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Home Warranty Survey Results: 2023

Author Icon Written by Dana Getz + 1 other Reviewer Icon Reviewed by Jacquelyn Kfoury Updated 03/21/2024

Did you know that more than 63% of homeowners bought a home warranty to avoid unexpected repair costs?

Maintaining your home systems and appliances is part of being a homeowner. The question isn’t if a breakdown will happen but when. Many homeowners purchase a home warranty plan to offset the financial risk of a costly home repair. A home warranty covers your home’s major systems and appliances from normal wear-and-tear breakdowns.

We continuously strive to provide new and existing homeowners with the resources to simplify their homeownership experience. Our team conducted a survey to understand what’s most important to homeowners who purchased a home warranty. Learn more about our discoveries below.


Survey Methodology

Our team developed a survey with 20 questions centered on the overall experience of having a home warranty. We also included questions regarding homeowners’ feelings about a provider’s claims process.

We used a third-party market research platform to source participants and host, deliver, and tally our survey. Our sample size was 1,000 respondents. To ensure we received responses from qualified participants, we asked vetting questions that confirmed our respondents met the following requirements:

  • Own a single-family home
  • Purchased a home warranty themselves

Why Do Homeowners Purchase Home Warranties?

According to our survey results, 632 out of 1,000 respondents purchased a home warranty to protect their major appliances and systems. Of the 632 respondents, 21% were worried that a specific item, such as their HVAC system, would break down. Additionally, 32% of the 632 respondents owned older systems and appliances. Most respondents considered the peace of mind a home warranty would provide before signing up.

Further, most homeowners who purchased a home warranty sought total-home protection. According to our survey results, 43% of respondents purchased a comprehensive plan that covered home systems, appliances, and add-on items. Additionally, 41% of respondents purchased a systems and appliances plan, while the remaining 16% purchased a systems-only or appliance-only plan.


How Much Do Home Warranties Cost?

One factor homeowners consider when researching home warranties is the cost of coverage. As with any product or service, your budget may determine whether one provider better suits your needs than another.

Our survey included a question that allowed respondents to pick up to three features they considered most important when considering a home warranty. Of the respondents, 67% considered price most important. The next most important was a company’s reputation, with 53% of respondents choosing this factor.

Many home warranty providers offer a choice between an annual or monthly premium when you sign up. Monthly premiums offer you more control over your warranty contract because you can cancel anytime. Annual premiums, however, include incentives such as discounts and free additional months of coverage. We found that 64% of all respondents chose an annual premium.

The total cost of a home warranty varies greatly depending on the provider, where you live, and your coverage selections. Based on our survey responses, 32% of all respondents pay between $51 and $70 per month for coverage. Plans within that price range are typically comprehensive, which supports the finding that comprehensive coverage is the most widely purchased plan. Conversely, 31% of all respondents pay between $31 and $50 per month.


How Do Home Warranty Companies Handle Claims?

Many homeowners express concern about the reputations of home warranty companies. One factor that affects a provider’s reputation is its claims process. Some providers offer a clear, easy-to-follow claims process that starts and finishes within an expected time frame. Others don’t. Sometimes this is a result of uncontrollable factors such as parts or technician availability.

We developed questions about our respondents’ experiences filing claims with their providers. To gather accurate results, we collected responses from our pool of 1,000 respondents who own a home warranty and have filed a claim with their provider. Out of the 1,000 respondents, 654 filed a claim. Therefore, we pulled the percentages in this section from our pool of 654 respondents.

Positive Claims Experience

We asked our respondents to pick the best aspect of their latest claim experience. Of the 654 participants, 37% picked a good customer service experience. An additional 37% considered a quick and easy claims process to be their favorite aspect, while 16% picked having a knowledgeable service provider. Meanwhile, 9% enjoyed only paying their service call fee for a repair. Less than 2% of respondents didn’t know their favorite aspect or enjoyed an aspect not mentioned in the question. Overall, 90% of the 654 respondents were either very satisfied or satisfied with their claims experience.

Negative Claims Experience

We asked our respondents about the worst aspect of their latest claims experience. Note that 27% of respondents did not have a negative experience filing a claim.

Of our survey respondents, 22% said their claims process was confusing or that their claim took too long to process. A provider outlines its claims process in its sample contract. It describes how long it generally takes and what the provider requires from you. Ask a customer service representative to explain the claims process to get a better idea of what to expect. We also recommend going to the provider’s claims website and familiarizing yourself with any available information there before you need to use it to file a claim.

Additionally, 14% of respondents were unhappy they paid more than just their service call fee for a repair. Providers list coverage limits in their sample contracts. Home warranty companies cover repairs and replacements up to their established coverage limits. For example, if a replacement for your water heater costs $1,100 and your policy covers water heaters up to $1,000, you are responsible for paying the $100 difference. Providers may not keep their coverage limits aligned with inflation, which could result in homeowners paying charges above the coverage limit.

Out of the 654 respondents, 7% considered a denied claim their least favorite aspect of their claims experience. Providers also list coverage exclusions and limitations within their sample contracts. We recommend reading through your provider’s sample contract to understand what’s considered a covered item, what components and instances are covered, and the restrictions placed on coverage.


Is a Home Warranty Worth It?

The final insight we discovered in our survey relates to whether homeowners believe a home warranty is worth the investment. Opinions were mixed. Some believe a home warranty is worth every penny. Others believe it’s best to save money and source a technician yourself. 

It can be a challenge to source a reliable provider yourself if you don’t know anyone in the area and can’t ask for recommendations from friends, neighbors, or family. This may make a home warranty a better value proposition if you moved somewhere new and haven’t yet started building relationships within your community.

Our survey shows more than 76% of the 1,000 respondents were either very likely or somewhat likely to renew their home warranty policy for another year. However, 18% weren’t sure they would renew. Less than 6% of respondents were unlikely or very unlikely to renew.

What Do People Think About Home Warranties?

Our survey results confirmed that most homeowners with a home warranty have positive overall experiences.

Do your due diligence before signing up with a provider, or risk a sub-par experience. Read provider sample contracts. Be aware of coverage limits, exclusions, and restrictions. Ask customer representatives how the claims process works. Consider how much coverage you need. Compare consumer reviews on sites such as the Better Business Bureau and Best Company. Following these steps will help you choose the right provider for your needs.

To guide your research, check out our list of the best home warranty companies in the United States. We compared each company based on plan coverage, customer service, and additional perks.