Home repair insurance, also called a home warranty, covers repairing or replacing major systems and appliances that break down from normal wear and tear. If a covered item fails, the provider sends a technician and covers most of the repair costs. Below, we highlight the benefits, typical costs, coverage, and our top picks for the best home warranty companies.
Top Home Repair Insurance Companies
The best home warranty providers offer comprehensive coverage at reasonable prices, superior customer service, and quick response times. We recommend getting a quote from all four providers to help you find the best plan at the most affordable cost.
Did You Know?
- In the last 30 days, more than 2,500 people bought home warranties from the above providers. Liberty Home Guard is our most popular provider, with 55% of buyers choosing to cover their homes with an LHG plan.
What Is Home Repair Insurance?
Home repair insurance is the same thing as a home warranty. This annual service contract covers repair costs for major systems and appliances in the home when they break down due to normal wear and tear. It’s an additional protection for essential home items if they unexpectedly stop working, and you don’t have an emergency budget to cover costs.
When you work with a home warranty provider, you also benefit from a built-in network of contractors who are pre-screened and trained to provide the necessary repairs and replacements to fix your broken items. This is a huge time-saver, preventing you from having to call multiple contractors and try to decide on the best one for the job.
Different Types of Home Repair Insurance Plans
Most home repair insurance providers offer three main types of plans: appliance plans, systems plans, and combination plans. An appliance plan covers home appliances like your refrigerator, oven, washer, dryer, and garage door opener. A systems plan includes major home systems such as electrical, plumbing, and HVAC. A combination plan offers both, making it a smart option for homeowners who want broad protection across appliances and systems.
Here’s a quick breakdown of the appliances and systems you can expect to find covered under each plan:
| Covered Items | System Plan | Appliance Plan | Combo Plan |
|---|---|---|---|
| Air conditioning | ✔ | 𝗫 | ✔ |
| Ductwork | ✔ | 𝗫 | ✔ |
| Heating | ✔ | 𝗫 | ✔ |
| Electrical | ✔ | 𝗫 | ✔ |
| Plumbing | ✔ | 𝗫 | ✔ |
| Garage door opener | ✔ | 𝗫 | ✔ |
| Refrigerator | 𝗫 | ✔ | ✔ |
| Dishwasher | 𝗫 | ✔ | ✔ |
| Oven | 𝗫 | ✔ | ✔ |
| Stove | 𝗫 | ✔ | ✔ |
| Range | 𝗫 | ✔ | ✔ |
| Trash compactor | 𝗫 | ✔ | ✔ |
| Garbage disposal | 𝗫 | ✔ | ✔ |
| Freestanding ice maker | 𝗫 | ✔ | ✔ |
| Clothes washer | 𝗫 | ✔ | ✔ |
| Clothes dryer | 𝗫 | ✔ | ✔ |
| Built-in microwave | 𝗫 | ✔ | ✔ |
| Built-in food center | 𝗫 | ✔ | ✔ |
| Ceiling fans | 𝗫 | ✔ | ✔ |
What’s Not Covered by Home Repair Insurance?
Home warranties generally don’t cover issues caused by poor maintenance, incorrect installation, or pre-existing conditions. They are designed to cover breakdowns from normal wear and tear only. Most plans exclude the following:
- Accidental or intentional damage
- Code violations
- Damage from natural disasters like fires or floods
- Neglected maintenance
- Rust, corrosion, or sediment buildup
- Unusual or excessive wear
Many providers also offer optional add-ons for items not included in standard plans, such as swimming pools, septic systems, well pumps, and roof leaks. These add-ons come with an additional monthly fee per item.
How Much Does Home Repair Insurance Cost?
Home repair insurance typically costs between $47 and $82 per month, or $564 to $984 annually. In addition to the monthly premium, you’ll pay a service fee—usually between $75 and $125—each time a technician is dispatched. Some providers let you choose your service fee amount, with higher fees lowering your monthly premium and vice versa.
It’s also important to review coverage limits. Most plans include an annual payout cap and individual limits for specific appliances or systems. In some cases, replacements may not be covered at full retail value.
Pricing often varies based on factors like your home’s size, your location, and the coverage you select. Use these averages as a general guide, but be sure to get a personalized quote based on your ZIP code and coverage preferences.
How Does Home Repair Insurance Work?
Ryan Hawker, co-founder of H3 Homebuyers, an Ohio-based home-selling company, outlines the process of using your home warranty: “When a covered item quits working, you must call the home warranty company to file a claim. You can also submit a claim online. Once the claim is approved, the company will arrange for a pre-approved service provider to come to your home within 48 hours to assess the problem.”
Once there, the technician will diagnose the problem. If it falls under the terms of your contract, the technician will repair the item or schedule a time to return for repairs. Companies like AFC Home Warranty allow customers to choose a service technician to complete the repair work for them.
How To Choose the Best Home Warranty
Before buying a home warranty, consider coverage, price, and the claims process. We recommend reading a sample contract before signing up for coverage so you know exactly what is and isn’t covered. The sample agreement should list all covered items and outline coverage caps, total costs, and the process for claims requests. If you have questions about the fine print, ask a sales representative to clarify before you sign.
If you want to learn more about the home warranty companies we recommend, read our in-depth reviews of our top-rated providers:
FAQs About Home Repair Insurance
What’s the difference between a home warranty and home insurance?
A home warranty, or home repair insurance, covers repairing or replacing your home’s major systems and appliances. In contrast, homeowners insurance provides financial protection in case of an accident or disaster.
Does homeowners insurance cover a broken dishwasher?
No, homeowners insurance typically won’t cover a broken dishwasher due to wear and tear or manufacturer defects. However, many home repair insurance policies will.
What does a home warranty typically not cover?
Home warranties usually do not cover structural items like walls, windows, and doors. However, these items may be covered under your homeowners insurance policy.
