When the Anderson family moved into their new home, they felt they had checked all the right boxes. The house was in excellent condition, the neighbourhood was perfect for raising their two kids, and everything seemed to fall into place. That is until their water heater broke down a few months later. Then came the faulty dishwasher. And finally, to top it all off, their air conditioning unit failed during a scorching summer heatwave. Faced with mounting repair costs, the Andersons began to feel like their dream home had turned into a financial nightmare. That’s when a neighbour mentioned a home warranty. After some research, the Andersons decided to purchase a plan through Home Warranty of America (HWA), which specializes in covering repairs and replacements for home systems and appliances. They quickly learned that a home warranty can provide peace of mind when unexpected home repairs threaten your budget.
Homeownership is filled with surprises, and many of them involve expensive repairs. But is a home warranty, particularly one from Home Warranty of America, a wise investment? In this article, we’ll explore what HWA offers, what it covers, how much it costs, and whether it’s worth it for homeowners. We’ll also explore customer reviews, industry statistics, and the broader context of the home warranty market.
What is the Home Warranty of America?
Founded in 1996, Home Warranty of America is a company that provides home warranty plans across the United States. A home warranty aims to protect homeowners from the high costs of repairing or replacing household systems and appliances when they break down due to normal wear and tear. Unlike homeowners insurance, which covers damage from unforeseen events like fires or natural disasters, a home warranty focuses on mechanical failures and breakdowns of covered items like heating and cooling systems, plumbing, electrical components, and major appliances such as refrigerators and ovens.
HWA distinguishes itself by offering eco-friendly options, which differentiates it from competitors. For example, the company’s “GreenPlus” plan allows homeowners to replace certain appliances with more energy-efficient models when repairs are needed. With coverage across all 50 states, HWA is popular for homeowners looking for comprehensive and flexible home warranty plans.
What Does Home Warranty of America Cover?
One of the first things homeowners want to know when considering a home warranty is what it covers. Home Warranty of America offers various plans with different levels of coverage to suit individual homeowner needs. The Premier Plan and the Premier Plus Plan are the two most popular plans.
- Premier Plan
The Premier Plan is the more affordable and covers many home systems and appliances. This plan typically includes:
- Heating systems
- Water heaters
- Electrical systems
- Plumbing systems
- Dishwashers
- Refrigerators
- Ovens, ranges, and cooktops
- Built-in microwaves
- Garbage disposals
Additionally, HWA offers optional add-ons for items like pool and spa equipment, septic systems, and well pumps.
- Premier Plus Plan
For homeowners looking for even more coverage, the Premier Plus Plan adds protection for:
- Air conditioning units (an essential for many households, especially in warmer climates)
- Washers and dryers
- Garage door openers
- Freestanding ice makers
This plan also includes free re-keying services, which can be a nice perk for new homeowners. The Premier Plus Plan also covers parts and labour, significantly lowering out-of-pocket costs when repairs are needed.
Costs and Fees
One key question for homeowners is how much a home warranty will cost. The price of a plan from Home Warranty of America varies depending on the type of coverage you select and where you live. According to Consumer Affairs, the average cost for an HWA warranty is around $550 to $650 per year, though it can be higher for plans that include add-ons like pool coverage or enhanced systems protection.
In addition to the annual premium, homeowners must also pay a service call fee when they request a repair. This fee typically ranges between $75 and $100 per visit. While this cost can add up if multiple repairs are needed throughout the year, it is still significantly less than the average repair costs for major systems or appliances. For example:
- Replacing a water heater can cost $1,000 to $3,000, according to HomeAdvisor.
- An air conditioning unit replacement can run anywhere from $5,000 to $10,000.
- Fixing a broken refrigerator compressor can cost you $500 to $1,000.
A home warranty can mitigate these costs by covering repairs and replacements after paying the service call fee.
Benefits of Home Warranty of America
There are several reasons why homeowners choose HWA over other home warranty providers. Some of the most commonly cited benefits include:
- Nationwide Coverage
With plans available in all 50 states, Home Warranty of America is accessible to most homeowners. This broad coverage allows homeowners in different regions to take advantage of HWA’s protection, whether facing a harsh winter in the Northeast or sweltering heat in the Southwest.
- Eco-Friendly Options
HWA is one of the few home warranty companies that offer “green” upgrades. Through its GreenPlus option, homeowners can opt for energy-efficient appliances when they need replacements. This reduces their environmental footprint and helps them save money on energy bills in the long term.
- Comprehensive Coverage
While many home warranty providers offer limited plans, HWA provides comprehensive coverage for systems and appliances. With options for additional coverage like pools, spas, and even septic systems, HWA’s flexibility allows homeowners to tailor their coverage to fit their specific needs.
- Unlimited Service Requests
Unlike some companies, which limit the number of service calls you can make in a year, HWA allows for unlimited service requests. This is particularly useful for homeowners with older homes or appliances, as breakdowns can occur more frequently.
Is a Home Warranty Worth It?
A home warranty can be valuable, especially for homeowners with older systems and appliances. According to The National Association of Home Builders, the typical lifespan of a refrigerator is about 13 years, a water heater lasts about ten years, and an HVAC system can last between 15 and 20 years. If any of these critical components fail, the repair or replacement costs can be substantial. A home warranty can provide financial protection and peace of mind, ensuring you’re not hit with unexpected bills when something breaks down.
However, only some benefits are equal to those of a home warranty. Newer homes with recently installed systems and appliances may need a different level of coverage, as the likelihood of breakdowns is lower. For these homeowners, the cost of a home warranty may outweigh the benefits.
According to Consumer Reports, about 55% of home warranty customers use their plans at least once a year, meaning that most homeowners benefit from having this type of coverage. Yet, some critics argue that warranty plans can be costly for those rarely needing repairs, making them less appealing for those with newer homes.
Customer Reviews and Industry Standing
Regarding customer reviews, Home Warranty of America has received mixed feedback. On consumer review sites like Trustpilot, HWA holds an average rating of around 3.5 stars out of 5. Some customers praise the company for its prompt service and its peace of mind, while others report frustration with delayed repairs or claims denials.
Like many home warranty companies, HWA has faced complaints about denied claims, typically due to issues deemed pre-existing or excluded from coverage. Homeowners should carefully read the terms of their contract to understand what is covered thoroughly and under what circumstances. Many negative reviews could have been avoided with more transparent communication and a better understanding of the policy terms.
Conclusion: Is Home Warranty of America Right for You?
Enrolling in a plan with Home Warranty of America turned out to be a smart move for the Anderson family. It allowed them to avoid thousands of dollars in repair costs and keep their home running smoothly. But is a home warranty the right choice for every homeowner?
Ultimately, it depends on the age of your home, the condition of your systems and appliances, and your ability to handle unexpected repair costs. A home warranty from HWA can be a valuable investment for homeowners who want the peace of mind that comes with knowing they won’t face massive repair bills. However, as with any service contract, it’s essential to read the fine print and understand precisely what is and isn’t covered.
In the unpredictable world of homeownership, a little protection can go a long way—and for many, Home Warranty of America provides just that.
