Is Your Home Warranty Company Ripping You Off?


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Written by: Chad Zollinger | Best Company Editorial Team

Last Updated: December 4th, 2019

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One of the most common tactics of some less ethical home warranty companies is to sell you a "unique" selection of items covered by a warranty when, in reality, the coverage is actually average or below average. The best thing you can do to avoid such scams is figure out what to expect with a basic home warranty plan. 

Basic Coverage

The first thing you need to figure out is what is normally covered in basic home warranty deals. If you know the difference between what is normally covered by home warranties and what isn’t, you’ll be better equipped to spot good and bad deals. Most home warranty companies cover these items in their basic plans: 

  • Plumbing
  • Microwave
  • Dishwasher
  • Water Heater
  • Ceiling Fans
  • Central Heating
  • Electrical System
  • Extra Coverage

Some items are generally only covered if you pay more; these appliances and systems are usually the ones that break most often and are more expensive to repair. Depending on your situation, you may need these items covered more than those found in most basic coverage plans. The following items most often cost extra to include in a plan:

  • Central A/C
  • Swimming Pool
  • Septic System
  • Standalone Freezer
  • Refrigerator 
  • Washer 
  • Dryer

If you find a home warranty company that offers any of these items in its basic coverage package, you know it’s a good company. 

You can know if a home warranty company is trustworthy if it is upfront in showing you exactly what items you can expect to be covered. Though this isn’t a sure sign of honest business, it can go a long way in helping customers figure out their options. Always be wary of companies that try to sell you basic plans as “special” or “unique.” If you learn to spot these common strategies, you’ll be better equipped to avoid dishonest home warranty companies. 

The Top Home Warranty Companies

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#1 Choice Home Warranty chevron_right
8.6 Overall Score
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#2 American Home Shield chevron_right
8.2 Overall Score
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#3 Landmark Home Warranty chevron_right
7.8 Overall Score

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