Do Deductibles Matter for Home Warranties?

Know Your Deductible When Buying a Home Warranty

Home warranty deductible, or a service call fee, is an important concept to master if you want to understand how to find the cheapest home warranty plans for your needs. You need to consider it when you are trying to figure out whether a home warranty is “worth it” because these deductible fees can add up to substantial amounts that will have a strong impact on the value/risk equation, together with the actual home warranty coverage provided.

In addition to the deductible costs, you need to consider annual premiums and coverage limits for all covered items to select the best home warranty plan that would provide maximum value for your money.

 

Best home warranty plans by deductible range

$75-125
Deductible
Choose your State:
Company
Plan
Premium (Year)
Deductible
Limit
Coverage
Get free quote
Company
Plan
Rating
Basic Plan
Level:
Silver
Type:
Combo
$300
$75
$3,500
44%
Details
#1
Basic Plan
Rating: 95.10
Level:
Silver
Type:
Combo
Deductible
$75
Limit
$3,500
Premium(Year)
$300
Coverage
44%
Details
Dishwasher
Limit Amount: $3500.00
Covered:
  • All Parts
Not Covered:
  • Racks
  • Baskets
  • Rollers
  • Knobs
  • Dials
Disposal
Limit Amount: $3500.00
Covered:
  • All Parts
Not Covered:
Water dispenser
Limit Amount: Unknown
Covered:
  • All Parts
Not Covered:
Trash compactor
Limit Amount: $3500.00
Covered:
  • All Parts
Not Covered:
  • Removable buckets
  • Knobs
  • Lock assemblies
Oven
Limit Amount: $3500.00
Covered:
  • All Parts
Not Covered:
  • Rotisseries
  • Lights
  • Knobs
  • Dials
  • Racks
  • Door glass
  • Interior lining
  • Magnetic induction cooktops
  • Meat probe assemblies
  • Clocks
Microwave
Limit Amount: $3500.00
Covered:
  • All Parts
Not Covered:
  • Interior lining
  • Door glass
  • Clocks
  • Racks
  • Knobs
  • Removable trays
  • Rotisseries
  • Lights
  • Meat probe assemblies
Refrigerator
Limit Amount: $3500.00
Covered:
  • All parts
Not Covered:
  • Insulation
  • Racks
  • Shelves
  • Drawers
  • Tracks
  • Handles
  • Lights
  • Ice crushers
  • Beverage dispensers and their respective equipment
  • Interior thermal shells
  • Food spoilage
  • Stand alone freezers
  • Refrigerators located outside kitchen area and refrigerant recapture
  • Reclaim and disposal
Washer
Limit Amount: Unknown
Covered:
  • All parts
Not Covered:
  • Plastic mini-tubs
  • Soap dispensers
  • Filter and lint screens
  • Knobs and dials
  • Venting
  • Damage to clothing
Dryer
Limit Amount: Unknown
Covered:
  • All parts
Not Covered:
  • Plastic mini-tubs
  • Soap dispensers
  • Filter and lint screens
  • Knobs and dials
  • Venting
  • Damage to clothing
Cooktop exhaust fan
Limit Amount: Unknown
Covered:
  • All parts
Not Covered:
Ceiling fan
Limit Amount: Unknown
Covered:
  • All parts
Not Covered:
  • Light kits and remote transmitters
Attic fans
Limit Amount: Unknown
Covered:
  • All parts
Not Covered:
Systems plan
Level:
Silver
Type:
Combo
$399
$85
$750 - $25,000
18%
Details
Systems plan
Rating: 93.40
Level:
Silver
Type:
Combo
Deductible
$85
Limit
$750 - $25,000
Premium(Year)
$399
Coverage
18%
Details
Air conditioner
Limit Amount: $25000.00
Covered:
  • One system, centrally ducted refrigeration system, including heat pump
  • Evaporative cooler and built-in electric wall unit
  • All types of thermostats – including learning and programmable
  • Ductwork, modification of plenum when necessary to effect an eligible repair
  • Crane cost
  • Filters
  • Window units
  • Refrigerant recovery and recharge
  • Condensing unit pads and package unit pads
  • Electrical cut-off switches
  • Corrections to code violations up to $300 per Service Agreement
  • Permits up to $300 per Service Agreement
  • Modifications up to $300 per Service Agreement
  • Haul away/disposal fees
  • Items under manufacturer’s warranty
  • Improper installation/repair/modification
Not Covered:
  • Water towers
  • Geothermal and water source systems
  • Upgrades to maintain compatibility and/or compliance with SEER or refrigerant (available with HVAC Surplus)
  • Humidifiers
  • Chillers
  • Pre-coolers
  • Condensate drain lines and mini-split systems
  • Geothermal underground piping
  • Well pumps (and their components)
  • Roof jacks, filters, all components of zone controlled and energy management systems
  • UV filters
  • Free standing units and any type of gas units
  • Collapsed ductwork
Heating system
Limit Amount: $25000.00
Covered:
  • One system, centrally ducted gas, electric and gravity heating system
  • All types of thermostats – including learning and programmable
  • Ductwork, modification of plenum when necessary to effect an eligible repair
  • Interior gas lines
  • Crane cost
  • Filters
  • Built-in heat lamps
  • Corrections to code violations up to $300 per Service Agreement
  • Permits up to $300 per Service Agreement
  • Modifications up to $300 per Service Agreement
  • Haul away/ disposal fees
  • Items under manufacturer’s warranty
  • Improper installation/ repair/modification
Not Covered:
  • Coal or wood burning equipment
  • Steam, hydronic or hot water systems
  • Geothermal and water source systems (available with HVAC Surplus)
  • Glycol systems
  • Fireplaces
  • Free-standing or portable heating units
  • Fuel oil lines
  • Fuel oil or propane gas storage tanks
  • Flue venting
  • Outside or underground piping and components for geothermal and/or water source systems
  • Well pumps and well pump components for geothermal and/or water source systems
  • All components of zone controlled and energy management systems
  • Collapsed ductwork
Ductwork
Limit Amount: $750.00
Covered:
Not Covered:
Water heater
Limit Amount: $25000.00
Covered:
  • Gas and electric water heaters including tankless
  • Power and direct vent units
  • Water heater interior gas lines
  • Anode rod, burner
  • Cold water valve, control valve
  • Dip tube
  • Drain valve
  • Electric supply and gas valve when it is the primary system failure
  • Heating elements
  • Hot water outlet
  • Overflow pipe
  • Pressure release valve
  • Temperature valve
  • Thermocouple
  • Upper and lower thermostats
  • Water heater tank
  • Tank leaks and loss arising as a result of sediment
Not Covered:
  • Drain vent hood
  • Oil hot water tanks or oil storage tanks
  • Flue venting
  • Insufficient capacity and solar equipment
Essential Appliances Plan
Level:
Gold
Type:
Appliance
$479
$75
32%
Details
Essential Appliances Plan
Rating: 91.80
Level:
Gold
Type:
Appliance
Deductible
$75
Limit
Premium(Year)
$479
Coverage
32%
Details
Dishwasher
Limit Amount: Unknown
Covered:
  • All mechanical components and parts
Not Covered:
  • Doors
  • Door seals
  • Hinges
  • Handles
  • Glass
  • Knobs
  • Racks, trays, or baskets
  • Rollers
  • Damage caused by broken glass
  • Noise without a related mechanical failure
  • Maintenance and cleaning
  • Commercial units
  • Or portable units
Refrigerator
Limit Amount: Unknown
Covered:
  • All components and parts, including integral freezer unit
Not Covered:
  • Racks
  • Shelves
  • Glass
  • Lighting
  • Handles
  • Doors, door seals, hinges, and gaskets
  • Freon
  • Disposal and recapture of Freon
  • Ice crushers, beverage dispensers and their respective equipment
  • Water lines
  • Line restrictions
  • Leaks of any kind
  • Maintenance
  • Interior thermal shells
  • Freezers, which are not an integral part of the refrigerator
  • Wine chillers or mini refrigerators
  • Food spoilage
  • Noise without a related mechanical failure
  • Or multi-media centers and internet connection components
Refrigerator ice maker
Limit Amount: Unknown
Covered:
  • All components and parts, including integral freezer unit
Not Covered:
  • Racks
  • Shelves
  • Glass
  • Lighting
  • Handles
  • Doors, door seals, hinges, and gaskets
  • Freon
  • Disposal and recapture of Freon
  • Ice crushers, beverage dispensers and their respective equipment
  • Water lines
  • Line restrictions
  • Leaks of any kind
  • Maintenance
  • Interior thermal shells
  • Freezers, which are not an integral part of the refrigerator
  • Wine chillers or mini refrigerators
  • Food spoilage
  • Noise without a related mechanical failure
  • Or multi-media centers and internet connection components
Stand-alone freezer
Limit Amount: Unknown
Covered:
  • All components and parts
Not Covered:
  • Racks
  • Shelves
  • Glass
  • Lighting
  • Handles
  • Doors, door seals, hinges, and gaskets
  • Freon
  • Disposal and recapture of Freon
  • Ice makers, ice crushers
  • Water lines and valve to ice maker
  • Line restrictions
  • Leaks of any kind
  • Maintenance
  • Interior thermal shells
  • Food spoilage
  • Noise without a related mechanical failure
  • Or multi-media centers and internet connection components
Trash compactor
Limit Amount: Unknown
Covered:
  • All components and parts
Not Covered:
  • Portable units
  • Lock and key assemblies
  • Removable buckets
  • Doors
  • Door seals
  • Hinges
  • Handles
  • Damage caused by overloading
  • Commercial units
Oven
Limit Amount: Unknown
Covered:
  • All mechanical components and parts
Not Covered:
  • Doors
  • Door seals
  • Hinges
  • Handles
  • Glass
  • Knobs
  • Lighting
  • Clocks (unless they affect the cooking function of the unit)
  • Meat probe assemblies and rotisseries
  • Racks and trays
  • Downdrafts
  • Range exhaust hoods
  • Independent telescoping range exhaust
  • Exhaust fan not solely for venting range/cooktop fumes
  • Filters and screens
  • Venting
  • Sense-heat burners will only be replaced with standard burners
  • Drip pans
  • Self-cleaning mechanisms including door latches
  • Alternatively, commercial units
Washer
Limit Amount: Unknown
Covered:
  • All components and parts
Not Covered:
  • Soap dispensers
  • Removable mini tubs
  • Filter screens
  • Knobs and dials
  • Doors, door seals, and hinges
  • Glass
  • Leveling and balancing
  • Damage to clothing
  • Commercial units
  • Noise without a related mechanical failure
  • Or conditions of water flow restriction due to scale, rust, minerals or other deposits
Microwave
Limit Amount: Unknown
Covered:
  • All mechanical components and parts
Not Covered:
  • Doors
  • Hinges
  • Handles
  • Glass
  • Knobs
  • Lights
  • Clocks (unless they affect the cooking function of the unit)
  • Meat probe assemblies, rotisseries
  • Racks and trays
  • Interior linings
  • Arcing
  • Alternatively, portable or counter top units
Dryer
Limit Amount: Unknown
Covered:
  • All components and parts
Not Covered:
  • Venting
  • Lint screens
  • Knobs and dials
  • Doors, door seals, and hinges
  • Glass
  • Leveling and balancing
  • Noise without a related mechanical failure
  • Damage to clothing
  • Or conditions of air flow restriction due to a lack of maintenance and/or clogged lint screens

Before we delve further into home warranty costs and compare the deductible fees on a per-company basis, it is highly important to mention that choosing the best home warranty company goes above and beyond the costs. A homeowner cannot benefit from a home warranty that doesn’t provide good coverage, has low limits and/or doesn’t provide good support for its clients. If customer support is unreachable throughout the day, the actual cost of deductible becomes insignificant! The idea of a home warranty insurance is an exceptional hassle-free service, which can save you both time and money. There are a lot more variables involved in determining that. If you want to see our thorough analysis of various companies you can view this list of all providers we have reviewed to date

Home Warranty Deductible: Delving Into the Nitty-Gritty

If you’ve ever bought insurance, you might be familiar with the general concept of a deductible. When something goes wrong, the deductible is what you have to pay before the insurance kicks in.

Any home insurance or home warranty is no different, the concept is similar. Most home warranties have deductibles, sometimes known as service fees. When you call in for service using your home warranty, you will need to pay this fee in order to receive service. In other words, the service call fees are the home warranty deductibles. For example, Choice home warranty deductible is Choice home warranty service call fee, Select home warranty deductible is Select home warranty service call fee. In American Home Shield review you can find that American Home Shield service fee is the cost of a service call.

There are home warranty companies with no deductibles. It should be noted that while the vast majority of home warranty plans have a deductible, some do not and they don’t charge a service call fee. These are not specifically included in our survey because they are fewer in number, and less likely to be encountered by consumers. Most of the home warranties do have deductibles or service call fees with an industry average of approximately $75 per.

Some companies, like American Home Shield or TotalProtect Home Warranty, let their customers choose the amount of a deductible, which depends on the amount of premium. The higher the American Home Shield warranty cost, the lower the deductible. For more detailed information on deductibles in different companies, please see the table below.

Home Warranty Deductibles in Different Companies

CompanyAmount 
Choice Home Warranty deductible$60
Select Home Warranty deductible$60
American Home Shield warranty deductible$75 – $125
HMS Home Warranty deductible$100
HSA Home Warranty deductible$75 – $100
Fidelity home warranty deductible$75
Home Warranty of America deductible$75 – $100
First American Home Warranty deductible$75
Old Republic Home Protection deductible$65
Total Protect Home Warranty deductible$75 – $125
Sears Home Warranty deductible$75

It is important to pay attention to the coverage limits on any plan. Maximum limits which are very low render the plans largely ineffectual. This study considered plans with deductibles and reasonably high compensation limits, and the potential to compensate for major repairs. That is, after all, the main reason why so many opt for a home warranty policy in the first place.

How Much Are Home Warranty Deductibles, and How Do They Affect Premiums?

We surveyed 86 home warranty policies from 20 different companies to discover what consumers can expect to pay for deductibles. We found that home warranty deductibles range from $50 to $125 for these major policies, with 42 of the policies, about half, at $75. A smaller number are higher at $100 (16) and the highest figure of $125 (7).

For premiums, we found a range from $240 annually to just over $1100. It might make sense that a higher premium would result in a lower deductible, right? This is not the case. In fact, some of the highest premiums have slightly higher deductibles and service fees.

At first glance, this may seem to confuse the situation further. How do you decide which plan to buy when premiums and deductibles have a minimal relationship?

In fact, however, knowing upfront that premiums and deductibles are not proportionate in any regular sense frees you to make a choice based not only on price but on coverage. You want to buy a plan you can afford to pay the premium and deductibles on, of course, but beyond that to ensure that you are covered for all potential issues in your home.

What Are Common Issues Reported Relating to Deductibles?

In order to discover the most common issues reported relating to home warranty deductibles, we surveyed 443 online comments and reviews relating to home warranty companies and found 58 which mentioned the deductible.

Reviews mentioned a wide array of issues for which coverage was invoked, including air conditioners, ovens, water heaters, and refrigerators. It’s important to note that a good home warranty will cover all of these and many other potential problems within the home.

Why, then, were deductibles mentioned in these reviews?

The majority of issues related to either the refusal to repair an issue after a deductible was paid (36 percent) or a delay in repairs after the deductible was paid (19 percent). This indicates that many problems relate directly to obtaining repair service after the deductible is paid.

A smaller number of consumers (22 percent) reported that repairs were done, but that the repair service was poor. Then, 14 percent mentioned that compensation was offered in lieu of repairs, and 9 percent mentioned other issues. Some consumers also complained that they paid a deductible several times for several visits on the same issue.

What Are Common Issues Reported Relating to Deductibles?

Finally, it’s important to consider the value of the deductible as a portion of the overall repair cost. In order to do make this calculation, let’s consider a hypothetical scenario in which all reviewers actually had repairs completed. If such were the case, what value would the deductible have represented?

Out of the 58 reviews surveyed, 13 paid less than 15 percent of overall repair cost as deductible, and 19 paid either 15 to 24 percent of the repair cost or 25 to 49 percent of the repair cost.

The value of repairs far exceeds the value of deductibles, especially when the repairs being sought are very expensive. In any given case, the ultimate value proposition depends upon the severity of the repairs. The more severe the repairs, the better value is the deductible by comparison, and the more money saved for the homeowner.

Consumers ought to be cautious in ensuring that repair service will be rendered by their home warranty provider in a fashion that addresses the issue head-on, in a timely fashion. With proper research, however, consumers are empowered to decide which companies are likely to provide better service, and which are not.

Conclusion: Know What Your Home Warranty Covers

Ultimately, the decision about buying a home warranty is one that only you can make based on your own parameters and priorities. Home warranties with deductibles offer the greatest range of options for ensuring proper coverage for common household issues, despite the service call fees.

As discovered by this survey, however, premium and deductible costs ought not to be the sole determining factor in purchasing a home warranty. Sift through plans based on what you can afford, and then, on what best meets your needs.

Are home warranty plans worth it? The price and quality of a home warranty plan should be on the mind of every homeowner looking to invest in a home warranty. Keeping the issues in this article in mind will help to give context to that decision.


i Companies surveyed include: Anchor Home Warranty, Choice Home Warranty, Fidelity National Home Warranty, First American Home Buyers Protection, Hello Super, HMS Home Warranty, Old Republic Home Protection, Secure Home Warranty, Select Home Warranty, Total Home Protection, American Home Guard, Home Security of America, Home Warranty of America, Landmark Home, AFC Home Club, American Home Shield, TotalProtect Home Warranty
ii Review data sourced from www.mythrecents.com and www.outscam.com.