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A home warranty can be a helpful tool for homeowners, allowing them to keep homeownership costs manageable while safeguarding the critical systems and appliances that keep their home running on a daily basis. For instance, Colorado homeowners may feel more at ease knowing that their water heaters and HVAC systems are protected under a home warranty in the event they break down due to age or wear and tear. However, because each home is different, every homeowner enters the home warranty search with different needs and priorities in mind.
This means there isn’t one single home warranty that works for everyone, so Coloradans will need to be prepared to weigh the pros and cons of multiple home warranty options to find the plan and provider that best aligns with their unique needs. To help, this guide covers everything homeowners need to know to find the best home warranties in Colorado.
- BEST OVERALL: American Home Shield
- RUNNER-UP: AFC Home Club
- BEST SERVICE ADD-ONS: Liberty Home Guard
- BEST CLAIMS PROCESS: Choice Home Warranty
- ALSO CONSIDER: Select Home Warranty
What to Consider When Choosing One of the Best Home Warranty Companies in Colorado
Residential warranty services can vary significantly from one provider to another. From costs to coverage and customer service, each home warranty company has pros and cons, which homeowners will need to be prepared to weigh while searching for the plan and provider that is best suited for their unique needs. When comparing home warranty companies in Colorado, homeowners will want to pay particular attention to several factors, including coverage options, costs, and workmanship guarantees.
Policies and Plans
From small mountain towns to the bustling city of Denver, home warranty companies in Colorado offer a variety of plans befitting a variety of homeowners. However, the specific home warranty plans available will depend on the provider, so homeowners will need to analyze each company’s offerings to find the best option for them.
Homeowners can begin by comparing each provider’s coverage terms. Home warranty companies often offer multiple plans and policy tiers, with coverage options ranging from basic (strictly covering major home systems) to comprehensive (covering various appliances and systems throughout the home). However, the specific items covered under these plans will depend on the provider. Add-on coverage options can also vary, so prospective policyholders will want to make note of the specific types of coverage that may be available to them with each company on their list.
Maximum Coverage Limit
The coverage limit on a home warranty refers to the maximum amount the home warranty company is willing to pay for repairs on covered systems and appliances. If homeowners find themselves in need of expensive repairs or replacements that exceed this coverage limit, they may be on the hook to pay the difference in cost.
This is why coverage limits are so important: They can directly impact the out-of-pocket costs of a home warranty. Home warranty coverage limits can vary widely between providers, with some setting caps per item and others applying limits per term. Coverage limits may also vary depending on the home system or appliance. For this reason, homeowners will want to take the time to understand each company’s coverage limits before committing to a policy.
Average Monthly Rate
Home warranty rates represent the up-front cost of a policy. Although homeowners can choose to pay in full for an annual or multiyear policy, many choose to make monthly payments on their home warranty coverage. These monthly rates can vary greatly depending on the provider.
A provider’s average monthly rate often reflects that provider’s overall affordability, though it’s important to note that the specific rate a homeowner pays for their coverage will depend on several factors, including the size and location of their home as well as the coverage options they select. Still, average monthly rates are an important factor to keep in mind, as they can allow homeowners to consider how a home warranty might fit into their monthly budget.
Discounts
Homeowners who are wary about adding another monthly cost to their household budget might be happy to learn that many home warranty companies offer discounts. Policyholders can use these to lower the total cost of their coverage.
Whether it’s discounted coverage or promotional markdowns, these discount opportunities can mean significant savings for the homeowners who take advantage of them. However, like many of the other factors on this list, the specific discounts available will depend on the provider, so homeowners will want to keep their eyes open for any potential cost-saving opportunities when considering their home warranty options.
Service Fee
If average rates represent the price homeowners pay for their home warranty coverage, service fees represent the price they must pay to actually use that coverage. Homeowners pay a service fee when filing a claim and scheduling repairs on covered systems and appliances.
Depending on the company, these fees could fall anywhere between $60 and $150. Because covered items can break down unexpectedly, homeowners will need to be prepared to pay these fees at any time, which means it’s crucially important to select a plan and provider with a service fee that fits the budget. As such, prospective policyholders will need to take the time to compare service fee options before choosing a home warranty company.
Waiting Period
Home warranty agreements often begin with a waiting period. Policyholders will need to wait for this period to end before they will be able to submit any home warranty claims. Typically lasting around 30 days, home warranty waiting periods are standard practice, but they can still present a potential gap in coverage for new customers.
Homeowners looking to avoid this coverage gap may be able to achieve their goal by choosing the right home warranty company, as some providers offer ways for customers to bypass the standard waiting period. For instance, those who already have a home warranty with another company may be able to have their waiting period waived if they switch providers. In other cases, a home warranty company may agree to waive its waiting period if the new customer schedules an inspection of their covered home systems and appliances. But waiting-period policies will depend on the provider, and some companies won’t waive their waiting period under any circumstances, so homeowners may want to add this to their list of factors worth considering.
Claims Process
For customers to confidently commit to a home warranty policy, it’s good to understand the level of customer service they might be able to expect. Home warranty reviews can shed light on the potential customer experience with each provider, but to ensure they settle on a company they can trust, homeowners will also want to consider each company’s claims process.
Each home warranty company has a different approach to claims, with the available methods for submitting claims, the time it takes to process claims, and the process for selecting repair technicians all varying between providers. Assessing each company’s approach to managing and fulfilling claims can help potential customers avoid unnecessary delays if urgent repairs are needed down the road.
Workmanship Guarantee
When repairs are completed on covered systems and appliances, those repairs are protected for a certain period of time under the home warranty company’s workmanship guarantee. Workmanship guarantees protect homeowners in the event that initial repairs fail to resolve the underlying issue, allowing them to schedule follow-up work without having to pay an additional service fee.
In this way, workmanship guarantees can directly impact the out-of-pocket costs of a home warranty. Workmanship guarantees can vary significantly from one company to the next, though, with some offering guarantees as short as 30 days and others offering guarantees lasting the entire length of the customer’s policy. While shorter workmanship guarantees may not always be a deal-breaker, some homeowners may prioritize a long guarantee over costs, coverage, and other factors, so prospective policyholders will want to make note of this detail.
Our Top Picks
To determine the best home warranty companies—in Colorado or any other state—it’s important to weigh various factors ranging from costs to coverage. Colorado homeowners may want to pay close attention to any unique offerings that may appeal to those who live in the Centennial State.
Best Overall
American Home Shield
Why It Made the Cut:
With low monthly rates, high coverage limits, and some unique standard coverage inclusions, American Home Shield earns its spot at the top of this list.
Based on average quotes, American Home Shield offers relatively low home warranty rates in the Colorado market. While the exact price a homeowner pays for their coverage will depend on several factors, these prices indicate that Colorado homeowners may be able to get a good deal on their home warranty by going with American Home Shield.
Prospective policyholders will want to note that American Home Shield’s workmanship guarantee is somewhat short at only 30 days. Though this could potentially lead to situations where customers are required to pay an additional service fee for follow-up work, homeowners may be able to avoid this by closely examining covered items after initial repairs are completed.
Homeowners who choose American Home Shield will gain access to extensive coverage options including standard coverage inclusions for certain pre-existing conditions and malfunctions caused by rust, corrosion, and sediment damage. Coupled with high coverage limits, including an impressively high $5,000 limit on HVAC systems, this coverage may allow homeowners to get more use out of their home warranty.
Specs
- Maximum coverage limit: $5,000 (for HVAC repairs)
- Average monthly rate: $50
- 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
- Rust, corrosion, and sediment coverage included
- Relatively low $50 average monthly rate
Cons
- Relatively short 30-day workmanship guarantee
Runner-Up
AFC Home Club
Why It Made the Cut:
Locked-in rates and lengthy workmanship guarantees may lower the long-term costs of a home warranty, making AFC Home Club an option worth considering.
Homeowners looking to avoid gaps in their home warranty coverage may be drawn to AFC Home Club, as the company allows new customers to bypass the standard waiting period when they agree to an in-home inspection of their covered systems and appliances. New customers can also reap the reward of locked-in monthly rates, allowing homeowners to renew their policy with their original rate for a period of 5 years, even if the company’s standard prices increase during that time.
Potential customers will want to be aware that AFC Home Club will not accept any requests for HVAC repairs unless the homeowner can provide a maintenance record from a licensed technician proving that the system was inspected and in good working order within the past 12 months. This means homeowners will need to be proactive in scheduling routine maintenance on their HVAC system if they want to be able to put this coverage to use. At the same time, routine maintenance could prolong the life of an HVAC system, delaying the need for a full replacement.
When repairs are needed, AFC Home Club customers will be given the option to choose their own technician for repairs. This may appeal to homeowners who have a trusted, local contractor in mind for the job, though customers also have the option to choose a contractor from the company’s network of preferred vendors. Whichever option they choose, homeowners will be able to rest easy knowing the repairs are protected under the AFC Home Club workmanship guarantee, which lasts the entire length of the policy.
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $60
- Service fee: $75 to $125
- Claims process: Online, phone
- Workmanship guarantee: 1 or 3 years
Pros
- Customer-selected technician option
- Extremely long 1- or 3-year workmanship guarantee
- 5-year guarantee on monthly rate
- Waiting period waived with home inspection
Cons
- Annual HVAC maintenance required
Best Service Add-Ons
Liberty Home Guard
Why It Made the Cut:
From a plethora of coverage add-ons to multiple service fees, Liberty Home Guard gives customers numerous opportunities to customize their plan to fit their unique needs.
Alongside its standard coverage, Liberty Home Guard offers an impressive list of more than 40 service add-ons homeowners can purchase to customize or expand the scope of their home warranty. In Colorado, the most popular add-on options include coverage for lawn sprinkler systems, limited roof leaks, sump pumps, and well pumps. Liberty Home Guard also gives its customers multiple service fees to choose from, including options as low as $60, which may allow homeowners to minimize the out-of-pocket costs associated with scheduling repairs.
When weighing these policies against other options, prospective customers might notice that Liberty Home Guard caps repairs at $2,000, which can seem like a relatively low coverage limit at first glance. However, it’s important to understand that this limit is applied per item, not per term, so customers will be able to schedule repairs on multiple items as long as the individual cost per item does not exceed this amount.
Liberty Home Guard customers who pay up front for an annual or multiyear policy will also be rewarded with 2 additional months of coverage at no extra cost. Simply put, this means customers who pay in full will be eligible to receive 14 months of coverage for the price of 12, adding even more value to a Liberty Home Guard policy.
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
- 2 months of free coverage with annual payment
Cons
- Relatively low $2,000 coverage limit per item
Best Claims Process
Choice Home Warranty
Why It Made the Cut:
Homeowners prioritizing customer experience factors may find Choice Home Warranty appealing, with multiple representatives facilitating a rapid claims response time.
With Choice Home Warranty, new customers have the opportunity to skip the waiting period by showing proof of current coverage with another provider. This option allows homeowners looking to switch home warranty companies to avoid coverage gaps while ensuring the protection of their critical home systems and appliances.
Prospective policyholders might notice that Choice Home Warranty only offers two policy tiers and a handful of add-on coverage options to choose from, which could seem limiting, but the company’s coverage is robust in its own right. Choice Home Warranty may also seem limiting for customers who are used to choosing their own service fee, as the company standardizes an $85 fee across all its policies. However, this straightforward approach to home warranty coverage may be a breath of fresh air for some homeowners.
When the time comes to submit a claim, Choice customers can expect a first-class experience, with the company assigning multiple representatives to every repair request. With more eyes on their claim, homeowners may find it easier to connect with a representative who is familiar with their situation. This added support also allows Choice Home Warranty to contact service providers within 4 hours of receiving a repair request, helping homeowners schedule urgent repairs more efficiently.
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
- Quick claim response within 4 hours of service request
- Hands-on claims support from multiple representatives
- Waiting period waived for customers with an existing home warranty
Cons
- Limited policy options
- No service fee flexibility
Also Consider
Select Home Warranty
Why It Made the Cut:
Budget-minded homeowners may appreciate Select Home Warranty, with frequent promotional discounts paving the path to a more affordable home warranty plan.
Select Home Warranty frequently offers promotions homeowners may be able to use to lower the total cost of their home warranty coverage. Though terms may vary, promotional discounts can typically be found on the company’s website, and homeowners who capitalize on these discounts may unlock some significant savings. These offers can help homeowners reduce the company’s home warranty rates, which may run a bit high in the Colorado market.
Potential customers will want to note that according to the company’s terms of use, Select Home Warranty may take up to 4 days to respond to repair requests received on weekends or holidays. This is a slow turnaround time, which may be inconvenient for homeowners in need of urgent repairs, though it’s worth noting that claims submitted during regular business hours are likely to be processed much more quickly.
In addition to other discount opportunities, Select Home Warranty customers who pay up front for an annual policy will be eligible to receive 2 extra months of coverage free of charge. This can increase the overall value of a Select policy, allowing homeowners to secure additional coverage at no extra cost.
Specs
- Maximum coverage limit: $3,000
- Average monthly rate: $62
- Service fee: $75 to $100
- Claims process: Online, email
- Workmanship guarantee: 60 days
Pros
- 2 months of free coverage with annual payment
- Frequent promotional discounts
Cons
- Somewhat high $62 average monthly rate
- Relatively slow claim response of up to 96 hours after receiving service request
Our Verdict
We gave the award for Best Overall to American Home Shield due to its affordable monthly rates, high coverage limits, and standard coverage inclusions for certain pre-existing conditions, among other features. The Runner-Up award goes to AFC Home Club because of its locked-in monthly rates, lengthy workmanship guarantees, and flexible options for selecting repair technicians.
How We Chose the Best Home Warranty Companies in Colorado
To build this list of the best home warranty companies in Colorado, we considered a variety of factors including costs, coverage, and customer service, searching for the providers offering the best overall value. To understand the specific items covered by each home warranty company, we looked at each company’s standard and add-on coverage options, making note of any offers that may particularly appeal to residents of the Centennial State.
Cost considerations were also important, so we compared average rates, service fees, and potential discount opportunities to quantify the total cost of coverage with each provider. Finally, to understand the experience homeowners might be able to expect, we weighed customer service factors ranging from the claims process to the workmanship guarantee, considering how these elements could potentially impact policyholders down the road.
Before You Choose One of the Best Home Warranty Companies in Colorado
Before customers can confidently choose a plan and provider, it’s important for them to understand how a home warranty fits into their larger home protection plan. Home protection plans vary from one household to another, but they typically involve some combination of home warranty and homeowners insurance coverage. Unlike with a home warranty, insurance companies offer protection against damage caused by covered perils such as theft, vandalism, fire, smoke, windstorms, and hail, among others.
But to decide which home warranty to pair with this coverage, homeowners will need to understand their unique home warranty needs and priorities, taking inventory of the specific systems and appliances they want to have protected and establishing their main priorities when it comes to costs, coverage, and other factors. Whether they are looking for the best home warranty for sellers, the best home warranty for buyers, or something else entirely, these priorities will act as a guiding light in the home warranty search, helping homeowners find their ideal plan.
Elizabeth Dodson, co-founder of HomeZada, a home finance software company, notes that determining the necessity of a home warranty can depend on the household’s monthly budget as well as the age of the home and its systems and appliances. “Review your budgets, look at the cost to replace an item in your home, and then look at the age of your home and the equipment and appliances,” she says. “If you pencil out a model that requires protection from aging appliances, then a home warranty may be worth considering. But if you live in a newer home, you should have a builder-provided warranty for at least the first year, and then you can budget for your own warranty in the future.”
Cost of Opting for One of the Best Home Warranty Companies in Colorado
To calculate their home warranty costs, homeowners have two main factors to consider: monthly rates and service fees. While customers may have a say in their service fee, with certain providers offering a handful of service fee options to choose from, monthly rates will be determined based on several factors, including the size and location of the home as well as the specific coverage options selected by the homeowner.
Home warranty annual costs typically fall between $264 and $1,425, with average costs coming to $600 per year. Rates in Colorado could run a bit higher than the national average, though. Because each customer’s coverage needs are unique, it’s a good idea to obtain quotes from multiple home warranty companies to get a more accurate idea of how a home warranty might fit into their household budget before making a decision.
The Advantages of Opting for One of the Best Home Warranty Companies in Colorado
Homeowners might decide a home warranty is worth it for a variety of reasons. From home systems to home appliances, warranty coverage can give homeowners invaluable peace of mind, ensuring their home is protected from sudden, unexpected failures that can interrupt the flow of daily life. For instance, knowing that they can quickly schedule repairs for a malfunctioning water heater in the dead of winter may give Colorado homeowners a sense of comfort.
With an extended home warranty from one of the top home warranty companies in their area, homeowners can reap the rewards of several other benefits:
- Extensive standard coverage terms, including coverage for pre-existing conditions, as well as issues related to rust, corrosion, and sediment;
- Generous workmanship guarantees that allow customers to schedule follow-up work on covered repairs without paying additional fees; and
- Various add-on options to expand the scope of coverage and tailor a policy to the homeowner’s exact needs.
FAQs
From Colorado Springs to Denver, home warranty companies offer a variety of coverage options at a number of price points, but with terms varying significantly between companies, it’s understandable that homeowners might have some lingering questions about home warranty coverage and all it includes. To better understand the specifics of this type of protection, homeowners can familiarize themselves with the answers to the following frequently asked questions.
Q. Does a home warranty cover slab leaks?
Slab leaks, which occur beneath the home’s foundation, are not commonly covered under a home warranty, but a leak may be covered by homeowners insurance if it is triggered by a covered peril.
Q. Will my home warranty replace my old HVAC system?
Home warranties cover HVAC systems in many cases, though the extent of this coverage will depend on the company and the plan a homeowner selects. With that in mind, homeowners prioritizing this type of coverage may want to consider opting for one of the best home warranties for HVAC systems.
Q. How long are most home warranties?
Home warranties typically last for 1 year, though multiyear policies may be available with some providers.