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For the homeowners who opt for them, a home warranty can mean significant savings on critical home system and appliance repairs, allowing homeowners to get the repair work they need when they need it without breaking the bank. For example, consider the fact that the average furnace repair cost is around $308, while the cost of replacing a furnace can be upwards of $4,000. By comparison, spending a few hundred dollars each year on a home warranty may seem like a reasonable idea.
But all home warranties are not created equal, so how can prospective customers feel confident they are selecting the right plan and provider for their needs? This guide has everything homeowners need to know about the best home warranty companies in Houston.
- BEST OVERALL: AFC Home Club
- RUNNER-UP: Liberty Home Guard
- BEST HVAC COVERAGE: American Home Shield
- BEST CLAIMS PROCESS: Choice Home Warranty
- ALSO CONSIDER: First American Home Warranty
What to Consider When Choosing One of the Best Home Warranty Companies in Houston
Much like every home is unique, every provider is also unique, with different definitions of standard coverage, different options for add-on coverage, and a different sense of urgency when it comes to processing claims. To find the policy that best aligns with their cost and coverage needs, homeowners will need to be able to compare home warranty companies, taking note of each of the following factors.
Policies and Plans
Standard coverage inclusions and add-on coverage options can vary significantly among home warranty companies. To understand the options provided by each company, homeowners will need to consider their various plans and policies. Many home warranty providers offer multiple policy tiers with levels of coverage ranging from basic to comprehensive.
This means that even if homeowners have a provider in mind, they will need to take the time to closely examine that provider’s plans, focusing on the items covered under each policy tier. Prospective policyholders seeking coverage on specific systems and appliances, like additional refrigerators, stand-alone freezers, and sprinkler systems, will want to pay particularly close attention to the coverage options available with each company to ensure they find the best plan for their needs.
Maximum Coverage Limit
Most home warranty companies enforce a coverage limit, which represents the maximum amount the company is willing to pay for repairs on covered systems and appliances. Some providers may apply these home warranty coverage limits per item, while others may apply them per term. Either way, coverage limits, which may also be referred to as coverage caps, are important because they directly impact a homeowner’s ability to schedule repairs.
Should the necessary repairs exceed the home warranty company’s coverage limit, the claim can only be approved if the homeowner agrees to pay the difference in cost out of pocket. Depending on the type of repair, this cost could be significant, so homeowners will want to consider coverage limits when comparing providers.
Average Monthly Rate
When choosing a home warranty company, finding affordable premiums is often a top priority for many homeowners. Monthly premiums, or rates, represent the up-front cost of a home warranty. The monthly rate a homeowner pays for their coverage will depend on a few factors, from the age and location of their home to the specific add-on coverage they select.
Still, a home warranty company’s average monthly rates can be an indication of that company’s overall affordability, so homeowners will want to make note of them during their search, considering how this added monthly expense might fit into their household budget.
Discounts
Many home warranty companies offer discounts homeowners can use to potentially lower the cost of their coverage, but the specific discounts offered and their applicable terms may vary significantly from company to company.
From discounts meant to entice new customers to switch from another provider to discounts meant to reward customers for paying up front for their policy, these opportunities can help homeowners keep out-of-pocket costs low, so prospective policyholders will want to include discounts on their list of factors worth considering.
Service Fee
Alongside monthly rates, service fees make up the other half of the home warranty cost equation. Homeowners pay a service call fee when they schedule repairs on their covered home systems and appliances. As such, these fees will determine the price homeowners are required to pay to use their home warranty coverage.
While some companies may standardize one service fee across all policies, others may allow customers to choose from a list of service fee options, but homeowners with the opportunity to select their service fee will want to be aware of how these fees can influence their monthly rate. Although choosing a lower service fee may seem like a no-brainer, it’s important to note that lower fees typically come with higher rates, so homeowners will have to decide whether their top priority is avoiding expensive service costs or keeping monthly costs low.
Waiting Period
When homeowners sign on the dotted line and a home warranty agreement is struck, the homeowner’s policy typically begins with a waiting period: a brief window of time before the policyholder can submit any claims on their covered systems and appliances.
A 30-day waiting period is common with home warranties, so homeowners shouldn’t have to wait too long to use their coverage. However, this still presents a potential coverage gap that could put homeowners at risk of having to pay repair costs entirely out of pocket. To help customers potentially avoid these gaps, some home warranty companies may be willing to waive the waiting period under certain circumstances, so homeowners will want to take the time to understand if this option is available to them.
Claims Process
When it comes to selecting a home warranty plan, costs and coverage might be the most obvious considerations to make, but there is one other factor homeowners won’t want to overlook: the potential customer experience.
With a home warranty, customer satisfaction is heavily influenced by the claims process, which homeowners will need to be prepared to navigate when they find themselves in need of system and appliance repairs. To find a provider they can trust to provide a smooth claims process, including quick response times, prospective customers will want to include this on their list of criteria.
Workmanship Guarantee
Homeowners use their home warranty coverage to schedule repairs on their covered home systems and appliances. But after initial repairs are completed, the period for reporting issues with those repairs will depend on the company’s workmanship guarantee. Workmanship guarantees protect homeowners in the event that initial repairs fail to resolve the underlying issue, allowing them to schedule additional repairs without having to pay another service fee.
But like many of the other factors on this list, workmanship guarantees can vary significantly among providers, ranging from as little as 30 days to up to several years in length. Because this factor can impact the out-of-pocket costs of coverage, homeowners will want to take the time to understand each company’s workmanship guarantee before choosing a provider.
Our Top Picks
To find the best home warranty companies in Houston, we considered factors related to costs, coverage, claims, and repairs. From monthly rates to workmanship guarantees, we examined each company’s options, paying close attention to any offerings that may appeal to Houston homeowners.
Best Overall
AFC Home Club
Why It Made the Cut:
Low, locked-in rates and a lengthy workmanship guarantee await Houston homeowners who select AFC Home Club as their home warranty provider.
Across its policy tiers, AFC Home Club offers relatively low average monthly rates of $51 in the Houston market. Although exact prices can vary depending on the specific coverage terms selected, these rates indicate that homeowners in and around Houston may be able to get a good deal on their home warranty by going with AFC. For new customers, the company also locks in rates for a period of 5 years, allowing homeowners to retain their original rate even if prices increase during that time. This perk may allow homeowners to save on the cost of their home warranty coverage for several years, adding value to a policy through AFC.
When customers find themselves in need of repairs, the company provides flexible options for selecting technicians, allowing homeowners to choose from AFC’s preferred network or select their own technician if preferred, which may appeal to homeowners who already have a trusted contractor in mind for the work. Potential customers will want to note that AFC will not accept any HVAC repair requests unless the homeowner can provide a satisfactory annual maintenance record from a licensed technician predating the claim. This means customers will need to schedule annual tune-ups if they want to take advantage of their HVAC coverage, creating an additional step and expense. However, once the repair work has been completed, AFC customers can relax knowing it is protected under the provider’s workmanship guarantee, which lasts the entire length of the policy (either 1 or 3 years). In addition to providing valuable peace of mind, this guarantee can protect homeowners from having to pay additional service fees to keep their repaired items in good, working condition.
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $51
- Service fee: $75 to $125
- Claims process: Online, phone
- Workmanship guarantee: 1 or 3 years
Pros
- Customer-selected technician option
- Relatively low $51 average monthly rate
- 5-year guarantee on monthly rate
- Extremely long 1- or 3-year workmanship guarantee
Cons
- Annual HVAC maintenance required
Runner-Up
Liberty Home Guard
Why It Made the Cut:
From service add-ons to service fees, prospective policyholders can expect a plethora of options they can use to build their ideal home warranty plan with Liberty Home Guard.
Homeowners seeking coverage on items that are not commonly covered under a home warranty may want to consider Liberty Home Guard, as the company offers an impressive list of more than 40 service add-ons customers can purchase to expand the scope of their home warranty coverage. Among Houston residents, the most popular add-on options include pool and spa, lawn sprinkler system, and limited roof-leak coverage. The availability of these optional add-ons gives customers the ability to build a home warranty plan to fit their unique needs. Liberty customers also have the option to choose from a list of service fees, with options as low as $60. This is a relatively low service fee, allowing homeowners to pay less money out of pocket when scheduling repairs.
These savings may appeal to deal-seeking homeowners, who may also appreciate Liberty’s flexible payment options. The company allows its customers to pay monthly or annually for their home warranty coverage, and for those interested in a multiyear plan who cannot afford to pay up front, Liberty Home Guard offers interest-free payment plans, allowing homeowners to get the coverage they need regardless of the size of their budget. Still, customers who can afford to pay up front for their annual or multiyear policy will be rewarded with additional months of coverage at no additional cost. Homeowners who pay up front for an annual policy can receive 2 extra months of coverage, while those who pay up front for a multiyear policy can receive up to 6 months of extra coverage. This offer packs added value into a home warranty through Liberty Home Guard. Customers considering Liberty will want to be aware that the company sets a coverage limit of $2,000, which could be considered low for this type of coverage. However, it’s worth noting that this cap is applied per covered item, not per term, which means homeowners won’t need to worry about claims being denied due to combined repair costs exceeding the coverage limit.
Specs
- Maximum coverage limit: $2,000 (per item)
- Average monthly rate: $55
- Service fee: $60 to $125
- Claims process: Online, phone
- Workmanship guarantee: 60 days
Pros
- Wide variety of service add-ons
- Low $60 minimum service fee
- Flexible payment plans
- 2 months of free coverage with annual payment
Cons
- Relatively low $2,000 coverage limit per item
Best HVAC Coverage
American Home Shield
Why It Made the Cut:
American Home Shield’s stand-out offerings include a remarkably high coverage limit on HVAC repairs, free or discounted AC refrigerant refills, and additional on-demand home services.
Homeowners seeking added protection on one of the most important systems in their home, the HVAC system, may be drawn to American Home Shield, where every policy includes a high $5,000 coverage limit on HVAC repairs. This limit may allow homeowners to stretch their home warranty further, using it to pay for more expensive repairs. The scope of an AHS home warranty is further extended by the company’s coverage on unknown pre-existing conditions. This type of coverage might be hard to come by with other providers, allowing homeowners to cover a wider range of repairs on their home systems and appliances. However, it’s important to note that the company’s workmanship guarantee is relatively short at only 30 days, giving homeowners only a short time to notice and report any issues with their repair work after it has been completed.
Still, prospective customers are drawn to AHS for many of its other offerings. Depending on the policy tier they select, American Home Shield customers can receive the benefit of free or discounted AC refrigerant refills. This perk may be appealing to Houston residents, especially in the summer months when reliable air conditioning can help homeowners beat the harsh heat and humidity. AHS customers will also have access to additional home services through the company’s Frontdoor Pro platform. This unique offering is limited to certain metropolitan areas, including Houston, so homeowners in the area can take advantage of home services like carpet cleaning that aren’t typically covered under a home warranty. This full scope of services provided by AHS may be the reason for the company’s rates, which are relatively high in the Houston market at $63 on average. However, some homeowners may be willing to pay more money in their monthly payment if it means unlocking higher coverage limits and other membership perks.
Specs
- Maximum coverage limit: $5,000 (for HVAC repairs)
- Average monthly rate: $63
- Service fee: $100 or $125
- Claims process: Online, phone
- Workmanship guarantee: 30 days
Pros
- Relatively high $5,000 coverage limit on HVAC repairs
- Coverage for unknown pre-existing conditions included
- Unlimited or discounted AC refrigerant refills
- Additional on-demand home services available via Frontdoor Pro
Cons
- Relatively short 30-day workmanship guarantee
- Relatively high $63 average monthly rate
Best Claims Process
Choice Home Warranty
Why It Made the Cut:
Customers may be able to secure low rates and a first-class claims process while avoiding any potential gaps in coverage by going with Choice Home Warranty.
Based on average quotes, Houston homeowners may be able to secure a relatively low rate with Choice Home Warranty. Although the exact price a homeowner pays for their policy will depend on several factors—including the scope of their coverage and their home’s age, condition, and location—Choice Home Warranty has an average monthly rate of $51, which may make it easier for prospective customers to fit a home warranty into their budget. New customers interested in switching to Choice can also have their 30-day waiting period waived by showing proof of their previous provider, allowing them to avoid any potential gaps in their coverage.
All Choice Home Warranty policies come with a standard $85 service fee. While this is pretty reasonable for a service call, it means homeowners won’t be able to choose from a list of service fees as they might with another provider. While examining the company’s offerings, prospective customers may also notice that Choice Home Warranty only has two policy tiers and a handful of service add-ons to choose from. This is somewhat limited compared to other providers and may not suit the needs of homeowners who are looking to cover a wide range of items throughout their home. However, for items that are covered, homeowners with policies through Choice will be able to expect prompt service due to the company’s quick claims- response time. Choice’s user agreement promises the company will begin contacting technicians within 4 hours of receiving a repair request, assuming that request is submitted during normal business hours. This is a very short turnaround time, which may allow homeowners to schedule urgent repairs more quickly.
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $51
- Service fee: $85
- Claims process: Online, phone
- Workmanship guarantee: 60 days labor, 90 days parts
Pros
- Relatively low $51 average monthly rate
- Quick claim response within 4 hours of service request
- Waiting period waived for customers with an existing home warranty
Cons
- Limited policy options
- No service fee flexibility
Also Consider
First American Home Warranty
Why It Made the Cut:
Depending on their plan, homeowners may be able to unlock high coverage limits on kitchen appliances, standard inclusions for pre-existing conditions, and other membership benefits with First American Home Warranty.
Depending on the plan they select, Houston homeowners may be able to access a slew of membership benefits by going with First American Home Warranty. The company’s Premium plan comes with a significant coverage limit of $7,000 on kitchen appliances. This is a very high cap that may appeal to any homeowner, but especially those looking to protect high-end appliances or replace aging ones. In some cases, if the policy is purchased as part of a real estate transaction, First American will also cover unknown pre-existing conditions, allowing homeowners to expand the scope of their coverage to include repairs that might not otherwise be covered.
Customers who purchase First American’s First Class Upgrade package will also receive additional benefits, including full coverage for their garage door systems. This level of coverage, which protects everything from garage door openers to hinges, springs, and remote transmitters, is not typically provided by home warranty companies. One factor worth noting is that First American’s workmanship guarantee only lasts for 30 days, which is quite short for a home warranty and could create scenarios where customers are required to pay an additional service fee for follow-up repairs. The company also charges an additional fee for homes over 4,000 square feet. Though charging fees for oversize homes is fairly typical, the threshold is often set at 5,000 square feet, so this added fee may come as a surprise for homeowners who are not prepared for it. Still, with reasonable average rates, a list of service fee options, and some unique coverage inclusions depending on the plan they select, Houston homeowners may find First American Home Warranty to be a company worth considering.
Specs
- Maximum coverage limit: $7,000 (for kitchen appliance repairs); $3,500 (for home system repairs)
- Average monthly rate: $59
- Service fee: $75 to $125
- Claims process: Online, phone
- Workmanship guarantee: 30 days
Pros
- High $7,000 coverage limit available for kitchen appliance repairs
- Pre-existing conditions covered on home warranties purchased through real estate transactions
- Full garage door system coverage available
Cons
- Relatively short 30-day workmanship guarantee
- Additional fee for homes over 4,000 square feet
Our Verdict
We gave the award for Best Overall to AFC Home Club due to the company’s low and locked-in Houston rates, flexible process for choosing technicians, and extended workmanship guarantee. The Runner-Up award goes to Liberty Home Guard because of its long list of service add-ons, potential for low service fees, and flexible payment options.
How We Chose the Best Home Warranty Companies in Houston
To determine the best home warranty companies in Texas that service the Houston area, we looked for companies offering multiple plans and policy tiers alongside a list of service add-on options Houston homeowners can use to customize and expand the scope of their coverage. Cost considerations were another important factor, so we examined each provider’s average monthly rates, service fees, and discount opportunities to get a full understanding of the price homeowners would pay for their home warranty coverage.
To understand the potential customer experience, we also considered each company’s claims process, including the available methods for submitting claims, the amount of time it takes to process claims, and the steps involved in selecting repair technicians. Factors like workmanship guarantees and other miscellaneous membership perks were also weighed, determining the home warranty providers offering the best or most unique coverage options for Houston residents.
Before You Choose One of the Best Home Warranty Companies in Houston
For homeowners to find the right home warranty policy for their needs, they must determine what those needs are—beginning with whether a home warranty is needed in the first place.
Every home needs a home protection plan, which may consist of several levels of defense, including home warranties and home insurance. But the specific situations homeowners need protection from will depend on their home, so while some Houston homeowners may prioritize finding the best homeowners insurance in Texas, others may seek out the best flood insurance companies, and so on. In the case of home warranties, this type of coverage can provide value for just about any homeowner, although those in older homes may be particularly drawn to the peace of mind a home warranty can provide.
To ensure they are selecting the right plan and provider for their unique needs, homeowners will need to take stock of the systems and appliances in their home, making note of any specific coverage they may desire. And while cataloging the items they need covered, homeowners will also want to consider their top priorities, from finding the highest coverage limit to keeping costs low, which will help them choose the best home warranty company for their needs.
Cost of Opting for One of the Best Home Warranty Companies in Houston
Home warranty costs consist of two main components: monthly rates and service fees. While monthly rates represent the up-front cost of coverage, service fees are paid anytime homeowners want to use that coverage.
Home warranty costs average around $600 per year, but the exact price homeowners pay for their coverage will depend on their home’s age, condition, and location as well as the specific types of coverage they select. To get a better idea of what a home warranty might cost them, homeowners will want to obtain quotes specific to their situation, taking the time to compare quotes from several potential providers.
The Advantages of Opting for One of the Best Home Warranty Companies in Houston
From more affordable home repairs to more accessible home services, there are many reasons Houston homeowners might deem a home warranty worth it. Having a home warranty can give homeowners invaluable peace of mind, allowing them to rest easy knowing their major home systems and appliances are covered should they need repairs or replacements. But the best home warranty companies can also offer customers several other benefits, including:
- Simpler financial planning due to predictable monthly rates and service fees, as opposed to sudden out-of-pocket costs;
- More affordable system and appliance repairs, especially for homeowners with high coverage limits; and
- Easier access to trusted, certified technicians through the home warranty company’s preferred network.
FAQs
With so much to consider, it’s understandable that homeowners may have some lingering questions about choosing a home warranty provider. From questions about specific systems, like whether a home warranty covers the HVAC, to questions about specific costs, like how much it costs to repair a water heater, homeowners can eliminate uncertainty by getting their questions answered—beginning with the following frequently asked questions.
Q. What does a home warranty cover in Texas?
In Texas, a home warranty typically covers a home’s major systems and appliances, though the specific items covered may vary depending on the home warranty provider.
Q. Are ice makers covered by home warranty?
Refrigerators with ice makers are typically covered under a basic home warranty, though coverage on freestanding ice makers may only be available as an extra service add-on.
Q. Which home warranty company offers the longest warranty term?
Of the companies included on this list, Liberty Home Guard offers the longest home warranty term with plans up to 5 years in length, though other companies could potentially offer longer terms.
Q. Is Choice Home Warranty licensed in Texas?
Choice Home Warranty offers home warranty plans in every state except Washington, so Texas homeowners can include this company on their list of providers worth considering.
Q. Do home warranties cover thermostats?
Home warranties typically cover HVAC components including the thermostat. However, because they are considered smart devices, Wi-Fi thermostats may not be covered by some providers.
Q. Why is Texas homeowners insurance so expensive?
Homeowners insurance in Texas may cost more than other areas because the state is at high risk of several types of natural disasters, including wildfires, hurricanes, tornadoes, and more.