{"id":323759,"date":"2025-11-07T22:24:45","date_gmt":"2025-11-08T03:24:45","guid":{"rendered":"https:\/\/www.reviews.com\/?page_id=129001"},"modified":"2025-11-07T22:24:46","modified_gmt":"2025-11-08T03:24:46","slug":"what-is-home-warranty","status":"publish","type":"page","link":"https:\/\/www.reviews.com\/insurance\/home-warranty\/what-is-home-warranty\/","title":{"rendered":"What You Should Know About Home Warranty"},"content":{"rendered":"\n

Home warranties<\/a> are state\u2011regulated service contracts that help pay to repair or replace covered home systems and appliances when they fail from normal wear and tear. They are not homeowners insurance and won\u2019t cover perils like fire or theft; home insurance<\/a> generally covers the dwelling and sudden perils, while a home warranty focuses on breakdowns of systems\/appliances. In California, these contracts are regulated as \u201chome protection\u201d contracts (California Department of Insurance<\/a>). You typically pay a monthly or annual premium plus a per\u2011visit service call fee; in 2025, common prices are about $45\u2013$75 per month ($540\u2013$900 per year) with service fees around $75\u2013$150 per claim (U.S. News 360 Reviews<\/a>; Forbes Home<\/a>; Consumer Reports<\/a>; Bankrate<\/a>; see also NAIC guide<\/a>).<\/p>\n\n\n <\/span>\n \n\n\n

How does a home warranty policy work?<\/strong><\/h2>\n\n\n\n

When a covered item fails, you submit a claim online, by app, or by phone. Many providers now use digital status tracking and video or AR triage to diagnose issues before dispatch, which can reduce wait times and unnecessary visits (see Frontdoor\u2019s consumer app<\/a>). A technician from the provider\u2019s network is scheduled, and a per\u2011visit service fee (often about $75\u2013$150) applies; some plans offer tiered fees that trade a higher fee for a lower premium (U.S. News 360 Reviews<\/a>; Bankrate<\/a>).<\/p>\n\n\n\n

Payment decisions follow your contract\u2019s terms: providers pay to repair or replace up to stated limits if the cause is covered and within caps. Contracts commonly include per\u2011item and per\u2011term dollar limits and may limit or exclude consequential damages; such limits must be clear and conspicuous and are governed by U.S. warranty law and the Uniform Commercial Code (FTC consumer advice<\/a>; FTC warranty law guide<\/a>; UCC \u00a72\u2011719<\/a>). If costs exceed a cap, you pay the difference.<\/p>\n\n\n\n

Instead of relying on a one\u2011off example, review the specific caps that apply to your appliances and systems and note any exclusions (e.g., pre\u2011existing conditions, improper installation, or maintenance requirements). If a limited \u201crepair or replace\u201d remedy fails its essential purpose, broader UCC remedies may apply; read these sections carefully before purchase (UCC \u00a72\u2011719<\/a>; FTC advice<\/a>).<\/p>\n\n\n <\/span>\n \n\n\n

Home Warranty Costs<\/strong><\/h2>\n\n\n\n

In 2025, most standard plans cost about $45\u2013$75 per month ($540\u2013$900 per year) before add\u2011ons, with broader industry ranges roughly $400\u2013$1,000 annually. Service call fees commonly run $75\u2013$150 per claim. Add\u2011ons (e.g., pool\/spa, well or septic pump, second refrigerator) are usually priced a la carte, often ~$2\u2013$20 per month per item, with larger systems at the higher end. A practical annual budget for mid\u2011tier coverage is ~$800\u2013$1,200 when combining premiums with two to three service calls. Prices vary by ZIP code, plan tier, and chosen service\u2011fee option; cumulative consumer price inflation since 2020 (roughly one\u2011fifth) has contributed to upward pressure on both premiums and fees (U.S. News 360 Reviews<\/a>; Forbes Home<\/a>; Consumer Reports<\/a>; Bankrate<\/a>; BLS CPI<\/a>).<\/p>\n\n\n <\/span>\n \n\n\n

What Does a Home Warranty Cover?<\/strong><\/h2>\n\n\n\n

There are a variety of home warranty providers in the U.S., including established companies like American Home Shield<\/a> and TotalProtect, as well as up-and-comers like Choice<\/a> and the Home Service Club<\/a>. Coverage varies widely by provider and plan. Some brands differentiate with longer workmanship guarantees or more flexible service models\u2014for example, Cinch markets a 180\u2011day workmanship guarantee (Cinch<\/a>), AFC Home Club lets you choose your own licensed contractor with pre\u2011approval (AFC Home Club<\/a>), and Liberty Home Guard highlights a large add\u2011on catalog and a 60\u2011day workmanship guarantee (Liberty Home Guard<\/a>). Major providers also offer broader add\u2011ons like limited roof\u2011leak coverage or smart\u2011device protection (see AHS plans & add\u2011ons<\/a>). Always review the sample contract for covered causes of loss, caps, and exclusions (FTC advice<\/a>).<\/p>\n\n\n\n

Covered <\/strong><\/h3>\n\n\n\n

Systems<\/strong><\/p>\n\n\n\n