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Home Warranty of America (HWA) is worth considering only if you value predictable access to a service contractor and accept meaningful claim conditions. Its published premiums are competitive with many service contracts, but the $100 trade-call fee, prior-approval rules, exclusions, and option for a below-retail cash settlement can substantially change what a claim is worth. HWA’s complaint volume on the current Better Business Bureau profile is also a reason to read the contract before enrolling.
HWA plan prices at a glance
HWA’s 2024 national brochure lists one-year prices by property type and plan tier. The monthly figures below are simple annual-price equivalents, not a statement that HWA bills monthly.
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| Property and plan | One-year price | Annual price divided by 12 |
|---|---|---|
| Single-family Gold | $475 | About $39.58 per month |
| Single-family Platinum | $575 | About $47.92 per month |
| Single-family Diamond | $675 | About $56.25 per month |
| Condo, townhome or mobile-home Gold | $455 | About $37.92 per month |
| Condo, townhome or mobile-home Platinum | $545 | About $45.42 per month |
| Condo, townhome or mobile-home Diamond | $645 | About $53.75 per month |
Every listed plan carries a $100 trade-call fee under the brochure’s standard pricing. The brochure also describes multi-year pricing and possible property-size surcharges, so a quote for a particular address can differ from these national figures.
Optional coverage can raise the total
The brochure identifies optional coverage for items such as external water lines, sewer or septic lines, pool and spa equipment, roof leaks, well pumps and smart-home equipment. It also lists an option for a reduced trade-call fee. Confirm the price and limits for each add-on in the quote and contract; the national brochure does not give one universal add-on price for every property.
#1 Best Overall
What each HWA plan can cover
HWA’s plan matrix includes a broad set of home systems and appliances, but the tier and any selected options determine whether a particular item is included. The listed categories include:
- Air conditioning, heating and ductwork
- Plumbing, plumbing stoppages and sump pumps
- Water heaters and electrical systems
- Ceiling or exhaust fans and alarm systems
- Dishwashers, garbage disposals, built-in microwaves and ranges
- Trash compactors, garage-door openers and refrigerators
- Clothes washers and dryers
Coverage is not the same as a promise to replace every failed item. HWA’s brochure says covered equipment must be in proper working order when coverage begins, and both the brochure and contract impose limitations and exclusions. Before buying, identify which tier covers each system you care about and whether a needed item requires an add-on.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
The contract rules that determine your real cost
You pay the trade-call fee even when coverage is denied
HWA’s terms require the trade-call fee for each service request that is dispatched and scheduled, including requests later deemed excluded or denied. A $100 fee therefore applies to every dispatched request under the standard pricing, not only to successful repairs. For example, two dispatched requests would create $200 in trade-call charges in addition to the annual premium.
HWA chooses the technician
The terms state that HWA selects the authorized repair technician. If you hire someone independently or authorize work before HWA approves it, the contract says HWA will not reimburse that work. Ask for authorization before a contractor begins diagnosis, repair or replacement, and keep the service-request number and written approval.
Cash instead of replacement can leave a shortfall
HWA reserves the right to offer cash in lieu of repair or replacement at HWA’s actual cost. The contract warns that this amount can be less than retail. If the cash offer does not cover the price of a comparable replacement, you pay the difference. You can also remain responsible for non-covered modifications, code upgrades, compatibility work or upgrades required to install a new unit.
Cancellation and refund terms
The online terms provide a full refund within the first 30 days only when no claim has been made. After 30 days, or after a claim, the refund is calculated pro rata and reduced by service costs plus an administrative fee capped at the lesser of $30 or 10% of the total contract price. A customer who has already used service can therefore receive substantially less than the unused portion of the premium.
Rank #4
- Review the effective date and the date HWA received your cancellation request.
- Submit cancellation through the method specified in your contract and save confirmation.
- Ask for an itemized calculation showing the unused premium, service costs and administrative fee.
- Check the refund against the contract’s timing and claim rules before disputing the amount.
Are HWA complaints a red flag?
HWA’s current BBB profile says the company is not BBB accredited and lists 979 complaints in the prior three years, including 283 in the prior 12 months. Recent complaint records describe disputes involving low cash buyouts, exclusions for modifications or improper installation, service delays and reimbursement denied for work performed without prior approval.
Those figures show complaint volume and recurring themes, not an audited claim-denial rate. They also do not establish that every complaint is valid. Treat them as a prompt to test the contract’s procedures: how quickly a technician is assigned, what documentation is required, how a cash settlement is calculated and how an escalation is handled.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Is HWA worth the price?
The decision depends on whether the expected benefit exceeds the premium, trade-call fees and possible out-of-pocket gap. A useful way to evaluate it is to model the situations you are most likely to face rather than assuming every listed component will be replaced at retail.
HWA may fit when
- You want a single dispatch process for several aging systems and appliances.
- You lack a preferred contractor and are comfortable using HWA’s assigned technician.
- You can absorb the $100 fee each time a dispatched request is excluded or denied.
- You have confirmed that the specific equipment, installation and property conditions meet the contract’s eligibility rules.
Self-funding may be better when
- Your home has newer, well-maintained equipment and a low probability of covered failure.
- You already have reliable contractors and want control over who performs the work.
- You could not comfortably pay a replacement-price gap after a cash settlement.
- Your main concerns involve code compliance, prior installation defects, modifications or upgrades that the contract may exclude.
How to compare HWA with another home-service contract
Do not compare annual premiums alone. Put the competing contracts side by side using the same questions.
| Comparison point | What HWA’s published materials say | What to verify in another contract |
|---|---|---|
| Annual premium | Single-family plans are $475, $575 and $675 for Gold, Platinum and Diamond; other listed property types are $455, $545 and $645. | Whether the price is promotional, location-specific, recurring and subject to property-size charges. |
| Trade-call fee | $100 standard fee; the fee can apply to a dispatched request that is denied. | Fee amount, whether it is refundable, and whether denied or repeat visits trigger another charge. |
| Coverage scope | Major systems and appliances are listed, with tier differences and optional add-ons. | Exact covered components, per-item limits and add-on prices. |
| Technician and approval | HWA selects the authorized technician and does not reimburse unauthorized work. | Whether you may choose your own contractor and how written authorization works. |
| Repair versus cash | HWA may pay its actual cost in cash, which can be below retail. | Who sets the cash amount, whether retail pricing is used and how you challenge an offer. |
| Cancellation | Full refund within 30 days only if no claim; otherwise pro rata less costs and an administrative fee. | Cooling-off period, claim-related deductions and cancellation procedure. |
| Reputation and oversight | BBB profile lists 979 complaints in three years and 283 in 12 months; HWA is not BBB accredited. | Complaint patterns, state licensing or regulatory records and the company’s response process. |
Buyer checklist before enrolling
- Request the complete sample contract, not just a plan brochure.
- Mark every system and appliance you expect to rely on and identify its tier or add-on.
- Ask whether the existing installation meets current code and compatibility requirements.
- Confirm the trade-call fee and whether a denied request still incurs it.
- Ask how HWA calculates a cash settlement and whether labor, disposal and required modifications are included.
- Confirm who may perform work and what written approval is required before spending money.
- Record the cancellation deadline and the refund deductions that apply after a claim.
- Keep photographs, maintenance records, model numbers and proof that equipment worked when coverage started.
Bottom line
HWA offers clearly published annual tiers and broad listed coverage, but the contract shifts much of the claim risk to the customer through trade-call charges, exclusions, technician-control rules and cash settlements based on HWA’s actual cost. It is most defensible for a homeowner who has checked the exclusions, can tolerate a potential replacement shortfall and wants a managed service network. If those conditions do not fit, keeping an emergency repair reserve and hiring contractors directly may provide more control and fewer contract surprises.
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