Pairing homeowners insurance with a home warranty plan can be a good idea for New Mexico homeowners who want to proactively protect their major home systems and appliances. While homeowners insurance covers damage caused by covered perils such as fire, wind, hail, theft, and vandalism, a home warranty covers the repair or replacement of home systems and appliances due to normal wear and tear. As such, homeowners in New Mexico may want to consider both a home warranty and homeowners insurance when designing their ideal home protection plan.
However, choosing a home warranty may be easier said than done, with each home warranty company offering multiple plans and policies with varying levels of coverage for customers to consider. New Mexico residents may have their own specific requirements when weighing home warranty options—for instance, homeowners who keep their air conditioner running all year round may want to consider a home warranty with robust HVAC coverage. Regardless of their specific priorities and preferences, customers seeking a home warranty in Albuquerque, Sante Fe, and beyond can use this guide to find the best home warranty in New Mexico.
- BEST OVERALL: AFC Home Club
- RUNNER-UP: American Home Shield
- BEST FOR LOW RATES: Choice Home Warranty
- BEST SERVICE ADD-ONS: Liberty Home Guard
- ALSO CONSIDER: Select Home Warranty
What to Consider When Choosing One of the Best Home Warranty Companies in New Mexico
With coverage, costs, and other membership perks varying significantly between home warranty companies, homeowners will need to be prepared to do their research to find the plan and provider that is best suited for their needs. Homeowners will want to consider a variety of factors to make a fair home warranty comparison, including coverage options, service fees, and workmanship guarantees.
Policies and Plans
When homeowners sit down to examine a home warranty company, one of the first factors they will want to consider is the company’s coverage options, which are typically broken down into multiple plans and policy tiers. In addition to this standard coverage, homeowners will also want to make note of any service add-ons they may be able to purchase to customize or expand the scope of their coverage.
However, it’s important to note that home warranty plans can vary significantly from one provider to another, as can the specific items covered within those plans. For instance, two companies may both have appliance-only policies, but the types of appliances covered by those plans may differ. Because of this, homeowners will need to pay close attention to the policies and plans available with each company, keeping in mind the specific systems and appliances they are looking to protect before choosing a provider.
Maximum Coverage Limit
When comparing home warranty providers, New Mexico homeowners will also want to prioritize evaluating each company’s maximum coverage limit. The coverage limit on a home warranty refers to the total amount the home warranty company is willing to pay for repairs on covered items.
As such, these limits determine the extent of protection offered by each home warranty company. Coverage limits also directly impact out-of-pocket costs, as homeowners who find themselves in need of repairs that exceed their coverage cap may be on the hook to pay the difference in cost. Like many of the other items on this list, coverage limits can vary significantly between providers, with some setting limits per item and others applying limits per term, so homeowners will want to add this to their list of factors worth considering.
Average Monthly Rate
Although they also have the option to pay up front, many homeowners choose to pay for their home warranty coverage with monthly payments. Monthly rates can vary widely from company to company, so homeowners may need to shop around before choosing a plan.
Comparing average monthly rates can allow prospective customers to evaluate the affordability of each provider on their list, though it’s important to note that several factors can impact the final price of a home warranty plan, including the size and location of the home as well as the specific coverage options that customers select. Even still, average monthly rates can help homeowners find a plan that provides the coverage they need at a price they can afford.
Bargain-hunting homeowners may be happy to learn that many home warranty companies offer discounts they can use to lower the total cost of their home warranty coverage. These discounts can offer significant savings in the short and long run, but the specific discount opportunities available will depend on the provider.
For example, some home warranty companies offer promotional discounts to attract new customers, while others provide discounts as a reward for loyal customers. Others may offer discounted rates to customers who pay up front for an annual plan rather than make monthly payments. To get the best deal on their home warranty policy, homeowners will want to keep their eyes peeled for any discount opportunities they may qualify for.
Alongside average rates, service fees make up the other half of the home warranty cost equation. Customers need to pay a service fee before a technician can be dispatched to repair a covered system or appliance. Although service fees are paid less frequently than monthly rates—and some customers may never pay a service fee if they don’t need to file a claim—these expenses can still have a significant impact on the overall cost of a home warranty plan, so it’s a good idea for homeowners to take them into account when comparing home warranty providers.
It’s also worth noting that some home warranty companies may give customers multiple service fee options, allowing them to choose the amount they will be required to pay for future repairs. In this situation, homeowners will want to be aware that choosing a lower service fee will typically require them to pay a higher monthly rate, while choosing a higher service fee may allow them to secure a lower monthly rate.
Many home warranties begin with a waiting period: a brief window of time between when the policy begins and when the homeowner can first submit a claim. Though waiting periods are common and typically short at around just 30 days, they can also present a potential gap in coverage that some homeowners may be eager to avoid.
But home warranty companies may offer ways for customers to bypass the waiting period under certain circumstances. For example, some companies may waive the waiting period for customers who are switching from another provider, while others may offer to waive it for homeowners who agree to an inspection of their covered systems and appliances. With this in mind, New Mexico residents will need to pay close attention to the fine print with each company if they want the opportunity to skip the standard waiting period.
Another important factor for prospective customers to weigh when choosing a home warranty provider is the claims process. When a critical home system or appliance breaks down, homeowners will need to be prepared to navigate the claims process to schedule repairs with a qualified technician.
However, the available methods for submitting claims, the amount of time it takes to process claims, and the process for selecting repair technicians will all depend heavily on the provider. For instance, some home warranty programs may process and respond to repair requests in as little as 2 hours, while others may take several days. To avoid unsavory surprises down the line, it’s a good idea for homeowners to closely examine the claims process before committing to a home warranty provider.
When customers schedule repairs on covered items, they are understandably eager to get those appliances or home systems back in good working condition. In a perfect world, the first round of repairs would always resolve the problem, but in reality, there are times when a superficial issue is a result of a larger, underlying problem. With that in mind, it is not altogether uncommon for initial repairs to fail to resolve the underlying issue with a system or appliance.
In this situation, homeowners could potentially be on the hook to pay an additional service fee for follow-up repairs—unless they are protected by an active workmanship guarantee. Workmanship guarantees protect repairs for a certain length of time, allowing homeowners to request follow-up work at no extra cost. Homeowners will want to be sure to consider this factor when comparing home warranty providers, as a long workmanship guarantee can ensure that both their home and their budget are well protected.
Our Top Picks
To find the best home warranty companies in New Mexico, we looked for companies offering multiple plans and policies with a variety of coverage options. Cost and customer experience factors were also considered to pinpoint the companies offering the best overall value in the state.
Why It Made the Cut: With locked-in rates, long workmanship guarantees, and flexible options for selecting repair technicians, it’s no surprise that AFC Home Club sits at the top of the list.
For new customers, AFC Home Club offers to lock in monthly rates for a period of 5 years, allowing homeowners to retain their original rate even if the company’s prices increase during that time. In addition to making it easier for homeowners to budget, this offer can also potentially help customers who stick with AFC Home Club minimize their home warranty costs over time. Other perks for new customers include the opportunity to bypass the waiting period, which may be available to homeowners who agree to an in-home inspection of their systems and appliances. This opportunity, which may not be available with every provider, could allow homeowners to avoid gaps in their home warranty coverage.
Potential customers will want to note that AFC Home Club will not approve any HVAC repair requests unless the policyholder can provide an annual maintenance record showing that the system was inspected by a licensed technician in the past 12 months. While this requirement may present an additional cost for the homeowner to schedule annual HVAC tune-ups, routine maintenance may prevent more costly issues from arising, potentially saving homeowners money in the long run.
AFC also gives customers flexible options for selecting repair technicians, allowing them to choose from a list of preferred vendors or select one themselves. This option may appeal to homeowners who already have a trusted contractor, handyman, or technician in mind for the job. Whether they choose a technician from the company’s preferred network or select their own, AFC Home Club customers will be able to rest easy knowing the repair work is protected under the company’s workmanship guarantee, which runs the entire length of the customer’s policy. With policies lasting either 1 or 3 years, this is an impressively long guarantee, which means homeowners won’t need to worry about paying additional service fees should initial repairs fail to resolve the underlying issue with a system or appliance.
- Maximum coverage limit: $3,000
- Average monthly rate: $54
- Service fee: $75 to $125
- Claims process: Online, phone
- Workmanship guarantee: 1 or 3 years
- Customer-selected technician option
- Extremely long 1- or 3-year workmanship guarantee
- 5-year guarantee on monthly rate
- Waiting period waived with home inspection
- Annual HVAC maintenance required
Why It Made the Cut: From high coverage limits to some unique standard coverage inclusions, American Home Shield policies offer perks New Mexico homeowners won’t want to miss out on.
American Home Shield offers robust standard coverage with all of its policies, including protection on items that are commonly excluded by home warranties. For instance, even the most affordable policy covers malfunctions due to rust, corrosion, and sediment buildup as well as unknown pre-existing conditions, which the company defines as any issues that cannot be easily identified through a visual inspection or simple mechanical test. This standard coverage inclusion may make American Home Shield one of the best home warranties for pre-existing conditions, as this type of coverage can be hard to come by with a home warranty.
American Home Shield’s prices may be somewhat high in the New Mexico market, with an average rate of $83 per month, and the company’s workmanship guarantee lasts for just 30 days. However, it’s worth noting that the specific price homeowners pay for their coverage will depend on several factors, including the size of their home as well as the specific coverage options they select. Thanks to the extensive standard coverage included with an American Home Shield plan, homeowners may be happy to pay a little more to get protection they may not be able to find elsewhere.
American Home Shield may also be one of the best home warranty companies for HVAC systems, offering an uncommonly high coverage limit of $5,000 on this critical home system, which may allow homeowners to schedule more expensive repairs without increasing their out-of-pocket costs. Depending on the policy tier they select, customers can also gain access to free or discounted HVAC tune-ups, making it easier for them to keep this major system in good working order.
- Maximum coverage limit: $5,000 (for HVAC repairs)
- Average monthly rate: $83
- Service fee: $100 or $125
- Claims process: Online, phone
- Workmanship guarantee: 30 days
- Relatively high $5,000 coverage limit on HVAC repairs
- Coverage for unknown pre-existing conditions included
- Rust, corrosion, and sediment coverage included
- Free or discounted HVAC tune-ups
- Relatively high $83 average monthly rate
- Relatively short 30-day workmanship guarantee
Why It Made the Cut: In New Mexico, Choice Home Warranty offers low monthly rates, quick claims response times, and the flexibility to bypass the waiting period.
Choice Home Warranty may be willing to waive its standard 30-day waiting period for customers who are looking to switch from another provider, providing a seamless transition from one company to another and allowing homeowners to avoid gaps in their coverage. Though this offering alone may be enough to attract new customers, potential policyholders will also want to note that Choice Home Warranty offers relatively low rates in New Mexico, with an average cost of $51 per month. Though rates can vary from one customer to another, this may indicate that New Mexico homeowners can get a good deal on their home warranty by going with Choice Home Warranty.
When considering costs, homeowners will also want to be aware that Choice Home Warranty standardizes one service fee across all policies, limiting the flexibility customers might otherwise have to adjust their service fee and impact their monthly rate. However, with a relatively affordable $85 service fee, this is unlikely to be a major point of concern for most homeowners. When a repair request is submitted and a service fee is paid, customers will also be happy to learn that the company will begin contacting service technicians in as little as 4 hours. This is a rapid claims response time, which may allow homeowners to schedule urgent repairs without delay.
- Maximum coverage limit: $3,000
- Average monthly rate: $51
- Service fee: $85
- Claims process: Online, phone
- Workmanship guarantee: 60 days labor, 90 days parts
- 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
- No service fee flexibility
Why It Made the Cut: Alongside dozens of service add-ons, Liberty Home Guard gives customers flexible payment and service fee options, allowing them to design their ideal home warranty plan.
Homeowners seeking coverage on a long list of systems and appliances may be drawn to Liberty Home Guard, with the company offering more than 40 service add-ons customers can purchase to customize their policy to suit their specific needs. In New Mexico, the most popular add-on services include stand-alone freezer, ice maker, limited roof leak, well pump, and swamp cooler coverage. This portfolio of coverage options may give homeowners more opportunities to put their home warranty to use, with swamp cooler coverage standing out as a particularly unique and appealing option for New Mexico homeowners.
Liberty Home Warranty customers who choose to pay up front for an extended home warranty (lasting 1 year or longer) will be rewarded with 2 additional months of coverage at no extra charge. This offer packs even more value into a Liberty Home Guard plan, allowing homeowners to receive 14 months of coverage for the price of 12. When reviewing their coverage options, potential customers might notice that Liberty Home Guard’s maximum coverage limit is somewhat low at $2,000. However, it’s important to recognize that this limit is applied per item, not per term, meaning homeowners won’t need to worry about cumulative repair costs as long as individual repair costs do not exceed this amount.
In addition, the company also gives customers multiple service fees to choose from, allowing them to control the amount they will be required to pay when scheduling repairs on covered systems and appliances. With options available as low as $60, this could allow homeowners to significantly reduce the out-of-pocket costs associated with submitting repair requests.
- Maximum coverage limit: $2,000 (per item)
- Average monthly rate: $55
- Service fee: $60 to $125
- Claims process: Online, phone
- Workmanship guarantee: 60 days
- Wide variety of service add-ons
- Low $60 minimum service fee
- 2 months of free coverage with annual payment
- Relatively low $2,000 coverage limit per item
Why It Made the Cut: From promotional discounts to giving customers the opportunity to receive additional months of coverage if they pay in full, Select Home Warranty may be a particularly appealing option for New Mexico homeowners.
Budget-minded homeowners may want to consider Select Home Warranty, as the company frequently runs online promotions offering generous discounts to new customers. Although these promotions may vary throughout the year, these discounts are often significant, allowing homeowners to lower the total cost of their home warranty coverage without needing to take any steps to qualify.
Before signing on the dotted line, customers considering Select Home Warranty will want to make sure they feel confident in their choice, as after the first 30 days of coverage, homeowners who wish to cancel their policy will be required to pay a $75 cancellation fee. When submitting claims, prospective policyholders will want to be aware that the company could take as long as 4 days to process a repair request. However, it’s important to note that this response time specifically applies to claims submitted on weekends or holidays, so claims submitted during regular business hours are likely to be processed much more quickly.
Select Home Warranty presents other ways for homeowners to get more value out of their plan, especially if they pay in full. Customers who pay up front for an annual or multiyear policy will receive an additional 2 months of coverage free of charge, extending their coverage term without increasing their out-of-pocket costs.
- Maximum coverage limit: $3,000
- Average monthly rate: $62
- Service fee: $75 to $100
- Claims process: Online, email
- Workmanship guarantee: 60 days
- 2 months of free coverage with annual payment
- Frequent promotional discounts
- Relatively slow claim response of up to 96 hours after receiving service request
- Somewhat high $75 plan cancellation fee
We gave the award for Best Overall to AFC Home Club because of its lengthy workmanship guarantees, locked-in monthly rates, and flexible options for homeowners to bypass the waiting period and select their own repair technician. The Runner-Up award goes to American Home Shield due to its standard coverage inclusions, high coverage limits, and free or discounted HVAC tune-ups.
How We Chose the Best Home Warranty Companies in New Mexico
To determine the best home warranty companies in New Mexico, we began by examining each company’s coverage options, including standard coverage and any add-on coverage options customers may be able to use to customize or expand the scope of their policy.
Cost considerations were another important factor, so we weighed average monthly rates, service fees, and any potential discount opportunities to approximate the total cost of coverage with each provider. Finally, we considered customer service factors ranging from the claims process to the workmanship guarantee, as well as any additional membership perks, to understand the potential experience homeowners might be able to expect with each home warranty company.
Before You Choose One of the Best Home Warranty Companies in New Mexico
At first glance, a home warranty may look like nothing more than an extra expense, which some homeowners may be understandably eager to avoid. These homeowners may find themselves wondering if they really need a home warranty. While there is no one-size-fits-all answer to this question, many homeowners ultimately opt into this type of coverage due to the protection it provides on their valuable home systems and appliances. In particular, when comparing a home warranty vs. homeowners insurance, they may find that a home warranty can offer additional protection for normal wear and tear—conditions that homeowners insurance will not pay to fix. As such, pairing the two together can offer the most extensive coverage for home systems and appliances.
But before homeowners can choose between top-rated home warranty companies, they will need to understand their unique home warranty needs, as no two plans are created equal. For example, some companies may offer more extensive coverage for septic systems or roof repairs, so homeowners will need to consider both their home and their situation to find the plan that is best suited for their specific needs.
Cost of Opting for One of the Best Home Warranty Companies in New Mexico
The total cost a customer pays for their home warranty coverage will depend on two primary factors: monthly rates and service fees. While monthly rates represent the up-front cost of coverage, customers pay service fees anytime they need to use that coverage, so each of these factors will play a role in determining the homeowner’s cumulative costs throughout each policy term.
To compare coverage costs between providers, homeowners will need to consider rates and fees as well as any potential discount opportunities they may be able to use to reduce their overall costs. On average, home warranty costs come to $600 per year, though the specific price a homeowner pays will also depend on their home’s size and location as well as the individual coverage options they select. New Mexico residents may want to note that, based on quotes gathered from the best home warranty companies, prices in their state may be quite a bit higher than the national average.
The Advantages of Opting for One of the Best Home Warranty Companies in New Mexico
There are many reasons a homeowner might decide a home warranty is worth it for them. In addition to the simple peace of mind this type of coverage can provide, homeowners who opt for one of the best home warranties in New Mexico may be able to reap the rewards of several benefits, including:
- Generous workmanship guarantees that protect their finances by allowing them to schedule follow-up work on completed repairs without paying additional service fees;
- Extensive standard and add-on coverage, including (in some cases) protection against malfunctions related to pre-existing conditions, rust, sediment, and corrosion; and
- Opportunities to waive the industry-standard waiting period so a customer’s coverage begins immediately after purchase.
Choosing between the best home warranties on the market is no easy task. With so many factors to consider, it’s understandable that some New Mexico homeowners may have lingering questions about choosing the plan and provider that is best suited for their needs. To check a few of these questions off the list, homeowners can begin by reviewing the following frequently asked questions.
Q. Is it worth getting a home warranty for appliances?
A home appliance warranty can be a smart investment for homeowners, allowing them to repair or replace ranges, ovens, dishwashers, and other appliances without breaking the bank.
Q. Can you cancel a home warranty anytime?
Home warranty contracts can be canceled at any time, though homeowners may be required to pay a cancellation fee if they are more than 30 days into their policy, depending on the company.
Q. Do warranties transfer to new homeowners?
Home warranties are typically transferable, meaning home sellers can purchase a policy with the intention of transferring it, including the warranty in the sale of their home. According to Jessica Fields, vice president and chief sales officer at American Home Shield, sellers with home warranties may even give themselves an edge in crowded real estate markets. “Listings with home service plans get a marketing boost,” she says. “That’s because this important coverage helps differentiate homes from others on the market. Home service plan coverage brings added value to listings, reassuring potential buyers that they won’t have to worry about covered repair or replacement expenses during the contract term, subject to contract limitations and exclusions.”
Those interested in this option may want to consider getting a policy from one of the best home warranty companies for sellers.