365 Home Warranty Review
Written by
365 Home Warranty’s license to do business in the state of New Jersey was recently revoked and caused by the company’s inability to file annual reporting for two consecutive years. In addition to being banned from operation within New Jersey, the company has effectively gone out of business across the United States, shutting down its website and stopping communication with policyholders.
Though 365 Home Warranty is closed, the company doesn’t reflect the comprehensive and reliable coverage that other home warranty companies offer. We researched and compared other top home protection providers in the industry to help you find the best home warranty for you and your home. Our top pick is American Home Shield with its extensive coverage add-on options and its no-contract coverage.
Who Are Top-Rated Alternatives to 365 Home Warranty?
With protection from one of these top providers, you’ll receive comprehensive coverage and avoid paying expensive repair bills for broken systems and appliances.
1. American Home Shield
As a veteran with almost 50 years of experience, American Home Shield (AHS) is our top home warranty provider, offering reliable and extensive coverage to its customers.
Here are the benefits and drawbacks of choosing American Home Shield.
AHS Pros & Cons
Pros
- Covers appliances and systems of any age
- Allows customers to choose from $75, $100, and $125 for their service fee
- Offers free cancellation within 30 days of signing contract
Cons
- Only guarantees repairs for 30 days
- Few options available for add-on coverage
- Is not available in Alaska
2. Select Home Warranty
Another top home warranty provider is Select Home Warranty. Known for providing free roof-leak coverage services and having affordable premiums, Select has positioned itself as an affordable and budget-friendly company.
Here are some factors to consider before choosing Select as your provider.
Select Pros & Cons
Pros
- Offers free roof leak coverage to customers
- Has low monthly premiums between $36–$38
- Offers customer two free months of coverage when they sign up for a plan
Cons
- Has a $75 cancellation fee
- Doesn’t offer a mobile app for its customers
- Has low coverage caps for appliances and systems
Which Home Warranty is Right for You?
Even though 365 Home Warranty closed down, there are still plenty of companies that provide affordable and comprehensive coverage that could be a good fit for you and your home. We recommend getting quotes from both providers listed in this article, so you can compare coverage and pricing and choose a company that best fits your needs.
American Home Shield is our top choice, offering customizable coverage at an affordable rate and demonstrating excellent customer service. It could be a good option for those who want to protect a variety of appliances and systems within their home. You should read our complete American Home Shield Review for more information.
FAQs About Home Warranties
What is a home warranty?
A home warranty provides coverage on your home’s systems and appliances that break down or malfunction due to normal wear and tear. Though this residential service contract isn’t mandatory, we recommend buying one to receive peace of mind if an item unexpectedly breaks down. A home warranty also saves you from paying expensive, out-of-pocket costs associated with appliance and system repairs. To explore the full scope of these contracts, visit our article on home warranty basics.
What does a home warranty cover?
A home warranty covers appliances, systems, or a combination of the two. Many companies also allow policyholders to add on optional coverage, like protection for a well pump or pool, to any plan. The most common systems and appliances covered include air conditioning, heating, electrical, plumbing, ductwork, refrigerators, water heaters, built-in microwaves, dishwashers, ovens, clothes washers, clothes dryers, and garbage disposals.
How does a home warranty work?
When you sign up for a home warranty, you’ll typically have to wait 30 days for coverage to take effect. After the 30 days have passed, you’ll be eligible to receive coverage on the items included in your plan.
If a covered item breaks down due to normal wear and tear, you can file a claim and your provider will send a technician to assess the appliance or system in question, usually within 48 hours. Before they leave, you’ll pay a predetermined deductible.
How much does a home warranty cost?
A home warranty costs around $300–$600 a year, with service fee deductibles ranging between $75–$125 per claim.
Our Rating Methodology
We back up our home warranty ratings and recommendations with a detailed rating methodology to score each provider objectively. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts, and conducting focus groups and consumer surveys.
We score each provider against our review standards, which include four comparison categories: coverage, value, trust and transparency, and availability and service. We rate each provider across 31 factors within these categories. Each factor is assigned a point value based on its importance to a homeowner, totaling 100 points. We then convert the final scores to a 5-star rating.
Here’s a breakdown of our weighted factors:
- Coverage (40%): We scored coverage based on included home systems and appliances, add-on options, and unique benefits. We also compared coverage caps and policy exclusions.
-
- Additional coverage items
- Annual coverage cap
- Home systems coverage
- Major appliances coverage
- Obstructed wall coverage cap
- Value (30%): We compared the coverage level received to monthly pricing to determine plan value. We considered premium pricing, service fees, and flexibility in customizing plan costs.
-
- Average monthly cost
- Cost flexibility
- Lowest service fee
- Trust and Transparency (16%): We evaluated each company’s reputation using the Better Business Bureau ratings and customer reviews on third-party review sites. We read through plan change policies, workmanship protections, and sample contract availability.
-
- Brand reputation
- Policy change flexibility
- Sample contract availability
- Workmanship guarantee length
- Availability and Service (14%): We award higher scores for faster claim processing and response times. We also considered service technician policies, including options to choose your technician.
-
- Claims process
- Guaranteed response time
- Service flexibility
To share feedback or ask a question about this article, send a note to our team at reviews@thisoldhousereviews.com.