Home warranties provide homeowners with peace of mind when household systems and appliances fail. Appliances like microwaves, dishwashers and clothing dryers function as the main part of our lives within our homes, and when they fail, it can be stressful. These failures are predictable when they’ve gone through enough daily use.
It’s anxiety-producing enough without the added cost of repair and replacement thrown in. Unfortunately, homeowners insurance doesn’t cover damage from everyday wear and tear — but home warranties do.
The reviews team has evaluated Costco’s home warranty options, looking into plans, coverage, customer ratings, cost and more. Costco offers warranty options on appliances purchased in its stores to support homeowners when it comes to the repair and replacement of these items if they fail.
Ultimately, Costco can’t stack up against traditional home warranties, which cover a wider variety of appliances in addition to systems. American Home Shield has been found the Best Overall Provider for a home warranty for its strong reputation and its wide variety of plans.
Our Preferred Home Warranty Alternatives
Today’s Homeowner recommends a few home warranty companies to our readers. Below, you’ll see our latest suggestions and their money-saving deals. You can also read our review of the companies with similar home warranty plans to learn more about these top picks.
In This Article:
- Overview
- What To Know About Costco Warranty Plans
- How To Make A Claim
- How to Get A Quote
- Reviews
- Assessment
- Preferred Provider: American Home Shield
Overview
Costco offers warranties for appliances, but only those purchased at a Costco warehouse in-person or online at Costco.com. The company partners with SquareTrade, an Allstate company, in order to provide these warranties.
What to Know About Costco Warranty Plans
Costco offers three plans at different coverage rates — an appliance, kitchen suite and laundry suite warranty plan.
Each of these plans covers your appliance for a total of five years. The first two years are covered by Costco Concierge, and the final three are extended protection offered by SquareTrade. The SquareTrade extension must be purchased within 90 days of receipt of your appliance.
Each plan purchased covers one relevant item. For example:
- Appliance plan: Covers one refrigerator, freezer, washer, dryer, range, dishwasher or over-the-counter microwave.
- Kitchen suite: Covers one “suite” or set of items purchased, which may include a dishwasher, microwave and refrigerator all in one.
- Laundry suite: Covers one “suite” or set of items purchased, typically a clothing washer and dryer.
No sample service contract is available online, but more information about these warranties can be found here.
Home Warranty Resources
- What is a Home Warranty?
- How Much Do Home Warranties Cost?
- Is a Home Warranty Worth It for You?
- Best Home Warranties in 2023
- Do Your Appliances Need Extended Warranties?
Costs
The cost of each warranty type depends on the coverage umbrella you’re looking for. Costco offers plans for appliances that cover between $1,000 and $4,000 worth of damage or replacement needs.
Here’s the breakdown by plan:
| Appliance Suite | |
| Appliance (Under $1,000) | $79.99 |
| Appliance ($1,000-$2,000) | $99.99 |
| Appliance ($2,000+) | $119.99 |
| Laundry Suite | |
| Laundry (Under $2,000) | $159.99 |
| Laundry ($2,000+) | $199.99 |
| Kitchen Suite | |
| Kitchen (Under $2,000) | $159.99 |
| Kitchen ($2,000-$4,000) | $299.99 |
| Kitchen ($4,000+) | $399.99 |
There is no optional coverage beyond these plans.
Costco’s options are fairly expensive. For example, using the least costly Costco examples, covering kitchen and laundry suites alone might cost you $350, whereas another home warranty plan would cover these, as well as other systems and appliances in your home at once for the same price.
How To Make A Claim with Costco Warranty
You can get free technical help to discuss your warranty claim by calling 1-866-861-0450.
Reviews of Costco Warranty
Costco is not accredited by the Better Business Bureau (BBB) and holds an A+ rating. Specific reviews for home warranties are not available. General reviews are mixed. All BBB ratings are as of February 2020.
Costco Warranty Pros & Cons
Home warranty providers will give homeowners a much better bang for their buck when it comes to protecting their appliances. Here’s how Costco panned out.
Preferred Provider: American Home Shield
If you’re looking to get more for your money when it comes to covering your home, the Best Overall home warranty provider is American Home Shield. Here are just a few reasons:
- Offers three plan types to choose from
- Operates in 49 states, all except Alaska
- In business since 1971
- Lets customers select their own service fee, either $75, $100 or $125
- Answers service requests within 24 hours 98% of the time
American Home Shield covers 14 critical home systems and 9 essential appliances at once.
AHS claims to have founded the home warranty industry and has a network of more than 15,000 licensed contractors, and professionals throughout 50 states in the US. American Home Shield reviews also show the company to be a good provider.
Here’s how the home warranty provider stacks up against Costco’s warranty options.
| American Home Shield | Costco Home Warranty | |
| Sample Contract Provided | Yes | No |
| Number of Plans | 3 | 3 |
| Average Lowest Cost | $500 | $110 |
| Optional Add-Ons | Yes | No |
| # of States Covered | 49 | Not Available |
| Excluded States | Alaska | Not Available |
| Waiting Period | 30 Days | Not Available |
| Service Fee | $75, $100 or $125 | Not Available |
| Years in Business | Since 1971 | Since 1976 |
| BBB Accredited | Yes | No |
| BBB Rating | B | A+ |
| Average Trustpilot Reviews | 2.5 Stars | 2 Stars |
| Average Google Reviews | Not Listed | Dependent on Location |
Frequently Asked Questions
Does Costco offer a home warranty?
Costco does not offer a blanket home warranty option, but it does offer warranties that cover specific appliances often covered in a home warranty plan. Costco offers warranties that cover single appliances, kitchen suites and laundry suites.
Which home warranty is best?
The best home warranty for you depends on your budget and coverage needs. The reviews team has selected American Home Shield as the best option for homeowners, based on strict research standards.
Is it worth it to have a home warranty?
Whether or not a home warranty is financially valuable depends on how much you spend on your warranty, and the cost of repair or replacement of items without that warranty.
If the costs of repair and replacement exceed the amount you spent on your warranty, then it’s worth it. If those costs do not exceed the amount you spent on your warranty, then it’s up to you to determine whether or not the peace of mind that a home warranty provides is worth the cost.
What is a Costco warranty?
A Costco warranty is a service agreement between a homeowner and Costco that says Costco is responsible for the repair and replacement of appliances purchased at a Costco warehouse, or Costco.com, that fail from normal wear and tear.
Home Warranty Rating Methodology
To help you find the best home warranty, our reviews team researched numerous home warranty companies, analyzing their coverage plans, pricing and customer service, among other factors:
- Coverage: Home warranty companies that provide extensive coverage and protect important systems and appliances, including your air conditioning, refrigerator and heating, scored higher than companies with minimal coverage.
- Plan variety: A provider with more coverage plans allows for more flexibility among customers. In general, most home warranty companies provide an appliances-only plan, systems-only plan and combination plan.
- Pricing: We scored providers based on their monthly plan prices and service call fees compared to the industry average pricing. Companies with more affordable coverage received more points than companies with more expensive plans.
- State availability: Where you live will determine what companies are available in your area. Home warranty companies that covered more states received more points than companies with a limited state availability.
- Trustworthiness: There are some home warranty companies that are scams and don’t follow through on their service agreements. We rated companies based on their years of experience, ratings on the Better Business Bureau (BBB) and customer reviews.
To keep our data current, our team regularly updates the data points for each company to ensure their coverage offerings, pricing and availability are accurate.
Reviews of Other Home Warranties
