Should you renew the home warranty on your rentals when they come due? It’s very likely that the rental property you bought had a home warranty policy along with it courtesy of the seller.

In some parts of the country, a home warranty is almost should you renew your warrantyexpected by a buyer and when there isn’t one offered, buyers might wonder “why” when the property down the street has one. Still in other areas, home warranties are only employed when real estate sales seem to be slowing a bit.

A home warranty doesn’t warrant the condition of the home being purchased obviously, but instead repairs to things such as appliances and critical systems. When a buyer acquires a home with a home warranty and the trash compactor fails within the home warranty period, a replacement compactor is on the way. What are some of covered items?

That depends upon the level of coverage the policy contains but standard policies cover breakdowns of heating systems and furnaces, plumbing, ductwork, water heaters, electrical systems and more. Should there be a failure during the initial period, typically one to two years, the home warranty policy replaces and repairs the needed items.

Okay, so you bought a property with a home warranty, should you renew the policy when it comes due? A home warranty company will tell you “yes” but it really comes down to the current condition of your rental. If your property as well as the appliances has been around the block a few times, it might make sense to extend the policy for another year. If however you’ve decked out your unit with new appliances and your recent inspection came through with flying colors, you may decide to hold off on a renewal. New appliances come with their own warranty, often longer than what a home warranty policy would cover.

Home warranties come with various levels of coverage and many offer a type of a “cafeteria” plan where you can pick and choose what is covered and what is not and premiums are relatively inexpensive, certainly less than the cost of a new gas range. If your rental’s heating and air conditioning systems have some miles on them or the appliances could use a shine or two, you might want to price out a few home warranty policies.