Home Warranty Inc. Home Warranty Review

Company Overview

Home Warranty Inc., also known as Home Warranty of the Midwest Inc., was founded in 1999 by the owner of an appliance repair company. The company offers three different home warranty plans across 35 states. Its plans are competitively priced (for the states they cover), and the payout caps and service fees the company imposes are also fairly standard. You can use your own repair person as long as you get this approved by Home Warranty Inc., and the company promises to respond quickly to claims.

What sets Home Warranty Inc. apart from the competition is the very high customer satisfaction rating the company has managed to achieve. The company currently holds an A rating from the Better Business Bureau, the highest possible rating, and scores a very respectable 3.09 out of 5 after 74 customer reviews.

States Covered

Home Warranty Inc. covers 35 states:

• AL
• AR
• CO
• DE
• GA
• IA
• ID
• IL
• IN
• KS
• KY
• LA
• MD
• MI
• MN
• MO
• MS
• MT
• NC
• ND
• NE
• NM
• OH
• OK
• PA
• RI
• SC
• SD
• TN
• TX
• UT
• VA
• WI
• WV
• WY

Available Plans 

Home Warranty Inc. uses a slightly different model than other Home Warranty providers. Similarly to its competitors, it offers two core plans that give different levels of protection.  However, the company also offers an “a la carte” appliance protection plan which allows you to cover just the appliances you’d like to protect or add these appliances to one of its other plans. For example, protection for furnaces and air conditioners costs $7 per month, while coverage for home appliances costs about $5 per month. This plan also does not have service repair fees—it covers the entire cost of repairs. 

This level of coverage is quite good for a standard home warranty plan. Home Warranty Inc. covers, for example, sump pumps and garage door equipment, which is rare on standard plans. Its plans are also quite flexible, allowing you to add coverage for extra items (pool equipment and a well pump, for instance).

Here is how the two main plans stack up against each other in terms of coverage:

*These items are available for an additional fee. 

Real Estate Plans 

Home Warranty Inc. also offers plans for real estate professionals and for people looking to insure their appliances and systems during and after a sale. 

These plans follow the same model as Home Warranty Inc’s consumer plans. Real estate professionals can choose from two tiers of general coverage, cover individual appliances through an appliance protection plan, or combine these plans. Home Warranty Inc. also provides a number of other services for real estate agents, including insurance against legal proceedings that might arise after a sale.

Plan Pricing 

Home Warranty Inc. state that its standard home protection plan starts at $575 per 14-month term, but during our research, we found that this price can vary. For example, the Appliance Protection plan is priced based on which appliances you choose to have covered, and most appliances cost between $5 and $15 per month. 

Homeowners who file a claim also are responsible for a $100 trade service fee (TSF). Given that the average service fee across the home warranty sector is $82, this is a good offer. Even better, these plans cover the entire cost of repair for chosen appliances. Home Warranty’s Supplemental Home Protection Plan is designed to fill in homeowner insurance coverage gaps, with plans starting at $30 per month. 

When assessing home warranty companies, we normally ask them for a quote for several key states including California, Florida, and Texas. Since Home Warranty Inc. doesn’t cover these states (they are focused on the Midwest), it’s difficult to make a direct comparison of its prices. However, the average cost of a home warranty in 2022 is about $574, which makes Home Warranty Inc’s price of $575 almost exactly average for this industry.

Fifty-one percent of our survey correspondents said that pricing information was the most important piece of information they need when choosing a home warranty policy, and 70% of survey correspondents said that the monthly or annual cost of a plan was more important to them than service fees. Unlike many other home warranty companies, Home Warranty Inc. makes many of its prices available on its website, so you can see them without sharing your contact details.

Optional Add-Ons

Home Warranty Inc’s plans work in a slightly different way from those offered by similar companies. Instead of offering a “complete” plan which covers unusual or expensive appliances and systems, the company allows customers to add on what they need via the “a la carte'' supplemental plan. 

This gives customers a greater ability to customize their plan and could save money for customers who want to cover an unusual range of appliances. On the other hand, some customers will prefer the peace of mind offered by a “complete” plan. 

If you want to add items to any of Home Warranty Inc’s plans, you will pay an additional monthly cost as follows:

Types of Damage Covered

Home Warranty Inc. provides plenty of information on the type and extent of damage its policies cover. They’ve even provided a sample contract on its website which gives extensive details of the type of damage that is covered by its policies.

In general, home warranties:

• 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 would 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 fall under their coverage.

Plan Exclusions 

Items excluded from coverage under Home Warranty Inc. vary by plan, as do individual appliances and systems. Some exclusions listed under the company’s Home Protection Plan include: 

• Portable AC units
• Pellet stoves
• Concrete-encased or inaccessible ductwork
• Solar water heaters
• Sewage ejector pumps
• Faucets and fixtures 

For a full list of exclusions, be sure to consult your plan documents or read through the sample contract that the company provides on its website.

Payout Caps and Limitations 

The coverage limits offered by Home Warranty Inc. vary by plan and appliance or system. Below are some specific coverage limits cited in the Home Protection Plan agreement for each contract period: 

• Heating and air claims: $2,500
• Water heater claims: $1,000
• Pools and spas: $1,000
• Well pumps: $500
• Jetted bathtub: $1,000
• Ice makers: $200
• Septic: $500 

Individual appliances and systems have stated coverage limits that generally align with other industry providers. During our research for this review, the company also told us that they have an aggregate payout cap of $15,000 per 14-month contract. This is low in comparison to many of its competitors—some of whom offer $25,000 aggregate payout caps.

Twenty-seven percent of our survey correspondents said that getting the maximum payout cap is important to them when choosing a home warranty policy. Liberty Home Guard has a payout cap that is about average for the industry.

Claim Response Time 

Homeowners who need to request a repair using their plan from Home Warranty Inc. can do so 24 hours a day, seven days a week. Once a repair request is submitted, Home Warranty Inc. allows homeowners to choose a local contractor to who they’d like to make the repair. If the contractor isn’t already approved to do work for Home Warranty Inc., they must do so before work can begin. This can lead to longer repair times. 

During our research, Home Warranty Inc. told us that its response times were four hours on weekdays and 48 hours on weekends. This would make the company among the most responsive of those we’ve researched—and the high customer satisfaction scores for the company would suggest that they generally meet these criteria.

For homeowners who want to expedite repairs, Home Warranty Inc. also offers a cash-out option for repairs. This allows homeowners to forgo repair of their covered appliance or system and instead take the approved repair cost and use it to pay for a replacement. Thirty-four percent of our survey correspondents said that choosing their own technician was important to them when choosing a home warranty policy. Home Warranty Inc. offers this flexibility, so it could be a good choice if you already have repair people you trust.

Customer Service and Claims 

Home Warranty Inc. customers who need to file a repair request can do so online or by calling 877-977-4949.

The company does offer 24/7 live claim support, though customers are more likely to get a quick answer if they call during core business hours (Monday through Friday from 8 a.m. to 5 p.m. Central Standard Time). Home Warranty doesn’t advertise whether emergency repairs are available. 

However, homeowners who need expedited service are free to schedule their own work. Just be careful if you do this because you may not be covered unless the work is performed according to the terms of your plan. The best approach, if you can afford to wait for a repair, is to get approval first to ensure the repair costs are covered. 

Complaints and Third-Party Assessments 

Home Warranty Inc. has an A Rating with the Better Business Bureau and more than 70 customer reviews, with many being positive—which is unusual among home warranty companies. 

While the company has also received more than 80 customer complaints (mostly due to denied claims), there are few relative to other home warranty companies of a similar size. Home Warranty Inc. also appears to make an effort to respond to all customer complaints, with many being resolved satisfactorily for customers.

Home Warranty Inc. vs. Fidelity National Home Warranty

We compared Home Warranty Inc. with Fidelity National Home Warranty because they have similar offerings. Fidelity National Home Warranty offers coverage at lower plan price points ($420 per year for a single-family home in Colorado) than Home Warranty Inc. ($575 per 14-month term). Fidelity National also customizes coverage based on the type of home—single-family homes cost more than condos or townhomes. It has four standard plans available, versus two for Home Warranty Inc. 

However, Fidelity National is available in only 10 states and has much lower customer service ratings than Home Warranty Inc. If you live in a state where Home Warranty Inc. offers coverage, it is the better choice between the two.

Final Verdict

Home Warranty Inc. offers two plans plus a la carte coverage to homeowners seeking to fill gaps in coverage from their homeowner insurance policy. In most respects, the company offers highly competitive home warranty plans that are fairly priced, have average payout caps, and standard exclusions. Its website is full of helpful information for potential customers, including pricing information and sample contracts, so you’ll know exactly what you are paying for.

What makes Home Warranty Inc. stand out is the impressive customer satisfaction score the company has achieved. Home Warranty Inc. has an A Rating with the Better Business Bureau and more than 70 customer reviews, with many being positive—which is unusual among home warranty companies. The only downsides: The aggregate payout cap for these policies is a little low, and they only cover 35 states. But if you live in one of the states covered by Home Warranty Inc., you should consider its offer seriously.

Frequently Asked Questions

How Much Does a Home Warranty Inc. Warranty Cost?

Our research found the average cost of a Home Warranty Inc. warranty to be $479. Individual plan pricing can depend on your coverage options and where you live, but that’s $100 cheaper than the average cost of a home warranty.

What do Home Warranty Inc. Warranty Plans Cover?

Home Warranty Inc. plans cover most major appliances, home systems or a combination of both. You can choose various levels of coverage for your appliances, or an “a la carte” package where you can choose exactly which appliances and systems you want to cover.

What does Home Warranty Inc. Warranty Not Cover?

Home Warranty Inc. policies, like those of other home warranty companies, do not cover damages resulting from misuse or natural events. Damages caused by natural events may still be covered by your homeowner's insurance policy.

Can you cancel a Home Warranty Inc. Warranty plan for free?

Yes. Home Warranty Inc. told us that you can cancel these policies for free.

What Is the Response Time After Filing a Claim With Home Warranty Inc. Warranty?

The response time after filing a claim can range from four hours to 48 hours, depending on when you file your claim. That’s quite fast in comparison to other home warranty companies.

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 significant categories—total plan cost, coverage and support, customizability, and transparency.

Within those four major evaluation categories, we looked at 18 core features that included 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 to price, plan exclusions and other plan provisions available online.

Third-party ratings and customer satisfaction scores are factored in to help assess a home warranty company’s overall quality, suitability, and value. We assigned fractional score values ranging from 0.00 to 1.00 points for each feature and then weighted those feature values according to a subject matter expert advice and consumer survey importance ranking. We also compared features for each company to industry average values determined from our data collection for the top 25 home warranty providers.