Maintenance Insurance

[Eugene Lipkin]

Hi y'all,

Is there maintenance insurance that covers basic maintenance that I have to do as a landlord-- everything from plumbing issues and repainting to more significant issues like a broken boiler?

If so, could you recommend some companies that offer this?

[Derek Lacy]

Everyone is correct. Maintenance insurance is what one would call a home warranty.

Here's the rub, you should insure anything you can afford by yourself and can rely on with any predictability. Why? Because insurers have actuaries and know your probable claim better than you, they then will on average price what your expected loss is and then 30-40% for their expenses and profit.

Warranties are even worse. Due to increased unpredictability and ungodly commissions (40-60%) it's usually expected claim plus 150%. Meaning you will make the salesperson and warranty insurer rich in the long run, not yourself.