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Home Warranty of America Review
By Natalie Forster MONEY RESEARCH COLLECTIVE
Headquartered in Lincolnshire, Illinois, Home Warranty of America Inc. has offered home warranty plans since 1996. HWA offers homeowners in all 50 states coverage that helps them feel more confident about their home systems and appliances.
You may be wondering, “What does a home warranty cover?” Essentially, home warranties fill in the coverage that homeowners insurance doesn’t provide. While insurance covers your home and belongings after accidents, thefts, vandalism, natural disasters, and other unexpected incidents, home warranties cover the repair or replacement of your home’s appliances and systems when they malfunction due to normal wear and tear.
The best home warranty for your home will provide you peace of mind and ensure that you don’t have to worry as much about expensive repair and replacement costs. Good home warranty options make it easy to file claims and let customers know about all possible fees upfront.
There are many options to consider when choosing a home warranty provider. When making a decision, it’s important to understand the appliances and systems that different plans cover, along with the customer terms and coverage limitations.
This Home Warranty of America review considers everything you need to know to decide whether this company is the right choice for you.
24/7 support whenever your appliances fail
24/7 support whenever your appliances fail
- Large network of independent prescreened contractors and qualified technicians
- In business for over 30 years
- Good coverage on home systems
- Does not cover pre-existing issues
- They will replace items that fail if they can't be fixed regardless of age, make or model
No home inspection required
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- Members Can Save Up to 50% at Nike, Costco, Home Depot & 1000’s more
- Online Business Bureau Accredited with A+ Rating
- Covers Major Home Systems, HVAC & Appliances
- Free Roof Coverage, No Inspection Needed
Industry leader since 1971
Limited Time Offer: $150 Off Select Plans!*
- Home Warranty Plans Starting at $29.99 a Mo.
- Covering 2 Million Plus Members for 50+ Years
- No Age Limits on Covered Systems & Appliances
- No Inspections or Records Required
Home Warranty of America overview
Home Warranty of America offers two main plans and provides coverage nationwide. Additionally, there are many add-ons available, including one that allows you to replace old items with energy-efficient ones. However, there are some cons to consider. Primarily, there’s a high number of negative Home Warranty of America reviews by customers, and the company lacks Better Business Bureau (BBB) credibility.
- No home inspection required
- Online access to claims filing, warranty upgrades, payments, confirmations and more
- No age limits on homes, systems or appliances if they are in working condition on the effective date of the contract
- Nationwide availability
- Air conditioning systems are only covered under Premier Plus Plan
- One-year warranty contract is required
- Poorly reviewed by customers
- Not accredited by the Better Business Bureau (BBB)
Home Warranty of America coverage
What it offers
Like most home warranties, Home Warranty of America’s plans cover home appliances, heating, cooling and plumbing systems as well as some structural and electrical system components. Home Warranty of America offers home warranty plans for both new and existing homeowners, as well as warranty plans designed for real estate agents. In effect, real estate agents can offer buyers or sellers home warranty plans to their clients through Home Warranty of America.
Home Warranty of America offers homeowners two plans to choose from: the Premier Plan, which offers basic coverage, and the Premier Plus Plan, which offers premium coverage. Premier Plus coverage applies to items or parts of a system or home appliance that aren’t usually covered by basic home warranty plans.
For example, home warranties usually don’t cover dishwasher racks, rollers, or door seals. But with Premier Plan coverage, homeowners can rest assured that these items will be covered should something happen to them.
Pricing on both plans is based on the square footage of the home and the coverage begins 30 days after the initial payment and contract date. You can find more details on the specific home appliances and systems covered in each plan below.
What it doesn’t offer
Like most other home warranty providers, Home Warranty of America doesn’t cover preexisting conditions or issues in the home that were present prior to the date the coverage contract began. And as noted above, it doesn’t cover home systems and appliances that malfunction during the first 30 days of the contract.
Home Warranty of America plans
Home Warranty of America has two base plan options and several add-on packages.
Premier Plan
Home Warranty of America’s Premier Plan runs as low as $46 per month depending on your location and the size of your home. According to Home Warranty of America’s website, the Premier Plan is intended to provide “basic coverage for life’s everyday disasters.” It includes basic coverage for the following home appliances and systems:
- Heating system or furnace
- Water heater
- Plumbing system
- Dishwasher
- Built-in microwaves
- Ranges/ovens/cooktops
- Trash compactors
- Garage door systems
- Whirlpool bathtubs
- Electrical systems
- Ductwork
- Permanent sump pumps
- Doorbells
- Ceiling and exhaust fans
- Central vacuums
- Burglar and fire alarms
- Garbage disposals
- Kitchen refrigerators with ice makers
- Washing machines and dryers
It is important to note that the Premier Plan does not offer coverage for air conditioning systems or air coolers.
Premier Plus Plan
Homeowners who want more coverage can opt for the Premier Plus Plan. This plan starts at $60 per month and provides premium coverage on all of the home appliances and systems listed above. The Premier Plus Plan also covers air conditioning (HVAC) systems, along with more than 30 other items that are not covered under the basic Premier Plan.
Additional coverage
In addition to its two main plan options, Home Warranty of America offers add-on coverage for certain appliances and systems such as septic systems and second refrigerators. The cost of coverage for these items varies widely. For instance, if you want to cover a standalone freezer, you’ll pay an additional $3 per month, but if you want to cover your pool, that could cost around $19 per month extra, or $25 for a pool/spa combo.
Home Warranty of America also offers a Green Plus add-on option, which focuses on sustainability. At around $8 per month, the Green Plus add-on allows you to replace each covered appliance or system with an ENERGY STAR-qualified product.
Buyers, sellers and real estate professionals can also purchase Home Warranty of America’s Diamond Plan, Platinum Plan or Gold Plan. These plans cost between $37 and $49 per month and cover most home systems and appliances. These plans are only available through real estate agents.
What do customer reviews say about Home Warranty of America?
Home Warranty of America’s BBB profile indicates it is NR, meaning it is not rated by the BBB. The BBB gives Home Warranty of America an overall rating of “F.” This is because there are currently 487 total complaints filed against the business and 20 unresolved complaints. The BBB significantly downgrades companies that don’t respond to consumer complaints.
Based on 106 customer reviews on the BBB website, Home Warranty of America earns a mere 1.08 out of 5 stars for its average customer rating. These complaints summarize numerous unsatisfying experiences with the company. Many of them cite long call wait times, long claim response times, and overall poor customer service as major issues.
Some customer reviews state that it takes weeks to get a resolution to common home appliance replacements. Multiple technician reviews state that they refuse to work with Home Warranty of America because of previous negative experiences.
In addition to Home Warranty of America’s customer service concerns, some reviews say the company commonly tries to set customers up with automatic plan renewal and then make it difficult to end the contract and auto payments. Moreover, for some users who were able to cancel their contract or auto-renewal, the company continued to reach out asking them to change their minds.
To address some of the Home Warranty of America complaints, Eden Wallace, Senior Manager of Escalations put out a statement in 2021 saying, “Excellent customer service and quickly resolving all warranty claim issues is [sic] at the core of what we do. However, due to Pandemic [sic], the last year and a half has been challenging for our customers, employees and the business. Yet, we continue to put our customers first and have since adapted our business model to ensure best-in-class service going forward.”
Home Warranty of America has doubled its customer service staff, revamped its operating procedures, launched a partnership with AIG Warranty to support and manage claims and implemented a text update option for customers whose claims are still open after 72 hours.
In response to this statement, the BBB states it will monitor Home Warranty of America’s progress and update the profile when more information is available.
Home Warranty of America class action lawsuit
In 2008, a class action suit was filed against Home Warranty of America in Maricopa County Superior Court in Arizona. The plaintiffs alleged that Home Warranty of America’s practices violated the law and consumers’ rights. The lawsuit also claimed that Home Warranty of America failed to disclose truthful company history to the Better Business Bureau and that it had a fictitious president with a fake identity.
As a result of the lawsuit, Home Warranty of America paid $105,000 in consumer restitution and $35,000 in civil penalties.
Home Warranty of America FAQ
Are there limits on replacements?
Home Warranty of America limits all coverage to no more than $5,000 per item and no more than $15,000 total for the entirety of the coverage term. Additionally, there are varying limitations for each item or system it covers. Some of these limitations are as follows:
- Plumbing systems: HWA won't pay more than $1,000 for diagnosis, repair and/or replacement of parts, and no more than $2,000 for any and all repairs to plumbing systems for the life of the contract.
- Water Heating: The company limits water heater repairs/replacements to $1,000.
- Electrical systems: HWA won't pay more than $2,000 for electric repairs throughout the coverage period.
- Ductwork: The company limits payments to $1,000 and it will only provide diagnosis and repairs for unobstructed walls.
- HVAC systems: Home Warranty of America limits repairs and replacements for HVAC systems, including both heating and cooling systems, to $5,000 for both, not each.
- Heating systems/furnaces: HWA limits payments to $1,500 and states that only heating systems up to a five-ton capacity will be covered.
- Ceiling and exhaust fans: The company will pay no more than $400.
- Burglar and fire alarms: HWA will pay no more than $400.
Are there service fees?
Home Warranty of America does charge service fees. Fees range from $50-$100 per visit to the home, but the most commonly cited service fee is $75.
How do I file a claim?
Home Warranty of America claims can be filed online at HWA's website through its customer portal. Simply log in and start the process from there. Customers can also file a claim via phone by calling (888) 492-7359.
How we evaluated Home Warranty of America
In order to provide the most accurate review of Home Warranty of America possible, we evaluated the company’s plans, limitations, and terms and consulted reliable consumer review websites. We also looked at dozens of home warranty providers for comparison.
Home Warranty of America summary
Home Warranty of America provides two home warranty plans, both of which are customizable with a la carte add-ons. The company serves all 50 states and makes it easy for customers to file a claim through its online customer portal.
Numerous customers have complained about Home Warranty of America’s poor customer service, long call wait times and hidden fees. The company has also paid considerable sums in restitution and civil penalties to settle a lawsuit alleging violation of consumer protection laws.
The Better Business Bureau gives HWA an F, primarily due to its failure to respond to consumer complaints. However, the BBB has stated that it intends to reevaluate the company after recent changes have had time to affect operations.
However, until we see real improvement in Home Warranty of America’s business practices and customer service, we recommend that people who are shopping for a home warranty look elsewhere.