Hi Miguel:
I have used the home warranty plan on properties (3) for over 20 years. The one I use costs me about $400/yr . I have the premium plan for properties. I just bought a plan for my most recent property and they installed a $3000k heating system, I paid $800 out of pocket. They always have extras that are not covered attached to big ticket items.
Here are the pros and cons
Pros
1. Less hassle if you manage your own property. You can give the tenants their number and they can deal with the tenant directly. I pay $65 service call.
2. They have paid for large ticket items. In my case they have paid for a new propane system to code ($2500), an new heating system ($3000), and many other items for me.
3. I have two rural properties . A regular service call would charge me $65 just to come to the mountains, then charge me the regular fee.
4. Side jobs. If your nice to some of these guys, they will come out and do side jobs for a lot less. :)
Cons:
1. Pain the in butt to contact these people. If you don't know the right times to call, they will put you on hold for at least an hour.
2. You have to stay on top of them. I have had to hassle them for not completing their work. For instance, recently I had a 11 service calls for an old stove I had in one of my homes. They told me as long as it is repairable it will be service called instead of replaced. I didn't pursue as I didn't want to hassle with them, I just bought a new stove myself.
3. Some of the contractors are very unethical and will do whatever not to have the insurance company pay out. I COMPLAIN to the warranty company.
4. Some contractors just don't know what they are doing. I look them up on YELP before I have them come out, if possible. I call and tell the warranty company and they will send out another company.
5. I cannot fix things myself, so I probably use them more than others. They are not just a call and they will do place. I have had to hassle them for service many, many times.
Conclusion:
Overall, for me, they have been of great benefit, due to the properties remote location. But you have to invest time and effort sometimes dealing with them. I have one property built in 1936. It is constantly being repaired somewhere, this is where my plan has paid me back many times over. The other two properties built in 60s and 70s have not had much maintenance issues but when they have had them, they were big ticket items & all but one were paid. good luck!
