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HSA Home Warranty, or Home Security of America, was found in 1984. It is owned by the parent company, American Home Shield, however, the company still operates under its own brand name. Unlike American Home Shield, HSA does not directly offer home warranties to established homeowners, but rather to those who are in the process of buying or selling a home. Policies are typically purchased on or around the time of closing, and the transaction is handled through the real estate professional who is representing the buyer or seller.
For our review, we looked at HSA Home Warranty’s pricing structure and coverage to help you understand what you can get for your money. Read our full review on HSA Home Warranty to find out whether they offer the right home warranty coverage for you.
Home warranty plans can provide an incentive to home buyers and sellers
Provides a payout coverage limit of $25,000 with a $5,000 sub-limit per mechanical system
You can only purchase HSA home warranty plans through a licensed real estate professional
HSA Home Warranty plans have a high number of exclusions
Pricing information not available on website
Although American Home Shield has been around since 1971, HSA Home Warranty was founded in 1984 with its headquarters located in Cross Plains, Wisconsin. The company provides coverage in 19 states. HSA Home Warranty prides itself on the fact that its executives, customer service, and other operations are all located in Cross Plains, as well.
HSA offers a choice of two home warranty plans. The first plan is for home buyers and the second is available to either sellers or buyers, though it really only makes sense for sellers, as buyers can get a better policy for the same price in the buyers-only plan. In the buyers plan, homeowners can get rekeying, HVAC coverage, and refrigerator protection included for no additional cost compared to the sellers plan. These plans are only available for purchase through a real estate professional at the time you buy or sell your home.
HSA Home Warranty also offers a Buyer 7 Star Upgrade for $149 that provides protection for additional items, such as $250 toward code violations, improper installation, and repairs; permits up to $250 per occurrence; and removal and disposal of any replaced equipment.
HSA Home Warranty provides two plans for the same price but with a primary difference. The buyers' only plan also covers things like central heat, re-keying your home, lighting fixtures, and refrigerators. There is a trade service fee (TSF)—an amount paid when you make a claim—that is due at the time of service. The amount of the trade service fee varies and depends on the plans that are available in your location. Typically there is a choice of either $75 or $100.
Although HSA Home Warranty covers almost all types of breakdowns for appliances that occur from normal wear and tear, there is a longer-than-normal list of exclusions for the coverage of home systems. As an example, while water, drain, gas, waste, or vent leaks are covered, broken drain, vent, or sewer lines are not. Plans do not cover pre-existing conditions, either.
HSA Home Warranty has a coverage limit of $25,000 with a $5,000 sub-limit per mechanical system. This is actually above average for the industry on most of the items that the company covers. As with many home warranty plans, coverage does not include pre-existing conditions that may have occurred before the plan was purchased.
Once HSA Home Warranty has received your repair request, it typically takes around 48 hours to receive authorization for a major repair or replacement. This is about average compared to industry standards. Since the company has agreements in place with independent contractors, you cannot select your own repair person without prior approval.
Customer Service and Claims
Customer service is available 24/7 and making a claim is a relatively easy process that you can do online or by calling (800) 367-1448. Once a claim is made, the process starts immediately and you can expect authorization for a major repair to take about 48 hours to complete.
Complaints and Third-Party Assessments
HSA Home Warranty has a B rating with the Better Business Bureau. Since complaints about the company are listed in with the complaints from American Home Shield, there is really no way to know how many complaints this division of the company has versus complaints specifically targeting American Home Shield, but the parent company has had over 11,720 complaints filed in the last three years.
The majority of complaints have to do with how long it takes to have a repair made or issues with customer service, such as the length of time it takes to talk to someone or how many representatives customers must speak with when trying to receive help with repair issues.
To provide a comparison between HSA Home Warranty and the competition, we chose Home Warranty of America and then looked at the coverage they provide to buyers and sellers. We found that both companies provide similar warranty coverage and trade service fees. They also both have round-the-clock service and comparable add-on coverage.
When it comes to coverage plans, both companies allow you to choose either a $75 or $100 trade service fee, although HSA Home Warranty does not offer this option in every state.
Each company provides additional coverage for items such as swimming pools and/or spas, with HSA Home Warranty offering the additional coverage for a fee of $175 while Home Warranty of America charges $125.
At first glance, it appears that HSA Home Warranty wins merely on having a slightly cheaper price. When you compare HSA Home Warranty’s $25,000 payout cap to the $2,000 payout caps of Home Warranty of America’s plans, however, it clearly gives HSA Home Warranty the big win.
If you are an established homeowner, HSA Home Warranty is not the company you want to turn to for your home warranty needs, as you simply can't buy a plan outside of the escrow process. However, you can find comparable coverage with their parent company American Home Shield.
If you are a buyer or seller who wants a low-cost home warranty plan with a big name standing behind it, though, an HSA Home Warranty plan is one you may want to consider. Plans not only bring peace of mind when purchasing a home, but the affordable cost also provides a great incentive when you're negotiating the sale and you need to bring a little something extra to the table.
How We Review Home Warranties
When evaluating a company’s home warranty plan, we consider a variety of factors, including monthly/yearly cost, service fees, price of add-ons, and out-of-pocket costs. In addition, we look at how a company stacks up to its competition in regard to price, customer satisfaction, and coverage options that are available.