what is a home warranty

What Is a Home Warranty and Is It Worth Taking Home Warranty in 2023?

We have to spend money on repairs of home appliances and systems regularly. These expenses sometimes cannot be postponed owing to their highly urgent nature like clogging of drainage system, power failure or problem in heating and cooling system. This expense may go out of your budget sometimes and you may have to take personal loans at high interest rates.

You can consider taking home warranties which can cover these repair expenses. In this article, we will learn how to take a home warranty and what are some good home warranty providers.

What is a home warranty?

A home warranty is a warranty plan that can cover the unexpected expenses of repair or replacement of home appliances and systems. Home warranty plans are usually offered on a yearly basis. Home warranty plans cover both wear and tear of appliances as well as sudden failures.

People often mistake home warranties with home insurance but they are completely different. Home insurance covers the damage to your home in case of damage due to fire, flood, storm, etc., and theft. However, home insurance does not cover the repair cost of wear and tear of appliances and systems. A home warranty is specifically designed to cover these expenses.

How home warranty works?

In order to take a home warranty, plan you have to choose a home warranty provider in your area. You can go through various provider plans and select the one that suits your needs.

  • Register for the particular warranty plan of the selected warranty provider. Remember that the warranty period starts after a window period (usually one month) after you sign the contract. If any damage occurs during this period, it will not be covered.
  • If any of the covered appliances or systems fail during the warranty period, you have to make a service request to the warranty provider. (Tip: remember to take warranties that do not require inspection before service request to save both money and time)
  • After receiving a service request, the warranty provider will arrange the service provider within a few hours. You can decide the date for the service. Your warranty provider will pay the cost of repair or replacement. However, the service is not completely free. It usually requires a payment of a service call fee which varies according to plan and warranty providers.
  • Generally, the number of repairs in a year is limited and the maximum amount that is covered on a particular appliance is also capped. Also, damages caused by misuse are negligence not covered.

Home Warranty Coverage​

Home warranty providers offer a wide range of coverage. Various appliances and systems are clubbed under plans. You can select the plan according to your needs. The most common coverages are as follows:

  • Septic tanks
  • Heating system
  • Air-conditioning system and ducts
  • Plumbing
  • Sump pump service and repairs
  • Doors and windows
  • Gutter cleaning
  • Pest control
  • Smoke detection system
  • Vacuum systems
  • Ceiling and exhaust fans
  • Bathroom fittings like faucets, shower systems, sanitaryware and basins
  • Kitchen Appliances
  • Electric systems
  • Refrigerators
  • Washing machines and dryers
  • Pool Repair
  • Roof leakage repair

Coverage may be full or partial. These terms and conditions are clearly stated in the agreement.

Does it make sense to take home warranty plan?

Taking a home warranty plan can be beneficial particularly if you have an older home that requires very frequent repairs. If you have taken a new home and the appliances are also new and in good condition then it may not be as beneficial to take home warranty plans because many of the new appliances already come with two to three years of warranty. Home warranty plans can help you in the following ways:


Helps in managing unexpected home expenses

Making a good budget and sticking is the key to financial stability. Unexpected costs of repair and maintenance work in the home can ruin your budget. Also, such expenses are difficult to include in a budget because of their variable cost and unpredictability. You can plan your budget more efficiently with home warranties because of fixed monthly premiums and service call fees.


Reduces worry

Taking a home warranty is an efficient way to reduce worries related to regular household appliances and system failure. Home warranty not only covers damages and repairs but also regular servicing which is included in some packages.



Home repair and maintenance work requires a lot of work and time. You have to contact individual companies and different service providers. But if you take a home warranty then all you have to do is just inform one service provider. They will take care all of your needs very easily because of their business partnerships with various maintenance and repair agencies.


Discounts and bonuses

You can avail of various discounts and bonuses from home warranty providers. You can save more by selecting a suitable plan. Plans are offered based on the square footage of the home, service fee, and coverage. Plans with higher service fees have lower costs of the plan. Also, plan cost goes up with coverage. So research thoroughly before taking the plan.

Popular Home Warranty Companies


Home Warranty Companies


First American Home Warranty

first american home warranty

  • Three plans: Starter, Essential, Premium
  • Unlimited claims
  • Covers repair as well as replacement up to $35000 per appliance
  • Plans start at $440 per year with service of $85 and the premier plan costs $635 per year.

Cinch Home Services

cinch home services

  • Offers three plans: Appliances, Built-in systems, and Complete home.
  • The appliance plan starts at $30.99 per month, the Built-in system plan at $35.99/per month, and the Complete Home plan at $44.99/per month
  • 180-day workmanship guarantee
  • Discounts on new appliances

America’s 1st Choice Home Club

America's first choice home club


  • Two plans: Platinum & Gold Plan and Silver & system plan
  • Flexible coverage based on square footage, service fee, and additional coverage
  • Service fees: $75, $100, $125

Liberty Home Guard

liberty home guard 

  • Offers three plans: Appliance Guard, System Guard, and Total Home Guard.
  • The appliance Guard plan starts at $365per year, the System Guard plan starts at $365 per year and the Total Home Guard plan starts at $548 per year.
  • Option of Add-ons and customization available.

American Home Shield

American home shield

  • Three plans: Shield Silver, Shield Gold, and Shield Platinum
  • You can avail of up to $5000 for heating and air-conditioning systems, $4000 for appliances, and $1000 for roof leakage repair in a platinum plan
  • Option of additional coverage for electronic devices and pools

ARW Home

ARW home


  • Offers plan in home servicing, water & sewer lines, and electronics plan
  • In-home servicing, you can take APPLIANCEMAX, SYSTEMSMAX, OR TOTALMAX plans available at $39.99, $49.99, and $59.99 respectively

The Home Service Club

The home service club


  • Offers Standard coverage and Comprehensive Coverage
  • Plumbing stoppage, Ductwork, Gas Leaks, Pest Control, Whirlpool Coverage, Alarm Wiring, Telephone Wiring, Smoke Detectors, Exhaust / Attic Fans, Sump Pump, Doorbells, Hot Water Pump, and Hot / Cold Water Dispenser are not covered in standard coverage.
  • Maintenance records or home inspections are not required.
  • Repairs are guaranteed for 90 days.

Select Home Warranty

select home warranty

  • Three plans: Bronz Care, Gold Care, and Platinum Care
  • Service fee of $75
  • Monthly cost $44 to $48(Bronze Care: $41.67 per month, Gold Care: $41.67 per month, Platinum Care: $46.08 per month)
  • Offers a 90-day repair guarantee, which is three times the length of the typical 30-day guarantee
  • Appliances are capped at $500 per item and $2000 for heating and air-conditioning systems.

First Premier Home Warranty

first premier home warranty

  • Offers three plans: Premier Plan, Platinum Plan and Optional Plan
  • Monthly payment ranges from$39.99 to $49.99
  • Service Fee is $75 (service fee customization not available)
  • Coverage limit: $1500

HWA Home Warranty

  • Two plans: Premier Plan and Premier Plus Plan
  • Premier Plan: $552.48+ per year
  • Premier Plus Plan:  $719.04+ per year
  • Prizes are dependent on size and type of home & call fee amount and add-ons
  • Maximum $5000 per covered system and a maximum of $15000 per year
  • Service fees: $75- $100
  • All warranties have a 30-day money-back guarantee

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