Home warrantees - good investment?

[Chris Thomas]

Greetings BP community,

What are your thoughts around home warrantees? I purchased on long-term rental property last summer and the seller included a 1-year home warrantee. It's up for renewal and I'm 50/50 on whether it is a wise "investment".

Home is 100 years old but in relatively good shape (few inspection issues). Purchase prices of the home was $170k. 1-year renewal in the warrantee is $540.

Thanks in advance,

Chris

[Patricia Steiner]

Not a fan...first, the wait times.  They have you so no need for them to rush right out and make that repair.  Next is what is known as "exclusionary."  In an older home, they will not repair items that are "old" - or not within current standards.  They also have "pre-existing conditions" that are exclusionary; if the water heater fails but it doesn't have a particular attachment, it's an exclusion.  Then there is the cost...it's not limited to the cost of the warranty.  Here's a USA Today article that covers the pros and cons:

 https://www.usatoday.com/story...

Long answer short: I would pass.