America’s Preferred Home Warranty Review

A Flexible, Affordable Home Warranty

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America's Preferred Home Warranty

American's Preferred Home Warranty

Investopedia’s Rating
4.0

Our Take

America’s Preferred Home Warranty offers good value home warranty plans. APHW offers a range of plans and coverage options, and allows customers to choose their own licensed repair person.

What really sets APHW apart from its competitors is the customer satisfaction ratings the company has managed to achieve. It generally holds positive reviews compared to other home warranty companies, who as a class tend to score poor marks.

The other aspects of APHW’s policies are fairly standard. Their plans come with some exclusions, but no more than the average home warranty, and the payout cap of these policies is a relatively generous $25,000 total. Just be aware that APHW is only available in a limited number of states.

According to our research, the most important feature to consumers when choosing a plan is its cost, with 74% of respondents naming this as the most important factor. Other important factors include service fees (63%), speed of response (48%), and pricing information being available online (46%). Our reviews thoroughly consider all these factors, as well as exclusions and payout caps, to help you make an informed decision when choosing a home warranty company.

  • Pros and Cons
  • specifications
Pros and Cons
Pros
  • Competitive pricing

  • Ability to choose your own licensed repair person

  • Impressive customer satisfaction scores

Cons
  • Since the contractor works for you, there is no guarantee on a payout from America’s Preferred Home Warranty

  • Large number of caps and payout limitations

specifications
Website
https://www.aphw.com/
Year Founded
2000
Average Annual Cost
$517
Service Fees
$50 - $100
Response Time
N/A
Payout Cap
$25,000 Annual
Coverage Area
AL, AZ, AR, CO, FL, GA, IL, IA, KY, MO, NV, NJ, NM, OH, SC, TX, UT, WA, WI, WY
Out of Network Technician
Yes
Pricing Available Online
No
Sample Contract Available
Yes
Waiting Period
No
Why Trust Us
38
Providers reviewed
35
Criteria considered
875
Data points analyzed
59
Primary data sources used
Investopedia collected key data points from several home warranty providers to identify the most important factors to customers. We used this data to review each provider for cost, availability, coverage options, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs.

Company Overview

APHW was founded in 1999 and is based in Jackson, Michigan. The company states that “every member of our team shares a commitment to the Christian mission, values, and vision that help make APHW an industry leader."

The company also claims that it is different from its competitors because it allows customers to choose their own licensed contractors. This may have been true a few years ago, but nowadays quite a few home warranty companies allow customers this freedom.

States Covered

  • APHW operates in 49 States. The Company does not operate in California.

Forty-seven percent of our 538 survey correspondents said that coverage and support was the most important aspect of a home warranty, so make sure a company covers your home state first, before considering other factors. APHW has limited coverage across the U.S., so this is particularly important if you are attracted by their policies.

Available Plans

Unlike most other home warranty companies, APHW doesn’t offer metallic “levels” of coverage (such as silver, gold, and platinum). Instead, the company offers a standard plan with two levels of deductible. You can choose a deductible of $50 or $100, and the annual cost of your plan will be adjusted accordingly. America's Preferred Home Warranty's lowest deductible is lower than industry standards.

Each coverage plan offers different pricing tiers based on your deductible:

Available Plans Standard Coverage Optional Add-Ons
Built-in dishwasher
Built-in microwave
Built-in oven
Central air conditioning
Free-standing range/cooktop
Garbage disposal
Heating system
Refrigerator
Attic & exhaust fans
Central vacuum
Ductwork
Electrical system
Instant hot water dispenser
Plumbing
Stoppages
Water heater
Garage door opener
Humidifier
Permanently installed sump pump
Roof leak repair
Septic system
Water well pump
Additional refrigerators  
Gas fireplace
Inground pool/spa
Premium/salt water pool/spa
Sprinkler system
Termite control
Water softener

This list of covered items is fairly standard for a home warranty policy. When buying any policy, including those by APHW, you should carefully read through what is covered in order to make sure that the appliances and systems you have are protected by the warranty you are buying.

Real Estate Plans

America’s Preferred Home Warranty offers real estate professionals a mobile app and website called Real-Pro. This tool allows real estate professionals to purchase, maintain, manage, and renew multiple warranty contracts. Realtors or brokers can also get a quote using America’s Preferred Home Warranty's online form or by calling (800) 648-5006.

Plan Pricing

During our research, we requested quotes from APHW for both standard coverage and “preferred upgrade” for two states—Texas and Florida. Normally, we also ask for quotes for California and New York, but APHW doesn’t cover California.

Here are the prices we were given for a policy with a standard deductible:

  Standard Coverage with $50 Deductible Standard Coverage with $100 Deductible 
Florida  $59.09/month $54.92/month
New York  $54.92/month  $50.75/month

As we can see, your location doesn’t appear to make too much of a difference to the price of these plans.

On the other hand, the pricing of these plans is highly competitive. During our research, we found that the average cost of a home warranty plan in the U.S. was $574. Both plans from APHW, including the preferred upgrade, range in price from about $609 annually to $709 annually, so APHW is a bit more expensive.

APHW allows customers to sign up for monthly plans. The company also told us that they offer free cancellation on these plans.

There are some other costs involved with this type of policy. All home warranty providers charge a service fee, and the industry-wide average service fee is about $82. This is due each time you call out a technician to fix an appliance. APHW charges service fees of either $50, $100, or $125. This makes the average service fee lower than the industry average if you take the lower deductible plan.

Pricing information is the most important piece of information customers need when choosing a home warranty policy, according to 51% of survey respondents, and 70% said that the monthly or annual cost of a plan was more important to them than service fees. APHW offers very competitive pricing, with both annual fees and service fees in line with the industry average or only slightly higher.


Optional Add-Ons

It’s possible to add extra appliances, items, or systems to your APHW policy. The company charges an extra monthly or yearly fee for each item. These optional upgrades include water softener systems, pool, and spas. Here are the prices we were given to cover each item:

Optional Add-Ons Price 
Refrigerator $4.58/month
Gas fireplace $4.58/month
Inground pool/spa $18.33/month
Premium/saltwater pool/spa  $33.25/month 
Sprinkler system $4.58/month
Termite control $4.58/month
Water softener  $7.92/month 

Be aware, however, that many of these extra items and systems are only covered to a limited degree by an APHW policy. The company is quite open about this and lists these limitations on its website. Customers looking to add these items to their policy should make sure that their equipment is covered by reviewing this information.

Types of Damage Covered

The policies offered by APHW are pretty standard when it comes to the kind of damage they cover. These policies:

  • Provide a commitment to repair certain appliances and systems if they malfunction,
  • Cover repair and replacement costs on major home systems and appliances in the event of breakdowns associated with normal wear and tear.

However, buyers should be aware that there are some limitations to what a home warranty plan can cover. Home warranties cover breakdowns that occur due to normal wear and tear. For example, if a fan in your AC unit breaks due to natural use, a home warranty plan would typically cover the replacement. However, if that AC was broken from human misuse or a natural event like a tree branch falling on the outdoor air handler, it would not be covered.

Home warranty coverage doesn’t usually apply if a system or appliance stops working because of misuse or abuse. It also doesn’t cover malfunctions due to lightning strikes or fire; for protection from these events, you need homeowners insurance.

Plan Exclusions

As with all home warranties, the policies offered by APHW come with a long list of exclusions and limitations. APHW makes this information available, however. There is a detailed list in America’s Preferred Home Warranty’s sample contract which outlines what is and isn’t included. Items not covered include outside or underground piping and service calls where no covered defects are found, in addition to other exclusions.

Payout Caps and Limitations

A payout cap is the maximum amount a home warranty pays for work being repaired or serviced—the rest you’ll need to pay out of pocket. There is a long list of payout caps and limitations for America’s Preferred Home Warranty. Overall, the policy’s maximum aggregate liability is $25,000, slightly higher than industry standards. 

Here are some more specific limitations:

Covered Item Payout Cap
Commercial-like, Ultra-premium, or combination appliances $1,000
Heating systems $2,250
Hot water or steam heating systems $1,500
Geothermal heating $1,500
Air conditioning system $2,250
Roof leak repair $550
Concealed plumbing or enclosing wiring ductwork $500
Pool/spa $600
Premium/saltwater pool/spa $1,200
Washer and dryer, water well pump, and septic $500
Water softener $600
Humidifier $500
Special electrical package upgrade $1,000
Water heater $500
Additional Refrigerators $1,000
Preferred upgrade package $200 more from base limit
Preferred upgrade package (toilet) $200 per occurrence
Termite Control $500
Sprinkler Systems $250
Gas Fireplace $400

Getting the maximum payout cap when choosing a home warranty policy is important to only 27% of our survey correspondents. APHW has a payout cap that is higher than the industry average, potentially protecting you from out-of-pocket costs.

Response Time

Policyholders can pick their own licensed contractor after approval from America’s Preferred Home Warranty. Once approved, you are responsible for calling the contractor to initiate and schedule repairs. The company doesn’t state how long it’ll take to get approval, but they will try to expedite the process in emergency situations.

Customer Service and Claims

There is customer service support via email, the online contact form, or phone at (800) 648-5006. 

To start a claim, you’ll need to fill out an online form and receive a claim number. Claims can also be initiated by phone. You are then responsible for calling a licensed contractor to diagnose the issue. Once the contractor is on-site, you need to call claims back to receive approval over the phone or you risk the claim being denied. If approved, the contractor can start work. Remember, there is no guarantee of coverage, so it is best to contact the company first with as much detail as possible to better your chances of getting a claim approved.

When shopping for home warranty plans, consider the flexibility and overall coverage you get for the price. Every company is different.

America's Preferred Home Warranty vs. the Competition

Let’s compare the service offered by APHW with that provided by American Home Shield Warranty. American Home Shield, having been founded in 1971 AHS is well-established in the industry.

Here’s how the two companies compare:

  American Home Shield America’s Preferred Home Warranty
Average Cost of Plan $579.88 $659.04
# of Plans Available Three Two (with optional add-ons)
Service Fee $75-$125 $50-$125
States covered 49 (excludes AK) 49 (excludes CA)

As we can see from this table, the price of APHW is a bit higher than that of its competitors. And though not covered in this table, the level of coverage offered by the company is about the same as well, as are their exclusions.

The major difference between APHW and other companies which provide home warranties is its customer satisfaction score, which is impressively high. This indicates that the majority of customers were happy with the service they received, and this gives APHW an edge over the competition.

Verdict

America's Preferred Home Warranty is an above-average home warranty provider. The company offers home warranty policies that cover a fairly standard range of items and systems, and have standard exclusions. The price of these policies is competitive and the freedom to choose your own repair person will be valuable for many customers.

Priority Home Warranty FAQs

How Much Does an America’s Preferred Home Warranty Cost?

During our research, we found that the average price for an APHW plan for a year was about $659. This is $85 more expensive than the average for this sector.

What Do America’s Preferred Home Warranty plans cover?

APHW Home Club plans cover most major appliances, home systems, or a combination of both. You can choose various levels of coverage for your appliances, and choose add-ons to expand your coverage.

What Does an America’s Preferred Home Warranty not cover?

APHW policies, like those of other home warranty companies, do not cover damages resulting from misuse or from natural events. Damages caused by natural events may still be covered by your homeowners insurance policy.

How Much Is America’s Preferred Home Warranty’s service fee?

It depends. Sometimes, the company will charge a $50 service fee, and sometimes this is $100 or $125. You should clarify with the company which fee applies to your policy.

Can you cancel an America’s Preferred Home Warranty plan for free?

Yes. APHW told us that customers can cancel these policies for free. However, the policy statement online does state that there may be an administrative fee not to exceed 10% of the contract fee.

How do you file a claim with America’s Preferred Home Warranty?

There is customer service support via email, the online contact form, or phone at (800) 648-5006.

What is the response time after filing a claim with America’s Preferred Home Warranty?

Because APHW doesn’t have its own contractor network, the response time for claims depends entirely on the contractor you choose to carry out repairs.

Are there customer service complaints against America’s Preferred Home Warranty?

APHW does have a handful of customer complaints with third-party sites relating to coverage, service, or both. This is not unusual for a home warranty company, however, and in general, the level of customer satisfaction with the company is high.

Methodology

There are several aspects to consider when evaluating a home warranty company and its coverages. To assist in your decision process, our methodology for reviewing home warranties includes a quantified scoring system that evaluates four major categories - total plan cost, coverage and support, customizability, and transparency. Within those four major evaluation categories we look at 15 core features that include annual plan fees and service fees, claim response times, payout caps, states available, contract length range, customizable coverages, ability to use own repair person, free cancelation, plan pricing, plan exclusions and other plan provisions available online. We assign fractional score values ranging from 0.00 to 1.00 points for each feature and then weight those feature values according to subject matter, expert advice, and consumer survey importance ranking. We also compare features for each company to industry average values determined from our data collection for the top 25 home warranty providers. Third-party ratings and customer satisfaction scores are factored in to help assess a home warranty company’s overall quality, suitability, and value.