Author Topic: Home Warranty  (Read 547 times)

elduderino

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Home Warranty
« on: October 15, 2018, 09:50:49 PM »
Hi,
I recently bought a house and added the home warranty for a year.
I have moved out of the house and am renting it out now.
The warranty is $40 a month. Not sure if it's worth the money.
Thoughts?

davisgang90

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Re: Home Warranty
« Reply #1 on: October 16, 2018, 04:54:20 AM »
I'm usually not a fan of extended warranties etc. 

I am a fan of home warranties.

I think it depends on the age of the house/appliances/systems.  I just bought a house built in 1986 with some fairly old HVAC/water heater etc.  I pay about $550 a year for a home warranty and I think it is worth it.

Others may have a differing opinion. 

HamsterStache

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Re: Home Warranty
« Reply #2 on: October 16, 2018, 07:28:27 AM »
We have had a home warranty on both our houses (part of the sales package and we ended up renewing). It was worth it when our A/C unit died, and there is some peace of mind, but I am also debating whether it is actually worth it.  I think it's $500 a year with a $75 deductible.  By the time it's needed again we could very well have saved more than it would cover if we stopped paying for it. Renewed not all that long ago so going to re-evaluate when renewal comes up again.

tralfamadorian

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Re: Home Warranty
« Reply #3 on: October 16, 2018, 03:27:57 PM »
Home warranties would not be profitable for the companies who sell them if on average the home owners did not pay more in premiums than the home warranty companies do in repairs. So, unless you have some specific knowledge that would make your situation different and you are confident that the item(s) in question are covered, I would give it a pass.

http://www.mrmoneymustache.com/2011/06/02/insurance-a-tax-on-people-who-are-bad-at-math/