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
Only two of the companies reviewed here lands in our top 25, and HomeServe USA lands at a respectable 11 overall ranking. But when it comes to zero deductible options, they are a standout number one choice. Why? Because they offer numerous plans with zero deductibles, and they have a solid A+ rating with the Better Business Bureau. Let’s take a look at the kinds of coverage you can get.
No Deductible for:
- Cooling system plan
- Exterior Water Line plan
- Exterior Septic/Sewage line plan
- Interior plumbing system and drainage system plan
- Interior Electrical Line
- Water heater repair and replacement
- Water heater repair plan
- Exterior electrical line plan
- Gas line plan
- Heating system plan including ductwork
- Home plumbing and drainage plan which includes: Interior Plumbing and Drainage: 2 service calls ($2,500 per call) and Exterior Sewer/Septic line: 2 service calls ($3,500 per call)
- Complete plumbing plan which includes: Gas Line Coverage: Interior Plumbing and Drainage: Exterior Sewer/Septic line: Water Heater: Water Service Line:
- Interior protection plan which includes coverage of Cooling System Coverage: Gas Line Coverage: Heating System Coverage: Interior Electric Line: Interior Plumbing and Drainage: and Water Heater:
So you can create an a la carte coverage plan for one or all of these systems and be charged no deductible. The monthly payment for each component ranges from $4.99 to $18.99 per month, so you will quickly get up to the range you would pay for a standard plan with a deductible. Keep doing the math so you don’t overextend yourself! Significantly, they offer re-service for failed repairs for up to 365 days, and they cover parts and labor in that re-service. The industry standard is closer to 90 days.
On the downside, along with being careful about a la carte adding up quickly, they are only available in 14 states. So make sure they operate in your state before spending too much time on the specific coverage you are looking for.
- A long list of plans with zero deductibles
- Plan limits up to $10,000
- 1 year of re-service for failed repairs compared to 90-day industry average
- Buying multiple plans can quickly add up to well more than the cost of a combo plan
- Very limited availability. They cover only 14 states, including California, Arizona, and Virginia
Home Warranty Inc.
Home Warranty, Inc. does have standard plans with deductibles. But they also offer a la carte appliance plans for a flat $5 a month per appliance. For $7 you can get coverage for heating and/or air conditioning. And for $14, you can get coverage for air-to-air heat pumps. It’s a simple and straightforward approach that might really suit your needs.
All of these a la carte options are available with zero deductibles and limits of $1,000 per appliance. That’s good and bad. Many companies provide coverage for appliances of $3,000 to even $3,500. Our research shows that when they approve a claim, you will get your payment without delays.
On the other hand, our research does also show that the contractors used by Home Warranty, Inc are not as reliable as other companies. There were more customer complaints about contractor reliability than for other similar home warranty companies. Also, availability is limited. If you live on the West Coast, they do not provide plans in your state and the East Coast north of Virginia? Sorry. You’ll want to check to make sure they offer coverage in your state.
- You can cover as many individual appliances as you’d like with no deductible
- Low chance of payment delays
- Low contractor reliability
- Not available in all states
Complete Protection offers zero deductible plans from their Essential ($45/month) which covers 3 appliances plus HVAC, to Advanced ($55/month) for 6 appliances plus HVAC, to Ultimate ($75/month) 8 Appliances plus HVAC System, plus free preventative maintenance check, plus plumbing & electrical systems, plus plumbing and electrical fixtures.
You can also add on almost any appliance or system with transparent pricing, including:
- A/C System – $28
- Furnace/Air Handler – $18
- Condensing Unit – $18
- Evaporator Coil – $18
- Mini Split Evaporator – $18
- Boiler – $26
- Septic Tank/Lines – $20
- Septic Pump – $8
- Well Pump/Tank – $8
- Cooktop – $4
- Oven – $4
- Range – $8
- Refrigerator – $8
- Dishwasher – $6
- Deep Freeze – $6
- Microwave – $8
- Wine Cooler – $6
- Ice Machine – $6
- Water Heater – $6
- Clothes Washer – $8
- Dryer – $4
- Garbage Disposal – $4
- Garage Door Opener – $4
- Trash Compactor – $4
- Pool Pump – $12
- Pool Heater – $12
They offer what they call “no-nonsense protection” which they define this way:
“Our terms and conditions are one page, front and back, in 12 pt. font (plus state-specific addendums). It shouldn’t take a lawyer to decipher when you’re covered. We saved space by omitting the exclusions, excuses, and “gotchas” other companies use to try to get out of covering you:
◊ All parts inside your appliances are covered
◊ There are no deductibles on repairs
◊ All pricing is published for your reference
◊ No exclusions for unknown pre-existing conditions
Add to this the fact that the service is available in 48 states (only New York and Massachusetts are not in the mix) and this is a pretty powerful company.
Why are they third on our list? In our scoring methodology, they scored a 65.2. Home Warranty, Inc, scored a 68.8 and HomeServe USA crushes it at 82.4. The reason for the lower score is that unexpected fees were reported in our research, and some of the fine print can be tricky, so read the sample contract carefully before moving forward.
- No nonsense protection
- Many options available
- Unexpected fees were reported
- Tricky terms and conditions
Utilipro Protection Plans
Utilipro will cover 3 basic systems: heating system, air conditioning, and tank-type water heater. So if you are looking for a service contract for these three, you’ll spend up to about $25 a month with no service call fee. They are another that boasts an A+ BBB rating. They do also provide service on a 24/7 basis.
The obvious downside is that you are getting protection for just these three systems, and can only add on for protection of additional units of these systems. So if you have 2 HVAC systems, you can add protection for these or a second water heater. Also, protection plans are only available in the state of Georgia.
- A+ on BBB
- 24/7 service
- Only available in Georgia
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.