Allied Home Warranty was a home warranty company in Texas that serviced homeowners, real estate agents, and home sellers. In 2018, the company was sold to OneGuard Home Warranty and soon went out of business after the acquisition.
In this review, the This Old House Reviews Team discusses what to look for in a home warranty and suggests three top warranty alternatives to Allied.
Allied Home Warranty Reviews
According to the Better Business Bureau (BBB), Allied had an A+ rating before closing down. The company prioritized their local expertise since they only operated in Texas, however, there were some policyholders who were unhappy with their service.
Here’s what one customer had to say:
“This home warranty company is a joke! Horrible customer service, they send random contractors to your home for service calls with substandard equipment and then when you call to complain, there is no attempt to even apologize for the service provided and yes you still have to pay. Want to speak to a manager or supervisor? Good luck they will all be busy.” — Kourtney S, 1/04/2018
Top-Rated Alternatives to Allied Home Warranty
Even though Allied is no longer available, there are a variety of other home warranty companies that provide customers with comprehensive coverage at affordable price points. Compare our top three picks below.
1. American Home Shield
American Home Shield (AHS) is one of the oldest home warranty companies in the industry. It offers three plans, flexible service fees ($75–$125), and generous coverage caps on numerous systems and appliances. Not to mention, AHS provides 24/7 customer service and respond to claims within 24 hours, 98% of the time.
2. Choice Home Warranty
Choice Home Warranty (CHW) offers two plans and doesn’t deny coverage based on the age of your home or the age of your systems and appliances. CHW has a guaranteed response time of 48 hours and offers a 90-day repair guarantee.
3. First American Home Warranty
First American Home Warranty (FAHW) also offers two plans for customers and doesn’t have a coverage cap on heating, cooling, or ductwork. What makes First American stand out against competitors is that it protects systems and appliances that were improperly maintained, modified or installed.
How to Buy a Home Warranty
Before buying a home protection plan, take the following factors into consideration.
Type of Plan
In general, home warranty companies will offer at least two plans that cover a combination of systems and appliances. Popular plan types include systems plans, appliance plans, combination plans, and customizable plans.
Systems plans cover major home systems like air conditioning, water heaters, and plumbing, while appliance plans protect items like your kitchen refrigerator, dishwasher, and built-in microwave. Combo plans cover a variety of both systems and appliances and customizable plans allow customers to pick and choose which items they want covered under their policy.
Some companies will also split coverage into a basic plan and a comprehensive coverage plan. Typically, a basic plan will cover essential items like a refrigerator and air conditioning and comprehensive coverage will protect items like doorbells, ceiling fans, and garage door openers, on top of major systems and appliances.
On average, a home warranty costs between $300–$600 a year, which comes down to $25–$50 a month. Companies will also charge a service call fee, or deductible, any time a technician comes to your home to diagnose an issue. Service fees range between $75–$125.
To get the best policy at the most affordable price, we recommend getting quotes from a few different providers and then asking your favorite company to price match the best offer you received. In doing so, you may save a few months off your annual contract.
When an item in your house breaks down and you submit a claim, most providers will try to get your service request processed as soon as possible and send a technician out to your house to assess the issue. Some companies, like American Home Shield and Choice Home Warranty, guarantee a 48-hour response time, while others don’t promise work within this timeframe and will get a technician to you whenever is convenient.
We recommend going with a company like American Home Shield or Choice, so you’re not stuck at home with a broken system or appliance for too long.
Frequently Asked Questions about Home Warranties
What’s covered under a home warranty?
A home warranty protects major home systems and appliances like your air conditioning, electrical, refrigerators, dishwashers, washers and dryers, and ductwork. Most companies will also offer optional coverage for items like your swimming pool, hot tub, and septic system.
Do home warranties cover pre-existing conditions?
In general, most home warranty companies don’t cover pre-existing conditions. However, companies like First American cover systems and appliances that were improperly installed, maintained, or modified.
How much does a home warranty cost?
A home warranty costs around $300 a year for basic coverage and $600 a year for more comprehensive coverage. Service fees range between $75–$125 per claim. The overall price of a warranty will ultimately depend on where you live, the square footage of your home, and the type of coverage you choose.
Is a home warranty worth it?
A home warranty protects homeowners from paying expensive, out-of-pocket costs when an important system or appliance breaks down. Whether you’re a first-time homebuyer or a seasoned homeowner looking for slightly more protection on important home items, a warranty isn’t a bad idea.
Do I need a home inspection before signing up for home warranty coverage?
Most companies don’t require a home inspection before coverage kicks in, however, getting an inspection could be beneficial when it comes to filing claims and figuring out which systems and appliances are covered.
Our Verdict on Allied Home Warranty
Since customers can’t get an Allied warranty, we recommend getting a quote from American Home Shield, Choice Home Warranty, or First American Home Warranty. These are three of the best companies in the industry and are ideal for first-time home buyers, seasoned homeowners, and home sellers.
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