What Is Home Repair Insurance? (2025)
Home repair insurance is financial protection for your home’s systems — like plumbing or HVAC — and appliances in case of breakdowns.
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Written byAmy Beardsley
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3+ years writing about auto, home, and life insurance
7+ years in personal finance and technology
Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.
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Edited byChris Schafer
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15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Homeownership has its fair share of surprises, especially when appliances or systems break down. But home repair insurance is available as a safeguard that can ease the financial sting. It’s not as well known as a regular homeowners insurance policy, but it’s popular for the security it offers.
Home repair insurance helps with costs when critical systems like heating or plumbing fail. It also covers fixing or replacing essential appliances, such as refrigerators, water heaters, and clothes washers and dryers.[1] The right plan can soften the blow of large repair expenses, but it doesn’t cover everything.
Here’s what you need to know.
Quick Facts
Home repair insurance typically runs $300–$600 per year.
Home warranties don’t cover existing damage, maintenance, or natural disasters.
Home repair insurance is a different product than homeowners insurance.
What is home repair insurance?
Home repair insurance, also called a home warranty or home protection plan, is like a safety net for your home’s systems and appliances. It helps pay for repairs or replacements when things like your oven, electrical system, or air conditioner stop working. If something goes wrong, the home warranty company sends a professional to fix it, and you usually pay a service fee.
For Example
Home repair insurance may cover instances when your water heater is pumping out lukewarm or cold water, or your refrigerator isn’t keeping food cold. Instead of paying the entire cost to fix or replace it, your home repair insurance can help with the expenses in exchange for a monthly or annual fee.
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Best home repair insurance companies
Picking a home repair insurance company is a crucial step in protecting your home. Different plans protect different parts of your home, like your electrical system, furnace, or kitchen appliances. The key is to match the coverage to your specific needs. Think about what parts of your home you rely on, and make sure your plan includes those items.[2]
Reviews from other homeowners can also offer insight. They can tell you a lot about how responsive a company is and the quality of their repair work. To help you decide, here are plans from some of the best home repair companies and what makes them stand out.
Insurance Company  | Available Plans | Starting Costs | Trustpilot Score |
|---|---|---|---|
| American Home Shield | 3 | $1 per day | 2.1 |
| Liberty Home Guard | 3 | $1 per day | 4.7 |
| Choice Home Warranty | 2 | $1.50 per day | 3.7 |
| AFC Home Club | 4 | $57 per year | 2.3 |
American Home Shield
American Home Shield has three protection levels that vary in coverage to include major home systems and roof leaks. Additional coverage for electronics, pool equipment, and more is available to customize your protection.
Plus, your plan takes care of repairs from normal wear and tear, installation mistakes, and older items, even if you don’t have maintenance records.
Liberty Home Guard
Liberty Home Guard has flexible coverage to fit various budgets. You can choose the appliance-only plan for cost efficiency, the systems-only plan for more coverage, or combine the two for total home protection.
For more security, choose from an extensive list of optional add-on home repair coverages. You can choose your contractor, but the company must authorize the selection first.
Choice Home Warranty
You can choose between two coverage levels with Choice Home Warranty. The basic plan covers essential home systems but doesn’t include air conditioning, refrigerators, washers, or dryers. Optional coverages like protection for your pool, spa, roof leaks, and stand-alone freezers are limited but can expand your protection.
AFC Home Club
AFC Home Club offers the most variety with four distinct plans. They vary from basic to plans covering up to 18 systems and appliances for ultimate protection. You can choose your own technician, which is a good option if you have a preferred service professional. The company also locks in your rate for five years, protecting your budget.
Insurify uses an in-house, proprietary method to rate and review insurance companies.
Weighted criteria include customer reviews and affordability, as well as third-party ratings. With this data, Insurify is able to provide quantitative ratings for readers to better compare insurance companies and make informed decisions to meet their coverage needs.
What home repair insurance covers
When big-ticket items in your home break down, home repair insurance kicks in to cover the cost. Because each plan is different, your coverage varies based on the company you choose. Reading the fine print of your service contract is important to know what your plan includes and what might have additional costs.
Here’s a snapshot of common items a home warranty may cover:
Air conditioning
Clothes washer and dryer
Dishwasher
Ductwork
Electrical system
Garbage disposal
Heating system
Oven and range
Plumbing system
Refrigerator
Home repair companies can offer additional coverage, too. Consider adding protection for a sump pump, septic system, central vacuum, pool, or spa for more peace of mind.
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What home repair insurance doesn’t cover
While home repair insurance is excellent for unexpected big repairs, even the best home warranty companies don’t cover everything. If your fridge has a scratch, for example, a home warranty or home repair insurance plan won’t help you out. It also doesn’t cover items that were already broken before the warranty started.
Another significant point to remember is that home warranty plans don’t replace the need for home insurance. If your home has damage from a fire or flood, your home insurance — not home warranty — covers repairs.
While plans vary, here’s a quick list of what home repair insurance doesn’t typically include:
Pre-existing issues
Cosmetic flaws that don’t affect how the item works
Routine maintenance and upkeep
Structural components, like walls, floors, and roofs
Natural disasters
While home repair insurance can be helpful, it’s important to know its limits and keep these exceptions in mind.
How to file a home repair insurance claim
If something in your home breaks and you suspect your home repair insurance may cover it, follow these steps:
Review your policy. This will ensure whether your policy covers the item or not and avoid any unwanted surprises later.
Contact your insurer. Let them know about the damage and your desire to file a claim. Your insurer will likely send a certified contractor to your home to review the damage.
Show the contractor around. Explain the situation to the contractor and allow them to review the claim in question.
Wait for your coverage support. If the contractor determines the damage meets policy, your insurer will contact you to set up repairs or replacements. The cost of these repairs or replacements can’t exceed the limits outlined in your policy. You’ll need to cover any extra cost yourself.
Who home repair insurance may be good for
Home repair insurance is worth thinking about, but whether you need it depends on your specific situation. If you have brand-new appliances, coverage is less critical because manufacturer warranties cover your home appliances and systems. But home repair insurance for older appliances can save you from steep repair bills for unexpected breakdowns.
Your financial cushion is also a factor. If you have an emergency fund, you might be able to pay for repairs on your own. But a home warranty plan can be a valuable purchase if the cost of a sudden HVAC repair or refrigerator failure would hit your wallet hard.
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How much does home repair insurance cost?
Home warranties can cost around $500 per year.[3] Basic coverage, which typically includes major appliances or a few home systems, is cheaper, while more protection comes at a higher cost.
You’ll also need to consider the service fees you’ll pay when a technician or contractor visits your home. Those can range from $50–$150.
Home repair insurance FAQs
Navigating home repairs can be tricky. Here are answers to some of the most frequently asked questions about home insurance.
Is home repair insurance worth it?
It can be, but it depends on your situation. If you’ve moved into a brand-new home where everything is under warranty, then you probably don’t need home repair insurance. But if your home, and several key features, are older, home repair insurance could make sense.
What home repairs does insurance usually cover?
Your general home insurance policy covers damage a covered peril does to your home. This could include fire, smoke, vandalism, theft, wind, and more. Home repair insurance will cover your costs for expensive items in your home that need to be repaired or replaced. This could include your furnace, roof, electrical system, refrigerator, and more.
What’s the difference between a home warranty and home insurance?
Home insurance covers damage and loss of property you sustain from outside forces, while a home warranty covers the breakdown of things in your home. Your home insurance policy also provides you with liability coverage should someone injure themselves on your property. A home warranty doesn’t.
How long do you have to have home repair insurance before you can use it?
Most policies require you to wait one month before filing a claim, but some policies differ. Be sure to read the fine print of your policy to understand the guidelines.
What are the pros and cons of home repair insurance?
Home repair insurance could provide a valuable safety net if you have a major component in your home break down. But if you don’t need the plan or don’t use it, you could waste money on coverage you don’t need.
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
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Sources
- Federal Trade Commission. "Warranties for New Homes."
- Federal Trade Commission. "Extended Warranties and Service Contracts."
- Washington, D.C. Office of the Attorney General. "Consumer Alert — Home Warranties."
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Amy BeardsleyInsurance Writer
Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.
Amy has been a contributor at Insurify since September 2023.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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