Choosing the right home warranty: 18 factors to consider
Selecting the ideal home warranty can be a challenging task for homeowners. This comprehensive guide offers expert insights on crucial factors to consider when making this important decision. From understanding coverage terms to evaluating contractor networks, readers will gain valuable knowledge to protect their homes effectively.
- Choose a Warranty with Clear Terms
- Select Flexible Coverage and Contractors
- Evaluate Risk Profile and Read Exclusions
- Prioritize Time-Saving Warranty Services
- Focus on Warranty Performance and Follow-Through
- Consider Contractor Network and Claims Process
- Explore Structural-Only Coverage Options
- Balance Premium Costs with Service Fees
- Examine Coverage Limits and Inclusions
- Research Local Contractor Networks
- Assess Response Time and Exclusion Details
- Compare Claim Denial Rates and Coverage
- Test Customer Service Before Committing
- Tailor Coverage to Your Repair History
- Scrutinize Fine Print and Claim Process
- Opt for Customizable and Affordable Plans
- Prioritize Fair Contractor Payments and Terms
- Customize Coverage for Specific Needs
LOCAL NEWS: 100 best places to work and live in Arizona for 2025
DEEPER DIVE: Here are retailers coming to Northside at SanTan Village in Gilbert
INDUSTRY INSIGHTS: Want more news like this? Get our free newsletter here
Choose a Warranty with Clear Terms
I’ve seen a wide range of home warranty companies over the years, some great, some not so much. For me, one option I’ve personally considered and often recommend to clients is a comprehensive plan that covers major systems like HVAC, plumbing, and electrical, along with key appliances.
In my opinion, the biggest factor when choosing a home warranty isn’t just the price, it’s the reputation for service and the clarity of coverage. I’ve seen homeowners get frustrated when something breaks down, only to find out it’s “not covered due to a loophole” buried in the fine print. That’s why I always advise clients to go with a company that has clear terms, responsive customer service, and a solid local contractor network.
One tip I always share: read the exclusions just as carefully as the inclusions. Ask questions like: How fast is the response time? Do I get to choose the technician? Are there caps on repair costs?
In short, a good home warranty can offer peace of mind, especially for first-time buyers or clients purchasing older homes, but it’s only valuable if you know exactly what you’re getting. Take the time to compare plans, look at reviews, and don’t be afraid to call the company directly and ask tough questions before committing.
That extra bit of diligence can make all the difference when something inevitably needs repair.
Jack Ma, Real Estate Expert, Jack Ma Real Estate Group
Select Flexible Coverage and Contractors
As someone who has spent years on roofs, crawling through attics, and inspecting storm damage all over Houston, I’ve seen firsthand how homeowners get tripped up by bad warranty decisions. When I bought my own home, I looked into several home warranty options, but the one that stood out was American Home Shield. Why? Flexibility on coverage. A lot of companies exclude roof-related repairs, or they bury the exclusions so deep in the fine print you don’t catch it until it’s too late. With AHS, I could pick a plan that didn’t waste money on appliances I didn’t care about and instead gave me room to protect core systems — like HVAC, plumbing, and yes, roofing.
The deal-breaker for me was the contractor network clause. Some home warranty companies force you to use their vendors — and I’ve seen how that plays out. Half the time, the homeowner gets stuck with someone who shows up late, patches it halfway, or won’t even climb a steep-pitched roof. I wanted a warranty that allowed me to bring in licensed contractors I trust, even if it meant a little more out of pocket.
Here’s my advice: Don’t just look at the monthly fee. Look at what’s actually covered and who does the work. If you’re stuck with their list of contractors, make sure those guys are legitimate in your area. And always — I mean always — read the clause on pre-existing conditions and roof leak coverage. You’d be shocked how many plans quietly exclude roofs after year one.
If you’re a homeowner in Houston, where hail, heat, and humidity work overtime on your house, pick a warranty that’s flexible, transparent, and respects your right to choose quality help. Otherwise, you’re paying for a false sense of security.
Ahmad Faiz, Owner, Achilles Roofing and Exteriors
Evaluate Risk Profile and Read Exclusions
I’d previously reviewed Choice Home Warranty’s Total Plan because the annual premium was among the most affordable I could find and let me select add-ons à la carte. There were four main reasons that contributed to my decision:
1. Coverage breadth vs. caps – The Total Plan included HVAC, plumbing, and major appliances, but had a cap of $500 per item, a limitation that would be challenging if a large component of infrastructure went down.
2. Service call fee – A $100 service call fee seemed to make sense until I modeled out three calls a year, which would result in the annuity value of an annual premium discount.
3. Quality of provider network – Online reviews criticized the company for being slow to send out contractors, and as someone who manages turn-key rentals, timing is everything.
4. Exclusions and fine print – I found that pre-existing conditions and some system parts (including ductwork and roof leaks) were explicitly excluded unless I paid an additional $50 add-on.
Because I had two ten-year-old furnaces and an old water heater in my portfolio, I feared that the capped payouts and exclusions would leave me responsible for out-of-pocket repairs. In the end, I walked away — but not too far (I kept Choice on my short list for smaller properties), because I see that it can be a perfectly reasonable, low-cost safety net when your systems are newer and your cash flow is tighter.
Begin by charting your risk profile: list every system and appliance according to age and the frequency of repairs, and then weigh coverage where a single breakdown can blow your return on investment. Next, weigh service fees against annual caps — even with a lower premium plan, you may still end up paying more in fees due to multiple claims. You should be vetting the contractor network anyway, be that by contacting previous customers or by checking out local property manager forums to get a real-world feel for response times and workmanship. Finally, read every single exclusion — from pre-existing conditions to routine maintenance needs — and ask the provider to explain any ambiguous language.
It might seem counterintuitive to pay extra for a warranty you hope never to use, but when that decade-old air handler finally conks out on a 95-degree day, that premium suddenly becomes a lifeline.
Jacob Naig, Owner & Real Estate Investor, Webuyhousesindesmoines
Prioritize Time-Saving Warranty Services
One home warranty I considered was First American, and the reason might surprise you — it wasn’t about saving money. It was about saving time. As an investor with multiple properties across San Diego County, time is the one thing I can’t make more of. I wanted a warranty partner that could streamline repairs without me chasing down vendors or comparing bids on every broken water heater. The idea was to hand off the hassle while still protecting my bottom line. I looked at how quickly they dispatched service, how transparent they were with exclusions, and how they handled repeat issues. Some warranties look good until the fine print hits you at the worst possible moment.
My advice for others is to treat home warranties like any other relationship in real estate. It’s not about the pitch; it’s about the follow-through. Talk to other property owners. Find out who’s actually dependable when something breaks. And make sure it fits your style. If you like having control over every repair, a warranty might feel limiting. But if your portfolio is growing and you want to focus on deals instead of dishwasher leaks, the right plan can be a game changer. Just don’t buy one blindly.
Erik Egelko, President, Palm Tree Properties
Focus on Warranty Performance and Follow-Through
One option I considered was First American Home Warranty. What caught my attention wasn’t just the coverage but how they handled claims. In real estate, I’ve seen plenty of warranties fall short when it comes time to deliver. So I was looking for a provider that didn’t just look good on paper but came through for homeowners when things went wrong. I spoke with past clients, read through real user experiences, and examined how quickly they dispatched service technicians and how fair they were with payouts. It’s easy to get lured in by a low monthly rate, but if a warranty doesn’t solve the problem when your heat goes out or the fridge dies, it’s not worth it.
For anyone weighing their options, I’d say not to choose based solely on price. Look at how the company actually performs when you need it most. A warranty is only as good as its follow-through. If you’re working with an agent, ask what they’ve seen firsthand. In my experience, the best choice is the one that gets things fixed quickly and with as little red tape as possible. That’s what makes it worthwhile.
Matt Ward, Team Lead, The Matt Ward Group
Consider Contractor Network and Claims Process
One home warranty option I seriously considered was American Home Shield. What drew me in was their long track record in the industry and the flexibility they offer with service providers. I’ve worked with many homeowners over the years, and one of the biggest frustrations they have is getting stuck with a technician who barely communicates or cuts corners. AHS gave the option to choose your own contractor in some cases, and that’s a game-changer if you already have trusted local professionals. Cost mattered too, of course, but I was more interested in how claims were handled. A warranty isn’t just about what’s covered on paper; it’s about how quickly and fairly they act when something goes wrong.
My advice? Don’t just compare coverage charts. Ask around. Talk to real homeowners and agents who’ve actually filed claims. It’s easy to get distracted by shiny marketing, but service is where the rubber meets the road. A cheaper plan that leaves you stranded when your HVAC fails in August isn’t worth it. If the company doesn’t have a strong reputation for follow-through, it’s not worth your trust or your money. Protecting your home should feel like peace of mind, not another gamble.
Jimmy Welch, President, The Jimmy Welch Team
Explore Structural-Only Coverage Options
As a real estate investor managing a mix of rental properties, I chose First American Home Warranty because their claims process is smooth and reliable, which is a huge time saver when dealing with urgent repairs. They also have a solid network of reputable contractors, which was a big deciding factor for me. I have worked with other warranty companies that send whoever is available, and it often leads to poor work or delays. That was never the case here.
My advice to others is: do not just focus on price. A slightly higher premium is worth it if the company has a responsive claims department and works with real professionals. Take time to ask how claims are handled, how quickly contractors are dispatched, and whether you can talk to someone local. A good warranty should make your life easier, not add to your stress.
Nick Kuang, Co-founder, Home Sweet Home Offers
Balance Premium Costs with Service Fees
I once looked into a structural-only home warranty from a lesser-known provider that focused exclusively on major foundation, framing, and roof-related coverage. Most plans try to bundle appliances and minor systems, which often overlap with manufacturer warranties or homeowner insurance. But in my work, I’ve seen too many buyers underestimate how much damage foundation shifts or roof issues can do over time, especially in areas where soil movement or seasonal temperature swings play a role. What stood out was how their inspections were more thorough upfront, with fewer gray areas later when claims came in.
If someone’s weighing options, I’d suggest thinking about what will be hardest to afford out-of-pocket, long after move-in. New buyers tend to focus on visible features, kitchens, HVAC units, but the most expensive surprises are often buried behind walls or underfoot. A plan that’s quieter in marketing but stronger in structural depth might serve better over the long haul. It’s worth asking providers for real claim examples and talking directly with people who’ve filed them — that’s where the truth of any warranty usually shows.
Brian Quigley, Founder & Loan Consultant, Beacon Lending
Examine Coverage Limits and Inclusions
One home warranty that I took seriously allowed me to pay a lower premium in exchange for a higher per-service cost. The cost per year is a major consideration for any person. In my case, I had to consider my financial standing and emergency fund. Knowing I have a strong emergency fund to cover potential house issues makes the smaller monthly or annual premium on the warranty more attractive. It was as though I had the minor, more predictable leakage of cash under control and that I had a safety net for anything truly big and unlikely to happen.
Factors that informed that decision were a review of the data in my home and a fair comprehension of personal financial insights. I examined the condition of the expensive systems and appliances. Was my air conditioning serviced? Do I have relatively new appliances in the kitchen? These are my home “data.”
Provided that those big-ticket items were relatively stable, the cheaper annual premium became reasonable to me. I even bet that, given the potential for something to go wrong, it could be a lesser repair or at least one big repair, and that the elevated service charge wouldn’t hurt as much in the big picture. It is all about estimating the odds of having a big repair compared to normal wear and tear.
Check the age of your water heater, your major appliances, and your furnace. Inquire about their maintenance history. It is the most accurate data that you have. With older systems, you are more likely to experience breakdowns, and you may be tempted to opt for a more comprehensive plan or one with a lower servicing fee, though it might have a higher annual premium.
Kevin Heimlich, Digital Marketing Consultant & Chief Executive Officer, The Ad Firm
Research Local Contractor Networks
One home warranty offering that I highly considered was American Home Shield’s ShieldPlatinum plan. It impressed me following an examination of its generous HVAC coverage limit, a maximum of $5,000 a year, which is far higher than most others. The plan also includes comprehensive inclusions, such as roof-leak repair service and a free yearly HVAC tune-up, which was well worth their premium in Florida’s volatile, humid, and sunny climate. Also part of my decision was the company’s prompt response times (near-universal dispatch in 24-48 hours) and a service-call fee you can choose, respectively controlling up-front cost as well as out-of-pocket cost. As a Realtor, I know firsthand how these individually bargained benefits deliver a sense of peace of mind to homeowners in dire repair scenarios or costly system breakdowns.
I would say three things generally to anyone considering home warranties: coverage caps, particularly for parts on HVACs; inclusions, like including a roof in a policy; and service-call fees versus deductibles. Ask specifically if HVAC tune-ups and roof repair are included in the policy, then weigh the total cost, including premium plus fees, against the average repair prices in the area annually. Review claims warranty clauses as well; some provide a 30-60 day warranty, while others offer a longer warranty.
Alexei Morgado, Founder, Lexawise Real Estate Exam Prep
Assess Response Time and Exclusion Details
In my real estate business, I’ve seen countless homeowners benefit from Select Home Warranty’s roof coverage, which became a deciding factor when I chose them for my own properties. After filing several claims for water heaters and electrical issues, I appreciated their 24/7 service and reasonable $75 service call fee, though response times varied depending on contractor availability. I always tell my clients to research local contractor networks for any warranty company they’re considering, since that ultimately determines how quickly repairs get done.
Sean Grabow, Owner, Central City Solutions
Compare Claim Denial Rates and Coverage
We sell land to South Texas families with owner financing (and preferably first-time home builders).
When we were assisting a buyer in the process of going from raw land to a mobile home arrangement, we researched home warranty plans. Choice Home Warranty was mentioned due to their increased coverage of systems, such as HVAC and electrical, which were more important than cosmetic repairs. The fee structure of the services was what made us pause; $85 per call is a lot when you are on a budget.
When making a choice, do not be lured by long lists of coverage. Pay attention to two issues: the speed of their response and the actual meaning of exclusions. There are warranties that sound wonderful, but then you learn that you are not covered because of the way your well pump or septic system was installed. Read real claim reviews in your zip code. Paper coverage is not of much use when the technician does not come.
Ydette Macaraeg, Marketing coordinator, Santa Cruz Properties
Test Customer Service Before Committing
I chose First American as my Oceanside rental property provider since they had good coverage with HVAC and appliances without an inspection. As a broker, I have way too many investors that skip warranties, and end up getting slapped with a 3,000 bill because the condenser fails, and the inspector hardly even looked at it.
Their response time as contractors was what sealed it to me. When I tested them by calling, someone was booked in 36 hours. In comparing options, it is not enough to compare premium costs, you will want to know what their claim denial rate is, what is their coverage limit, and who they refer to do repairs. Marketing is no match to fine print.
Jeffrey Hensel, Broker Associate, North Coast Financial
Tailor Coverage to Your Repair History
I considered American Home Shield because it offered coverage for older appliances without requiring a home inspection.
Its customizable plans allowed me to include only what I needed, and it had generally solid customer reviews for claim handling. The cost was also reasonable compared to others I looked at.
My advice to others is not to go by the monthly premium alone. Look closely at what’s covered and what’s excluded. Read genuine customer reviews to see how the company handles claims.
Also, check if there are caps on payouts per item or year. A slightly higher premium is worth it if the coverage and service are reliable.
Josh Dotoli, CEO, DOTOLI Group
Scrutinize Fine Print and Claim Process
American Home Shield looked good on paper, but the real value came from checking contractor networks in my zip code. Coverage means nothing if they send out slow or low-rated technicians. A friend ended up waiting weeks for a refrigerator fix because the only approved vendor was always backed up.
I compared plans by calling customer service and pretending I needed a quote for an emergency repair. Some companies dodge details or shuffle you around, which is a red flag. Fast, clear answers on what’s excluded made my choice easy. Always test their service before signing — the difference shows up when you actually need help, not just on the brochure.
Borets Stamenov, Co-Founder & CEO, SeekFast
Opt for Customizable and Affordable Plans
One of my thoughts was on a strategy that would not cover all systems but only what is necessary, like HVAC, plumbing, and electrical, excluding appliances. That was a smaller scale and more logical after browsing our repair records. Most of the issues in appliances were aesthetic or user-related, but system failures meant longer outages and greater costs in servicing. Our streamlined scheme helped the company save approximately $180 a year and reduced dispatch time, as there would be fewer claims and, hence, no huge waiting queues.
I would recommend drawing up your end-of-year maintenance bills for the last 12 months and figuring out where you really took a hit compared to other options. The low monthly premium might be appealing, but as soon as it is loaded with things that you do not get much help with, it will only take your time but not save you money. Choose a scheme that will reflect your real history, not just the sales sheet alone.
Belle Florendo, Marketing coordinator, My Accurate Home and Commercial Services
Prioritize Fair Contractor Payments and Terms
The truth is that home warranties are not always worth the cost, and not just because they can be expensive, or because of the limitations in coverage, but also because of the tedious claim process. However, one home warranty option I have actually seriously considered is a plan that offers customizable coverage options, a streamlined claim process, and flexible pricing.
The fact is that a home warranty that gives homeowners more control over their coverage, thereby making it easier for them to afford the protection they need instead of paying for coverage they will never use, would always be worth it. The major factors that influenced my decision are affordability and a hassle-free claim process, which, for me, creates the impression that this plan is indeed customer-centric.
One piece of advice I would give to others evaluating their options on the home warranty front is that they carefully evaluate their choices. One of the most disappointing realities of home warranties is that they make you relax under a false sense of security, only for you to find out that you have been paying for coverage that doesn’t quite cover what you need when the need finally arises, which can be really frustrating. So it’s crucial when weighing your options to always go through the fine print to understand what is covered and what is not.
Oren Sofrin, Founder, Real estate expert and investor, Business owner., Eaglecashbuyers
Customize Coverage for Specific Needs
I have more than 15 years of experience in roofing, and I have always chosen Select Home Warranty. They tend to pay contractors fairly and on time, which is a rarity in this industry. Over these years, I have experienced that many warranty companies delay payments or underpay. This, of course, leads to poor service!
My only advice to people? Always read the fine print, and in some cases, you might be better off setting aside your own repair fund.
Robert O’ Sullivan, business owner and roofing contractor, Ranch Roofing Inc
