Home Warranty of America Home Warranty Review 2023

Fairly standard warranty service with higher than average prices

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Home Warranty of America

Home Warranty of America

Investopedia’s Rating

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 towards the higher end of what's normal for the industry.

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 availability of pricing information 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
  • 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

  • Higher prices

  • 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

Year Founded
Average Annual Cost
Service Fees
$75 - $100
Response Time
24 hours
Payout Cap
$15,000 Annual
Coverage Area
Out of Network Technician
Pricing Available Online
Sample Contract Available
Waiting Period
Why Trust Us
Providers reviewed
Criteria considered
Data points analyzed
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

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.

HWA was acquired by Direct Energy in 2012. Direct Energy is a major competitive energy services company in North America. In 2022, certain assets were bought by Choice Home Warranty, which is headquartered in New Jersey, though Choice continues to operate Home Warranty of America as a stand-alone brand. Home Warranty of America is a member of the National Home Service Contract Association.

Home Warranty of America is upfront about fees and has made a sample contract available on its website. During our research, we found that home warranty customers value this price transparency. Unfortunately, the prices offered by Home Warranty of America tend to be on the higher side of the industry.

States Covered

Home Warranty of America is available in all 50 states, plus DC.

Forty-seven percent of our 538 survey correspondents said that coverage and support were the most important aspects of a home warranty. 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 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
  • Doorbell
  • Garage door opener
  • Plumbing system
  • Permanent sump pump
  • Whirlpool bathtub 

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
Plumbing system
Stoppages and clogs
Dishwasher (comprehensive coverage)
Garage door systems
Air conditioners (including window units)  
Premium coverage  

Real Estate Plans

Home Warranty of America also offers home warranty plans for real estate professionals. The company uses 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. 

Pricing doesn't seem to vary too much with location when looking at quotes from this company, but it still can have some impact. When looking at the company's pricing we also noticed that they are toward the higher side of the industry. The company advertises that the average price for the Premier Plan is $46.08 per month and $59.92 for the Premier Plus Plan. You can get a quote on their website to know your exact price.

In summary, Home Warranty of America doesn’t offer great value. While its plans offer solid coverage, you can find better value from other providers.

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. The service fees charged by HWA are normal within the industry. Its monthly premiums tend to be a bit towards the higher side of the industry.

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 Monthly Price
GreenPlus $7.62
Pool/spa combo $19.15
Well pump $6.85
Salt water pool $25.31
Septic tank pumping $4.54
Second refrigerator $7.62
Stand-alone freezer $3.00
SEER/R-410A modifications $6.08
Septic system $5.31
Premium coverage $5.31

Be aware that many of these extra items and systems are only covered to a limited degree by a Home Warranty of America policy. The company 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

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. You will need to review the company's contract to understand the coverage, know what is excluded, and avoid unpleasant surprises when trying to have repairs made.

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. 

Twenty-seven percent 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 services 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.

Thierty-four percent of our survey correspondents said that choosing their own technician was important to them when choosing a home warranty policy. For those in this cohort, Home Warranty of America's contractor policy may prove a drawback.

Customer Service and Claims

Home Warranty of America doesn’t offer 24/7 support. Instead, there is support service available Monday to Friday 7 a.m. to 8 p.m. Central, on Saturday from 8 a.m. to 6 p.m. Central, and on Sunday from 9 a.m. to 5:30 p.m. Central. You can request support through the online customer portal or by calling 888-492-7359. 

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

In most respects, Home Warranty of America offers average home warranty policies. It does not offer significantly wider coverage or charge less for this than the competition. 

Unfortunately, the same cannot be said when it comes to HWA's customer satisfaction scores. 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. The company receives 2.3 out of 5 stars from over 170 reviewers on ConsumerAffairs.

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 warranties and comparable add-on coverage.

  American Home Shield Home Warranty of America
Number of Plans Available 3 2
Support 24-hour online claim system 24/7 online or by phone at (888) 492-7359 weekdays from 7 a.m. to 8 p.m., Saturday from 8 a.m. to 6 p.m., and Sunday 9 a.m. to 5:30 p.m.
Trade Call Fee $75 / $100 / $125 $75 / $100
National Availability Available in 49 states, excluding Alaska Available nationwide
Average cost of plan Not advertised Average of $46.08 to $59.92 monthly

When it comes to the types of coverage the companies offer, American Home Shield and Home Warranty of America have plans that are 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. American Home Shield's coverage can also be expensive in many cases when looking at quotes.

One difference between the companies is their customer reviews. While Home Warranty of America has a 2.3 out of 5 average from reviewers on ConsumerAffairs, American Home Shield has a 4.2.

Final Verdict

Though Home Warranty of America offers plans that provide wide coverage, with standard exclusions and payout caps, its plans are more expensive than those offered by its competitors. HWA does not allow its customers to choose their own repair people, a freedom many homeowners now expect. The company also has lower customer satisfaction ratings than many competitors.

These concerns make it difficult to recommend Home Warranty of America. If you are looking for a reasonably-priced home warranty plan, there are better options available from other companies.

Frequently Asked Questions

Is Home Warranty of America Still In Business?

Home Warranty of America is still in business and has been since 1996. In 2022, some of its assets were acquired by Choice Home Warranty, a technology-first home warranty company that is headquartered in New Jersey.

Who Bought Home Warranty of America?

Home Warranty of America was acquired by Direct Energy in 2012. Then, in 2022, certain assets from Home Warranty of America, Inc., were bought by Choice Home Warranty. Choice Home Warranty continues to operate Home Warranty of America as a separate brand.

How Long Is the Waiting Period for Home Warranty of America?

Home Warranty of America does not have a waiting period. HWA coverage activates immediately after you purchase a home warranty. This coverage lasts for a term of 13 months before you will need to renew it.

Does Home Warranty of America Cover AC Replacement?

One of HWA's plans does cover AC replacement. To cover your air conditioning, you would need to purchase Premier Plus, the more expensive of Home Warranty of America's two plans.


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 categories, we look at 18 core features that include: fees, response times, payout caps, availability, contract length, customizable coverages, flexibility, cancelation, pricing, exclusions, and other 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 advice from subject matter experts, as well as 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.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. PR Newswire. "Home Warranty of America Joins the Choice Home Warranty Family."

  2. National Home Service Contract Association. "NHSCA Member Directory."

  3. ConsumerAffairs. "Home Warranty of America."

  4. ConsumerAffairs. "American Home Shield."