost, and I still had to replace the carpet and paint myself.

So, maybe it's worth it if you get a new HVAC or water heater, but consider it a BAD idea for the little stuff.