Home Warranty of America home warranty review

About Home Warranty of America (HWA)

Home Warranty of America (HWA) is a home warranty carrier. A home warranty is a service contract that covers major home systems and/or appliances. HWA has been around for almost 24 years. It is a subsidiary of Direct Energy US Home Services Inc (aka Direct Energy), an electricity and natural gas utilities company that also offers plumbing, heating, and air-conditioning services.

What types of homes are covered?

HWA covers single-family homes (including manufactured homes), condominiums, or townhouses under 5,000 square feet used solely for residential purposes. (Note: HWA offers coverage for larger homes at additional costs. For this review, we’re focused on home sizes under 5,000 square feet.) Only manufactured homes that are anchored to a permanent foundation and not moved during the contract period are eligible. Any homes used for business and commercial purposes are not covered. Shared systems and appliances with other homes are not covered.

Available plans

HWA offers two plans: a Premier Plan and a Premier Plus Plan.

Premier Plan

The Premier Plan include coverage for the following:

• Heating system
• Ductwork
• Water heater
• Clothes dryer
• Clothes washer
• Kitchen refrigerator with ice maker
• Range/oven/cooktop
• Built-in microwave

• Dishwasher
• Garbage disposal
• Trash compactor
• Central vacuum
• Electric system
• Ceiling fan/exhaust fan
• Burglar/fire alarm
• Drywall

• Doorbell
• Garage door opener
• Plumbing system
• Instant hot water dispenser
• Permanent sump pump
• Stoppages/clogs
• Whirlpool bathtub

Premier Plus Plan

The Premier Plus Plan includes everything that the Premier Plan covers PLUS the following:

• Comprehensive dishwasher coverage
• Comprehensive garage door systems
• Air Conditioners (including window units)
• Plumbing fixtures, faucets, and showerheads

What add-ons are available?

HWA offers some items that you could add to your plan at an additional cost. These include:

• GreenPlus
• Limited roof leak repair
• Standalone ice maker
• Pool/spa combo
• Well pump
• Salt water pool
• Septic tank pumping
• Second refrigerator
• OrangePlus
• Standalone freezer
• SEER/R-410A modifications
• Septic system/sewage ejector pump/septic tank pumping

Note: commercial grade equipment, systems or appliances are not covered.

How much does HWA cost?

HWA’s pricing varies by plan type (Premier Plan or Premier Plus Plan), the service fee amount you choose, and the home type and size. The service fee options are $75 or $100. The lower the service fee, the higher the plan cost and the higher the service fee, the lower the plan cost. As with most home warranty carriers, you may pay for your plan in monthly installments or all at once.

Unlike other carriers, HWA’s contracts are for 13 months rather than the standard 12 months.

HWA plan pricing summary

Note: these prices do not include taxes. They’re also just estimated prices for a single-family home under 5,000 square feet. Check for actual pricing on HWA’s site.

Service Fee: $75 (13-month term)
Plan	Monthly Payment	One-Time Payment
Premier	$44.62	$580.06
Premier Plus	$53.46	$694.98

Service Fee: $100 (13-month term)
Plan	Monthly Payment	One-Time Payment
Premier	$41.15	$534.95
Premier Plus	$50.38	$654.94

How’s the service contractor network?

HWA provides access to a nationwide network of prescreened contractors. We couldn’t find on its website how big its network of contractors is. It also provides a 90-day guarantee for parts and 30-day guarantee for labor to repair problems that persist at no additional cost.

You may request service by calling HWA’s customer service or by logging into your online account through the HWA site.

Most of the complaints on the Better Business Bureau (BBB) site about HWA have been about company response time to claims, emails, and calls for replacements and repairs. These customer ratings impacted our rating of HWA.

What types of malfunctions are covered?

HWA covers malfunctions of covered systems and appliances due to “normal wear and tear” during the contract term, including malfunctions due to insufficient maintenance if, at the time the issue or breakdown, was unknown.

What types of malfunctions are not covered?

HWA does not provide coverage for covered systems and appliances that:

• Have malfunctions caused by chemical or sedimentary buildup, insect infestation, mold, mildew, or bacterial manifestations, misuse, abuse, theft, vandalism, failure to clean or maintain as specified by the manufacturer, missing parts, structural changes, freezing, electrical failure or surge, water damage, intentional acts, riot, lightning, mud, earthquake, soil movement or settlement, storms, accidents, pest damage, excessive water pressure, or any other perils not considered loss or damage due to normal wear and tear
• Have malfunctions due to improper installation, design, or previous repair of covered items
• Have failures caused by a manufacturer’s defect
• Have damages caused indirectly or directly by acts of God, fire, war, flood, earthquake, hurricanes, tornadoes, and other natural disasters, acts of terrorism, acts of any governmental authorities, accidents, strikes, labor troubles, shortages in supply, changes in laws, rules, or regulations of any governmental authority, and any other cause beyond HWA’s reasonable control

Note: the above may not be the full list of what’s not covered by HWA. Review your agreement for the full list.

Also, HWA does not cover the costs to remove defective equipment.

What coverage amount limits are there?

Most home warranty plans have maximum amounts that the carrier will pay out to you for repairs and/or replacements of certain covered systems and appliances per covered item per contract term.

HWA pays up to $5,000 per covered item and a total of $15,000 for all repairs and replacements per contract term. Some covered items have other limits. See below for details.

Premier Plan limits

For the Premier Plan, the following limits apply:

• $1,500 in aggregate for professional series or similar appliances, including, but not limited to brand names such as Sub-Zero, Viking, Bosch, JENN-AIR, GE Monogram, Thermador
• $1,000 per covered plumbing system item and $2,000 in aggregate for plumbing repairs due to rust
• $1,000 for tankless or oil water heaters
• $2,000 for electrical repairs due to rust
• $1,000 for ductwork that is accessible only through concrete encased floor, wall, or ceiling
• $5,000 for HVAC system
• $1,500 for heating system/furnace
• $400 for central vacuum
• $400 for burglar and fire alarm systems

Premier Plus Plan limits

In addition to the above limits, for the Premier Plus Plan, there is also a $500 limit for toilets.

Covered add-on limits

For optional add-ons, the following limits apply:

• OrangePlus: $600 for toilet replacement of similar quality, $250 for building code violation, $250 per building permit, $2,500 for professional series appliances, and $750 in aggregate for any improperly mismatched and/or unknown improper installation
• GreenPlus: $1,500 for upgrade replacement of tankless water heaters
• $1,000 for SEER/R-410A modifications
• $1,000 for standalone freezer
• $1,000 for pool and/or spa equipment
• $1,500 for saltwater pool equipment
• $5,000 for external water line repair, with a limit of $500 for landscape restoration
• $5,000 for external sewer and septic line repair, with a limit of $500 for landscape restoration
• $500 for septic system
• $1,500 for well pump

When does coverage start?

There is a waiting period from the time you purchase your plan to when you can request service. HWA will let you know when your coverage begins before you complete your purchase. Generally, you may start requesting services 30 days after you purchase your plan. Your coverage start date will also be on your contract.

What’s the cancellation policy?

You may cancel your warranty agreement at any time. To cancel, you may call HWA’s customer service. If you cancel within the first 30 days after you purchase your plan, you’ll get a full refund. After the 30 days, you’ll receive a pro-rated refund based on the months not used in the plan minus any service or claim costs incurred and a cancellation administrative fee of $30 or 10% of the total contract price—whichever is less. Some states have differing cancellation rules as well. See HWA’s sample agreement for details.