Looking for the best home warranty with no deductible?
Perfect you’re in the right spot. In this guide you’ll learn:
- What is a home warranty deductible in the first place?
- Why you should consider a zero deductible home warranty
- What will a no-deductible home warranty cost?
- Is a home warranty with no deductible a good option for a home seller?
- And much more..
After close to 70 companies reviewed, below are the top picks that we think are of the most benefit to people looking for a no-deductible plan. So if that’s you, continue reading!
What's In This Guide?
Normally we look at home warranty companies who offer home warranty plans with deductibles, like Cinch, American Home Shield, or Choice Home Warranty. These plans, and the majority of providers in the industry, offer plans with deductibles. But some other excellent companies offer zero deductible options, so we wanted to provide you with all the information you need to make an informed decision.
A home warranty is a service contract that protects specific appliances and systems, from smoke detectors to your plumbing system, from malfunction due to normal wear and tear.
There are good reasons to choose a plan that covers the home appliances and systems you are most concerned about, without worrying about an added cost every time you request home services on a covered item.
What Is A Deductible?
Home warranty companies use similar language to an insurance policy, like “premiums” and “deductibles”, even though homeowners insurance is a very different thing, covering loss from natural disasters and other calamities.
Again, a home warranty is a service contract covering wear and tear, in effect for a specific amount of time (usually one year), and paid for all at once or in installments called (again like insurance companies) premiums. They can cover everything from your ice maker to limited roof leaks.
In addition to the premium, most home warranty companies require the payment of a deductible when a service call is made. A deductible is a payment you agree to make when you call in a claim and request a service call. That’s why they are also called a:
- Service Fee
- Service Call Fee
- Trade Call Fee
It’s all the same thing. Many of the best home warranty companies offer plans with deductibles ranging from around $60 all the way up to $125. Often the lower the deductible, the higher the monthly premium. Companies like AFC Home Club offer you a choice in your service fee.
But some select plans offer zero-deductible plans, so you can order a service call, and not have to pay something extra on top of your premium.
That sounds great, doesn’t it?
For many buyers like yourself, that is an attractive offer. Managing your family budget is hard enough without having to pay the home warranty company for a service request.
Top 4 Best Home Warranties With No Deductible
Who Needs A Home Warranty With No Deductible?
For so many people, money is tight. Maybe you can budget for a home warranty premium, but that service call fee–especially those that are around $100 which is not uncommon in the industry–is just more than you want to risk. You’ve come to the realization that you are not the best equipped for home repairs, but when a dishwasher or faucets malfunction in your home, you don’t want to pay for the service call on top of everything else. That’s where a home warranty with zero deductible can come in handy. You get the protection for the appliances and systems that need it most, and won’t have to worry about paying for a trained professional to come out and assess the damage.
Home buying can be complicated and stressful. The last thing you need in a home purchase transaction is another expense. If a home seller is not offering a home warranty as part of the home sale package, consider asking for one as part of the deal. And if you need to purchase one yourself, why not make it a zero deductible plan? That way you are only paying the bare minimum, protecting those systems and appliances that may pass the home inspection, but definitely look worse for wear.
A home warranty won’t protect against pre-existing conditions, so make sure when you have put in an offer and it gets accepted, your home inspector does a thorough job during the inspection period. And to avoid any challenges, consider getting a second opinion from a contractor. Then, get good homeowner’s insurance and get that home warranty to protect you from the unexpected!
Homesellers/Real Estate Agents
When you are selling your home, you want to get money out of the sale, while putting as little in as possible. Sometimes a home warranty can be an advantage in selling when buyers are comparing yours with otherwise similar homes. A home warranty with no deductible can check off that box without adding too much to the cost side of your seller net sheet. Home warranties without deductibles are often lower in cost than those with deductibles, because you are protecting specific items rather than all the systems and appliances in your home.
What Should You Think About When Purchasing A Home Warranty With No Deductible?
Owning a home is a juggling act. There are always costs to consider, and in order to keep from feeling like you own a money pit, you’ve got to consider how to best maintain the investment in your home. So a home warranty can be an excellent way to do that, and a no-deductible home warranty can alleviate financial stress even further.
But before you sign a service contract, what should you consider? Let’s look at some common questions and concerns when it comes to zero deductible home warranties.
Why choose a no-deductible plan?
If most of your home systems and appliances are newer and in good condition, a full home warranty may not be necessary. Most no-deductible plans offer “build your own” a la carte protection for the systems and appliances that you are most concerned about and most in danger of breaking down. A no-deductible plan offers a lower premium, plus you are not paying when a service call is made.
Do I miss out on coverage when I choose a no deductible plan?
This is the big trade-off. When choosing a la carte, there will be some systems that even a basic plan with a deductible would cover. Coverage options will be limited. Plans with deductibles offer not only coverage for major appliances and major systems but also offer optional coverage for things like a pool, whirlpool, or septic system.
On the other hand, once in a while, you find a unicorn. Complete Protection offers what amounts to a comparable appliance plan, similar to competitors like First American Home Warranty and Select Home Warranty, but without the deductible. Complete does not offer a full systems plan.
So, yes, you will miss out on some coverage, but a home warranty is all about risk assessment. Will paying the premiums pay off in savings on repairs and replacement of covered items? You will have that risk assessment calculus to do with or without a deductible.
How does my state regulate home warranties?
Usually, states offer guidance on home warranties and service contracts. States from California to Texas to Virginia and everywhere in between all provide some kind of regulation of home warranty companies. They want to protect consumers from predatory service providers where you pay a lot and don’t get much in return.
But you also need to look out for yourself. When a home warranty plan has a modest monthly price tag, and no deductible, this can be a way of protecting your money from unnecessary costs.
What Will A Home Warranty Without A Deductible Cost?
Home warranty cost is a big factor for you, so that’s why you are checking into zero deductible plans in the first place. On the face of it, they can be very attractive. With some plans, for $5 a month, you can cover an appliance. For standard plans, they range in price all the way up to $75 a month.
But be careful. There are standard plans, but the a la carte choices can really turn around and bite you. It all starts adding up quickly. If you are looking to protect more than a small handful of appliances or systems, the zero deductible will still be in effect, but you can start paying as much and more for these a la carte options than you would for even a standard combo (appliance and systems) plan with a deductible.
Also, you will want to look at what a company offers in terms of coverage limits. Repair costs and replacement costs can add up, so you want to make sure the limits of your policy are likely to cover the appliances and systems that concern you the most.
What Types Of No-Deductible Plans Are Available?
With no-deductible plans, the choice is between plans that offer a la carte options, or options limited to a specific category of systems, like plumbing, electric, or HVAC.
These plans are a matter of choosing individual systems and appliances that are important to you. None of them offer comprehensive coverage of a combo plan with a deductible. Complete Protection does offer their Ultimate plan, that covers 8 appliances, HVAC, plumbing, and electrical. But you will pay more for this per month than a comparable plan with deductible. But you won’t be reluctant to call for service when needed, because you won’t be paying extra, so paying a bit extra for the premium might pay off in the end.
Is A Home Warranty Without A Deductible Worth It?
If you want home warranty coverage for a few crucial appliances or systems, a home warranty without a deductible can definitely be worth it. For instance, if you want to cover just your electrical system and air conditioner, HomeServe USA has options that will cover those systems. If you have a sump pump or sprinkler system or want coverage for your central vacuum or ceiling fans, it might be more challenging to find that specific coverage.
But if you want to cover specific common items in your home, and not worry about how often you might make a service call, a no-deductible plan can be a great fit for you. Look at plan options carefully to choose the best fit. Here are some tips on how to do that.
How To Choose Coverage With No Deductible (Is It Unique)?
Step 1: Look for plans that offer zero deductible options
They are few and far between, so we did the heavy lifting for you here. As of this writing, these are the best options we have found when it comes to no deductible home warranty providers.
Step 2: Decide what kinds of protection is most important to you
With a zero deductible plan, you probably won’t be able to get a full appliances plan, or combo coverage, or even coverage for all major appliances and systems. The exception to this rule is Complete Protection Home Warranty that does offer such plans.
But full plans can be as pricey for the premium as plans that do offer deductibles, so if you want to pay as little as possible for the plan, a la carte is what you will be looking for.
Step 3: Price it out and weigh the overall cost against the reputation of the company, and what other companies are offering
With a no-deductible plan, you are doing a bit more research and deciding how and when you want to spend your money, in a way that standard home warranty plans don’t really allow for. All the companies will offer a free quote for the services you are looking for. You are doing your due diligence right now, so that is a great start! Just read the fine print carefully so you know what to expect in terms of coverage, so you are getting what you pay for.
With that in mind, check out this video explaining how you can save money when investing in a new home:
Top Home Warranties With No Deductibles Reviewed
Choice Home Warranty Review (Best Overall Home Warranty)
Why Do We Like Choice?
Out of all the home warranty companies we reviewed, Choice Home Warranty has the most comprehensive plans, good payout limits, minimal number exclusions, quality customer service, and affordable cost.
Choice has two main home warranty plans. The “Basic Plan” and the more comprehensive “Total Plan” covering 15 home appliances (dishwasher, etc) and systems (duct work, water heater, etc). They also have “Optional Coverage” for add on items most homeowners don’t usually have, which include pools and spas, well pump, sump pump, roof leaks, other extraneous items.
Based on our review, Choice’s “Total” plan covers these items at a more affordable price point than its competitors although has a few more exclusions, which is how they can justify charging a lower monthly payment.
The thing about home warranties is that they are a bit complicated with a lot of moving parts that may confuse most homeowners on what’s covered versus what’s not covered.
A key deciding factor in our review looking for the best home warranty company is finding one with top quality customer service to help customers like you walk through the claims process so you don’t have to worry about nasty surprises when you need service.
That said, Choice has 24 hours a day 7 days a week 365 days a year availability and a 48 hour response time to get a contractor out to your home. Other providers tend to have slower response times and are less communicative about when technicians are assigned to your claim.
Policy On Pre-Existing Issues or Older Units?
Choice covers appliances regardless of age or existing wear and tear, so you don’t need to worry about signing up and not getting covered due to age assuming you’ve properly maintained the item over it’s life.
What’s not covered is if you or someone else breaks the unit regardless of when it happens. All home warranties, regardless of company, won’t cover a unit you break through negligence or misuse (i.e., baby sticks chocolate bar into VCR).
- Good Limits (up to $1,500)
- Minimal Exclusions
- More Affordable
- Only 15 Home Appliances & Systems Covered
American Home Shield Review (Editor’s Choice)
Why Do We Like American Home Shield?
Far and away the most thorough and transparent home warranty company we reviewed is American Home Shield. They are the gold standard. If you spend any amount of time on their website, it’s clear that they are very upfront about what they do cover and don’t cover when compared to their competitors.
In fact, they go out of their way to tell you they cover things their competitors don’t like rust or plumbing stoppages.
They also have the best home warranty coverage with an astounding 21 systems and major appliances including trash compactor, smoke detectors, and clothes washer. They also have the fewest number of exclusions with the highest dollar limit payout amounts ranging from $1,000 – $3,000 per claim.
Think of American Home Shield as the “BMW” or “Mercedes” of home warranty companies. More expensive than Choice, but with better coverage and limits.
Policy On Pre-Existing Issues or Older Units?
Very similar to Choice, American Home Shield covers old systems and appliances that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!
- Highest Payout Limits (up to $3,000)
- Widest Coverage (21 systems and appliances)
- Fewest Exclusions
- Most Expensive
Select Home Warranty Review (Most Affordable)
Why Do We Like Select Home Warranty?
Select Home Warranty made our list as a best budget friendly home warranty option. They have lower limits ranging from $500 – $2,000 per claim but also lower service fee costs and potentially reduced annual premiums as low $325 per year if you opt into multiple year contracts, far below other competitors.
If you opt for their “Platinum Care” they are on-par with other providers in terms of what they actually cover.
Overall, a great budget option for people who want a home warranty but can’t afford Choice or American Home Shield.
Policy On Pre-Existing Issues or Older Units?
Very similar to Choice and American Home Shield, Select covers old systems and appliances that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!
- Most Affordable Service Contracts
- Roof leaks Are Covered In Their Platinum Plan
- Ultra Pushy Sales
- 3 Days To Submit Claim
- Weaker Network Of Contractors
Total Home Protect Review (Best For Larger Systems)
Why Do We Like Total Home Protect?
Total Home Warranty made our list as a home warranty with above average protection on more robust systems like septic systems and roof coverage.
Their monthly cost comes out to around ~$45 per month for their basic “Gold” plan, which puts them on the more expensive side of the scale when compared to other top home warranties on our list with better coverage.
Most home warranties do not cover anything related to your roof but Total Home Protect does, which we found to be unique to their offering helping them crack our top list.
Policy On Pre-Existing Issues or Older Units?
Very similar to Choice and AHS, Total Home Protect covers old systems and appliances that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!
- You Can Choose Your Own Technicians
- Roof Coverage
- More Exclusions Than Most Competitors
- The Worst BBB score
- Low Payout Limits ($500)
First American Home Warranty Review (Best Customer Service)
Why Do We Like First American Home Warranty?
First American Home Warranty made our list as a home warranty with above average customer service mixed with in with a decent price point.
The only drawback was that they aren’t nationwide lacking coverage in the following states: ND, MN, WI, IL, NY, VT, NH, ME, MA, CT , RI , DE, AL, HI, LA.
Their plan options include a “Basic“ plan, which only covers appliances and will run you about $28 per month. Their combo plan, which covers major systems and appliances branded the “Premier” plan costs around to ~$43 per month.
Overall a good home warranty provider, but just lacking the coverage, which would have helped make a better case for “best overall home warranty company”.
Policy On Pre-Existing Issues or Older Units?
Again, all of the home warranty providers seem to have adopted a similar policy in that they cover “old” appliances and systems that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!
- Great Customer Service (B+ BBB Score)
- Online Chat Support
- Not Available In 15 States
- Can’t Choose Your Own Contractor
Final Thoughts On Home Warranties With No Deductible
Home warranty plans with zero deductible are a rare breed. Few companies offer them, and when they do, the service area is often limited. In our research, the largest service area is from Complete Protection, which serves 48 states.
If you are looking for coverage for just a limited number of appliances or systems, a zero deductible plan might be worth it. You can get peace of mind knowing these appliances and systems are covered, and you can call for repairs without worrying about the extra service fee. For more comprehensive coverage on all your major systems and appliances, a plan with a deductible is probably the way to go. But if you get coverage on what is most important to you and can reign in your home maintenance budget in the process, a no-deductible plan can be the right choice for you.