Methodology for home warranty company reviews

Home warranties are service contracts that can help you reduce the cost of repairing or replacing your home appliances and systems. When shopping for a home warranty, consider factors such as customer service, coverage plans, pricing and reputation.

We researched, reviewed and rated home warranty companies across the country to help you find the right appliance and system coverage for your home.

Research

Our research included interviewing several industry experts, one of whom is associated with the National Home Service Contract Association. We secret-shopped each provider’s websites by pulling quotes and speaking with customer service representatives. We navigated through their sample contracts and noted their coverage plans, terms, exclusions and limitations.

We gathered insight into customer experiences with home warranties by surveying homeowners with a home warranty who had filed a claim within the last year. We read and analyzed customer reviews to understand how well a company handled claims, customer service and other inquiries. In addition, we reviewed company ratings from third-party websites such as Google Reviews, the Better Business Bureau (BBB) and Trustpilot.

We aim to surface and summarize the key factors you need to choose the best home warranty company for your home.

After collecting data, we implement our findings into detailed review standards to rate and compare home warranty companies. We then score companies out of 100 points and translate this score into the 5-star rating we include in our reviews and recommendations.

We focus our rating factors across five key areas:

• Coverage plans and extra features
• Coverage limits
• Price
• Reputation
• Customer service 

Coverage plans and extra features (31 points)

One of the biggest considerations you’ll have is the available coverage options a home warranty company offers. We assess seven main factors: the number of plans available, appliance and system coverage options, additional coverage features, available add-ons, bonus perks and state availability.

Companies that offer three or more plans scored well. We identified the most common major appliances and systems you may have in your home, and companies scored well if they included coverage for these items within their base plans. Companies with various additional coverage features, such as coverage for pro-grade appliances, scored extra points. We gave companies with more than 15 add-on coverage options the most points since this offers a high level of plan customization for your home.

Finally, we scored companies on their bonus perks and state availability. We allocated extra points to companies with unique perks, such as coverage for rust, corrosion and sediment damage. We also factored in a company’s availability across the United States. Providers that serve 46 states or more scored the most points.

Coverage limits (15 points)

A company’s coverage limits dictate how much it pays for a covered item’s repair or replacement. We allocated the most points to companies that offer appliance coverage limits with an average of $2,000 or more. We did the same for those that provide major systems coverage limits with an average of $3,000 or more. 

In addition, companies with an average limit of $1,000 or more for add-on items scored well.

Price (20 points)

Price is a major consideration since purchasing a home warranty is a financial decision. Due to each company’s wide variety of pricing options, we rated basic and comprehensive plan prices separately. For basic plans, companies scored well if they offered plans less than or equal to $45 per month. Companies that charge $60 or less per month for comprehensive plans scored the best. 

We also considered the price of a company’s service call fee. We gave the most points to companies that provide a service call fee option of $75 or less. Additionally, companies that offer customizable service call fees scored bonus points.

Reputation (15 points)

A home warranty company’s reputation among customers is largely a reflection of how well it handles claims. Home warranty companies provide a service, and homeowners prefer companies that promptly provide the service they promise. To rate each company in this category, we gathered ratings from the BBB and Trustpilot. Companies that have a B+ rating or higher on the BBB scored higher than companies that don’t.

The same principle applies to how we analyzed Trustpilot customer review scores. Companies with less than a 3-star rating scored the least.

Customer service (19 points)

Using the information we obtained through secret shopping, we scored each company based on the following categories: service request response time, customer service hours, workmanship guarantee and cancellation fees.

Companies that respond to service requests within 24 business hours scored well. We also gave more points to companies that offer a 24/7 online chat tool that connects you to a representative.  

We also judged the length of a company’s workmanship guarantee. This guarantee covers a previously repaired item if it breaks down again within a certain period of time. Companies that offer workmanship guarantees for longer than 150 days received the most points.

Finally, we considered the cancellation fees companies charge if you cancel your plan after the initial 30-day trial period. Companies with a cancellation fee of $75 or more scored less in our review standards.