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I am planing on purchase a multi family property in upstate New York. The houses I am interested in are all pretty old houses. Built in 1910 - 1938. I realized that houses this old perhaps need a lot of repair in the future.
I plan on purchasing a home owner repair insurance. Maybe in the long run, the insurance will save me a lot of $$$. Just wondering if any of you home owners purchased this kind of insurance? Is it even worth it?
Unless your home is worth less than your car, you would be cray to not purchase homeowners. Just get a plan with a really high deductible, if you are really confident.
You HAVE to have homeowners' insurance, but a home warranty is different.
Although homeowners' insurance is highly recommended, you don't HAVE to have it unless you have a mortgage. If you own your house outright, you can self-insure if want to take the risk.
Quote:
Originally Posted by lilyflower3191981
I plan on purchasing a home owner repair insurance. Maybe in the long run, the insurance will save me a lot of $$$. Just wondering if any of you home owners purchased this kind of insurance? Is it even worth it?
Thank you in advance.
I bought a 20-yr-old house in 2010 with all original appliances and HVAC systems. I had never had a home warranty policy before, but the seller paid for a one-year policy for me as part of the purchase agreement. During the course of that year, our combination convection/microwave/double wall oven malfunctioned and only one of the ovens would heat properly. Since parts were no longer available for the oven, the home warranty company cut us a check for a little over $2,700 for us to use to purchase a replacement. That was a lot more than I expected for a 20-yr-old appliance.
Since that worked out so well, we've continued to renew the policy annually. Just this summer, I've had a new garbage disposal installed, a thermostat for the refrigerator, a new motor for the built-in wine cooler, and a logic board for the garage door opener. I also received a new toilet last year, as well as having the HVAC units serviced as necessary. All-in-all, I've been very happy with our policy and our warranty company.
I am planing on purchase a multi family property in upstate New York. The houses I am interested in are all pretty old houses. Built in 1910 - 1938. I realized that houses this old perhaps need a lot of repair in the future.
I plan on purchasing a home owner repair insurance. Maybe in the long run, the insurance will save me a lot of $$$. Just wondering if any of you home owners purchased this kind of insurance? Is it even worth it?
Thank you in advance.
Lily, I started buying these things for my rentals and a nice advantage they have is the tenant can call the warranty company directly and arrange the service call themselves. There is a copay that you can have the tenant pay and deduct it from the rent or, what I do, arrange to pay the copay yourself (so you don't have to burden the tenant).
If the warranty company won't cover it because it is from neglect, it will be pretty easy to show it is the tenant's responsibility. After all, they are likely there with the service man when he makes that determination.
So, bottom line, you let the tenant handle the call themselves scheduling a time when they can be there etc. But the tenant is not burdened finding the proper repair man or paying for the repair. They are happy.
A family member of mine bought a home warranty when he first got his house... I think after the first year or two he quit renewing it... well, during a very hot summer here in florida his AC broke.
He was so miserable because of the heat, and he had to save up some money to pay for the repair... and he told me.. 'If you buy a house, buy a home warranty, and after it runs out, buy another one"(I think he meant renew).
Those words have always stuck with me.
Just this summer my dad's AC broke... he spent about 1K to fix it... it broke AGAIN.... I forgot exactly how the story went, but for a couple K more he could have a brand new AC with new ducts..everything. He opted for that... and then guess what? THAT broke too. --I have no idea what had happened... but they are older and I know he doesn't work the AC that much.
Since that worked out so well, we've continued to renew the policy annually. Just this summer, I've had a new garbage disposal installed, a thermostat for the refrigerator, a new motor for the built-in wine cooler, and a logic board for the garage door opener. I also received a new toilet last year, as well as having the HVAC units serviced as necessary. All-in-all, I've been very happy with our policy and our warranty company.
Hi, thank you so much for responding. I hope this is not an intrusive question, if you are okay with my question, could you let me know which warranty company you guys are using? Thank you
Quote:
Originally Posted by jw2
Lily, I started buying these things for my rentals and a nice advantage they have is the tenant can call the warranty company directly and arrange the service call themselves. There is a copay that you can have the tenant pay and deduct it from the rent or, what I do, arrange to pay the copay yourself (so you don't have to burden the tenant).
If the warranty company won't cover it because it is from neglect, it will be pretty easy to show it is the tenant's responsibility. After all, they are likely there with the service man when he makes that determination.
So, bottom line, you let the tenant handle the call themselves scheduling a time when they can be there etc. But the tenant is not burdened finding the proper repair man or paying for the repair. They are happy.
Thank you so much for responding. I am 100% convinced that I need a home owner warranty insurance. In the long run, I perhaps can save a lot of money. Plus, I want to be a responsible home owner. I want to give my tenant the reassurance that I take care of them, so they can renew their lease with me.
Quote:
Originally Posted by sweetness8t5
A family member of mine bought a home warranty when he first got his house... I think after the first year or two he quit renewing it... well, during a very hot summer here in florida his AC broke.
He was so miserable because of the heat, and he had to save up some money to pay for the repair... and he told me.. 'If you buy a house, buy a home warranty, and after it runs out, buy another one"(I think he meant renew).
Those words have always stuck with me.
Just this summer my dad's AC broke... he spent about 1K to fix it... it broke AGAIN.... I forgot exactly how the story went, but for a couple K more he could have a brand new AC with new ducts..everything. He opted for that... and then guess what? THAT broke too. --I have no idea what had happened... but they are older and I know he doesn't work the AC that much.
Those words stuck with me too!
Thank you all for your responses. Exactly the answer I was looking for.
Hi, thank you so much for responding. I hope this is not an intrusive question, if you are okay with my question, could you let me know which warranty company you guys are using? Thank you
Not intrusive at all. The company is Old Republic.
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Thank you so much for responding. I am 100% convinced that I need a home owner warranty insurance. In the long run, I perhaps can save a lot of money. Plus, I want to be a responsible home owner. I want to give my tenant the reassurance that I take care of them, so they can renew their lease with me. 
