With so many options, shopping for home warranty companies in Texas can easily seem like an overwhelming process — but it doesn’t have to be. After a ton of research and a handful of quotes, I discovered that BFS Home Warranty has the cheapest coverage for me, while Right Way Home Protection excels at the quote process and NRG Home Services shines when it comes to claims.
The Best Texas Home Warranty Companies
|Home Warranty Company||Best for…|
|BFS Home Warranty||The Cheapest Basic Coverage and The Cheapest Premium Coverage|
|Right Way Home Protection||Quote Process|
|NRG Home Services||Claims Process|
To find the best home warranty in Texas, I researched seven local providers (including American Home Shield, The Simple Dollar’s national recommendation), and scored them on 12 different metrics, including service fees and quote tool ease-of-use. I got quotes for basic and premium coverage, then went to work comparing exactly what they offered. I found that BFS had the cheapest overall coverage, while Right Way Home Protection offered the best quote process. NRG Home Services also stood out due to an upfront and honest claims process, but wasn’t quite as affordable as the competition.
Here are my quotes:
|Home Warranty Company||Basic Coverage Quote||Premium Coverage Quote|
|American Home Guardian||$450||$1,200|
|American Home Shield||$468||$804|
|A Better Home Warranty Company||$470||$1,415|
|Right Way Home Protection||$549||$979|
*The seventh company I evaluated was Anchor Home Warranty, but I was unable to ever make contact with the company and receive a quote.
Round One: Quotes
Obtaining a quote for a home warranty is a pretty painless process, but I found that Right Way Home Protection made it even easier than normal. Most companies list all pricing and plan information directly on a website. Occasionally, you’ll have to enter your contact information first. With Right Way Home Protection, all I had to do was answer whether I was a current or prospective home buyer, and all of their pricing details popped right up. I was able to easily compare plans, opt into add-on features, and see my total price at the bottom of the screen.
I was impressed with how upfront home warranty providers in Texas were about plan details. Six out of seven allowed access to pricing online and without a wait. However, some online quote tools were better than others. For example, NRG Home Services and A Better Home Warranty both had pricing pdfs instead of online tools. That might not sound like a big deal, but it means that you’ll have to take notes and use a calculator to tabulate your final cost. If you’re not sure exactly what you want covered, that’s a time consuming process.
As a final note, I wasn’t able to get a quote from Anchor Home Warranty, period. It didn’t have prices listed online, and didn’t respond to my quote request before press-time (within three days).
Round Two: Claims
NRG Home Services was my top pick for filing a claim. It has an easy-to-navigate customer portal where you can file a claim, and a low standard service fee of $65. I also loved that a sample warranty contract was easily accessible on its website, and extremely user-friendly. While most companies bury exclusions in pages upon pages of fine print, NRG has a color-coded, organized, and accessible contract. So you don’t need to speak lawyer to understand exactly what your warranty does and doesn’t cover.
Round Three: The Cheapest Basic Coverage
Pricing for basic home warranty coverage was competitive across the board, but BFS Home Warranty edged out the competition with a low annual rate of $430. It also had the lowest claims fee I could find, at just $55. That made it an easy choice for cheapest basic coverage.
Comparing the price of a home warranty with different providers isn’t as straightforward as it may sound. Some contracts last 12 months, while others last 13. Some providers list prices by the month, but give you a discount for paying yearly. And some plans have comparable prices, but vary in coverage.
I researched pricing as a prospective homebuyer looking for coverage on a 2,200 square foot home with a heater, HVAC, and washer/dryer. Prices adjusted for a 12-month warranty ranged from $430-$507. That’s only a $77 difference annually, so if you’re partial to a different company because of personal experience or reputation, you should go for it.
Claims fees in Texas are relatively low across the board. Only one company, American Home Shield, had a service fee over $100. (It was $125.) The rest ranged from $55-$75. Usually, you have to pay extra to get a fee that low, but these all came standard.
Round Four: The Cheapest Premium Coverage
BFS Home Warranty also had the lowest price for premium coverage in Texas. At $755 for a 12-month period, it narrowly edged out NRG Home Services ($780) and American Home Shield ($804). For premium coverage, there was a wider range of pricing, with some companies coming in at over $1,000.
To compare pricing for premium coverage, I got quotes for a 6,100 square foot home in Texas with a water heater, washer/dryer, oven, AC, refrigerator, garbage disposal, wine cooler, microwave, cooktop, and outdoor pool. I also said my appliances were upgraded and energy efficient. I wanted to add on roof and septic tank coverage, but several of the companies on my list didn’t offer protection for those items, so for the sake of consistency, I left them out.
Pricing for a premium home warranty varies quite a bit depending on what you’re looking for. Most companies offer a competitively priced premium package, but the add-ons add up. To save money, look for a plan that already includes most of the coverage you need, so that you can minimize extra fees when tacking on excluded appliances/systems.
Do I need a home warranty in Texas?
If you’re building or remodeling a home for sale in Texas, you need to have a home warranty. (That is, unless your remodel is less than $20,000.)
“The warranties are one year for workmanship and materials; two years for plumbing, electrical, heating and air conditioning delivery systems and ten years for major structural components of the home. There is also a 10-year warranty of habitability, which addresses defects that could not have been reasonably discovered during the one- and two-year warranty periods, but later become apparent and negatively impact the habitability of the home. — Insurance Journal
Since the guidelines vary depending on the type of remodel, talk to your realtor or a real estate expert to learn the specifics of selling your home.
The Fine Print
While most home warranty contracts are pretty similar, it’s important to read yours thoroughly. Knowing what your home warranty covers will save you a hassle and headache down the road. After reading through enough fine print to make my head spin, here are a few takeaways prevalent in most contracts:
- Each item in your home warranty has a maximum coverage amount. If service or a replacement goes over that amount, you’ll owe money out of pocket. Additionally, your home warranty has a maximum annual amount it will pay on your behalf.
- If you already know you’ve got a faulty appliance, and your contract hasn’t started yet, it won’t be covered.
- Check your warranty provider’s auto-renewal policy. Some warranties will bill you for another year if you don’t cancel in time.
- Even for items that are specifically outlined in your plan, there will be exclusions. For example, your plumbing may be covered, but your sink probably isn’t.
- Your warranty provider isn’t necessarily responsible for returning your home to normal after a service visit. For instance, if they need to open your walls up to fix some wiring, they have to close them up, but they don’t have to touch up the paint or wallpaper. This clause gets particularly expensive when it comes to replacement appliances that are a slightly different size. If your new oven doesn’t fit between your cabinets, your home warranty company isn’t responsible for the carpentry.
- A home warranty covers your unit, not your entire building. So if you own a three-flat and want all units covered, you’ll generally need three separate policies.
The Bottom Line
Texas has plenty of home warranty providers to chose from, and the pricing is competitive if you’re looking for basic coverage. For upgraded coverage, you’ll find a wider range of prices, so keep track of exactly what you need covered, and make sure you’re comparing apples to apples.
I found BFS Home Warranty to be the cheapest overall, while NRG Home Services had the best claims process, and Right Way Home Protection won for simplest quote tool. Depending on your priorities, any one of the options I researched could be right for you. And remember, the best way to ensure you’re satisfied with your home warranty is to thoroughly read their contract and exclusions, so before you buy, make sure to read the fine print.
Best Home Warranty in Texas
- BFS Home Warranty
- Right Way Home Protection
- NRG Home Services