In January 2025, our team surveyed 2,000 home warranty consumers nationwide about their shopping and coverage experiences. Our questions covered each buyer’s motivation for coverage, the types of appliances and systems they protected, claim outcomes, satisfaction levels, and what factors matter most when choosing a plan.
Key Takeaways
- 54% of homeowners purchased a home warranty plan to protect older systems and appliances.
- American Home Shield was the most popular provider, chosen by nearly 41% of respondents nationwide.
- Around 70% of respondents chose a combination plan to protect both appliances and systems in their homes.
- Coverage was the most important factor when choosing a home warranty company.
Why Do People Buy Home Warranties?
According to our survey results, 54% of respondents purchased a home warranty to help cover aging systems and appliances, a common concern for owners of older homes. About 28% of respondents received their home warranty coverage as part of a home sale, which suggests warranties represent a popular real estate incentive. Other homeowners took a proactive approach, purchasing a plan before a major system or appliance broke down, while nearly 17% said they only purchased coverage after an expensive repair or replacement. These trends reflect both preventative and reactive motivations for investing in a warranty.
What Home Systems and Appliances Do Homeowners Prioritize Most?
Beyond the reasons listed above for purchasing coverage, our survey also included questions about popular plan types, coverage priorities, and add-on selections. Regarding plan types, 70% of homeowners chose combination plans that offer whole-home protection. By comparison, only 18% of respondents selected a system-only plan, and 9% opted for appliance-focused coverage.
In terms of individual item coverage, HVAC systems were a top priority for homeowners. About 31% of our survey respondents chose coverage for their heating or furnace system, and 25% added protection for air conditioning. Other commonly covered systems included electrical (20%) and plumbing (15%). For appliances, nearly 44% choose water heater coverage, while 30% ensured their refrigerator was included in their plan.
We also asked which add-ons homeowners included to supplement their base coverage. Nearly 37% of respondents added roof-leak protection, making it the most popular option. The next most common add-ons were additional home system coverage (28%) and extra appliance protection (26%). Nearly 30% of homeowners didn’t select any add-ons, which may suggest satisfaction with their baseline coverage or budgetary restrictions.
How Much Does a Home Warranty Cost?
Typical home warranty costs vary based on several factors, including your location, the plan you choose, and any add-on features. About 25% of respondents said pricing was a key factor when shopping for a home warranty. Based on our survey, most homeowners reported paying around $100 per month for a plan, with monthly costs ranging from $50–$150. However, only 43% opted for a monthly premium. Nearly 57% chose an annual plan instead, with average rates around $500, though total costs ranged from $500–$1,500 per year.
We also asked about service call fees, which policyholders pay each time a technician visits for a repair or replacement. About 15% of our survey respondents said they paid a $75 service fee, while other responses ranged from $50–$100. Most home warranty companies offer multiple service fee options, typically between $75 and $125.
Top Home Warranty Providers
We asked survey participants about their current home warranty provider, and American Home Shield emerged as the most popular choice, selected by nearly 41% of respondents. First American Home Warranty followed (11%), while Choice Home Warranty came in third place (10%). Notably, seven of the companies most frequently chosen by homeowners in our survey also appear on our list of top-rated home warranty providers for their coverage options, reputation, and customer satisfaction.
Provider Satisfaction
Our survey also explored each homeowner’s satisfaction with their current provider and their long-term coverage plans. About 81% of respondents said they were either very satisfied or satisfied with their current plan. Among the 2,000 homeowners we surveyed, 68% said they plan to renew their contract when it ends, while 22% remain unsure and nearly 10% don’t plan to renew.
Claims Experience and Satisfaction
To gain more insight into the claims experience, we focused our survey on homeowners who have previously filed a claim. Nearly 56% of respondents said they have submitted a claim within the past year, while 44% reported filing within the last five years. According to our survey results, about half of recent claims were submitted for a system repair or replacement. Nearly 41% were for appliance-related issues, and 7% involved a covered add-on item.
Positive Claims Experience
An overwhelming 87% of homeowners said their home warranty provider approved their claim. Regarding claims resolutions, 49% of policyholders surveyed received a repair, while 39% had an item fully replaced. Another 11% were issued a cash payout instead of a repair or replacement. Overall, about 85% of respondents said they were very satisfied or satisfied with the outcome of their most recent claim. However, another 10% were neutral on their claim resolution outcome.
Negative Claims Experience
For the remaining claims experiences, nearly 6% were denied, and another 5% were still pending at the time of the survey. Among those whose claims were denied, the most common reason was a preexisting condition, cited by nearly 31% of respondents. Another 26% said their home warranty plan didn’t actually cover the item. Additional reasons included the item being disqualified due to lack of maintenance (18%) and repair costs exceeding the plan’s coverage limits (13%).
Even when claims were approved, not all homeowners reported being satisfied with the outcome. About 3% said they were dissatisfied, and another 2% said they were very dissatisfied.
Regional Insights on Home Warranty
Home warranty experiences can vary widely by region, from how coverage is obtained to satisfaction with claim outcomes. Our survey data revealed the following distinct trends across the country:
Many homeowners purchased home warranties specifically to protect aging systems in the Midwest, based on our survey insights. Claims were filed frequently, with relatively high approval rates, indicating a favorable experience with coverage.
Respondents in the Northeast expressed higher dissatisfaction rates with their home warranties. Renewal rates were lower, and claim disputes were more common. Many homeowners in this region reported buying a warranty only after facing an expensive repair.
Homeowners in the South reported the highest rate of home warranty ownership, with a large segment receiving coverage as part of a home purchase deal. Claim filing was more common in this region, and renewal intent was also strong, suggesting overall satisfaction with the value of their plan.
The West had the lowest rate of home warranty ownership. Homeowners in this region were more likely to handle repairs out of pocket and showed a greater concern about pricing. Even among respondents with a warranty in this region, renewal rates were low, and many homeowners viewed plans as less cost-effective.
Common Trends in the Home Warranty Industry
Our survey of 2,000 homeowners nationwide revealed key trends in the home warranty market today, including the types of homes covered and the features buyers care about most. We’ve highlighted some common trends below.
Coverage Is a Top Priority
Most homeowners ranked coverage as their top priority when shopping for a home warranty plan. According to our survey, 58% of respondents said the extent of coverage mattered most when choosing a plan. Price came ranked as the second most popular buying factor (25%), while fewer homeowners based their decision on factors like the claims process (7%), company reputation (8%), or customer service (3%). This suggests that while affordability and service quality matter, homeowners primarily focused on what a warranty will actually cover.
Older Homes Drive Demand
Our survey showed that buying a home warranty is commonly associated with older homes. Only 26% of respondents said they live in a newly built home in which they’re the first occupant, while a combined 74% live in pre-owned homes. Of those in pre-owned dwellings, 38% live in homes over 20 years old, and 36% live in houses under 20 years old. This trend suggests that homeowners are more likely to seek protection when they have systems and appliances more vulnerable to age-related breakdowns.
Denied Claims Due to Misunderstanding Coverage
Our survey shows that 75% of denied claims resulted from misunderstandings about home warranty coverage. Common reasons for claim denials in our survey included preexisting conditions, items not covered, and maintenance issues—all of which home warranty contracts typically outline. This is especially relevant as over half of our surveyed homeowners purchased plans to cover aging appliances and systems. Older items carry a higher risk of exclusions related to wear, lack of upkeep, or past issues.
Is a Home Warranty Worth It?
A home warranty can offer a worthwhile investment, especially for owners of older homes with aging systems and appliances. Many buyers in our survey opted for a warranty to protect costly systems and appliances, with air conditioning, heating systems, and water heaters being among the most sought-after coverage. With 89% of claims for system or appliance repairs and replacements approved among surveyed homeowners, most of our respondents have had positive outcomes. This high approval rate contributes to strong satisfaction, with 80% of users feeling satisfied or very satisfied with their plans. For many, a home warranty can provide peace of mind and a financial buffer when unexpected and costly repairs arise.
Our Survey Methodology
In January 2025, we surveyed 2,000 homeowners nationwide through Pollfish to learn more about the consumer home warranty market. Respondents included current home warranty plan holders who had filed a claim within the past five years, representing a range of ages, genders, and home types. The survey explored why homeowners purchase warranties, what features mattered most when shopping, and general satisfaction levels. We also gathered data on each respondent’s preferred provider, coverage priorities, plan choices, and monthly costs.
