Is Home Warranty Worth it?

[Dallin Godfrey]

I currently have a home warranty on my personal home, and have always been un-happy with it. We live in Phoenix and every time the ac unit goes out (every 3-4 years) it takes them at least a week, but usually 2 to have someone come out, look at the unit, then complete paperwork and requests to get a new compressor or parts.

I am dealing with this right now in my personal home, and am hunting for my first investment property right now. Is a home warranty worth it? I can't imagine there is not a better way to do repairs like this. Even if its cutting the warranty off, sticking to manufacture warranties, and saving the cash to pay for expenses when they come up. For a rental, I can see replacing or repairing a unit being deductible as expenses and property improvements.

If I am going to be wealthy someday, I do not want to have to wait two weeks for someone to fix my AC when it goes out in my house, and I do not want this for my renters either. What do you all recommend? What is it that the wealthy do, that I do not know?