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Home › Pay › Common problems › Home warranties
Fees and services

Home warranties

A home warranty is a service contract that may help pay to repair home systems and appliances. It's different from homeowners insurance. Many plans charge a service fee for each visit, cap what they'll pay, and exclude problems blamed on age or poor upkeep. Reading the contract first helps you avoid surprises.

Common problems to watch for

  • A service fee charged on every repair visit, on top of the yearly price
  • Claims denied for pre-existing problems or lack of maintenance
  • Low payout caps that don't cover a full replacement
  • No choice of repair company; the plan picks the contractor
  • Plans included in a home sale that auto-renew afterward
  • Mail that looks official but is really a sales offer

Had one of these happen? Telling others what you were charged helps them avoid it.

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Free and low-cost alternatives

A home repair savings fundHonest note: there's no free home warranty. Setting aside money each month for repairs gives you control over who fixes things.
Manufacturer warrantiesNew appliances and systems often come with a manufacturer warranty. Keep receipts and registration info so you can use them.
Regular maintenanceSimple upkeep like changing air filters and flushing a water heater can prevent some breakdowns. Your owner's manuals list the basics.

Availability depends on your device and model. AblePro has no relationship with any company named here.

How companies charge more here: Paying for support

What fair pricing looks like

A fair contract clearly lists service fees, payout caps, exclusions and how claims work. Compare the yearly cost plus fees to likely repair costs for your home.

Before you pay

  • Read the full exclusions list, not just the sales sheet
  • Ask the service fee per visit and payout caps per item
  • Check whether you can choose your own repair company
  • Confirm whether it auto-renews and the cancellation terms
  • Check your appliances for existing manufacturer warranties

How to cancel

  1. Read the contract's cancellation section; some require written notice.
  2. Ask whether you'll get a prorated refund and if a cancellation fee applies.
  3. If a plan came with a home purchase, turn off auto-renewal before it renews.
  4. Send your request in writing and keep proof it was received.

Step-by-step cancel guide for iPhone, Android and PayPal →

Common questions

Is a home warranty the same as homeowners insurance?

No. Homeowners insurance generally covers damage from sudden events like fire or storms. A home warranty is a service contract for repairing systems and appliances that break down. Many mortgage lenders require insurance, but a home warranty is usually optional.

Why was my claim denied?

Common reasons include problems said to exist before coverage began, lack of maintenance, items not covered or code upgrades. Ask for the reason in writing and the contract section it relies on. If you disagree, you can appeal, and you can contact your state's consumer protection office.

I got a letter saying my home warranty is expiring. Is it real?

Be careful. Some mailers are designed to look like official notices about your home or car but are really sales offers. Check whether you actually have a warranty with that company. Don't call a number on the letter without confirming who sent it.

General consumer information, not legal or financial advice. Reports reflect the experiences and opinions of their writers, not AblePro, Inc. We check reports against our posting rules but do not verify them.