Home warranty companies

[Jolene Blackbourn]

My house came with a home warranty company that sucks so bad they caused more problems than they helped with and I've had to pay for all the repairs that were covered under warranty anyway.  It was free the first year (or not free since their poor service and my lack of understanding cost me my tenants), but I refuse to pay for them again.  Is there a home warranty company you recommend?  Or just skip it?

[Kevin Sobilo]

@Jolene Blackbourn, I would skip it.

A home warranty is just a type of insurance and you don't make money on insurance in the long run, because the insurance company makes LOTS of money!

You are better off budgeting money for maintenance and capital expenses and keeping a reserve in case issues arise faster than your budgeted money gets socked away from incoming rents.

Where a home warranty MIGHT make sense is for someone who is not in a position to budget money from rent for issues or where they cannot allocate sufficient reserves in case of an emergency. In that case it could be worth buying one.

Its the same thinking as any other kind of insurance, you insurance issues significant enough that you could not cope with them if they happen such as the house burning down.