Home warranties help pay to repair or replace an appliance or system in your home if it breaks down. Not all home warranty plans cover the exact same things – but most of them have very similar features overall.
In general, the best home warranty companies will cover your most-used appliances – like your laundry machines, dishwasher and stove – as well as major home systems like your HVAC, plumbing and electrical.
In this article, we’ll go into more depth in what most home warranties cover and what exactly you’ll pay for that coverage. We’ve also selected a few of the best home warranties that cover the big-ticket items you’re most concerned about, which you’ll see below.
What Systems and Appliances Are Covered Under a Home Warranty?
Every home warranty company has its own list of which home systems and appliances are covered under their plans. Most companies have a “basic” coverage option with a smaller list of items covered, plus a premium coverage plan with a more expansive list.
The list below describes some of the most common home appliances and systems you’re likely to find on home warranty plan options as you shop. We compared dozens of individual service contracts to differentiate between basic and premium home warranty coverage on each series. Keep these components and features in mind as you shop for coverage.
| Basic Coverage | Premium Coverage | |
| Appliances | Refrigerator Washer and dryer Oven/Cooktop Dishwasher Water heater Built-in microwave Garbage disposal | All of the items in basic coverage Garage door opener Ice maker Ceiling fan |
| Systems | Air conditioning and heating system (HVAC) Ductwork Electrical Plumbing fixtures | All of the items in basic coverage Central vacuum Plumbing stoppages Roof leaks |
Most home warranty providers also offer a series of optional add-ons – additional appliances or systems you can add into your home warranty plan for an additional fee. Common add-on options include:
- Extra appliances, like a freestanding freezer or additional washing machine and drying combo set)
- Coverage for a guest unit
- Pool/spa
- Septic system
- Septic tank
- Sump pump
- Water softener
- Well pump
How to Check Your Home Warranty Coverage
In most cases, home warranty providers are clear about what’s covered and what’s not in their plans. The company website will have a list, and a sample contract will spell it out as well. As you look through this coverage, you’ll also run into some common industry terms that are crucial to understand. These include:
- Coverage limits: Your coverage limit is the total dollar value amount that your home warranty provider will pay per policy term for each individual covered item. For example, if an air conditioner has a coverage limit of $2,000, it means that the home warranty provider will not pay technicians more than $2,000 per year to fix this particular system.
- Service fee: Your service fee is what you pay to your home warranty provider each time you file a claim. Be sure to choose a service fee that you know you can afford each time you call for a repair or replacement. Your service fee should not change, regardless of the value of repairs received.
- Exclusions: All home warranty plans include exclusions, which are situations that are not covered under your plan. Most policies include exclusions related to every specific item on the plan — for example, coverage for air conditioning systems often excludes damage to smart home connectivity controls.
- Pre-existing conditions: Pre-existing conditions are problems with your home that were present before you bought your plan. In most cases, home warranties will not cover pre-existing conditions. Some home warranties even require you to provide maintenance records to prove that your home systems and appliances are in proper order before qualifying for coverage. However, other home warranty companies will cover a pre-existing condition if you didn’t know about it when you bought your plan.
How Much Does a Home Warranty Cost?
The average cost of a home warranty in the United States is $50 per month, with a service fee of $75 to $125 per claim. The table below summarizes pricing from a few of our favorite providers depending on your plan and service fee selection.
| Provider | Plan option | Service fee | Monthly price |
| American Home Shield | ShieldSilver | $100 | $59.99 |
| American Home Shield | ShieldSilver | $125 | $49.99 |
| American Home Shield | ShieldPlatinum | $100 | $109.99 |
| American Home Shield | ShieldPlatinum | $125 | $99.99 |
| Choice Home Warranty | Basic Plan | $85 | $46.83 |
| Choice Home Warranty | Total Plan | $85 | $54.75 |
| AFC Home Warranty | Platinum Plan | $75 | $66.33 |
| AFC Home Warranty | Platinum Plan | $100 | $63.90 |
| AFC Home Warranty | Platinum Plan | $125 | $61.50 |
There are multiple factors that contribute to the cost of a home warranty. The following are the biggest factors that home warranty service providers will consider when determining plan pricing.
- Location: Some states see more expensive monthly premiums than others. For example, if you live in Florida, you’ll likely pay more per month for home warranty coverage than someone living in Kansas. Florida’s climate and the prevalence and severity of certain issues like hurricanes and water damage can influence the cost of home warranty plans in the state.
- Your service fee: You’ll pay your selected service fee each time you use your home warranty coverage. Opting for a higher service fee can help you save money on monthly premium costs by limiting your home warranty provider’s liability when you file a claim.
- Coverage limits: A coverage limit is the maximum your home warranty provider will pay to repair or replace each individual item. The higher your coverage limit the better, but you can epect to pay more per month for plans with higher coverage limits.
How To Save Money on a Home Warranty
Taking steps to reduce the amount you pay for your home warranty can improve your overall household financial health. Use these tips to lower the price you pay per month when shopping for coverage.
- Compare multiple providers: Get quotes from several home warranty providers and compare their coverage options and pricing. Don’t settle for the first offer you come across. With multiple quotes in hand, you can identify the one that offers the best combination of coverage and affordability.
- Choose the right plan: Assess your needs and prioritize the systems and appliances that require coverage the most. Opting for a more targeted coverage plan can help you save money compared to a comprehensive plan that includes items you don’t necessarily need.
- Read and understand the contract: Before signing up for a home warranty, carefully read and understand the terms and conditions of the contract. Pay attention to coverage limitations, exclusions, and any restrictions that may impact your ability to make claims. Understanding the contract ensures you’re aware of potential costs and can avoid unexpected expenses.
- Find specialized services: You might also find it noteworthy that some companies offer specialized warranty options tailored for veterans and military personnel. It’s a meaningful way to express gratitude and ensure a secure and stress-free home environment for veterans and their families. So if you fall into this category, these offers might help you save money.
Remember that every individual home warranty provider sets their own rates and pricing, meaning that it’s possible to get the exact same coverage from five providers at five completely different prices. Get a free quote from at least three competing providers to ensure that you’re getting the best price on your home protection plan.
How Do You Choose a Reliable Home Warranty Provider?
Choosing a reputable home warranty provider can be tough, especially when there are so many competing companies offering similar plans. Searching for the following major features can help ensure you’re working with a reputable provider.
- Positive customer feedback: Read customer reviews and testimonials about the home warranty provider before considering coverage options. Look for feedback on their responsiveness, professionalism, claim resolution process, and overall customer satisfaction. Online review platforms like the Better Business Bureau and Trustpilot can provide insights into the experiences of other homeowners.
- Clear terms, conditions, and limitations: Review each provider’s terms and conditions thoroughly. A reputable home warranty provider will have clear, easy-to-understand terms with minimal fine print. Pay attention to coverage limitations, exclusions, waiting periods, service fees, and any other important details outlined in each service contract.
- Transparent pricing: Reputable home warranty providers should have transparent pricing structures. They should clearly outline their coverage costs, service fees, deductibles, and any additional charges. Beware of providers that have hidden fees or unclear pricing structures.
Want to start off your search right? The following are a few examples of best-in-class home warranty companies with proven reputations, as well as who they might be best for.
- Liberty Home Guard: With more than 40 add-on coverage choices, Liberty Home Guard is an ideal option for customized home warranty coverage.
- American Home Shield: American Home Shield offers higher coverage limits than competing service providers, meaning that more expensive repairs and replacements are covered.
- Select Home Warranty: Select Home Warranty is a great option if you’re looking for cheap home warranty coverage, with plans available from $60 per month in most areas.
How Do You File a Claim With a Home Warranty Provider?
When it’s time to file a claim with your home warranty provider, it’s important to know what steps to take in advance so you aren’t panicked when a breakdown occurs. While service requests’ processing varies by home warranty company, expect to go through the following basic steps when using plan benefits.
Step 1: Document the home system or appliance that’s not working properly. This may include taking photos of the unit itself or documenting malfunctions actively using a smartphone camera.
Step 2: Submit a claim to your home warranty provider as soon as you finish documenting the problem. Generally, you’ll do this online – but most home warranty providers also offer a 24/7 phone hotline you can use to connect with a representative.
Step 3: A home warranty representative will review your claim and compare it to your policy. If the repair or replacement need you’ve noted is covered under the terms of your contract, your home warranty provider will follow up to schedule a repair.
Step 4: Your home warranty representative will consult with the company’s network of local repair technicians to match you with someone available on your schedule. The home warranty company will usually book the appointment on your behalf, but some providers may allow you to choose your own service provider.
Step 5: The home warranty company pays the bill directly, minus your service fee.
Step 6: At your repair appointment, your technician will diagnose the issue and fix it for you. If they cannot fix the appliance or system at the appointment, they may need to return at a later date to fully solve the problem.
What Are the Pros and Cons of Having Home Warranty Coverage?
While a home warranty can provide peace of mind and more predictable repair costs, it may not be the best choice for everyone. Home warranties have limitations, which are more apparent in some places than others. Check out our review of Pivotal Home Solutions to know what we mean. But, regardless you must pay attention to it before you buy — and some of these policies may overlap with coverage that you already enjoy.
How Long Does Home Warranty Coverage Last?
Most home protection plan options are in effect for 12 months from the date that your plan waiting period ends. Some home warranty plans allow you to purchase multiple years’ worth of home protection when you sign up for the first time, allowing you to claim a discount on each year’s coverage. If your service contract doesn’t specify your coverage start and end dates, reach out to your service provider.
So, What’s the Most Important Thing About Home Warranty Coverage?
The bottom line? The specific home systems and appliances you’ll see covered under your home warranty plan will vary depending on the specific company you’re working with. While there are a few general home components covered on most plans, every home warranty company has its own underwriting department to create in-house coverage options. This makes it especially important to know what you’re buying before you sign on the dotted line.
When you explore home warranty coverage, be sure to read the fine print on your contract in-full. Your home warranty contract is a binding document that outlines all obligations that a home warranty provider will provide to you. If you don’t see major appliances or systems in your policy terms that you thought were covered, consult with a representative before buying. Be sure to get a quote from at least three competing home warranty companies like Liberty Home Guard and American Home Shield to be sure you’re not overpaying for coverage.
FAQs About What a Home Warranty Covers
What is excluded from a home warranty?
The exclusions you’ll find on your home warranty coverage will vary depending on your provider. As a general rule, damage resulting from anything other than normal wear and use – like flooding and water damage – are not covered. You will also not be covered against breakdowns that occur during your waiting period, if your plan has one.
Is a home warranty the same as a homeowners insurance policy?
No, a home warranty and home insurance are not interchangeable. A homeowner’s insurance policy protects you against damage done to the structure of your home by sudden disasters, like a fire. Home warranties only provide coverage for breakdowns that occur due to normal wear and tear.
Home insurance is usually required by lenders for home buyers using a mortgage loan to buy a personal property, while a home warranty is not.
Does a home warranty cover roof damage?
No, most home warranties do not cover the structure of your house itself – which includes your roof. Some home warranty companies may offer coverage for roofing leaks, but roof damage largely falls under the responsibility of your homeowner’s insurance.
Why is it important to read the details of a home warranty?
The terms and conditions outline important information such as coverage exclusions, deductibles, service fees, claim procedures, and cancellation policies. By thoroughly reviewing the contract, you can make an informed decision, ensure the coverage aligns with your needs, and avoid potential disputes or unexpected costs. Taking the time to read the details of a home warranty empowers you as a homeowner and helps you maximize the benefits of the coverage.
