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Home /  Homeowners Warranty / Should you buy home repair insurance?
last_updated_date Last updated: January 23rd, 2023

Do You Need Home Repair Insurance?


Many of the appliances you use every day have a limited lifespan. For example, a typical air conditioning unit lasts around 10 years and a water heater lasts about 15 years. Hence, it’s important to be prepared for the breakdown of these and other important appliances like your refrigerators, dishwasher, and microwave, as they age and wear out with time. You can accomplish this by purchasing Home Repair Insurance.

home repair insurance

A home repair insurance policy will provide peace of mind by reducing the expenses of repairs and replacements of appliances and home systems. It is also called a home warranty or a home protection plan.

In this article, we will explain home repair insurance coverage, how much it may cost, and which companies offer the most affordable policy.

What is home repair insurance?

Home repair insurance, also known as a home warranty, is a service contract between a homeowner and a home warranty provider. It pays for the replacement or repair of household items that break down due to wear and tear, subject to fulfilment of certain terms and conditions. In return, the customer pays a regular premium, and when they avail of services, a trade service fee as well.

Generally, there are three types of home repair plans: appliances plans, systems plans, and combination plans, based on the categorization of covered items. Some companies offer combined plans with increasing numbers of items for higher premiums.

Most home warranty companies also provide optional add-on coverage for items like a septic system, well pump, or garage door.

Is it the same as home insurance?

Home insurance and home repair insurance may sound similar because of their nomenclature but they are totally different from each other. Homeowner’s insurance covers the structural and personal property of the insured and protects the house from damages caused by natural disasters, theft, and other unforeseen circumstances.

Home repair insurance, also known as a home warranty, is a service agreement that provides coverage for the repair or replacement of your household systems and appliances. You should read more about the differences between home warranty and homeowner’s insurance.

Home Repair Insurance Coverage

Home repair warranty plans provide coverage for the following major home systems and appliances:

  • Electrical System
  • Refrigerators
  • Stoves
  • Dishwasher
  • Washing Machine
  • Dryer
  • Water Heater
  • Microwave
  • Ceiling fans
  • Indoor plumbing, including drains
  • Sinks
  • Faucets
  • Pipes
  • Wiring systems, including electrical and cable lines
  • Air-conditioning units
  • Furnaces

In addition to these, you also get an add-on option to include items on your home warranty plans

  • Spa
  • Roof leaks
  • Stand-alone freezer
  • Second air conditioner

Home repair insurance includes some exclusions as well, below are a few of them:

  • Rust and corrosion
  • Unknown pre-existing conditions
  • Improper installation and maintenance
  • Unusual wear and tear
  • Damage caused by natural disasters or environmental harm, including fires, floods, etc.
  • Commercial-grade repair appliances

Many companies offer coverage on items beyond the non-exhaustive list above.

Home Repair Insurance Costs

The cost of home repair insurance depends largely on the coverage plan you choose. For basic coverage, you need to pay a premium of $30- $60 per month and for comprehensive coverage, you have to pay a premium of $55- $100.

However, in addition to the premium, you have to pay a service fee or deductible each time you schedule a service visit with a technician. These fees can range from $50 to $125. Additional factors that can affect the cost are the optional add-ons, the area of residence, and the type of home you have, or any other applicable factors that will be stated in the contract.

You can even get free quotes from our site to check the pricing details and then decide according to your needs and budget.

How does it work?

Home repair insurance usually has a 30-day waiting period before coverage begins. After that, you can file a claim if any covered item stops working, by following these steps:

  1. You can contact customer support representatives by phone, log in to your account or follow any other instructions specified in your service agreement to request service.
  2. After that, a licensed technician will be assigned to visit your home by your home warranty company. If you require emergency services, be sure to mention it to the representatives.
  3. After arriving on the day of scheduled appointment, the technician will conduct a preliminary diagnosis to determine if the service needed by the system or appliance is covered.
  4. If the verification is completed and the claim is approved, the technician will repair the broken item, if possible, or suggest a replacement.
  5. A company may replace a device if it cannot be repaired, or it may provide cash equivalent to the depreciated value.
  6. A small deductible or service fee is charged to the homeowners by the contractors.

Home Warranties for Buyers and Sellers



A home warranty can save the buyer from out-of-pocket expenses due to unexpected breakdowns of major home systems and appliances. Moreover, it may also reduce home maintenance costs in the first year of homeownership, when your finances are already stretched from the recent home purchase.


Home Sellers

During the closing process, the seller can be assured that any covered system or appliance will be fixed at a low cost during the sale. A licensed technician will be dispatched to resolve any unforeseen issues. A home warranty makes the property more appealing to buyers as well.

The Top Home Repair Insurance Companies 2021

There are numerous home repair insurance companies that offer extensive coverage, and excellent services. To help you make a decision, here is a list of the best home warranty companies.


Discount – 1st-month free + limited roof coverage

Offers 24/7 customer service
Large network of contractors
Choice Home Warranty

Why we picked it

Choice Home Warranty is one of the largest home warranty companies and is well known for their vast network of contractors. They offer two plans to their customers – the Basic and Total plans that cover the various critical household systems and appliances like heating systems & ducts, plumbing systems, electrical systems, water heaters, etc. The company doesn’t require home inspections before the coverage begins.


Discount – Get $150 off+ Free 2 Months Coverage

Offers free roof coverage
Trial period of 30 days
Select Home Warranty

Why we picked it

Select Home Warranty is an affordable brand in the home warranty industry and offers coverage that matches the more expensive options. They have a large network of experienced service contractors and also provide multi-year contracts.

American Home Shield

Rating star Rating star Rating star Rating star Rating star

Discount – $100 off for multiple properties + Referral Discount ($25 Gift Card)+ NAR Discount of $50

24/7 service calls
Option to choose your own service fee

Why we picked it

American Home Shield (AHS) is the oldest and among the most trusted companies in the market. They offer three plans that provide comprehensive coverage to your home system and appliances. The company offers higher-than-average coverage caps.


Discounts – $200 off + Free 2 months

Online customer portal
Guaranteed response in 48 hours
ServicePlus Home Warranty

Why we picked it

ServicePlus Home Warranty is known for their comprehensive coverage plans, fantastic offers, and low service call fees. The company offers three plans that cover 20 critical home systems and appliances. They also have a 90 day repair guarantee on parts.

No Discounts at this moment
Offers various plans
Provide specific plans to cover electronic devices

Why we picked it

American Residential Warranty is known for providing quality services and customer support. The company offers four plans that provide coverage for the major home system and appliances. They also have a money-back guarantee if the customers are not satisfied with the service.

How to Pick the Right Home Repair Insurance Plan

It is important to choose a warranty plan that meets the needs of your home. If you want to determine the best plan for your home, you can follow these quick tips.

Analyze Your Requirements

Prepare a list of the items you want to be covered by the home warranty plan. Start by checking if your home has aging appliances and home systems likely to need repairs.

Do The Research

Research the plans, pricing, and services of companies that match your requirements. You can also read their reviews and ratings at Home Warranty Reviews.

Talk to your friends, family, and neighbors

Talk to your family and friends who have purchased home warranties. Their experience from the warranty companies may be able to help you make a decision.

Get Free Quotes

When you have shortlisted the companies, it’s time to request free quotes. You can determine whether your budget fits the plan with the help of the estimates.

Purchase a suitable plan

When you’ve made a choice, you can proceed with the chosen quote or buy a plan online. You have the option to pay monthly or annually.

Benefits and Drawbacks of getting repair insurance

In order to help you decide if you should buy home repair insurance, we have listed the pros and cons of getting them.

  • Home repair insurance plans provide peace of mind by sending a qualified service technician when your home appliances and systems break down and need repairs.
  • You have the choice to upgrade coverage by including add-on options. Additional fees can be charged to include items such as pools, spas, and multiple air conditioners as part of the warranty.
  • It can help you save money in the long run. The cost of repair and replacement of home systems and appliances can burn a hole in your pocket.
company_cons_icon Cons:
  • Your home repair insurance may not cover everything.
  • They won’t cover items that have not been properly maintained and installed.
  • You may not have the option to choose the service providers when it comes to repairs.

Parting Note

Home repair insurance can be a good idea to maintain your budget and get access to skilled service contractors. You get peace of mind from the hassle of finding skilled technicians when your expensive devices require repairs or replacements. However, you should consider the above-mentioned factors when purchasing them. Also make sure to read the fine print before signing up for any services, to ensure that you are using your money wisely.

Frequently Asked Questions (FAQs)


Does homeowner’s insurance help with repairs?


Homeowner’s insurance does not cover repairs of home systems and appliances. Home repair insurance, i.e. home warranty does. Homeowner’s insurance may cover structural repairs, subject to fulfillment of contract terms.


How do I get homeowners insurance to pay for a new roof?


If the damage is caused by the act of nature or god or any accidental event as specified in the homeowner’s insurance plan, the company may cover the replacement of the roof.


Where can I get homeowner’s insurance for homes in need of repairs?


If your home has pre-existing conditions, and is in need of repairs, most warranty plans won’t cover it, after the fact. Homeowner’s insurance covers very specific circumstances. If you want coverage over the home systems and appliances suffering regular wear and tear, you might be able to get a home warranty or home repair insurance.


How to negotiate the deductible for home insurance claim repair?


For home insurance, you may not get an option to negotiate the deductible while making an insurance claim. However, some companies may give you an option to choose the premium and deductible costs before making the purchase. Don’t forget to read the fine print of the home warranty while choosing the companies.


Does homeowner’s insurance cover foundation repair?


Homeowner’s insurance may cover the cost of foundation repair if it was damaged by calamities or accidentally.


Are septic problems covered by a home warranty?


Home warranty plans cover the costs of repairs and replacement of septic system problems like septic leaks or sewer line blockage. As long as excluded components are involved in the problem, the home warranty should cover it.


Can I use my own contractor?


Many home warranty companies give you an option to hire your own service technician for repairs, as long as the technician has been approved by the company before making repairs. This is usually when they can’t find a good technician in your area. However, they mostly have a network of licensed contractors for repairs.


Do home warranties cover roof leaks?


Yes, home warranty companies provide coverage for roof leaks problems. You can know more about the coverage details in the sample contract.


Do I need a home warranty if I have an extended warranty?


The extended warranty is generally added after the original manufacturer’s warranty has expired in order to cover an item’s repair and sometimes replacement. These warranties can be extended at the original buyers’ request. However, you can consider purchasing a home warranty plan to avoid item-by-item expenditures.


Do home warranties cover maintenance?


Generally, home warranties don’t cover maintenance unless it is mentioned in the service contract of a company.


Can you purchase home protection after closing?


You can purchase home protection in the form of a buyer’s home warranty within 30 days after closing a deal. You can buy a home warranty years after purchasing a home but as a homeowner.


Who is responsible for paying home warranty insurance?


Generally, homeowners are responsible for paying the home warranty insurance. However, if it is a part of a closing deal then it is paid by sellers or in some cases, realtors. But if it is a rental property then the tenant is typically responsible for the deductibles.


How to get a home repair insurance payout instead of repair?


When you file a claim for devices breaking down due to normal wear and tear, your home repair insurance company decides to repair/replace them according to the condition of the devices. However, if they can’t repair or replace the device then you may get the sum equivalent to the repair cost. You may not be able to choose a payout yourself.


Does homeowner’s insurance cover garage door repair?


Yes, homeowners insurance provides coverage for a garage door’s repair or replacement if they are damaged due to calamities or by the act of God.


Can I cancel a home warranty at any time?


Yes, if you’re not satisfied with the service, you can cancel your home warranty. Most companies allow cancellations within 15-30 days of the purchase. After that, they only refund a prorated amount minus any charges.

Top home warranty Companies

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