Best home warranty companies in Texas: Which one should you pick in 2024?

Texas’ extreme weather conditions, like scorching summers and severe storms, can strain your home’s systems and appliances. A home warranty can save you from costly repairs and ensure essential items like your HVAC are fixed quickly when issues arise. But which home warranty provider is best for homeowners in the Lone Star State?

To simplify your search for the best home warranty companies in Texas, we’ve highlighted the standout features of our top picks:

Why we picked Select Home Warranty

Select Home Warranty offers the best value for Texas homeowners seeking comprehensive coverage at an affordable price. Our quotes for a townhome and single-family home in Dallas showed that even its most comprehensive plan, Platinum Care, costs less than $50 per month. This is much lower than competitors like American Residential and Home Warranty Inc.

And that’s not all — Select also gives two free months of roof leak coverage when you enroll online. However, there’s a $75 cancellation fee after the first 30 days. This could be a drawback if your living situation changes and you must end your policy early.

Who should use Select Home Warranty

If you’re looking to protect your home’s systems and appliances while sticking to a budget, Select’s plans offer fantastic value. When we got a quote with our Texas ZIP code in June 2024, we were offered a potential savings of up to $150 off any plan.

Pros and cons of Select Home Warranty

Pros

Cons

Why we picked American Residential Warranty Home

American Residential Warranty Home (ARW Home) stands out for its low service fee. It’s a solid choice for Texas homeowners who may need to file frequent claims. We also love that ARW Home services all property types in Texas, including mobile homes, townhomes, single-family homes and multi-family homes.

However, it’s worth noting that policyholders have consistently complained about service and repair issues on the Better Business Bureau (BBB) website. Before signing up, review the policies and discuss with an ARW Home representative how they typically handle conflicts to avoid nasty surprises down the line.

Who should use American Residential Warranty Home

American Residential Warranty Home is a smart choice for Texas homeowners in older homes with dated appliances and systems that may need regular repairs or replacements. With a $55 service fee, filing multiple claims won’t strain your wallet as much.

Pros and cons of American Residential Warranty Home

Pros

Cons

Why we picked Home Warranty Inc.

Home Warranty Inc.’s generous coverage limits impressed us. It offers a high coverage cap of up to $5,000 per covered item. You won’t be saddled with a massive bill if your AC fails during a sweltering Texas summer. We also appreciate that the company lets you choose your contractor. If you have a preferred local service provider for home repairs, you can keep working with them.

Though Home Warranty Inc. offers greater flexibility and higher-than-average coverage caps, its coverage doesn’t begin right after you buy a plan. There’s a 30-day waiting period. So, sign up for coverage before you need it.

Who should use Home Warranty Inc.

Home Warranty Inc. is great if you already have a preferred contractor for home repairs and want the security of high coverage limits. The company also offers a straightforward service fee of $100. This makes it easy to understand what you’ll pay when you need to file a claim. Plus, if you change your mind within the first month, you can cancel your contract and get a full refund.

Pros and cons of Home Warranty Inc.

Pros

Cons

Why we picked 2-10 Home Buyer’s Warranty

We were drawn to 2-10 Home Buyer’s Warranty’s Simply Kitchen plan. With a monthly fee of $27, it’s one of the cheapest options on the market. Even though 2-10 offers a unique, cost-effective solution for Texas homeowners who want to focus their coverage on kitchen appliances, it only covers your washer and dryer if you buy the most expensive plan, Pinnacle Home. If that’s a priority, it may be worth exploring other options that may include that coverage for less.

Who should use 2-10 Home Buyer’s Warranty

2-10’s kitchen plan is suitable for Texas homeowners who want to protect their essential kitchen appliances without paying for coverage they don’t need. It could be perfect if your home’s systems, like the HVAC, are relatively new and unlikely to need repairs or replacement soon.

Pros and cons of 2-10 Home Buyer’s Warranty

Pros

Cons

Why we picked AFC Home Warranty

AFC Home Warranty makes it a breeze for Texas homeowners to find the right plan for their needs. During the online quote process, I was impressed by how simple it was to compare and contrast monthly fees based on the service fee chosen.

Opting for the lower service fee results in a higher monthly payment. However, the transparency in pricing helps you make an informed decision based on your budget and anticipated repair needs.

Who should use AFC Home Warranty

AFC Home Warranty is promising if you want a straightforward way to compare plan options and find the best fit for your budget. It doesn’t cover preexisting conditions, though. So, if you have an older home with potential unknown issues, consider a provider, like American Home Shield, that offers this coverage.

Pros and cons of AFC Home Warranty

Pros

Cons

Why we picked American Home Shield

American Home Shield (AHS) offers comprehensive coverage that’s particularly well-suited for Texas residents. With average temperatures reaching as high as 96 degrees in the state, a working AC system is crucial. AHS provides a generous $5,000 coverage cap for cooling systems, exceeding the $500 limit offered by some competitors, like Select Home Warranty.

We also appreciate that AHS’s most comprehensive plan includes bonuses like a free HVAC tune-up and unlimited AC refrigerant. This shows that AHS encourages proactive maintenance, which helps prolong a system’s lifespan. On the downside, its service fees are steep — starting at $100. This may make it harder for Texas homeowners to justify filing multiple claims, even when needed.

Who should use American Home Shield

American Home Shield is stellar for Texans who want thorough coverage for their primary home systems, especially air conditioning. If you have extra features like pools, spas or guest units, AHS also offers add-ons to cover these.

Pros and cons of American Home Shield

Pros

Cons

Why we picked Cinch Home Services

Cinch Home Services’ unique perks set it apart from other home warranty providers. With the $25 credit for AC or refrigerator filters, Cinch encourages Texans to take preventative measures to maintain their cooling system’s efficiency.

One drawback, though, is it doesn’t offer roof leak coverage. This could be a concern if you live in an older Texas home prone to leaks during heavy rainfall. Most other home warranty companies may not offer roof leak coverage in their standard plans, but at least offer it as an add-on.

Who should use Cinch Home Services

Cinch is worth considering if you appreciate perks that make homeownership more affordable while simplifying maintenance tasks. Through Cinch, you can get discounts and credits that help you save on big purchases, like new appliances. For example, Texas homeowners with the Complete Home plan get a free AC or refrigerator credit and an insurance deductible reimbursement of up to $500.

Pros and cons of Cinch Home Services

Pros

Cons

Our picks at a glance

Here’s an overview of the best home warranty companies for Texas homeowners:

What didn’t make the cut

*BBB ratings are accurate as of October 2024

How to choose a home warranty for your Texas home

Benson Varghese, founder of local law firm Varghese Summersett, advised against automatically going with the warranty offered by your home builder. “Some builders use these warranties to reduce their post-sale liability,” he warned.

Instead, consider these factors when researching and choosing a home warranty for your home in Texas:

Coverage

Review sample contracts to ensure the plan covers the systems and appliances that matter most to you. If you live in a city like Dallas or San Antonio, where summers are hot and humid, you’ll want good coverage for your AC system.

Customization

Find a company that lets you tailor your coverage to your unique needs. For example, Houston is prone to heavy rainfall and hurricanes. If you live here, consider prioritizing coverage for your sump pump and roof leaks. On the other hand, if you live in a dry area like El Paso, you might place more emphasis on your AC system to stay comfortable during scorching summers.

Financial stability

Varghese recommends getting coverage from a provider with a solid financial foundation, like American Home Shield. He told us, “My client dodged a bullet when their builder went bankrupt a couple of years after buying their home. Good thing they hadn’t gone with their warranty!”

Service area

Research the company’s local branches and partners in Texas. A provider with more branches near your home may offer better service quality and faster response times.

What should a Texas home warranty include?

According to Varghese, Texas homeowners should prioritize these items when shopping for a home warranty plan:

Air conditioning

“When it comes to items covered, the top thing I recommend verifying is air conditioning,” said Varghese. “Here in Texas, our scorching summers mean AC is a must-have. And let me tell you from experience — when that unit goes, it isn’t cheap to replace.” With temperatures often soaring into the 90s, having reliable coverage for your cooling system is crucial.

Appliances

The high humidity during Texas summers can take a toll on your refrigerator. This ultimately affects its ability to maintain proper temperature. Your oven, dishwasher and washer/dryer can also suffer from the wear and tear of daily use. Including major appliance coverage in your plan gives you peace of mind, knowing you’re protected against unexpected costs when these essential items malfunction.

Electrical systems

Texas is known for its powerful storms. Unfortunately, they can lead to power surges that damage your home’s electrical components. Look for a plan that includes coverage for your electrical systems to safeguard against these risks.

Plumbing

Texas homes are more susceptible to plumbing issues due to the state’s hard water. This can cause mineral buildup and lead to clogs or leaks. The extreme temperature fluctuations also stress your pipes, increasing the risk of bursts. Comprehensive plumbing coverage in your home warranty plan can help you avoid costly repairs or replacements for your water heater, pipes and other essential plumbing components.

How are home warranties regulated in Texas?

The Texas Department of Licensing and Regulation (TDLR) regulates the home warranty industry to ensure companies operate ethically and fulfill their consumer obligations. The TDLR requires all home warranty providers to get a license before offering service contracts in the state. To secure and maintain this license, companies must show financial responsibility by submitting detailed financial reports and following TDLR’s established best practices for fair business operations.

As a Texas homeowner, you can use these regulations to protect yourself when shopping for a home warranty. Visit the TDLR website to verify a company’s licensing status before buying a policy. If you encounter an issue with a provider failing to honor your contract, you can file a complaint through the TDLR’s online portal.

Methodology

To determine the rankings for best home warranty companies in Texas, the CNN Underscored Home editorial team analyzed 21 companies, with each company’s star rating determined by a variety of metrics and subcategories, including:

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