What Is Home Repair Insurance?
Written by
Reviewed by
Home repair insurance provides peace of mind when important items malfunction by covering the cost of expensive repairs and replacements. Unlike homeowners insurance, home repair insurance—also called a home warranty or home protection plan—covers major systems and appliances that break down from everyday wear and tear.
With home repair insurance, your home warranty company will provide a trained technician to diagnose the problem and, if it’s covered, pay the bulk of repair costs. Below, we’ll break down the benefits of home repair insurance, provide details on typical costs and coverage, and give our recommendations for the best home warranty companies in the industry.
Top Home Repair Insurance Companies
The best home warranty providers offer comprehensive coverage at reasonable prices as well as superior customer service and quick response times. We recommend getting a quote from all four of the following providers to help you find the best plan at the most affordable cost to you.
What Is Home Repair Insurance?
Home repair insurance is the same thing as a home warranty. This is an annual service contract that 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 form of protection for important 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 get the benefit of 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 trying to decide on the best one for the job.
Are There Different Types of Home Repair Insurance Plans?
There are three common types of home warranty plans: an appliances plan, a systems plan, and a combination plan.
An appliances plan usually covers basic home appliances, such as your refrigerator, range, cooktop, oven, garage door openers, and your clothes washer and dryer. A systems plan will cover most major systems in your home, from your electrical system to your heating system. A combo plan protects systems and appliances, making it a good choice for homeowners who want comprehensive coverage of all major home items.
Here’s a quick breakdown of the appliances and systems you can expect to find covered under each plan:
Home Warranty Coverage
| Systems | Appliances | Combo |
|---|---|---|
|
Air conditioning |
Refrigerator |
Ductwork |
|
Heating |
Dishwasher |
Electrical |
|
Electrical |
Oven |
Air conditioning |
|
Plumbing |
Stove |
Heating |
|
Ductwork |
Range |
Plumbing |
|
Garage door opener |
Built-in microwave |
Refrigerator |
|
Trash compactor |
Garbage disposal |
Garbage disposals |
|
Freestanding ice maker |
Clothes washer |
Ceiling fans |
|
Built-in food center |
Clothes dryer |
Built-in microwave |
In general, a home warranty doesn’t cover pre-existing conditions or breakdowns that occur from improper maintenance, installation, or repair. It only covers damage that items sustain in the course of normal wear and tear. Home repair insurance also doesn’t cover the following:
- Accidental or purposeful damage
- Code violations
- Damage caused by natural disasters or environmental harm, including fires and floods
- Insufficient maintenance
- Rust, corrosion, or sediment
- Unusual wear and tear
In addition to these plans, home warranty companies will typically provide optional add-on coverage for items like a swimming pool, septic system, well pump, and roof leaks. You’ll pay an extra monthly fee for each individual item you want covered.
How Much Does Home Repair Insurance Cost?
On average, home repair insurance costs between $45 and $72 per month or $540 and $865 per year. On top of this amount, customers pay a service fee whenever a contractor comes to fix a broken system or appliance. Service fees typically range between $75 and $125. In some cases, like with American Home Shield, you can choose your service fee (between $75 and $125). Customers who choose a higher service fee will pay a lower monthly premium and vice versa.
In addition to premiums and service fees, be aware of the coverage limits of each plan. Often, there will be an overall annual coverage cap as well as caps for individual systems and appliances, and your item may not be replaced at retail value.
Our team has noticed that home warranty companies will adjust their plan pricing depending on the size of your home, the plan you choose, and where you live. Thus, you can use our general cost estimates as a guide, but confirm them with each provider based on your ZIP code and desired coverage.
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 America’s First Choice 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 how the claims process works. We recommend reading a sample contract before signing up for coverage so you know exactly what is and isn’t covered. All covered items should be listed in the sample agreement, outlining 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:
FAQ About Home Repair Insurance
What's the difference between a home warranty and home insurance?
Does homeowners insurance cover a broken dishwasher?
Which of the following is typically not covered under a home warranty?
Our Rating Methodology
We back up our home warranty ratings and recommendations with a detailed rating methodology to objectively score each provider. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts from each company, and conducting focus groups and consumer surveys. We then score each provider against our review standards for coverage, value, trustworthiness and transparency, availability, and customer service to arrive at a final score out of 100.
Find Home Warranty Pros in Your City
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.
