Home Warranty of America Home Warranty Review

Good coverage, poor customer ratings

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Home Warranty of America

Home Warranty of America

Investopedia’s Rating
4.0

Our Take

Home Warranty of America offers home warranties across the country – in all 50 states, plus DC. In some ways, the company is average for the industry. It has fairly standard payout caps, and its policies cover a good range of appliances and systems in your home. 

In other ways, the company is well below average for this competitive market. It’s home warranty prices are, on average, almost $100 higher than average for the sector. Even more concerning is the fact that the company has a very low score (just 1.05 out of 5) after more than a thousand reviews via the Better Business Bureau.

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
  • Nationwide coverage (50 states plus DC)

  • Pricing and coverage information available without signup

  • Offers add-on coverage on things that some of the other companies do not

Cons
  • More expensive than the average home warranty plan

  • Payout caps only cover up to a certain amount in the aggregate during the coverage period

  • Subjective determination of what amount is paid out for covered items

specifications
Website
https://www.hwahomewarranty.com/
Year Founded
1996
Average Annual Cost
$656.76
Service Fees
$75 - $100
Response Time
24 hours
Payout Cap
$15,000 Annual
Coverage Area
AK, AL, AR, AS, AZ, CA, CO, CT, DC, DE, FL, GA, GU, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MP, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UM, UT, VA, VI, VT, WA, WI, WV, WY
Out of Network Technician
No
Pricing Available Online
Yes
Sample Contract Available
Yes
Waiting Period
Yes
Why Trust Us 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. Read our Full Methodology
38 Providers reviewed
35 Criteria considered
875 Data points analyzed
59 Primary data sources used

Company Overview

Home Warranty of America was established in 1996, and is well-known in the home warranty industry. The company operates nationally, and offers home warranty coverage in all 50 states plus DC. This is rare for a home warranty company, most of which have some regional restrictions. However, no matter where you live you will have a range of home warranty providers available to you.

Home Warranty of America are up front about their fees, and have made a sample contract available on their website. During our research, we found that home warranty customers really value this price transparency. Unfortunately, the prices offered by Home Warranty of America are significantly higher than the industry average.

States Covered

Home Warranty of America covers all 50 states, plus DC. That means you can get a home warranty through the company if you live in any of the following places:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • DC 
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

47% 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. Home Warranty of America covers the entire country, so you can get a home warranty through them no matter where you live.

Available Plans

Home Warranty of America offers a selection of two base plans throughout the United States. The two plans are further broken down depending on whether you choose to pay a $75 or $100 trade call fee (TCF), for a total of four options. 

All Home Warranty of America plans include coverage for a relatively wide range of appliances and systems:

  • Heating System
  • Ductwork
  • Water Heater
  • Clothes Dryer
  • Clothes Washer
  • Kitchen Refrigerator w/Ice Maker
  • Range/Oven/Cooktop
  • Built-in Microwave
  • Dishwasher
  • Garbage Disposal
  • Trash Compactor
  • Central Vacuum
  • Electric System
  • Ceiling Fan/Exhaust Fan
  • Burglar/Fire Alarm
  • Drywall
  • Doorbell
  • Garage Door Opener
  • Plumbing System
  • Instant Hot Water Dispenser
  • Permanent Sump Pump
  • Stoppages/Clogs
  • Whirlpool Bath Tub 

In addition, the company’s Premier Plus Plan offers additional coverage for a number of other appliances. Here’s how the plans compare:

Home Warranty of America Warranty Plans Premier Plan Coverage Premier Plus Plan
Heating System Furnace
Ductwork
Plumbing System
Stoppages & Clogs
Washer
Dryer
Refrigerator
Dishwasher (comprehensive coverage)
Garage Door Systems
Air Conditioners (including window units)  
Plumbing Fixtures, Faucets & Showerheads  
All Premier Items, Plus 30 more  

This coverage is generous – Home Warranty of America cover some items (such as ductwork) that only appear as additional extras in other home warranty plans. 

Real Estate Plans

Home Warranty of America also offers home warranty plans for real estate professionals. The company using a different pricing structure for these plans, with three metallic tiers (gold, platinum, and diamond). They make the prices for these plans available on their website. Prices for these plans vary slightly between states, but are competitive.

Plan Pricing 

Home Warranty of America has two available base plans that cover a long list of items, regardless of which plan you choose, and plans are available to real estate professionals, too. You must enter some basic details in order to view current prices.

The company offers two options for paying their Trade Call Fees (TCF) for each plan. The TCF is the amount of money you pay upfront when a service provider arrives at your house to make repairs. You can choose either a TCF of $75 or $100. The higher the service fee, the more you will pay when your service provider arrives, but you will get a lower monthly fee—or you can pay a little higher monthly fee and get the lower TCF. 

During our research, we asked the company to provide us with quotes for four states across the US – California, Florida, New York, and Texas – for both major plans the company offers, with the $75 service fee. Here are the prices they gave us:

  Premier Plan Premier Plus Plan 
California $552.96 $719.04 
Florida  $552.96  $719.04 
New York  $552.96  $719.04 
Texas  $552.96  $719.04 

As we can see, where you live doesn’t appear to make any difference to the price of the plans offered by Home Warranty of America. 

It’s also worth noting that these prices are high. During our research, we found that the average cost of a home warranty across the country was about $574. That makes Home Warranty of America’s “Premier” plan above average for the sector, and their plus plan very expensive in comparison to their peers. 

There are some other costs involved with this type of policy, though. 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. As we’ve mentioned above, Home Warranty of America allows you to choose two levels of service fees – $75 or $100, and the cost of your monthly premium will be adjusted accordingly.

In summary, Home Warranty of America doesn’t offer great value. It’s basic plan is a little below the average cost for a home warranty, but definitely doesn’t represent the best value available at the moment.

51% 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. Both the monthly premiums and service fees charged by Home Warranty of America are distinctly average.

Optional Add-Ons

The standard coverage offered by Home Warranty of America is quite generous, but like all home warranty companies you will have to pay a little extra if you want to include extra appliances or pool equipment. 

Here are the prices that Home Warranty of America charge for these optional add-ons:

Add-Ons Price
GreenPlus $75
Stand Alone Ice Maker $35
External Water Line Repair $90
Pool/Spa Combo $150
Well Pump $85
Salt Water Pool $300
Septic Tank Pumping $50
Second Refrigerator $35
OrangePlus $75
Stand Alone Freezer $35
SEER/R-410A Modifications $75
2nd Dishwasher $35
2nd Clothes Washer $35
2nd Clothes Dryer $35
2nd Range/Oven/Cooktop $35
Septic System/Sewage Ejector Pump/Septic Tank Pumping $100

Be aware, however, that many of these extra items and systems are only covered to a limited degree by a Home Warranty of America policy. The company is quite open about this, and lists these limitations on their 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

Home Warranty of America provides plenty of information on the type and extent of damage their policies cover, and they’ve even provided a sample contract on their website. 

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, Home Warranty of America 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

Home Warranty of America covers almost all breakdowns of appliances, home systems, and home features (doorbells, garage door openers, etc.) that occur from normal wear and tear, however, there are several exclusions. 

As an example, valves for showers and tubs are included, while their associated faucets and drain mechanisms are not. Plans do not cover water lines to refrigerator ice makers, or water and ice dispensers. You can see a complete list of coverages and exclusions by viewing a sample of Home Warranty of America’s Buyers Plan Coverage

Be sure to read through the list of exclusions so you aren’t caught off-guard when an uncovered item breaks.

Payout Caps

Unlike some companies, Home Warranty of America’s payout caps vary depending on what system or item needs repair and will only cover up to a certain amount in the aggregate during the coverage period. This means that, while they may pay up to $2,000 for an electrical system repair, they will only pay for the repair once during the period of coverage. Likewise, they will only pay up to $1,500 for a heating system or furnace and up to $1,000 for appliance items like stand-alone freezers, again, once per contract period. 

While payout caps vary (and there are a lot of different ones, so read over your policy closely), the amounts are average for the industry on most of the items and systems that are covered. 

27% of our survey correspondents said that getting the maximum payout cap is important to them when choosing a home warranty policy. Home Warranty of America has a payout cap that is about average for the industry.

Claim Response Times

Home Warranty of America told us that a service provider is typically sent within 24 hours from when your service request is placed, or at a mutually agreed-upon time between you and the service provider. They also provide emergency service and will help you troubleshoot problems on the phone when possible. 

Home Warranty of America uses a network of service providers, so you do not get to choose who will make your repairs. The company also has a national account with Carrier Corporation for HVAC equipment and an account with GE for the replacement of household appliances.

34% of our survey correspondents said that choosing their own technician was important to them when choosing a home warranty policy. Home Warranty of America is one of the only companies in this sector who still do not allow customers to choose their own technicians. This will be a major drawback of the company for many customers.

Customer Service and Claims

Home Warranty of America don’t offer 24 / 7 support. Instead, there is support service available Monday to Friday 7 a.m. to 7 p.m. Central and on weekends from 9 a.m. to 5 p.m. Central. You can request support:

Home Warranty of America encourages customers to call and speak with a service technician since they are trained to help troubleshoot most problems over the phone. Doing so may help you solve your issue without having to pay the trade call fee. If you do need a service technician, you will generally hear from them within 24 hours.

Customer Satisfaction

As we’ve seen in the sections above, in most respects Home Warranty of America offers average home warranty policies – they do not offer significantly wider coverage or charge less for this than the competition. 

Unfortunately, the same cannot be said when it comes to the customer satisfaction scores the company has “achieved”. Home Warranty of America has received numerous negative third-party reviews. Many of the complaints include claims about slow repair times and unresponsive customer service. 

To make matters worse, as of January 2022 the company scored just 1.05 out of 5 after more than a thousand customer reviews on the Better Business Bureau website. This is one of the lowest scores we’ve seen for any home warranty company, and indicates that the company is not serving its customers well.

Competition: American Home Shield vs. Home Warranty of America

To provide a comparison between Home Warranty of America and the competition, we chose American Home Shield. Both companies provide similar warranty coverage, have around-the-clock service, and comparable add-on coverage.

  American Home Shield Home Warranty of America
Number of Plans Available 3 2
Support 24-hour online claim system Online or by phone at (888) 492-7359 weekdays from 7 a.m. to 7 p.m. and weekends 9 a.m. to 5 p.m.
Trade Call Fee $75 / $100 / $125 $75 / $100
National Availability Available in 49 states, excluding Alaska Available nationwide
Average cost of plan $579.88 $656.76
Average customer review (BBB) 2.42 / 5 1.05 / 5

When it comes to the types of coverage the companies offer, American Home Shield and Home Warranty of America have plans that are quite similar. Both allow you to choose either a $75 or $100 trade call fee, and American Home Shield also offers a third option of $125. 

Both companies let you choose additional coverage for items such as swimming pools and spas. In addition to these add-ons, Home Warranty of America has its OrangePlus upgrade for $75 that provides coverage amounts for things like building code and permit violations and the removal of old parts and appliances that have been replaced through the company’s warranty plans. 

The biggest difference between the companies, however, can be seen in the last two rows of the table above. Not only is Home Warranty of America more expensive than the competition, it also has significantly lower customer satisfaction scores.

Verdict

In most ways, Home Warranty of America offers a slightly below-average service. The company’s plans are a little more expensive than those of their competitors, and have standard exclusions and payout caps. To its credit, the company provides wide coverage, with policies available to every resident of the US.

There are several major drawbacks to Home Warranty of America, though. One is that the company do not allow their customers to choose their own repair people – a freedom that many now expect. Secondly, the company has a poor customer satisfaction rating.

Both of these concerns make it difficult to recommend Home Warranty of America. We think that there are better options if you are looking for a home warranty policy.

Home Warranty of America FAQs

How Much Does a Home Warranty of America Warranty Cost?

Our research found the average cost of an Home Warranty of America warranty to be $657. Individual plan pricing can depend on your coverage options and where you live. But that’s $75 higher than the average for the market.

What do Home Warranty of America plans cover?

Home Warranty of America plans cover most major appliances, home systems or a combination of both. You can choose various levels of coverage for your appliances, or a systems package which covers AC and plumbing.

What does Home Warranty of America not cover?

Home Warranty of America 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 Home Warranty of America's Service Fee?

It depends. You can choose policies with service fees of $75 or $100. Your annual payment will be adjusted accordingly.

Can You Cancel a Home Warranty of America Plan for Free?

Yes. Home Warranty of America told us that you can cancel any of their policies for free. 

How do you file a claim with Home Warranty of America?

Home Warranty of America don’t offer 24 / 7 support. Instead, there is support service available Monday to Friday 7 a.m. to 7 p.m. Central and on weekends from 9 a.m. to 5 p.m. Central. You can request support:

What is the response time after filing a claim with Home Warranty of America?

The response time after filing a claim is 24 hours. That’s about average for a home warranty provider.

Are there customer service complaints against Home Warranty of America?

Home Warranty of America has received numerous negative third-party reviews. Many of the complaints include claims about slow repair times and unresponsive customer service. To make matters worse, as of January 2022 the company scored just 1.05 out of 5 after more than a thousand customer reviews on the Better Business Bureau website.

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 18 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.