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6 Best Home Warranties for Townhomes
By Susan Doktor MONEY RESEARCH COLLECTIVE
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- Covers Major Home Systems, HVAC & Appliances
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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
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- Industry leader since 1971
- More than $2 Billion in claims paid in last 5 years
- More than 2 Million customers served
- No inspection or maintenance records required
- 30-day workmanship guarantee
There are many reasons why homebuyers choose to purchase a townhome rather than a single-family detached home. For one thing, even if they’re in the same neighborhood, townhomes are often less expensive than traditional single-family homes. Townhomes typically require less outdoor upkeep. And some people enjoy the sense of community that townhome living inspires.
But there’s one thing that townhome owners have in common with other homeowners: all of them are responsible for home repair costs. And those costs can add up. That’s why homeowners of every ilk often opt for the protection of a home warranty plan.
Are townhome home warranties the same as other home warranties? Do they cost the same? And which companies offer the best home warranty coverage? We’ll take a look at those questions and more in our comprehensive guide to home warranties for townhomes.
Table of Contents
Our Top Picks for Best Home Warranties for Townhomes
Best Home Warranties for Townhomes Guide
Best Home Warranties for Townhomes FAQs
How We Chose the Best Home Warranties for Townhomes
Our Top Picks for Best Home Warranties for Townhomes
Liberty Home Guard
- Offers a choice of systems-only, appliances-only, and combination plans
- Wide range of add-on coverage options
- Offers online chat
- Coverage limit for systems is $2,000
- No choice of deductibles
Liberty Home Guard offers three flexible home warranty plans designed to meet townhome owners’ varying needs. One thing we like about the company’s plans right off the bat: they’re sensibly named so you know what kind of coverage you’re buying. To wit, the three plans are called Systems Guard, Appliance Guard, and Total Home Guard. And we bet you can guess what each covers.
The Systems Guard plan provides protection for your home’s critical systems. It covers heating and cooling, plumbing, and electrical systems, as well as hot water heaters. The Appliance Guard plan protects common home appliances like your stove or range, your built-in microwave oven, and your clothes washer and clothes dryer. It also includes coverage for minor appliances such as garbage disposals, ceiling fans, and garage door openers. The Total Home Guard plan combines the covered items in the Systems Guard and Appliance Guard plan. It’s one of the more reasonably priced complete-home plans we’ve come across in our research.
Liberty Home Guard has one standard $125 service call fee (deductible) across all three plans. Monthly premiums for Liberty Home Guard’s three plans are as follows:
- Appliance Guard: $49.99
- Systems Guard: $54.99
- Total Home Guard: $59.99
Liberty Home Guard offers a wide selection of optional add-ons to customize your plan to suit your needs. Coverage is available (for an additional fee) for such home features as garbage disposals, central vacuums, ice makers, water dispensers, exhaust fans, sump pumps, and more. Depending on how your townhome is appointed, you may wish to add quite a few coverage options to your basic plan. If you have a lot of premium appliances in your home, you may want to opt for a Pro Series coverage for any or all of your appliances. Coverage is sold per appliance, so that can get really pricey.
Liberty Home Guard also stands out for offering coverage for routine maintenance tasks, such as carpet cleaning, pest control, and window washing.
American Home Shield
- Generous $6,000 per appliance coverage limit (ShieldPlatinum only)
- Covers poorly maintained or undocumented appliances
- Choice of two deductibles ($100 or $125)
- No appliances-only plan available
- Fewer add-on coverage options than some plans
For more than 50 years, American Home Shield (AHS) has been a reliable player in the home warranty industry. Accredited by the Better Business Bureau with a B rating, AHS offers three customizable plans — one for home systems and two that cover systems and appliances. The plans cover up to 14 different home systems, including heating systems, air conditioning, plumbing, and water heaters.
Unlike some competitors, AHS covers appliances and systems that have not been properly maintained. The ShieldSilver plan covers most major home systems, while ShieldGold covers both systems and popular appliances. The ShieldPlatinum plan offers additional benefits, including coverage for code violations and modifications, limited roof leak repairs, and free HVAC tune-ups.
We were quoted the following prices for a 3-bedroom townhome in a medium-sized midwestern city:
- ShieldSilver $25.00
- ShieldGold $34.99
- ShieldPlatinum $99.99
We noted that add-on coverage options through AHS are more limited than through some home warranty service providers. And the additional coverage options they do offer are less likely to be appealing to townhome owners. For example, few townhome owners have pools. Roof leak protection wouldn’t be available to townhome owners because any shared systems are excluded from home warranty coverage.
Select Home Warranty
- Offers separate plans for systems or appliances
- Affordable combination plan
- Get a discount when you purchase a multi-year plan
- Low systems coverage limits (electrical and plumbing)
- Long list of exclusions
Select Home Warranty offers townhome owners three plan options: an appliance plan, a systems plan, and a plan that covers both. All plans include limited roof leak coverage, which is typically only available in top-tier plans or as an add-on at an additional cost — but that’s not a real benefit if you own your roof in tandem with your next door neighbor as townhome owners do.
Select Home Warranty’s Bronze Care plan is an appliances-only plan and covers such kitchen and laundry room staples as refrigerators, ranges and cooktops, built-in microwaves, clothes dryers, and garbage disposals. It does not, however, include coverage for clothes washers. For washer coverage, you’ll need to step up to the company’s premium plan. You cannot add washer protection as an option to the company’s next highest-cost plan, the Gold Plan.
The Gold Care plan offers comprehensive coverage for heating, air conditioning, electrical and plumbing systems, ductwork, and water heaters. However, plumbing stoppages are not included in the plan.
Select Home Warranty’s Platinum Care plan is a combo plan that includes coverage for plumbing stoppages and clothes washers. While the company’s premiums are low, coverage limits on some systems and appliances, such as a $500 limit on appliances, may balance this out. It is important to note that the company does not disclose the length of its workmanship guarantee or service call fee, which is an important consideration when you’re evaluating a home warranty plan.
We were quoted the following prices for each plan offered by Select Home Warranty:
- Bronze Care $44.42
- Gold Care $44.42
- Platinum Care: $47.75
Choice Home Warranty
- Get your first month of coverage free
- Two combination plans to choose from
- Moderate $85 service call fee
- No systems-only or appliance-only plans
- Limited optional add-ons
At Choice Home Warranty, you can choose from two whole-home plans, Basic and Total.
The company’s Basic plan includes coverage for major appliances such as your refrigerator, oven, and built-in microwave, as well as select systems including heating, electrical, water heaters, and plumbing. But air conditioning systems and clothes washers and dryers are excluded from the Basic plan.
If you opt for the Total plan, your coverage will account for your washer, dryer, and your air conditioning system. Ductwork is included in HVAC systems coverage. Additional home appliances like your washer and dryer and extra systems such as your air conditioner and ducts are included.
Both Choice Home Warranty plans can be tailored to meet your needs with optional coverage. Among the more compelling options for townhome owners are central vacuum systems, second refrigerators, and stand-alone freezer protection.
Service calls under Choice Home Warranty plans cost $85. Although fixed, the fee falls in the low-to-mid range of deductibles.
Premium costs for Choice Home Warranty plans are as follows:
- Basic Pan: $46.83
- Total Plan: $54.75
First American Home Warranty
- Choose your service call fee
- Ductless mini-split systems covered
- Unlimited refrigerant replacement
- Starter Plan excludes washers and dryers
- Combination plans only
First American Home Warranty provides homeowners with a choice of three combination systems/appliances plans, namely Starter, Essentials, and Premium. First American also gives customers the ability to customize their deductibles, which can help to reduce monthly payments. Deductibles run from $75 to $125.
The Starter Plan is light on appliance coverage: it excludes some common appliances like washers and dryers. But most major systems are covered under the plan, including heating and cooling, plumbing, and electrical. The Starter plan doesn’t include water heaters. Still, if you own an older home, this plan can protect you against some of the most costly repairs you’re likely to encounter.
The Essentials plan fills in some of the gaps in the Starter plan by covering washers and dryers and your water heater. The cost difference between the two plans is relatively modest. To our minds, it’s the better value of the two.
The Premium plan includes enhanced plumbing and kitchen appliance coverage with more components included, such as shower heads and shower arms, hose bibbs, and instant hot water dispensers.
Add-on coverage options include water softener systems, pool and spa coverage, garbage disposals, and HVAC tune-ups.
Prices for First American Home Warranty plans with a $125 deductible plans are as follows:
- Starter Plan: $39.00
- Essentials Plan: $48.00
- Premium Plan: $61.00
Home Warranty of America
- Two combination appliances and systems plans offered
- Choice of service call fees
- Washers, dryers, and refrigerators not covered in lowest-priced plan
- No systems-only or appliances-only plans
Home Warranty of America offers two plans, both of which cover a combination of systems and appliances.
The company’s Select plan covers quite a few appliances and systems, including built-in microwaves, dishwashers, ranges, ovens and cooktops, trash compactors, heating systems (including ductwork), electrical systems, plumbing systems, water heaters, burglar and fire alarm systems, ceiling and exhaust fans, central vacuum systems, doorbells, and garage door opener. Washers, dryers, refrigerators, and air conditioning systems are excluded from the Select plan, but it has coverage for quite a few features that aren’t typically covered under opening price point home warranty plans.
Choose the Select Plus plan and you do get coverage for washers, dryers, refrigerators (including ice makers), and air conditioning systems. You’ll pay an additional $12 per month for that coverage, though.
Customers can choose from three deductibles. Deductible options vary by state so you may need to call the company to find out what your choices are. But nationally, service call fees of $75, $85, and $100 are available.
Prices for a townhome in a midwestern city are as follows. All prices quoted are based on a $100 deductible.
- Select plan: $47.04
- Select Plus plan: $59.18
Best Home Warranties for Townhomes Guide
Main things to know before purchasing a home warranty for townhomes
Home warranty plans for townhomes resemble protection plans for traditional detached single-family homes in many ways. Though coverage will vary depending on the home warranty company, which plan and what kind of optional coverage you select, overall, a home warranty for a townhome covers the same systems and appliances no matter which type of home you own.
The primary difference between the two has to do with how townhomes are constructed. Architecturally, townhomes share common features like roofs and walls. Home warranties exclude the features of your home you share with your townhome neighbor.
As is the case with single-family home warranties, before you buy a home warranty for your townhome, it’s essential to obtain a copy of your contract and read it thoroughly. That way, you won’t be surprised by unexpected costs.
What does a home warranty cover for townhomes?
Home warranty plans come in three flavors: appliances-only, systems-only, and combination plans. Coverage varies among home warranty providers, but normally you’ll see major appliances, major systems, and smaller features like doorbells and garage door openers. You may be surprised to learn that clothes washers and dryers are not included in some appliance plans and hot water heaters and air conditioning aren’t included in some systems plans. Most home warranty companies make it easy to compare coverage plans side-by-side when you request a free quote.
To find out precisely what’s covered and what your out-of-pocket costs might be under a home warranty, it’s critical to read the company’s service contract. That’s where you’ll find such details as which components of a system or appliance is covered and coverage limits for each covered item. That’s also where you’ll learn how robust a workmanship guarantee the company provides.
What are the exclusions for home warranties for townhomes?
Exclusions vary from plan to plan. They can be major or minor, but they all impact the ultimate value you’re getting from your coverage. One major exclusion you may bump into is the “normal wear and tear” clause of your contract. Warranty providers may deny coverage if the repair work that needs to be done in your home doesn’t fall within the limits of “normal”. In addition, home warranties will not cover systems or appliances that are still covered under their manufacturer warranties. That’s why, if you’re moving into a brand new home, home warranty coverage may be superfluous for you.
Finally, home warranty companies exclude coverage for any shared features of your home. Your roof is a shared feature. So is your lawn. So you can’t opt for coverage of your sprinkler system. If you and your neighbor share an outdoor pool or spa, you can’t purchase coverage for those, either.
How much does a home warranty cost for townhomes?
Warranties for townhomes cost about the same as warranties for detached single-family homes that occupy the same square footage. We found this out by comparing home warranty costs for townhomes and single-family homes in the same zip code. Plan prices are affected by the size of your property and your zip code. A protection plan in California is likely to cost more than a plan in Alaska.
How does a townhome home warranty work?
Home warranties are not the same as home insurance policies, but in some ways, they resemble one another. For example, you pay premiums for your home warranty, either monthly or annually. When something goes wrong in your home, you make a service request. That’s sometimes called filing a claim. Your home warranty provider will then send a technician to your home to assess your problem and determine whether the covered item can be repaired or whether it must be replaced. Each time you file a claim, you will pay a fee to the technician directly. That fee is often called a deductible. So the language and mechanisms of home warranties should be familiar to you if you’ve ever been covered by car insurance, health insurance, or a homeowner’s policy.
One difference between home insurance and home warranty plans is that home warranty companies dictate a waiting period for home services. Typically, coverage doesn’t begin until 30 days after you begin paying for your contract. And home warranties have much lower coverage caps than homeowner’s insurance policies. And limits are limits. You can’t purchase additional coverage for a home warranty plan the way you can adjust your coverage limits on a homeowner’s policy.
Best Home Warranties for Townhomes FAQs
Are home warranties required for townhomes?
That’s one difference between home warranties and home insurance. Your mortgage company will require you to purchase a homeowner’s insurance policy. But home warranties are 100% optional. Townhome owners purchase them to help them budget for and control the costs of home repairs. But there’s no law and no bank that says you have to purchase one.
Is a townhouse warranty different from a standard home warranty?
Generally, they are the same. The main difference is that any home feature that is shared between you and your neighbor, whether it’s your roof, your sprinkler system, or your outdoor spa, will be excluded from coverage.
How do I know if my townhouse can apply for a home warranty?
As a townhome owner, you’re free to apply for a home warranty for your property. No ifs, ands, or buts. Homeowner associations may restrict what you do to your property and how you use it, but they cannot prevent you from purchasing a home warranty.
How We Chose the Best Home Warranties for Townhomes
Home warranties for townhomes typically include the same coverage as they do for single-family attached homes. Sometimes prices vary, though, depending on the type of home you own. The information we provided for each of the plans we reviewed were for a townhome with dimensions below 4,000 square feet.
In addition to the coverage included in packaged plans, we looked at available add-on coverage options with an eye toward which of those options would be attractive to townhome owners. We also sought out customer reviews published on consumer advocacy group websites like the Better Business Bureau.
