Home warranty insurance plan

[Beth H.]

My property manager recommends to buy a home warranty insurance plan each year.  I am a new investor.  I am coming up on my first renewal and wondering if it is worth it.  It costs $475 for the year for a home in Las Vegas.  Last year we used it once for something very minor.  Just wondering everyone's thoughts on this.  Thank you!

[Anthony Wick]

@Beth H.  I love asking the seller to purchase a 1 year home warranty for my new purchases. It means that no major expenses will happen in the first 12 months of owning a property. And then I never renew the policy with my own money after the first year. Usually you can identify any real problems in the first year, and then you've also been setting aside part of the rents for capex, maintenance, and vacancies so you shouldn't need the warranty.