Water heaters are essential for hot showers, washing the dishes, and doing laundry, so a broken or malfunctioning hot water heater can be a major issue. Like with any plumbing fixture, you’re likely to run into some issues with your water heater over time that could leave you with a hefty bill. In order to maintain your equipment without breaking the bank for repairs, you might want to consider a home warranty for water heaters. In this guide, we will discuss the best hot water heater warranties to keep your equipment running smoothly without having to pay for costly repairs or replacements.
A home warranty is an investment to safeguard your home appliances and systems. When you experience a problem in your home due to normal wear and tear, you can call on your home warranty to cover it. You’ll just pay a small service fee, and your appliances will be serviced quickly. The best home warranty companies are affordable, provide a multitude of services, and maintain great customer service. Read on to learn more about the best home warranty companies for water heater coverage.
The Best Home Warranty Companies for Water Heaters in 2023
We assess a variety of factors when ranking home warranty companies in order to give you only recommendations for the best home warranty companies. We consider coverage options, pricing, customer service reviews, workmanship guarantees, and more. Here is how they ranked:
The table below outlines data for the best home warranty companies on the market. We constantly update these ratings as companies change their policies and prices to give you the most accurate information possible. Continue reading in-depth reviews of several top providers.
49 states, excluding WA
47 states, excluding NV, WA, and WI
47 states, excluding NV, WA, and WI
49 states, excluding HI
48 states, excluding AK and HI
42 states, excluding AK, HI, MT, NH, ND, OK, SD, and WY
34 states, excluding AK, CT, DE, HI, IL, LA, ME, MA, MN, NH, NJ, NY, ND, RI, VT, and WI
*Quote and cost data gathered January 2023. Cost data are updated and monitored continuously.
Choice Home Warranty
Having served for over thirteen years in the home warranty industry, Choice Home Warranty ranks as the best overall home warranty company. It offers customers straightforward sample contracts and plans, affordable coverage, glowing customer reviews, and extensive nationwide service. Choice Home Warranty is a leader in claim acceptance, surpassing the industry denial rate of 10% with a low 5% denial rate. Choice Home Warranty offers two plans and extensive add-ons that suit most customers’ needs, regardless of if they are a first-time homeowner, a landlord, or a home seller.
- 24/7 customer support to policyholders for claims at any time
- 90-day repair guarantee and reliability in servicing claims
- Total home coverage for as low as $45 per month
- All options include water heater coverage
Choice Home Warranty offers customers two comprehensive plans: the Basic Plan and the Total Plan. Both plans offer water heater coverage so your water heater will be protected, regardless of which one you choose. Both plans can be customized with your choice of add-on services, which we’ll list below. The service fee for all plans is just $85, which is in line with the industry average.
- Basic Plan ($42/month): The Basic Plan offers coverage for major household appliances, including your oven, microwave, and dishwasher. This plan also offers coverage of household systems, such as ductwork, garbage disposal, exhaust fans, plumbing, heating, water heater, and more.
- Total Plan ($53.33/month): The Total Plan not only covers everything that the Basic Plan covers, but also protects your refrigerator, air conditioners, washers and dryers, and more.
- Optional Add-Ons: Choice Home Warranty also offers additional, optional coverages to protect even more of your home. Some popular add-ons include central vacuum, septic system, sump pump, well pump, limited roof leak, pool and spa, stand-alone freezer, and a second refrigerator.
- Service Fee: $85
Liberty Home Guard
Recognized by U.S. News & World Report in both 2021 and 2022 as the #1 Home Warranty Company in America, Liberty Home Guard lands on our list as our choice for the most trustworthy provider. Although this company was just founded in 2017, it has already amassed rave reviews for customer satisfaction and quality repairs. Liberty Home Guard has received an A rating from the Better Business Bureau, which is above average for the industry, and all of the company’s repairs are backed by Liberty Home Guard’s 60-day workmanship guarantee.
- Liberty Home Guard has a network of tens of thousands of vetted technicians to handle claims
- Comprehensive appliance and home system coverage starts at as low as $1.50 per day
- Liberty Home guard offers one of the largest selections of add-ons in the home warranty industry, offering customers 42 optional add-on coverages
Liberty Home Guard offers three coverage plans with a variety of coverages: the Appliance Guard Plan, the System Guard Plan, and the Total Home Guard Plan. Water heaters are covered in both the System Guard Plan and the Total Home Guard Plan. If you’re looking for additional add-ons, you can pick from a large selection in order to protect your whole home.
- Appliance Guard Plan ($64.99/month): Coming in at the lowest monthly cost, the Appliance Guard Plan covers 11 of your home’s major appliances. These coverages include oven, microwave, garage door openers, ice maker, washer and dryer, ceiling fans, and more.
- System Guard Plan ($69.99/month): The System Guard Plan protects your essential home systems, including your water heater, heating, plumbing, air conditioning, and toilet. It also provides coverage for plumbing stoppages, electrical, and ductwork.
- Total Home Guard Plan ($74.99/month): The Total Home Guard Plan is Liberty Home Guard’s most comprehensive plan. It combines the coverages offered in the Appliance Guard Plan and the System Guard Plan to provide major protection to your home.
- Optional Add-Ons: The optional add-on list is quite extensive and is one of the largest selections offered by a home warranty company. These add-ons include sump pump, electronics protection, gutter cleaning, limited roof leak, pest control, locksmith, pool and spa, and more.
- Service Fee: $75
Select Home Warranty
Our top choice for the most cost-effective plans is Select Home Warranty. Having been in the home warranty business for over a decade now, Select Home Warranty is a top-rated provider known for premiums and service fees that are far below the industry standard. With three different plans and free roof coverage included with all of them, Select Home Warranty is great for homeowners seeking a low monthly cost and comprehensive protection.
- All 3 of Select Home Warranty’s policies are under $63 per month and have a low service fee
- Many add-on items available for customization
- Roof coverage included in all plans
- Two plans include water heater protection
Select Home Warranty offers customers three plan options: Bronze Care, Gold Care, and Platinum Care. Both the Gold Care Plan and the Platinum Plan include water heater coverage. The service fee for these plans is lower than most competitors at just $60 per service call.
- Bronze Care ($52/month): The Bronze Care Plan is Select Home Warranty’s appliance plan. This plan provides protection for seven appliances, including your oven, microwave, cooktop, refrigerator, garbage disposal, washer, and dryer.
- Gold Care ($52/month): The Gold Care Plan is the systems plan that excludes appliances. This plan covers your plumbing, hot water heaters, heating system (including heat pumps), central air conditioning, and electrical systems, as well as HVAC ductwork.
- Platinum ($57/month): The Platinum Care Plan is Select Home Warranty’s most comprehensive plan and it includes everything in the Bronze and Gold plans for less than $5 more per month. The Platinum Care plan also covers your garage door openers, ceiling fans, and plumbing blockages.
- Optional Add-Ons: Every individual add-on item has its own fee. Select Home Warranty offers free roof leak coverage. Other add-ons include pool, septic system, sump pump, central vacuum, and more.
- Service Fee: $60
American Home Shield
American Home Shield is a home warranty veteran and has served customers for over 50 years. This company offers three different plans and the option to build your own plan, so the customization options are plentiful. If American Home Shield cannot repair a covered item, they will replace it or offer an alternative solution. With decades of experience and a strong reputation for good customer service, American Home Shield is a trusted and respected name in the industry.
- AHS serves over 1.8 million policyholders with the help of its robust network of over 50,000 technicians
- Customization options include the free different coverage plans, but also service fees and monthly payment plans
- Plans can be budget-friendly, with monthly costs starting as low as just $39.99 per month
All three of American Home Shield’s coverage plans — ShieldSilver, ShieldGold, and ShieldPlatinum — include coverage on major home systems and they can all be customized with add-ons as needed. All three plans include water heater coverage, so your water heater will be protected with any plan that you choose.
- ShieldSilver ($39.99/month): The ShieldSilver plan covers all home systems but excludes appliances. Covered items include electrical, plumbing, air conditioning, and water heaters. It also covers smoke alarms, garage door openers, and HVAC ductwork.
- ShieldGold ($49.99/month): The ShieldGold Plan provides protection for everything in the ShieldSilver Plan as well as many appliances. These additional coverages include your clothes washer and clothes dryer, oven, microwave, range, dishwasher, garbage disposal, and more.
- ShieldPlatinum ($64.99/month): The ShieldPlatinum Plan is American Home Shield’s comprehensive plan; it protects all items in the ShieldSilver and ShieldGold plans. In addition, it also offers an annual HVAC tune-up and AC refrigerant refills and offers customers lower service fees and higher coverage caps.
- Optional Add-Ons: Add-on items include septic pumps, pools and spas, guest units, and extended warranties for electronics, PCs and TVs.
- Service Fee: $75, $100, or $125; a lower service fee results in a higher monthly payment and vice-versa
What is a Home Warranty for Water Heaters?
A home warranty provides financial assistance to customers when something has gone wrong in their homes. Home warranties are targeted protection systems that are useful for any routine maintenance, repair, or replacement of appliances or home systems. A home warranty for water heaters will provide coverage for, among other things, any water heater issues you run into, including water heater repair and replacement.
Because your water heater is utilized daily — for washing your hands, showering, washing dishes, and doing laundry — when something does happen to your water heater, you feel the impact immediately. The average cost to replace a water heater is about $1,200, but if your home has a high-end plumbing system, the cost of repairing or replacing could total several thousands of dollars. A home warranty allows you to pay a small monthly fee and service fee instead, ultimately saving you money over fixing water heater breaks yourself.
Who Needs a Home Warranty for Water Heaters?
Although any homeowner with a water heater can benefit from a home warranty, there are a few people in particular that will find them most beneficial. First-time homebuyers who are purchasing a system of unknown condition, homeowners living in aging homes where issues are more prevalent and the manufacturer’s warranty is likely expired, and sellers in the real estate market looking to protect their home before closing.
Homeowners who live in cooler climates should also consider investing in a home warranty, specifically because water heaters work overtime in colder weather and are more prone to issues. Landlords can also make great candidates for water heater home warranties, as they can help maintain hot water for renters and keep them happy.
What does a Water Heater Home Warranty Cover?
A water heater home warranty covers all components and parts of your water heater, which includes the thermostat, gas control valve, heating coils, and temperature and pressure valves. Your water heater will be covered, regardless of if it is a tankless water heater, electric water heater, gas water heater, or hot water heater. In some cases, a water heater warranty will also include issues that come about because of hard or soft water, which can clog or corrode the inside of the tank, reducing efficiency over time.
Common exclusions include breakdowns or corrosion due to poor maintenance and pre-existing conditions.
How Much Does a Water Heater Home Warranty Cost?
The costs of a home warranty for water heaters depend on which company you decide to go with and if the water heater is covered within standard protection plans or if it is only available as an add-on coverage option. There are no home warranties solely for water heater coverage, so you’ll get lots of other protection for your home in the process. Just make sure that any plan that you choose explicitly covers water heaters.
With that being said, the average monthly cost of a home warranty can range from around $30 to $80, plus service fees. Service fees average around $75 to $85 but can depend on your plan and provider. Typically, a water heater will be covered in plans specific to home systems, or in comprehensive plans offering broader coverage.
How Does a Home Warranty for Water Heaters Work?
Once you enroll in a home warranty plan, filing a claim is straightforward. Read below for the steps from start to finish.
Buy a Plan
In order to submit a claim, you must first purchase a home warranty plan. Note that most companies have a waiting period after signing up; the industry standard is 30 days from signing on to the start of coverage, but some companies make you wait up to 90 days. You should not wait until you have an issue with your water heater to purchase a home warranty plan.
Identify an Issue
After you have purchased a plan and your coverage is active, closely monitor your home systems and water heater or any issues or irregularity. Once you identify an issue, ensure that it’s covered in your service contract.
Contact Service Provider
When an issue does arise, contact your home warranty provider to submit a claim. Your service request can be submitted online or over the phone, depending on your provider and preference.
Issue Gets Fixed
Now that you have filed a claim, your home warranty company will send out a technician from their network to inspect and fix the issue. You then pay the service fee, which averages around $85. The rest should be covered by your provider.
Be Aware of Coverage Caps
Most home warranties have coverage caps. Coverage caps are maximum amounts they will pay out per covered item per year. Make sure that you check your specific home warranty company’s coverage limits and annual maximums to avoid incurring any additional, unexpected costs when you have an issue.
FAQs About Water Heater Home Warranties
What is the best home warranty company for water heaters?
Our choice for the best overall home warranty company for water heaters is Choice Home Warranty. This company offers customers two affordable plans, both of which include water heater coverage. Choice Home Warranty has a 90-day repair guarantee and a strong reputation for satisfied customers. Further, they have affordable service fees and high coverage caps. All of these factors combine to make Choice Home Warranty our top pick for water heater coverage.
Is there a deductible for a water heater home warranty?
Home warranties do not have deductibles like homeowners insurance policies; rather, the service fee should be the only out-of-pocket that you have to pay. Service fees are paid out of pocket, but they are much more affordable than home insurance deductibles.
What is the most common reason for water heater failure?
Usually, a water heater fails because of an issue with an internal component. These components include the thermostat, gas control valve, heating coils, and temperature and pressure valves. If these components break, they can be replaced without having to replace the whole water heater.
Leaks are another common issue with water storage tanks. Leaks can occur when the inner metal water storage tank gradually corrodes or cracks. This failure usually necessitates a full replacement of the water heater, which leads to high replacement costs.
Are Water Heater Home Warranties Worth It?
For most homeowners, the answer is yes. Water heater repair and replacement can be very costly, and home warranties that cover this equipment can help save you hundreds of thousands of dollars on repairs. Not to mention that the peace of mind that you won’t get hit with these massive charges unexpectedly is worth the investment for many people alone.
A home warranty protects your appliances and major systems and allows you to save money in the long run. It also provides peace of mind that you won’t have major unexpected expenses due to routine household wear and tear. Water heaters can be very expensive to repair or replace, so a home warranty that covers water heaters will prevent you from paying major out-of-pocket costs when something does go wrong.
We recommend all of the above companies based on their robust coverage plans, strong reputations, and consistent customer satisfaction, although Choice Home Warranty is our all-around top pick. This company provides outstanding value for a regular monthly fee, includes water heater coverage in all plans, and delivers excellent customer service.
Today's Homeowner Home Warranty Ranking Methodology
At Today's Homeowner, transparency and trust are our most important values for the reader.
To create this rating system, our team spent hours researching over 60 companies, analyzing 2500+ key data points, getting the thoughts and opinions of 1000+ homeowners, and speaking to home warranty company representatives directly. We also dug into the fine print on each company’s service agreement to ensure no detail was left out.
We developed an objective home warranty review and rating methodology to score each home warranty company based on several criteria. We used a five-point scale with a point index ranging from 0.00 to 1.00. The minimum awardable value is 0.0, whereas 1.00 is the maximum. These numeric points are translated into star ratings, using whole star increments between one and five.
Here is a quick breakdown of our five core scoring categories:
- Coverage (0.4): This category evaluates the scope of protection offered by a home warranty provider. We clearly distinguished between limited or broad coverage to help homeowners identify their own home protection needs. We also factor in claim turnaround times, average waiting period lengths, plan types, annual coverage limits, policy exclusions, etc.
- Cost (0.3): This category considers what home warranty companies charge homeowners monthly, annual, and out-of-pocket. We urge homeowners also to consider the cost-to-value ratio of a home warranty plan.
- Transparency and Trustworthiness (0.15): This category evaluates home warranty providers based on pending or past legal action, hidden fees, lack of information readily available on the website, exclusions, and more. We consider how upfront a company is to its potential policyholders, which says a lot about its products and services.
- Customer Support and Satisfaction (.09): This category evaluates the efficacy of a home warranty company’s effort to provide supportive guidance to inquiring customers and how policyholders are satisfied with the assistance they receive.
- Customization (.06): This category evaluates the ability of homeowners to adjust and choose their policy details, such as pricing variation, optional add-ons, and the number of plans available.