Best Home Warranty Companies 2023
A home warranty is a renewable service contract that covers the costs of repairing or replacing major malfunctioning home items. This guide will provide you with a comprehensive overview of home warranties. We list the best home warranty companies and discuss what home warranties are, how they work, what they cover, and how to choose the right one for your needs.
Service Plus Home Warranty
Based on 879 Reviews
$200 off + 2 months free
Select Home Warranty
Based on 4,570 Reviews
$150 off + Free Roof Coverage + 2 Months Free
Our List of Best Home Warranty Companies For 2023
- ServicePlus Home Warranty
- Select Home Warranty
- Choice Home Warranty
- American Home Shield
- First American Home Shield
What Goes Into Picking The Best Home Warranty Companies?
- We pick the companies after considering numerous factors: pricing, coverage, homeowners' reviews, customer support, exclusions, cancellation policies, discounts, and nationwide availability.
- Our editorial team devoted many hours of research to ensure unbiased and independent company reviews.
- From over 100,000 customer reviews from our website, we fact-checked the legit reviews to maintain accuracy and relevance.
Comparison Of The Top Home Warranty Companies
The table below compares our top home warranty providers based on the premium cost, service fee, coverage caps, and workmanship.
|Best For Customer Service||$50-$60||$75||$3k/Item||90-day|
|Best For Affordable Premium||$60-$65||$100||$3k/Item||90-day|
|Best For Comprehensive Coverage||$46-$55||$85||Upto $3K/Item||60-day|
|Best For Claims Settlement||$39-$60||$75, $100, $125||$6K-Unlimited||30-day||View More|
|Best For Transparency||$30-$44||$85||$2.5k - $3.5k/Item||N/A||View More|
Best Rated Home Warranty Companies: Detailed Overview
A home warranty can provide peace of mind knowing that your appliances and systems are protected in case of a breakdown. But with so many different companies offering home warranties, it can be difficult to know which one is right for you.
This guide provides a detailed overview of the best rated home warranty companies, based on factors such as monthly cost, coverage caps, types of coverage, and customer service. We'll cover all these required parameters so you can make an informed decision about which company is right for you.
Why We Picked It?
ServicePlus Home Warranty is a relatively new company in the industry, but it has quickly earned a reputation for providing top-notch customer service. Based on hundreds of reviews on our website, ServicePlus has an above-average rating of 4.25/5, with most customers expressing satisfaction with the services.
As a result, they were given the Best For Customer Service Award 2023 by our editorial team. Furthermore, the company offers attractive deals and claims to offer plans starting at $2 per day, making it an affordable option.
- Assigns local contractors for a quick resolution
- 24/7/365 claims hotline available
- Does not provide services in Washington and New York
- Doesn’t provide the appliance or system-only plan
The Gold Plan costs $59.92 per month, while the Platinum Plan costs $66.58 per month. Aside from the regular premiums, you must pay a $75 deductible for each service visit. SPHW plans are competitively priced compared to other home warranty plans, and the deductible amount is also reasonable. Finally, the total cost can vary depending on the coverage requirements.
ServicePlus offers two plans: Gold Plan and Platinum Plan. The first plan includes 16 items, both systems and appliances. The Platinum plan covers everything from the Gold plan along with A/C systems, water heater, clothes washer, clothes dryer, heating system, and refrigerator, making it a comprehensive option for homeowners.
Lisa Oldham , NC, JacksonvilleSep 26, 2023
We just signed up for the Platinum and was very calmed talking to Jared. With all the scams going around you just have to be carefulDenice Thompson , CO, WindsorJan 16, 2023
Signing up for the home warranty was easy and the rep was very helpful in explaining things. He worked hard to find me the best deal.Renee Smith , MS, Long BeachOct 27, 2022
Peter was very good about not wasting my time. I told him what I needed and he looked for the best price. It was very good to speak with him.Josh Arnold , GA, AtlantaDec 11, 2019
Simply put, the best company out there when it comes to home insurance. Super nice people on the lines and claims get processed in due time.Enrica Triggs , GA, DouglasvilleJan 29, 2019
Customer service was great and they went out their way to make sure I get everything I need for a good price. Thanks Max of Total Home Protection!Jose Luis Rodriguez , FL, MiamiJan 07, 2019
THP has very good and polite internet business associates. I am looking forward to doing have my home warranty for this coming year.DetailsPros & ConsCostPlans/CoverageReviews
Why We Picked It?
With over ten years of experience, Select Home Warranty has made a name for itself in the US market by offering customers three types of home warranty coverage. Each plan comes with free roof coverage and a variety of add-on options.
We analyzed 4,558 customer reviews on our platform and discovered that more than 60% of customers were pleased with and valued the company's offerings. The company provides three affordable plans starting at $45/month with a hundred dollars off and an additional free roof leak coverage. Owing to all these factors, we pick Select Home Warranty as the "Best for affordable premiums".
- Offers coverage for mobile homes
- Provides regular discounts on all the plans
- Lower coverage limits
- Does not cover unknown pre-existing conditions
Select Home Warranty's Bronze Care and Gold Care Plans are $45.67 per month, while the Platinum Care Plan is $50.25 per month. Select’s Platinum Care is among the most affordable combos available.
Moreover, if customers pay upfront, they can get two free months of coverage, making Select even more affordable.
Lastly, Customers must also pay a service fee, which varies by state but is typically between $60 and $75.
Select Home Warranty offers three plans to homeowners- Bronze Care, Platinum Care, and Gold Care. The first plan covers seven home appliances, Platinum Care covers six systems, and with Gold Care, you can get your 18 home items covered.
SHW plans are comparable to industry coverage, as customers can obtain coverage for most items commonly used nationwide.
Mary Ann oswalt , TX, GranburyJul 17, 2020
My dryer repair was fully covered with my select warranty. So glad I have it. It was nice to not have to locate a repair service. select did it allcynthia souther , CA, Manhattan BeachJul 15, 2020
We called with a plumbing issue. The contractor assigned to us had not received the paperwork. I had to call again, to ask them to send the e-mail.Paula Gilliland , TX, BurlesonJan 31, 2020
I have only filed one claim. The associates that I dealt with on the phone were friendly and very efficient. So far I\'m happy with the service.Lauren , CA, BanningJan 30, 2020
Ice maker not covered. trish called to say it would be covered for a one time fee. I was happy with that . I had considered changing companies.Tess Craft , WY, WorlandDec 27, 2019
Microwave stopped working on Christmas ! I called the day after and got a settlement price email within minutes. Very fair,efficient company.Prggy Burns , MI, TroyDec 25, 2019
Even though they couldn\'t find a repairman for the ice maker they let us find one and approved the job in a timely manner All good hereDetailsPros & ConsCostPlans/CoverageReviews
Why We Picked It?
Choice Home Warranty carries over 14 years of industry experience and has solidified itself by serving 1.9 million customers and handling more than 6 million service requests. Choice offers two plans to homeowners starting from $45 monthly, comparable to the industry standards. Due to its 24/7 customer service, network of 25000 contractors, and affordability, it is a considerable option for homeowners.
- Offers free protection for 30 days
- Served 1.9 million+ customers
- Customers are not allowed to choose their contractors
- Charges $2.5 extra on monthly payments
Choice Home Warranty’s two plans: Basic Plan and Total Plan, costs about $45 & $55 monthly, respectively. Compared to the industry average, CHW plans are competitively priced.
The Total plan becomes more affordable as it is less expensive than other comprehensive plans, so we have rated Choice “Best for comprehensive coverage.” Also, if you bill annually, you can get free coverage for a month, making Choice more affordable.
Additionally, you can expect pay $85 as deductible, and the total cost may increase if you purchase anything from the optional items.
Choice Home Warranty offers coverage via its two plans: Basic and Total, which provide varied coverage levels. In the Basic Plan, you can get major appliances and Systems coverage. In comparison, the Total plan covers everything from the Basic plans, Air Conditioning System, Refrigerator, Washer Dryer. These plans are ideal for homeowners looking for extensive coverage at affordable prices.
Ava Taylor , GA, MariettaJul 10, 2023
I was very please with the service of B & J Appliance Repair LLC. Sam, the Technician was able to resolve the leak in a timely manner.Gameboy Marc , AZ, TucsonMay 09, 2023
After one cancelation the second time was a charm. A Sears tech was out and fixed the range the first time around. I was very happy.novlette minott , NY, BrooklynMay 02, 2023
The agent that I spoke to when signing up for home warrant was pleasant, friendly and understanding. It was a pleasure speaking to him.Mae Bertha Powers , TN, MemphisApr 19, 2023
next day response to request. completed satisfactorily.tech professional and appeared to know what was necessary to get the job doneChiemi Meyer , TX, HoustonMar 24, 2023
They are very responsive. We are happy with their service! Initial response was fast and timely phone call back was really helpful.Michelle Cooper , FL, Neptune BeachMar 10, 2023
The serviceman was very knowledgeable, courteous, and took care of the problem immediately. I was very pleased with the service
Based on 16,757 Reviews
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Why We Picked It?
With over 50 years of experience, American Home Shield is the market pioneer in the home warranty industry. They have served over 2 million customers and built a network of 17,000 licensed contractors across 48 states.
AHS covers unknown pre-existing conditions, which is rare in this industry. Moreover, AHS members get the advantage of a virtual diagnostic feature that helps them minimize the fixing process. The company's claim of settling over $2 billion in claims is among the highest in the industry, prompting us to rank them as "Best for claims settlement."
- Protects against unknown pre-existing conditions
- Offers various discounts for Veterans and military personnel
- On lower deductibles, customers have to pay higher premiums
- Does not provide coverage in Alaska & Hawaii
American Home Shield’s plans range between $29.9 to $89.9 monthly, depending on the chosen deductible amounts: $100 and $125. Compared to the other leaders, the ShieldPlatinum Plan is a bit on the higher end. However, AHS makes up by offering roof leak repairs, free HVAC tune-up, unlimited a/c refrigerant, coverage for code violations, and permits and modifications.
Moreover, the total price may vary if the customer adds any optional item to the plans.
American Home Shield provides three plans to homeowners: ShieldSilver, ShieldGold, and ShieldPlatinum. The first two plans provide different coverage options for systems and appliances. ShieldPlatinum is a combinational plan where the customer can enjoy the benefits of both systems and appliances, plus some extra items.
AHS covers systems up to $5,000 and appliances up to $4,000 per contract term. The company states in its contract that the most they will pay during a contract term will be up to $50,000, which only some in the industry can match.
Renee Jeffery Smith , AR, BatesvilleJun 03, 2022
The AC repair guy came and had to order a part. We have not heard back from him about when the part arrives and when he can return?Abelardo Fraga , TX, HoustonMay 19, 2022
anytime the repair is covered under warranty is a good day. most of the time they are not. not sure what else you want me to say.nicole smith , WA, Lake StevensMay 17, 2022
I have had AHS for awhile but never needed to make a claim until a few weeks ago. They ended up replacing my fridge and I am so thankful!!!!Bryan , VA, StaffordApr 30, 2022
AC unit quit working on Tuesday afternoon, I filed the claim on line. By lunch on Wednesday a AC tech was here and was able to get the AC running.Carolsue Robbins , CO, EnglewoodApr 26, 2022
They called the same day and were able to ID the possible issues. Ordered the part then called to set up the appt. to come out and fix the problem.E D , FL, Deerfield BeachMar 31, 2022
A*** did a great job. He needs to come back to adjust one of the toilets. I left a message. I hope to hear back from them. Thank you in advance.
Based on 2,434 Reviews
$200 Off For Memorial Day + $25 Off For Milltary PersonnelView MoreDetailsPros & ConsCostPlans/CoverageReviews
Why We Picked It?
First American Home Warranty (FAHW) has been in business for over 35 years and has set the standard for offering quality home warranty plans. The company provides all critical information on the website, such as pricing, plans, claims data, etc., and maintains customer transparency.
According to the FAHW, more than 59% of its customers submitted at least one claim. FAHW has paid $219 million in settlements in just one calendar year. Hence, it became our "Best for Transparency."
- Doesn’t mandate home inspection
- Covers appliances up to $3.5k
- Does not offer services in 15 states
- Does not cover air conditioners under basic plans
The pricing offered by First American Home Warranty varies based on the deductibles. The plan range between $47 to $87 per month, depending on the service fee: $75, $100, & $125. Compared to the industry standard, the pricing can be considered higher, especially for the Premier Plan.
FAHW provides three plans to homeowners: Starter, Essential, and Premier. Customers can get their five items covered in the Starter Plan, nine under Essential, and a combination of 15 systems and appliances, such as the Plumbing System, Electrical Systems, Built-in-microwave, etc., in the Premier Plan.
Along with the regular plans, customers can avail of First-Class Upgrade and Plumbing Plus options at some extra cost; this can be an added benefit for homeowners.
DetailsPros & ConsCostPlans/CoverageReviews
Venie Forsythe , TN, OaklandJan 04, 2019
I have had to use this service several times and have had no problems. They are easy to contact and respond to your needs in ample time.Virginia Dobson , KY, LouisvilleDec 06, 2018
I wish I had taken advantage of First American Home Service when my sister told me about them. They are efficient and professional.Robert Novak , TN, MorristownJul 24, 2018
Contractor schedules sometime cause delays. Sometimes thing fall into a rabbit whole. Things sometime happen that are beyond anyone\'s contrill.Erin Merriam , CA, SacramentoJul 20, 2018
Response from Customer Service was fast and we were contacted by the plumber within hours of our request. Service was great and really fast.Dan J , CO, DURANGOMay 30, 2018
Outstanding company of honor. They fix things when broken and try to replace when necessary or do a cash out. Very reputable Company!!Elizabeth Whittenberger , TN, BristolFeb 06, 2018
We have been very happy with them, however, we need to do some research to compare annual renewal cost. Living on a fixed income is a challenge.
Why We Picked It?
For more than 20 years, America's Preferred Home Warranty has been in the market. The company is a reliable option since they have generally received favorable reviews on our platform and a 4/5 star rating.
Additionally, its multi-family option benefits homeowners who live in apartments or rent their homes to tenants.
- Provides the option to pick your contractor
- Offers extended pipe and roof leak coverage
- Offers only one plan
- Premiums are expensive on lower deductibles
APHW plans to start from $39.58 to $62.08 depending on the deductible and your location. You can select the deductible from $50, $75, $100, and $125. APHW offers Preferred Rewards and Cashback to customers, which can lighten the overall cost.
APHW offers only one plan, the Standard Plan, which covers 25 systems and appliances. In addition to the Standard coverage, customers can buy Premium Plan to enhance their coverage.
Compared to the industry, the coverage offered under one plan is quite comprehensive. Moreover, APHW will protect your home items up to the limit of $25k, which is remarkable.
Eric Channell , OH, NorthfieldOct 31, 2019
APHW is the best! I have worked with them for over 10 years, and they have always provided top notch service, and are willing to go the extra mile.Matt Eizenberg , OH, HudsonDec 21, 2018
Matt McQuerry has been awesome to work with. He\'s been there for us everytime we\'ve needed him and would recommend him to anyone! Thanks!Amy Pic , MD, ParkvilleDec 18, 2018
When I call Steve he picks up the phone. I had my homebuyer call him to assist with a claim. He gave her the number to call and followed up with her.Jeff Cooper , MD, Lutherville TimoniumDec 14, 2018
Representative was very helpful in helping a customer with answers about the warranty, how it works and making sure they knew what was covered.Deb Mcpherson , MD, ColumbiaDec 14, 2018
Great follow up from Sales manager Steven Lunenfeld on being available to answer questions and accommodating my changing schedule.Robert Anthony Obleton , OH, ClevelandNov 27, 2018
Sherry was excellent! She was professional, friendly, and truly caring. She explained everything and made sure I understood the process completely.DetailsPros & ConsCostPlans/CoverageReviews
Why We Picked It?
Hundreds of customers on our platform have praised Liberty Home Guard for providing excellent services and promptly responding to customer claims.
The company is available 24 hours a day, seven days a week via live chat and a toll-free phone line, so we rated LHG's response time as the best!
Furthermore, the company is making things more accessible and affordable for customers by offering regular discounts and collaborating with a large team of 10,000 certified contractors.
- Offers coverage without maintenance record
- Provides pest control as an added coverage
- Does not offer customization on plans
The monthly costs of Liberty Home Guard plans can range between $49.99 to $59.99, depending on your chosen coverage. Compared to the industry average, the prices are a bit on the expensive side.
However, if you bill annually, you can avail of 2 months of free coverage. LHG also charges a $90 deductible, which you’re supposed to pay during the services
Customers can choose from three plans with Liberty: Systems Guard, Appliance Guard, and Total Home Guard. As the names suggest, the first two plans cover systems and appliances, respectively. The Total Guard is a combined plan that includes everything from the other two.
You can also add optional coverage based on your needs from a list of 43 items, which includes a pool, pest control, pro-series home items, etc. It is a benefit of opting for LHG as, generally, home warranty companies do not provide pest control.
DetailsPros & ConsCostPlans/CoverageReviews
Sara D , CO, AuroraFeb 08, 2019
The team at Liberty Home is extremely diligent and always makes sure to follow up when there are inquiries. I\'m really happy with them so far.Anderson Taylor , ND, FargoJan 24, 2019
my water heater started leaking last week, Liberty had a handyman show up to my house in a few hours. I love the service. Thanks for the great work
Why We Picked It?
Cinch has 45 years of industry experience and distinguishes itself from other home warranty companies by offering a 180-day workmanship guarantee, the highest in the market. The company has closed over 1 million requests across 48 American states.
They also provide homeowners with a digital dashboard for a more effortless claim filing experience. All these factors add up to make Cinch the "Best for Customer Satisfaction."
- Offers $50 for the use of filters for A/C & refrigerator
- Provides a free water sensor for leak detection
- Does not provide services in Alaska and Hawaii
- Charges higher service fees compared to the industry
Cinch Home Services’ plans start from $72.99 and can go up to $105.99 per month, depending on the deductible: $100, $125, or $150. Customers can choose the amount they have to pay during each service visit, and the total cost will be calculated based on the same. If you select the lowest deductible, the premiums get a bit expensive, and vice versa.
Cinch Home Services offers three home protection plans to its customers: Appliances Plan, Built-in Systems Plan, and Complete Home Plan. You can cover 13 items in the appliance-only plan and 18 items in the systems-only plan.
Lastly, with the Complete Home plan, you can get coverage for 32 systems and appliances, plus Homeowners Insurance Deductible Reimbursement- $500, making it a worthy option.
DetailsPros & ConsCostPlans/CoverageReviews
C B Kyle , NC, KinstonMay 08, 2019
Great company do what they say. Rural home found me several repair people. When HVAC could not be repaired they replaced it. Highly recommendElizabeth , TX, KilleenApr 18, 2019
My name is Elizabeth Odeyale. Just signed up but I loved the presentation and attitude and manner of my agent; Mr. Chris White. Keep up the good work
Why We Picked It?
Home Security of America is preferable if you are buying or selling a home in the real estate market. The company exclusively offers plans for homes listed on the market, and both homeowners and real estate agents can buy these plans.
Moreover, we evaluated several customer reviews on our platform and found that the company holds an above-average rating of 3.5/5!
- Does not require a home inspection
- Provides an online portal to handle complaints
- Offers plans in only 27 states
- Plans can only be purchased via a licensed realtor
The price of the buyer-only and seller/buyer plans start from $595/year, depending on the location. The pricing is comparable to the industry average. Apart from the premiums, customers need to pay a deductible amount during service visits, i.e., $125.
The Seller/Buyer Plan and the Buyer Only Plan are the two home warranty plans that Home Security America offers. Customers can choose a Buyer 7-star upgrade at some extra cost to enhance the standard coverages. Apart from that, if you become an HSA member, you get Pre-season HVAC tune-ups, smart home tech installation, setup services, new appliances, and air filter discounts; which makes the offerings extensive.
Judy Hanson , MN, OsseoNov 09, 2019
Tech very polite and thorough. I wanted a new dishwasher as mine is so old parts are not available. I understand due diligence tho.Ray Williams , MI, JacksonJul 20, 2019
My AC went out and I called to get someone to come out. The AC company was out quickly and repaired the AC. It was repaired at no cost to me.Cindy Cleaver , IA, WaukeeJun 02, 2019
We had service on our air conditioner. Customer Service was great and repairman was great as well. Easy to use got job done we are satisfied!Arshid Rashid , VA, WoodbridgeMay 22, 2019
Well i have this warranty if anything electronic broke i just pay the co-pay and they take care of the rest. So far my experience with HSA is good.Brittany M , PA, PittsburghMay 09, 2019
We needed our new house rekeyed. The locksmith was very professional and prompt. Everything was a breeze to set up, and it was done in no time.Lisa G , IA, Des MoinesApr 23, 2019
My furnace stopped working on a weekend evening. When I called Monday morning, got an appointment right away. Quick, friendly service!
Based on 282 Reviews
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Why We Picked It?
Since its foundation in 2009, America's First Choice (AFC) Home Club has become a notable entity in the home warranty sector. This company outshines industry norms, assuring repairs throughout the life of your plan.
Remarkably, AFC offers unlimited coverage caps for AC units and heating systems. Moreover, Catering to different needs, it offers four distinct plans, whether you need protection for appliances, a system, or a blend of the two.
- Allows you to choose a technician
- Provides online assistance for a seamless process
- Does not offer many options under add-ons
Usually, an AFC home warranty may cost anywhere between $350 and $700 on an annual basis or between $31 and $50 monthly. Each plan's pricing varies because they cover a distinct number of items.
AFC Home Club provides homeowners with four distinct coverage plans. These main coverage plans come with the option to extend the coverage through additional add-ons for further flexibility. The plans are Systems, Silver, Gold, and Platinum Plans.
The Platinum Plan is the most comprehensive coverage option offered by AFC Home Club, which offers protection for 18 major home systems and appliances.
Jan Wolfe , TX, El PasoMar 26, 2019
The gentleman who called to check on us and ask if we wanted to continue is the same person who sold us the original contract years ago and has serviced our problems since. I like the continuity.Frank , CA, CasselDec 20, 2018
Immediately referred to the repair service. No hassles, no delays, no surprises. Repair done quickly and professionally.Mohsen Abdula , CA, Sherman OaksJun 15, 2018
After I called to repair my washing machine I was contacted back shortly. Engineers came by identified the problem, ordered and replaced the part. Thank you for your quick supportLarry Tuttle , AZ, Black Canyon CitySep 09, 2017
Worst company ever. Charge alot g money and when you have a claim they give you a stupid reason why they won\'t pay. I give them 0 stars.Jinhui Huang , MD, College ParkAug 25, 2016
This is my first service call. It is related to a leaking problem of my kitchen sink. It took 36 hours to get the work done. I am satisfied about the service.Mohsen , CA, Sherman OaksAug 18, 2016
After I called to repair my washing mashine i was contacted back shortly. Engineers came by identified the problem ,ordered and replaced the part. Thanks you for your quick support
How to Choose the best home warranty company?
Selecting the first available or least expensive home warranty company may appear easier, but by determining your specific requirements, you can pick the best home warranty company. So, what process do you require to get an ideal home warranty service for your home? Let’s take a look.
Determine The Coverage Requirements
Identify appliances and systems critical to the operation of your home, especially those that are relatively old and require more protection. If you've been living in your home for a while, check the owner's manuals for your appliances to determine each item's age. Make a list of the articles you want to get covered by the home warranty plan.
Find Local Providers That Match Your Needs
Various national players offer services nationwide. Still, one must also look at more locally available companies. Having a local provider and contractor can help you in many ways – they are aware of the weather conditions, they can better understand your coverage needs, they can reach your place faster when a situation occurs, etc.
Check the Fine Print & Pay Attention To Exclusions
Read the limitations and exclusions to avoid claim denials. Some companies offer overall caps, meaning they'll spend up to a certain amount on each repair. While some cover home systems and appliances up to a dollar amount, you must know the extent and limitation of coverage for all appliances and services.
Finally, find out what other customers say about home warranty providers. Real-time experiences from your fellow homeowners can help you decide whether the company’s promised services are reliable. We have more than 100,000 customer reviews on our website that you can check to find a credible service provider for your home!
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How Does A Home Warranty Work?
Once you purchase a home warranty plan, you can file claims if any covered items malfunction, generally after a 30-day waiting period from the date of purchase. The steps below will help you file a claim and get the company's promised service.
- Firstly, you can contact the company via its provided guidelines to request a service. You can either call the company or reach out to it through e-mail. After submitting the request, the company will process it further and assign you a licensed contractor or technician.
- The technician will arrive at your doorstep within 12-24 hours or later, depending on the provider. They will diagnose the problem and inform the company about it. The company will then verify your service request and process it further.
- Depending on the verification, you will receive a repair or replacement service. In exchange for this, you must pay a service fee as mentioned in your contract.
Are Home Warranties Worth It?
A home warranty is worthwhile for homeowners looking for peace of mind regarding their home's appliances and systems. Home warranties are a great way to safeguard investments in any unforeseen repairs. So, whether you are purchasing a home or are just worried about the lifespan of your systems or appliances, a home warranty can be your go-to option!
What Is Generally Covered & Not Covered In A Home Warranty?
A home warranty is a service contract that covers the repair and replacement of major home systems and appliances that break down due to normal wear and tear. However, it is necessary to understand what is generally covered and not covered in a home warranty to make informed decisions.
Another highlight is that the specific inclusions and exclusions may vary depending on the home warranty company and plan you choose. In this section, we will detail home warranty coverage and exclusions.
Here’s what you can expect from home warranty coverage:
- Electrical Systems
- Heating Systems
- Plumbing Systems
- Air Conditioning
- Built-In Oven/Microwave
In addition to the major systems and appliances, home warranty companies offer coverage for additional items in exchange for some extra dollars. These include the following but are not limited to
- Septic Systems
- Secondary Systems or Appliances
- Roof leak coverage
While a home warranty offers extensive coverage, the contract does not cover some things. It's essential to review the terms and conditions of your specific warranty to understand the exclusions. Here’s what is generally not covered:
- Pre-Existing Conditions
- Malfunctions Due to Theft or Vandalism
- Natural Disasters
- Acts of God
- Cosmetic Damages
Note: Your home warranty contract may have other limitations, so we recommend you read the terms and conditions and ask any necessary questions from the provider before making a decision. To know more on this topic, read our detailed article on home warranty coverage!
How Much Does a Home Warranty Typically Cost?
Various factors determine the total cost of a home warranty. The monthly cost ranges from $29 to $40. Opting for more comprehensive plans can result in up to $90 per month. In addition, deductibles are mandatory for each service visit, typically ranging from $50 to $125.
The table below shows the basic cost structure of home warranty plans:
$29 - $40
$40 - $60
$60 - $90
$50 - $150
There may be other costs associated with your contract, which you can learn from our detailed guide on home warranty costs.
Home Warranties Regulation
Home warranty companies are subject to government oversight, with the objective being protection of consumers from unfair practices. These companies are bound to abide by specific government regulations, although the policies may differ depending on the location.
Generally, each state has its own regulatory body, usually the Insurance Department, responsible for ensuring compliance.
To operate in a specific area, home warranty companies must obtain licenses and strictly adhere to the regulations set forth by the state. Reputable providers must demonstrate full compliance with these regulations to ensure the provision of reliable services.
How To Understand Home Warranty Service Contracts
One common oversight many customers make when purchasing a home warranty is neglecting to read the terms and conditions. This often leads to claim denials as customers mistakenly assume certain items are covered when they are not. But, you can avoid such pitfalls by allocating sufficient time to reading and understanding the contract.
A typical home warranty contract encompasses extensive information on coverage details for various items, additional coverage options, available plans, contractual terms, associated fees, claims procedures, and limitations and exclusions.
- The coverage section provides specific and essential information regarding the inclusions of each system and appliance. You can also find precise details concerning the company's liability for repair expenses or replacement costs of the covered items within this section.
- Next, you can learn about renewal, cancellation, or transfer options in the contract terms section. Familiarizing oneself with these terms ensures a clear understanding of the conditions associated with the warranty.
- Within the claims section, you can gain a comprehensive understanding of the procedures involved in filing claims, along with relevant contact details.
- Finally, the limitations section outlines the scope of coverage under your home warranty. For instance, it may specify details, like damages resulting from fire, snow, or Acts of God are not the company's responsibility.
Paying close attention to these sections will allow you to avoid misconceptions and ensure a smooth and satisfactory experience with your home warranty.
Frequently Asked Questions (FAQs)
Who Needs A Home Warranty?
A home warranty is a good idea for people who own older homes with aging systems and appliances likely to break down. It can also be a good purchase for landlords, home buyers or sellers.
Which Company Has The Best Home Warranty Program?
It’s difficult to pinpoint any one company since they all tend to differ on various parameters. We shortlist the best companies based on various criteria and present them with awards on annual basis.
What Is A Trade Service Call Fee? Should Homeowners Bear This?
A trade call fee is a payment a customer must pay during service visits. Companies also refer to it as deductible, service fee, or copay. This amount is non-refundable and varies depending on the company.
Who Regulates Home Warranty Companies?
Home warranty companies are regulated by different bodies in each state, such as the Texas Real Estate Commission in the state of Texas. Overall, the National Association of Insurance Commissioners also makes a lot of statements about the service contract industry, though it is not insurance.
There is a self-regulating body called the National Home Service Contract Association (NHSCA), the members of which follow regulations and ensure that they are properly licensed.
What To Look For In A Home Warranty Company?
While choosing a warranty company, carefully check out the company’s service agreement, inclusions, exclusions, and cost details, among others.
What Isn't Covered Under A Home Warranty?
A home warranty typically doesn’t cover damages due to improper installation, cosmetic issues such as scratches or dents due to failed maintenance, misusing items, or repairs that are not included in your coverage plans.
What Is Covered Under A Home Warranty?
A typical home warranty covers the cost of the service, repair, or replacement of major home appliances and systems. Every company has different coverage options, which you can check in their agreements.
How Long Does A New Home Warranty Last?
Generally, a home warranty lasts for a year, but the majority of companies renew the home warranty at the end of the term. Some companies also offer plans for longer terms.
What Is The Average Waiting Period Of Any Warranty Company?
The average waiting period of any home warranty company is 30 days. However, it may increase or decrease depending on the company. So we recommend you confirm it with your home warranty provider at the time of purchase.
What Are Home Warranties For Multi-Family Homes?
Home warranties for multi-family homeowners renting one or many appliances and services with their tenets or other households. This coverage is particularly useful for homeowners residing in apartments or family dwellings.https://www.homewarrantyreviews.com/wp-content/themes/HWR-2020