Dallas-Fort Worth Real Estate Investor Club

Shoud I buy Home warranty

  • 18 Dec 2015 10:57 AM
    Quote
    Message # 3706525
    Sabrina Lin

    I use a home warranty.  I find it's a scheme.

    When I claimed to repair, they sent a repairman to check.  Most of time, the repairman said he need to order the part.  I need to pay $45 service fee for diagnosis.   Then the company told me the insurance only covers the part but I need to pay the installment fee.  Sometimes they said the part it does not covered by the insurance.   Anyway, I have already paid too many times $45 service fee for nothing repair.

    I have 5 properties in north Fort Worth.  Do you think that I should buy home warranty insurance?  Do you know which home warranty insurance is good?

    When my properties have problems such as sink, dish washer, garbage disposal...., how could I find a reasonable repairman to fix it?

    Please give me some idea.  Thanks.

    Sabrina (sabrinalin@usa.com)


    Last modified: 18 Dec 2015 11:33 AM | Robin Carriger (Administrator)
  • 18 Dec 2015 11:45 AM
    Quote
    Reply # 3706616 on 3706525
    Terry Allen

    Hello Sabrina,

    There are several home warranty providers in the DFW metroplex and I have found that each provider is only as good as the protection it offers and the contractors in their network.  You will have to do as much due diligence to select a home warranty provider as you would to select your own repairmen. If your rental agreements state that the tenant is responsible for proper maintenance of systems and repair of HVAC and appliances (with you bearing the responsibility for catastrophic failure), a home warranty may not be necessary.   

    I chose to purchase a home warranty on my personal residence and have used it enough to recover purchase price and $75 service calls in savings. The home warranty paid for a furnace repair and the replacement of a refrigerator, a dishwasher and water heater. However, plumbing contractor sent by the home warranty provider the contractor tried to overcharge for "code corrections", asking me to pay an additional $400 above what the home warranty provider would cover. I contacted another plumbing contractor and got a second opinion. I filed a complaint with the home warranty provider about the overcharging contractor. The home warranty provider reimbursed me for the replacement and fired the offending contractor.  

    I recommend you budget an amount per month for repairs. Estimate an annual amount, then divide by 12. Compare that to the cost of the home warranty plan plus service fees and see which is less.

    Terry
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