Home Warranties on Fix/Flip

[Aaron Brown]

In instances where you purchased from a corporation as-is and they don’t have utilities in their name to be tested in an inspection, is it common to purchase a home warranty for protection? Any thoughts? 

[Joe Splitrock]

Originally posted by @Aaron Brown:

In instances where you purchased from a corporation as-is and they don’t have utilities in their name to be tested in an inspection, is it common to purchase a home warranty for protection? Any thoughts? 

 I would never buy a home warranty. They are notorious for being slow to respond and finding ways to deny claims. Most landlords end up paying for replacement out of pocket while they are waiting for someone to fix something. I do think on the seller side that it can help sell a property. It provides buyers with a false sense of security. 

I would always have things inspected up front and never accept warranty in lieu of inspection. How could they even warranty something that you never tested before buying? Warranties cover things that break, not pre-existing problems. They also have a long list of exclusions that include workmanship problems.