Many home warranty policies include water heater coverage, but some plans (like appliance-only plans) don’t. As we all know, home warranty companies often promise a lot but fall through when you submit a claim after your water heater or HVAC system fails. So, what can you do to ensure your provider doesn’t deny your claim and you’re not left with a big water heater repair bill?
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A home warranty can give you a necessary financial buffer so you’re not saddled with massive repair bills for your water heater, appliances, or home systems, depending on the plan. However, many of us are wary of these companies because of their poor reputations around squeaking out of paying claims. I totally understand this. Like most people, I’m apprehensive about trusting my hard-earned money in a company’s hands, but I’ve done the complex research for you.
I’m here to help by recommending companies with outstanding reputations, affordable plans, comprehensive coverage, and much more. Keep reading for the best home warranty companies for water heaters ranked using Today’s Homeowner’s unique criteria and my countless hours of research, reading through lengthy sample contracts, and secret shopping.
Here’s how we ranked and reviewed the nation’s top home warranty companies to bring you the most accurate information. Read our full Home Warranty Review Methodology for more details.
78 companies reviewed
152 quotes collected
6 rating factors
Top 5 Home Warranty Companies for Water Heaters
Key Takeaways
- American Home Shield is an easy winner for water heater coverage in my book because it’s the only company that covers duplicate water heaters for free (a significant benefit for large homes with multiple water heaters) and offers impressive coverage of up to $1,500.
- If you read anything in the sample contract, read the exclusions. There are catches and surprises most of the time. Be sure to look out for exclusions regarding cleaning and maintenance. American Home Shield is one of the only companies that doesn’t require maintenance records for claim approvals, so they’re my preferred provider for water heater coverage.
- I’ll be frank. You don’t need coverage for your water heater if it’s still covered under a manufacturer’s warranty. Double-check how long your manufacturer’s warranty is applicable and enroll in a home warranty before it expires to extend your coverage and get peace of mind.
What’s Most Important in a Home Warranty for Water Heaters?
When prioritizing water heater coverage, I recommend looking for providers with high coverage limits. A coverage limit determines how much a company will pay out for a covered item, such as your water heater, so you want to make sure the coverage limit is high enough to give you a decent financial cushion.
Look out for companies with extensive exclusions specific to your water heater (such as those relating to sediment build-up or tank size) and other requirements like cleaning and maintenance records. All these can lead to a provider denying coverage, so read your policy contract closely to ensure you’re okay meeting the company’s coverage requirements.
Expert Recommendation: American Home Shield is my number one choice for water heater home warranty coverage because they cover up to $1,500 for the water heater (about three times what most companies offer). They also won’t charge you more for coverage on a second water heater if your home uses a multiple water heater setup.
For more information on American Home Shield, watch this video:
Home Warranty Companies for Water Heaters I Don’t Recommend
I didn’t include HomeGuard Home Warranty, Inc. because they have a terrible F rating with the Better Business Bureau (BBB) and an ongoing alert from the BBB warning consumers about their allegedly misleading advertising. They also have a confusing sample policy that only lists certain coverage caps, leaving out water heaters, dishwashers, trash compactors, and more.
Compare The Highest Rated Home Warranties for Water Heaters
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Company
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Rating
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Monthly Cost
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Service Fee
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Response Time
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BBB Rating
|
Link |
|---|---|---|---|---|---|---|
 Liberty Home Guard
Get Quote
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$50-$60 | $75 | 12-48 hrs. | NR | Get Quote | |
 American Home Shield
Get Quote
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$35–$75 | $100–$125 | 24-72 hrs | B | Get Quote | |
 Elite Home Warranty
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$44.99-$58.99 | $70 | 48 hours | A+ | ||
 Choice Home Warranty
Get Quote
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$46–$55 | $85 | 24-48 hrs. | B | Get Quote | |
 Select Home Warranty
Get Quote
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$52–$58 | $75-$85 | 24-48 hrs. | B | Get Quote | |
 AFC Home Warranty
Get Quote
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$38–$62 | $75–$125 | 48 hours | B | Get Quote | |
 First American Home Warranty
Get Quote
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$72–$87 | $75–$125 | 48 hours | B | Get Quote | |
 2-10 Home Warranty
Our Review
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$17–$60+ | $65–$100 | 24 hrs | A- | Our Review | |
 Cinch Home Services
Get Quote
|
$28–$68 | $100–$150 | 2–24 hrs | B | Get Quote |
Quote and cost data gathered January 2024. Cost data are updated and monitored continuously.
Our Reviews of the Best Home Warranties for Water Heaters
American Home Shield
4.3
Our Rating
If you have a larger home or a modern two-water-heater setup, American Home Shield (AHS) is one of few providers that cover duplicate items, meaning you don’t need to pay extra to have both water heaters covered. A strategically placed second water heater, even in a smaller home, is often more energy efficient and it’s nice that American Home Shield doesn’t penalize their customers by charging more for the double coverage. You also don’t have to worry about producing maintenance records to have AHS approve your claims, which I love because worrying about keeping detailed records on top of everything else going on in my household is just one more chore.
In addition to these benefits, AHS offers some of the most extensive water heater coverage (up to $1,500 for the water heater and $1,000 for cutting through concrete for access if necessary). However, AHS does charge higher rates than many home warranty providers, and I don’t love their considerable number of negative reviews online. They average around a 2-star rating from third-party review websites like Trustpilot.
Overall, this provider is my top pick for water heater coverage because of their exceptionally high coverage limits, which apply to your water heater, appliances, and home systems like your HVAC —and because their contract doesn’t contain frustrating exclusions.
Hands down, my favorite thing about American Home Shield is that they offer stellar heat pump coverage for under $10 per month. AHS has $5,000 coverage caps for HVAC systems on every plan — even the ShieldSilver plan ($7.49 a month). If your main priority is getting coverage for
American Home Shield is one of two home warranty companies on this list that offers water heater protection with every home warranty plan they offer. This gives you greater flexibility as you can choose between more budget-friendly plans or the most comprehensive plan, depending on your needs outside water heater coverage. On top of this, their water heater coverage is far more generous, with up to $1,500 in coverage, plus an additional $1,000 in coverage if the contractors need to cut through concrete for access. Their exclusions are also reasonable, with only tempering or fuel storage tanks listed as not covered in their sample policy.
On top of their excellent coverage, AHS automatically covers duplicates of the same item, like a second water heater, items without maintenance records, and removal of defective equipment (which Choice Home Warranty makes you pay an additional $100 service charge for). You don’t have to worry about breakdowns caused by improper installations or repairs, insufficient maintenance, rust, or corrosion. This reassurance greatly reduces my worries that AHS will deny my water heater claim, and I’ll be left footing a $1,000 repair bill.
heat pump and you don’t care about the rest of the systems in your house, you won’t find a better deal than this anywhere else. Additionally, AHS has a policy that if they can’t repair an item, they’ll replace it, which essentially means there are no predetermined coverage limits for replacements. There’s still plenty of room for loopholes with this policy, but it’s nice to know that you have the leverage to request a free replacement if they can’t repair your heat pump.
American Home Shield plans are more expensive than those of most other providers. The quote I got for a two-bedroom home was $59.99 for their starter plan. While their pricing varies based on location, plan, and coverage, it’s above the national average of $50 per month, especially if you opt for their ShieldPlatinum plan, which they quoted me at $109.99 monthly.
Their ShieldPlatinum includes their excellent roof leak coverage add-on (a value of $10 per month). However, AHS is undoubtedly less affordable than a provider like Select Home Warranty, which offers plans in the $40 price range.
All three of AHS’s home warranty plans include coverage for water heaters of up to $1,500, which is far greater than Choice Home Warranty, which only has $500 in water heater coverage. While I find all of American Home Shield’s plans comprehensive, their ShieldPlatinum plan stands out because it includes free roof leak coverage (a $10 per-month value). With their ShieldPlatinum plan, you receive special member benefits like rekeys, unlimited AC refrigerant, and one free HVAC tune-up seasonally, which can save you from expensive HVAC repairs down the road. On top of that, this plan protects 23 systems and appliances, so you can breathe a sigh of relief since your home is covered.
During my secret shopping, AHS provided me with these quotes, which exclude available discounts.
| Plan | Monthly Cost* | Service Fee* | Available Discounts |
| ShieldSilver | $59.99, $89.99 | $100, $125 | Same-day discount of $125 off first year (website), military, American Association of Retired Persons (AARP), multiple properties (phone) |
| ShieldGold | $79.99, $109.99 | $100, $125 | Same-day discount of $125 off first year (website), military, AARP, multiple properties (phone) |
| ShieldPlatinum | $109.99, $139.99 | $100, $125 | Same-day discount of $125 off first year (website), military, AARP, multiple properties (phone) |
*Higher monthly costs “pair” with lower service fees; for example, with the ShieldSilver plan, the $59.99 monthly cost pairs with the $125 service fee.
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Santa Fe, NM. The cost data presented was accurate at the time of writing.
Available Add-Ons
American Home Shield has above-average roof leak repair coverage (up to $1,000). If you don’t go for the ShieldPlatinum plan, which includes this coverage without the additional $10 per month charge, I strongly recommend opting for the add-on.
- Roof leak repair: $10/month
- Electronics protection plan: $14/month
- Pool & built-in-spa equipment: $18/month
- Guest unit: $15.99/month
- Septic pump: $5/month
- Well pump: $8/month
While AHS claims their plans start at less than $1 per day, most quotes I’ve received are a minimum of $50 per month, which is on the pricier side for this industry. With that said, American Home Shield has much higher coverage limits, so they deliver substantial value for that higher cost. I find their add-ons priced competitively, especially considering their higher coverage limits. American Home Shield offers a variety of discounts, including special deals for AARP members, military service, referrals, and multiple properties. You can even opt for a higher service call fee of $125 instead of $100 per visit if you want to save on your monthly premium and don’t think you’ll need frequent repair services.
American Home Shield delivers a professional customer experience with their efficient quote process, user-friendly website, and knowledgeable agents. You can get a quote online instantly, which saves you time during your research process. Plus, you only have to wait 30 days for your coverage to activate after enrolling to rest easily and ensure your water heater is covered. This is starkly different from a provider like Liberty Home Guard, which makes you wait longer until your policy is active, leaving more room for issues to develop when the policy doesn’t protect you.
With over 50 years of experience, American Home Shield is an industry leader, and they have a reasonable B rating and accreditation from the BBB to show for it. However, their overall ratings from third-party review websites are poor (around 2 stars on average).
I found a review sharing that the customer had been with AHS for seven years, and when their water heater broke down, the company wouldn’t cover it. On the other hand, I found many positive reviews that praised American Home Shield for their high coverage caps, with reviewers noting the company replaced their water heater and other appliances multiple times. Another happy customer shared that they were pleased with AHS’ workmanship guarantee, which meant they didn’t need to pay a second service fee when the first repair to their water heater went awry.
| Rating Site | Rating | Number of Reviews |
| BBB | B / 2.1 out of 5 stars | 11,064 |
| Trustpilot | 2.2 out of 5 stars | 5,352 |
| Yelp | 1.1 out of 5 stars | 1,296 |
Editor’s Note: The ratings provided were accurate at the time of writing.
American Home Shield has a standard claims process with 24/7/365 availability over the phone and emergency repairs for those days when your water heater breaks down in the middle of winter. As with most providers, you can submit claims through customer service or the online portal. AHS loses a few points for their slower claims processing time, which our team found took around 48 hours. While 24 to 48 hours is typical in this industry, it’s still a longer wait time than a provider like Liberty Home Guard, which takes 12 to 24 hours on average — much more doable when considering holding off on a shower for a day before a technician comes and repairs your water heater.
American Home Shield scores nearly a perfect rating for their transparent practices. I find AHS’ website and sample policy particularly clear-cut and easy to understand. For water heater coverage, you’ll find that they exclude only tempering tanks or fuel storage tanks. This is far fewer exclusions than most providers in this industry have, making AHS a more user-friendly provider — a must in an industry with an infamous reputation for confusing policies and exclusions.
Exclusions
None of AHS’s exclusions are out of the ordinary, which gives me peace of mind, especially since they don’t discriminate against old water heaters or appliances with unknown preexisting conditions.
- Construction or carpentry costs
- Restoration of walls
- Flues, chimneys, venting, and exhaust lines
- Repairs or replacements due to cosmetic defects
- Repairs due to mold
- Natural disasters
Editor’s Note: While this article highlights certain exclusions, it’s imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
American Home Shield receives a low 5 out of 10 score because it typically doesn’t allow you to choose your own service provider. Their website shares that they assign the contractor, but there may be rare occasions where AHS authorizes you to pick a service provider with their approval.
Liberty Home Guard
4.6
Our Rating
Liberty Home Guard (LHG) is my top recommendation if you’re looking for comprehensive plans with unique coverage. This provider offers three well-defined plans (two with water heater coverage) and over 40 add-ons. Their add-ons are unmatched in variety in the industry, with unique items like coverage for your wine cooler and instant hot water dispenser and services like pest control, carpet cleaning, and window washing.
On the other hand, Liberty Home Guard has lower coverage caps than I’d like to see, mainly when I’m relying on a provider to pay for expensive appliance or water heater repairs. Some of their coverage caps are as low as $500, which is likely insufficient for more extensive repairs. Another downside is that Liberty has complicated exclusions in their sample policy, making it challenging to determine what may disqualify your claim. For example, Liberty doesn’t cover water heaters if they have sediment build-up. Overall, this isn’t a deal-breaker for me, but you’ll want to read your policy closely so you’re not surprised by any exclusions such as preexisting conditions.
Two out of three of Liberty Home Guard’s plans cover water heaters, giving you more flexibility than some providers when picking a plan with water heater coverage. LHG’s plans are more comprehensive than most, with coverage for more unique items like your ceiling and exhaust fan, in-sink garbage disposal, garage door opener, and built-in microwave — not to mention Liberty’s incredible range of add-ons, making them one of the most customizable providers on the market. You can choose from over 40 add-ons (most companies offer around 10) and opt for unique items like coverage for a reverse osmosis water filter, grinder pump, instant hot water dispenser, and even services like carpet or gutter cleaning, which can help you avoid maintenance costs down the road.
Liberty Home Guard has complicated, extensive exclusions. While nothing is abnormal for the industry, the large number of exclusions can be a lot to keep track of. For example, water heater exclusions include sediment build-up, insulation blankets, storage tanks, drain pans, and lines, among other things.
Liberty Home Guard falls short with their low-coverage caps. Some items, like your plumbing or electrical system and water heater, only receive $500 in coverage, which isn’t enough to fully cover you for the cost of major repairs or a replacement. While I think Liberty offers thorough coverage regarding the number of items covered, they lack higher coverage caps.
Another example is Liberty’s HVAC coverage, which is only $2,000. Most providers offer$3,000 in HVAC coverage. Some companies, like American Home Shield, go above and beyond and have $5,000 in coverage, which leaves me feeling my system is genuinely protected.
The Systems Guard and Total Home Guard plans both include water heater coverage. However, you can choose from Liberty’s three comprehensive plans: an appliance-only plan, a systems-only plan, or the Total Home Guard plan, which covers both. I appreciate how thorough Liberty’s plans are, with novel coverage for items like garage door openers, ceiling and exhaust fans, and built-in microwaves. Plus, you can choose even more unique coverage as part of their add-ons on top of your regular plan, like coverage for your stand-alone freezer, electronics, trash compactor, or reverse osmosis water filter.
I especially like LHG’s electronics protection coverage, which protects two TVs, one PC, or laptop, one home theater system, and one smart home system. Smart home systems can cost anywhere from $2,000 to $4,000. Protecting this investment with additional electronics coverage can be a smart move, so you don’t have to worry about hefty repair bills after your smart thermostat goes berserk. From Liberty, my recommendation for most homeowners is the Total Home Guard plan. It covers both home systems and appliances for only $5 to $10 more than their other plans.
The following table doesn’t include available discounts.
| Plan | Monthly Cost | Service Fee | Available Discounts |
| Appliance Guard | $49.99 | $125 | Two months free, free limited roof leak protection, $200 off coupon (website or phone) |
| Systems Guard | $54.99 | $125 | Two months free, free limited roof leak protection, $200 off coupon (website or phone) |
| Total Home Guard | $59.99 | $125 | Two months free, free limited roof leak protection, $200 off coupon (website or phone) |
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Santa Fe, NM. The cost data presented was accurate at the time of writing.
Available Add-Ons
Liberty Home Guard has an unmatched number of add-ons, with unique options like re-keying, gutter cleaning, pest control, and window washing.
- Pool and spa: $19.99/month
- Additional spa: $9.99/month
- Lawn sprinkler system: $9.99/month
- Saltwater pool: $23.99/month
- Generator: $19.99/month
- Casita guest unit: $35.99/month
- Sump pump: $8.99/month
- Well pump: $12.99/month
- Septic system pumping: $12.99/month
- Ejector pump: $14.99/month
- Grinder pump: $14.99/month
- Limited roof leak: $11.99/month
- Re-key: $9.99/month
- Gutter cleaning: $14.99/month
- Pest control: $14.99/month
- Carpet cleaning: $19.99/month
- Window washing/cleaning: $19.99/month
- Power washing (exterior flooring): $19.99/month
- Central vacuum: $8.99/month
- Stand-alone freezer: $5.99/month
- Water softener: $13.99/month
- Swamp cooler: $14.99/month
- Second refrigerator: $7.99/month
- Trash compactor: $7.49/month
- Ice maker (in-fridge): $3.99/month
- Freestanding ice maker: $14.99/month
- Wine cooler/fridge: $11,99/month
- Water dispenser water line: $4.99/month
- Instant hot water dispenser: $9.99/month
- Reverse osmosis water filter system: $14.99/month
- Lighting fixtures: $7.99/month
- Plumbing fixtures: $7.99/month
- Electronics protection: $19.99/month
- TV mounting (up to 65-inch TVs): $14.99/month
- TV mounting (up to 85-inch TVs): $19.99/month
- Pro-series refrigerator: $14.99/month
- Pro-series stand-alone freezer: $14.99/month
- Pro-series range/oven/cooktop: $12.99/month
- Pro-series dishwasher: $7.99/month
- Pro-series microwave: $4.99/month
- Pro-series washing machine: $4.99/month
- Pro-series clothes dryer: $4.99/month
While not as affordable as Select Home Warranty, Liberty Home Guard has competitive pricing, comprehensive plans, and a range of discounts. I’m regularly offered $200 off my first year on Liberty’s website when secret shopping, which is a more generous discount than many providers offer. On the downside, Liberty’s add-ons are less affordable, with many costing at least $15 to $20. For example, Liberty’s limited roof leak coverage is $11.99 per month, but Choice Home Warranty offers comparable coverage at only $5.83 per month (a savings of about $72 per year).
During my secret shopping, LHG customer service was friendly, professional, and knowledgeable, making the shopping process streamlined and trouble-free. I especially appreciate the company’s dedication to high-quality service. They vet all their contractors, who must qualify to be LHG-certified. The company even explains that their technicians can often resolve issues within the first visit — a big-time savings when you’re already taking time off work to get repairs done at your home.
On the negative side, LHG can be excessive with their follow-ups to quote and coverage inquiries. Our team at Today’s Homeowner has found that Liberty follows up five or more times in many cases, which is enough to stress me out.
Many happy customers rave about Liberty’s fast claim resolution process, with a recent review sharing that they received same-day service when they made their claim — this makes a huge difference when a vital appliance like your water heater or dishwasher is down for the count and you’re already at your wit’s end. Other positive reviews share that they received above-average service from Liberty’s agents and contractors, making the process better than past experiences with other home warranty companies. In contrast, negative reviews point out issues with low coverage caps and multiple service fee charges, but the negative reviews were far fewer than the positive ones. In short, Liberty holds one of the best reputations in the industry, with a 4.7-star rating from nearly 3,000 reviews on Trustpilot. Close to 2,500 reviewers on the BBB gave Liberty a 4.48-star rating, which is far better than the one to two-star BBB review ratings I’ve seen many home warranty companies receive.
| Rating Site | Rating | Number of Reviews |
| BBB | NR* / 4.48 out of 5 stars | 2,479 |
| Trustpilot | 4.7 out of 5 stars | 2,780 |
| Yelp | 1.3 out of 5 stars | 64 |
Editor’s Note: The ratings provided were accurate at the time of writing.
*Note (as of 6/20/24): Recently, the Better Business Bureau shifted LHG’s A+ rating to “NR” (Not Rated). We reached out to a representative from LHG for comment, and they shared this statement: “Despite the BBB’s alert, our customer satisfaction levels remain by far the highest relative to our scale. Last month, we had the lowest percentage of customer cancellation requests in our entire history. On the BBB’s own platform, Liberty Home Guard has achieved a star rating of 4.5 out of 5 from nearly 2,500 reviews. For added context, the approximately 480 resolved complaints on Liberty Home Guard’s BBB profile equate to an extremely low fraction of a percentage relative to the size and scale of our total customer base. As we navigate this situation, which we believe will be resolved in time, we want to assure you that we remain committed to our customers and their satisfaction; they are the key stakeholders we orient all our efforts around.”
Liberty Home Guard has the best claims process in the home warranty industry, garnering them a perfect score. You’ll find that their process is much more flexible and convenient than what most providers offer. For example, you can submit claims through the online portal or over the phone 24/7/365, but Liberty takes it a step further with their user-friendly mobile app. For many of us who have our phones with us constantly, this is a convenient way to submit claims and check on claim status, and it’s something I’ve not seen many other home warranty companies offer. In addition, Liberty Home Guard has an impressive claim response time that averages around 12 hours based on our team’s secret shopping. This speedy response time is incredible when considering that most providers take 24 to 48 hours to respond to claims — which isn’t terrible, but it’s not ideal when you’re forced to take cold showers because your water heater is broken down.
Liberty Home Guard has a nearly perfect score for their upfront, transparent practices. You can easily find a published sample contract on their website, clearly defining what is and isn’t covered. On the downside, Liberty has many exclusions — notably preexisting conditions, which can result in many claim denials, even if you’re unaware of an existing issue that your water heater has. Still, this provider is undemanding to work with and understand — just pay close attention to their listed exclusions to ensure you’re not met with nasty surprises.
Exclusions
Liberty Home Guard has a considerable number of exclusions. While nothing is atypical, the sheer volume of exclusions is overwhelming, so carefully consider this before enrolling with this company.
- Preexisting conditions
- Flues, vents, chimneys, and exhaust lines
- Electronics, computerized, “smart,” or Internet/enabled components and parts
- Filters associated with any covered items
- Remote receiving and transmitting devices
- Radon and other leak detection monitoring systems
- Fire sprinkler systems
- Lighting
- Solar systems and applications
- Cosmetic defects
- Disposal of appliances, systems, or components
- Cranes or other specialty vehicles required to install, remove, or access your appliances or home systems.
- Glass parts
- Noise
- Malfunction due to storms or other acts of God
Editor’s Note: While this article highlights certain exclusions, it is imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
LHG receives a perfect score in this category because you can select your own provider. That said, you’ll need to contact Liberty Home Guard first for authorization, which they say helps them maintain high-quality service. However, it’s recommended that you choose from the LHG-certified professionals because Liberty’s fantastic 60-day workmanship warranty protects their repair work, but not the work of technicians you select.
Choice Home Warranty
4.3
Our Rating
This affordable provider delivers a high claim acceptance rate and two home warranty plans (both of which cover your water heater). One of the biggest pros with Choice Home Warranty (CHW) is that your appliances and water heater can be older and still receive full coverage. CHW’s contract covers normal wear and tear, but you’ll want to note that preexisting issues or a lack of cleaning and maintenance can disqualify you from coverage. Another sizable benefit is Choice’s impressive workmanship guarantee, which covers up to 90 days for parts and 60 days for labor, two to three times the industry average of 30 days, giving you plenty of time to report any problems that appear after a repair or replacement.
On the downside, Choice Home Warranty won’t cover water heaters with more than 75-gallon capacity. They also have low coverage limits, typically around $500, which isn’t enough for complete replacements. Lastly, I don’t love Choice’s company reputation. While they have a solid B rating from the Better Business Bureau, Choice is currently in the midst of a pending consumer fraud lawsuit filed against them by the Arizona Attorney General.
Choice Home Warranty is one of two providers on this list that offers water heater coverage with all of their plans, giving you more flexibility when picking a plan that suits your budget and other coverage needs. One of Choice’s best policies is that all mechanical systems and appliances, including your water heater, are covered no matter their age. The provider only requires that your water heater and other appliances are in good working condition and are properly maintained.
CHW has one of the best claims acceptance rates in the industry, meaning that they accept a larger percentage of submitted claims than most providers. This means you’re not left with a claim denial and no reimbursement for your broken-down dishwasher. I appreciate that this provider is affordable and transparent overall with their pricing and exclusions, making them a more user-friendly home warranty provider than most.
Choice Home Warranty has lower coverage caps than I’d like to see, with many items receiving as little as $500 in coverage. This isn’t enough for some repairs and is certainly not enough for replacements, as the average water heater costs between $960 and $3,910 for installation and replacement. Plus, water heater units exceeding 75 gallons are excluded, so double-check how large your water heater is before enrolling with Choice. Preexisting conditions or issues caused by a lack of maintenance or cleaning aren’t covered either, whether this is a poorly maintained AC unit or your water heater with an existing problem.
Another downside to Choice is its company reputation. While it receives fair to good reviews from third-party review websites, the Arizona Attorney General is suing it, alleging that Choice has committed consumer fraud. This lawsuit is ongoing, so nothing is determined, but it’s still less than ideal.
Choice Home Warranty’s two plans both cover water heaters, but the Basic Plan is too limiting for my taste. It doesn’t include coverage for everyday items like your refrigerator, clothes washer, clothes dryer, or air conditioning system, which I definitely don’t want to be left without on a hot day. Considering the Total Plan is about $8 more per month, I’d recommend going with this plan as it covers all of these previously mentioned items and more unique items like your whirlpool bathtub, built-in microwave, garbage disposal, ductwork, and dishwasher — which I really don’t want to be left without coverage for when I’m already stressing out about the smelly dishes stacking up everywhere.
| Plan | Monthly Cost* | Service Fee | Available Discounts |
| Basic Plan | $46.67 | $100 | 5% discount, annual payment discounts, and 1 month free (online or phone) |
| Total Plan | $54.75 | $100 | 5% discount, annual payment discounts, and 1 month free (online or phone) |
*Monthly cost figures provided include the discounted rate of 5% offered at the time of writing.
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Santa Fe, NM. The cost data presented was accurate at the time of writing.
Available Add-Ons
Choice Home Warranty offers a standard range of add-ons, with their limited roof leak add-on being a particularly good deal at only $5.83 per month.
- Central vacuum: $3.33/month
- Limited roof leak: $5.83/month
- Pool: $15/month
- Second Refrigerator: $3.33/month
- Septic System: $10/month
- Septic Tank Pumping: $5.42/month
- Spa: $15/month
- Additional Spa: $15/month
- Sprinkler system: $8.33/month
- Stand-alone freezer: $3.33/month
- Sump pump: $3.33/month
- Well pump: $8.33/month
Choice Home Warranty is one of the most affordable providers on the market. Most home warranty monthly premiums cost about $50, and CHW offers two plans around this price point. Plus, they provide frequent discounts online, and both plans include your water heater, so you don’t have to worry about picking a pricier plan to get coverage, which is the case with providers like Elite Home Warranty. Overall, CHW is very affordable, especially regarding their add-ons, which are almost all less than $10 a month — a bargain compared to providers like Elite Home Warranty, who charge $15 to $20 per month for most add-ons.
Choice delivers a solid customer experience with their professional customer service, which I’ve been on the receiving end of many times over the phone. I find their website user-friendly, and the instant quote calculator is efficient, which helps me shop around quickly.
I dislike some of Choice’s liability policies, which can feel like nickel-and-diming to the customer. For example, Choice will charge you an additional fee when they dispose of a covered item or one of its components. This could look like being charged $100 for the repair visit, then an additional $100, if part of your water heater needs to be disposed of, which (to me) feels like Choice should include in the initial fee.
With 14 years of experience, CHW has extensive reviews, with nearly 40,000 Trustpilot reviewers giving Choice a solid 3.7-star rating. Many positive reviews highlight Choice’s high claims acceptance rate and professional, knowledgeable customer service — which is so important when choosing between providers, as customer service can really make or break your entire experience when you’re already frustrated and calling up after taking a freezing cold shower because your water heater is broken. Negative reviews share that customers had to reopen their claims multiple times before Choice finally accepted them, and some experienced excessive service charges.
| Rating Site | Rating | Number of Reviews |
| BBB | B / 1.04 out of 5 stars | 4,465 |
| Trustpilot | 3.7 out of 5 stars | 39,427 |
| Yelp | 1.0 out of 5 stars | 165 |
Editor’s Note: The ratings provided were accurate at the time of writing.
Choice Home Warranty scores a strong 8.5 for their well-organized claims process. You can submit claims through the online portal or over the phone with customer service — the typical process across providers. Where Choice really shines is their exceptional workmanship guarantee of 90 days for parts and 60 days for labor. Most providers in this industry, like American Home Shield, only give you 30 days to report problems after a completed repair or replacement. After these 30 days, you’d be responsible for paying another service fee, which can quickly add up as many fees are $100 or more per visit.
On top of this, Choice receives frequent praise from customers for their high claim acceptance rate, which is critical because it’s the proportion of claims that Choice approves and reimburses their customers for. If you have a provider with a low acceptance rate, this means more claim denials, frustration, and money out of your pocket.
CHW clearly posts a sample policy on its website. I find it easy to read and simple enough, especially compared to providers like Select Home Warranty or Elite Home Warranty. None of their exclusions are atypical, although water heater owners will want to note that Choice only covers gas and electric water heaters. Choice also excludes units exceeding 75 gallons, so keep this in mind if you have a large home with an oversized water heater.
Exclusions
Choice Home Warranty has standard exclusions. However, as long as your water heater isn’t upgraded or modified and is properly maintained, Choice policies should cover it.
- Audio or visual equipment
- Internet connection components
- Upgrades or modifications to original systems or appliances
- Pool accessories
- Fireplaces
- Doorbell
- Central vacuum ductwork, accessories, hoses, and blockages
- Lack of maintenance or cleaning
- Portable or above-ground spas and pools
- Act of God incidents
Editor’s Note: While this article highlights certain exclusions, it’s imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
When trusting a contractor to fix your water heater, having the option to choose your service provider through your home warranty company is a fantastic benefit. Choice Home Warranty receives a perfect score for flexibility, as you can pick your service provider. But this may mean Choice’s workmanship guarantee won’t cover the repair should it need to be revisited. I recommend calling the provider first to double-check that Choice’s workmanship guarantee will protect your service contractor, as this is a major benefit from this provider.
Select Home Warranty
4.2
Our Rating
Select Home Warranty {SHW) is one of the best providers if you’re looking for budget-friendly water heater coverage. Most of their plans are less than $50 per month, and their add-ons cost less than $10 per month, so if you’re seeking affordable coverage for your pool or stand-alone freezer, Select is a strong choice. In addition, all of Select’s plans come with free roof leak coverage (a value of $99), and two out of three of their plans come with water heater coverage, so you can choose from multiple options when securing that critical coverage.
In contrast, Select Home Warranty has lower coverage caps (the maximum amount a company will reimburse you for a covered item). Some of their coverage caps are as low as $400, which is enough to cover smaller repairs but not the most significant repairs or replacements. Plus, they only offer $500 in water heater coverage. The other drawback is that Select has many exclusions, which can become confusing when assessing whether your old, creaky water heater is protected.
Select Home Warranty doesn’t have many water heater exclusions. They currently exclude solar or tankless water heating systems, leaks, and pumps. While I don’t love that Select excludes leaks, there are still fewer exclusions than many water heater home warranty providers have.
Otherwise, Select stands out for their affordable plans, free roof leak coverage, and flexible plan choices. All of their add-ons cost less than $10 per month, which is far better than providers like Liberty Home Guard or Elite Home Warranty, which charge an average of $15 to $20. These small monthly charges can quickly add up, so I appreciate Select’s dedication to providing affordable coverage. On top of this, their HVAC coverage is up to $3,000, which is better than Liberty Home Guard, which charges $5 to $15 more per month for their plans based on my secret shopping.
While Select is more affordable than most, their coverage caps are very low. For example, add-on items only receive $400 in coverage for repairs or replacements. So, if you pay extra for well-pump coverage, you’ll only be reimbursed up to $400, including labor. This coverage isn’t sufficient for most repairs, as well pump replacements can cost up to $1,600.
My other primary criticism is that Select has extensive and confusing exclusions. While they are clearly stated in Select’s sample policy, the vast number of exclusions, which include unknown preexisting conditions and a lack of routine maintenance or cleaning, are challenging to keep track of.
Select plans start coverage 30 days after you sign up, which is a shorter waiting period than that of providers such as Liberty Home Guard. Thus, your water heater and other covered items are protected sooner rather than later. The Gold Care and Platinum Care plans both protect your water heater, plus all of Select’s plans come with free roof coverage — which almost all home warranty companies charge an additional fee for. For example, American Home Shield charges $10 monthly for roof leak coverage, an extra $120 a year on top of your monthly premium. Select includes this coverage, which is a wonderful value.
I recommend the Platinum Care plan if you’re shopping for water heater coverage. This plan offers the most comprehensive coverage and protects your water heater, home systems, and many common appliances.
| Plan | Monthly Cost | Service Fee | Available Discounts |
| Bronze Care | $44.42 | $75 | $150 off (website), two extra months free (website), multi-year coverage discount (call) |
| Gold Care | $44.42 | $75 | $150 off (website), two extra months free (website), multi-year coverage discount (call) |
| Platinum Care | $47.75 | $75 | $150 off (website), two extra months free (website), multi-year coverage discount (call) |
Note: Monthly cost figures provided include the discounted rate offered at the time of writing.
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Santa Fe, NM. The cost data presented was accurate at the time of writing.
Available Add-Ons
Select has a basic range of add-ons, but it stands out for its free roof leak coverage.
- Central vacuum: $3.33/mo
- Lawn sprinkler system: $5.83/mo
- Pool: $8.33/mo
- Roof leak: $0/mo
- Septic system: $5.83/mo
- Spa: $5.83/mo
- Stand-alone freezer: $3.33/mo
- Sump pump: $3.33/mo
- Well pump: $3.33/mo
Select Home Warranty excels with its affordable offerings. Based on the quotes I received for a two-bedroom home, all of their plans cost between $44 and $48, which is cheaper than the national monthly premium of $50, especially considering this range includes Select’s most comprehensive plan. I really appreciate that they keep both their plans and add-ons affordable, as all of their add-ons cost less than $10 per month. Plus, their service call fee is the most affordable of the providers on this list at $75, anywhere from $25 to $75 less than other providers. Elite Home Warranty has the most expensive service fee, which can cost as much as $150 for after-hour repairs or on premium appliances or home systems. These fees can quickly add up, which makes Select a real bargain.
Select has a robust 7.8-star rating for its helpful, user-friendly customer experience. Their website is easy to navigate and clearly breaks down plans and pricing. I’ve personally found Select’s customer agents knowledgeable and friendly, which always makes the shopping experience smoother. The biggest benefit is the lack of pressure I feel when shopping with this provider. Select Home Warranty doesn’t bombard you with excessive follow-up emails or phone calls, which I’ve, unfortunately experienced with providers such as Liberty Home Guard.
With 12 years of experience, Select Home Warranty has a solid company reputation with a decent B rating from the Better Business Bureau and a nearly 4-star rating from thousands of Trustpilot reviewers. Customer reviews are mixed, but overall, they are good.
One negative review about a water heater claim was especially scathing, though. It shared that the customer waited five days for a contractor to come and repair their water heater, then SHW denied the claim because it had a leak. While leaks are among the exclusions I’ve found in their sample policy, it’s understandably frustrating. The customer felt the policy wording was misleading, and I sympathize with this sentiment.
However, plenty of positive reviews praised Select for their personable customer service, with one review sharing that their water heater was fixed promptly within one visit. This customer raved about the professional contractor who was timely and cleaned up after themself after completing the repair.
| Rating Site | Rating | Number of Reviews |
| BBB | B / 1.38 out of 5 stars | 2,089 |
| Trustpilot | 3.7 out of 5 stars | 4,853 |
| Yelp | 1.0 out of 5 stars | 9 |
Editor’s Note: The ratings provided were accurate at the time of writing.
Select’s claim process is standard, with the ability to submit claims online or over the phone with customer service. On average, I found that you wait around 48 hours before you’ll hear back from Select for a typical claim submission. This is within the usual timeframe for most home warranty claims, but some providers such as Liberty Home Guard are much faster (around 12 hours on average), which is a bonus. I’d personally prefer waiting 12 hours rather than 48 hours when my shower is spraying freezing cold water because my water heater has broken down.
Select has a clearly listed sample policy online, but they lost some points with their ease of use, giving them an overall rating of 8.5/10. Select’s exclusions are mostly industry standard, such as damage caused by leaks or foundation or structural issues in the home leading to appliance issues. However, Select’s exclusions are extensive, which can lead to unexpected claim denials and, ultimately, no payout. For example, you must keep up with cleaning and maintaining your home systems, appliances, and water heater. Select seems to be especially strict regarding the HVAC system and may even ask you for maintenance records and pictures proving you maintained your HVAC system before they approve your claim. While a handful of providers do require records, this is still a frustrating, time-consuming process to stay on top of.
Exclusions
Before enrolling in a policy with Select, double-check that your water heater has been adequately maintained and wasn’t installed incorrectly, as both situations can result in Select denying your claim.
- Secondary damage (i.e., your home warranty may cover roof damage but won’t cover water damage caused by the leak)
- Incorrect installation or malfunctions due to construction damage or improper wiring
- Issues with systems or appliances related to hazardous or toxic materials (such as mold, asbestos, and gas leaks)
- Common areas in condominiums or multifamily homes
- Failure to properly maintain or clean systems or appliances
- Electrical surges
- Solar heating systems
- Foundation or structural issues
- Damage caused by natural disasters and rust
- Defects or damages caused by the foundation and structure of the home
Editor’s Note: While this article highlights certain exclusions, it’s imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
Select Home Warranty has a perfect score for their flexibility with service providers. You can choose your service provider by calling Select and receiving authorization. If you fail to get approval from Select, they won’t reimburse you for the repairs.
Elite Home Warranty
4.3
Our Rating
Homeowners can benefit from Elite Home Warranty’s high coverage caps, which are up to $2,000 for water heaters (five times what Select Home Warranty offers). Not only this, but Elite’s coverage is up to $6,000 for appliances and up to $10,000 for home systems, like your HVAC system, which is two to three times the industry average and so important if you want a home warranty with coverage for total replacements.
I love that Elite offers a water heater maintenance add-on, which I’ve never seen another home warranty provider have as an option. This maintenance add-on helps with standard maintenance and cleaning and preventing sediment and mineral build-up issues with regular draining and flushing. All of these are chores I don’t like doing, so I really like that Elite has an option for those who don’t want to DIY their water heater maintenance.
On the other hand, Elite has a confusing and extensive number of exclusions, which I don’t care for. For your water heater, Elite excludes coverage for the color or purity of your water, solar components, and insulation elements, along with preexisting conditions and lack of maintenance, which applies to all covered items. Elite also excludes commercial-grade appliances, so consider if your home has any of these and how that would affect what your policy covers.
I love that Elite offers a wide range of add-ons, especially their water heater annual maintenance add-on. This maintenance add-on includes standard maintenance, cleaning, tune-up services, and draining and flushing the tank to remove sediment and mineral buildup. This add-on is a huge benefit because it can prevent expensive repairs or premature replacements (and stress headaches). It even includes replacing filters in your system and checking that your gas lines (if applicable) are secure and safe for you and your family — the ultimate peace of mind.
In addition, Elite’s water heater coverage cap is generous, with $2,000 in coverage, which is enough for many major repairs and replacements. Many home warranty companies, such as Select Home Warranty or Liberty Home Guard, only offer $400 to $500 in water heater coverage, which may cover minor repairs but would leave you paying part of the bill. If you want complete coverage, Elite Home Warranty is my top choice.
I’m nervous about the large number of exclusions related to water heaters that Elite lists in their sample policy. Some of the biggest exclusions are preexisting conditions, a failure to adequately maintain or clean the water heater, and sediment build-up. But the exclusions don’t stop there — Elite also doesn’t cover the color or purity of your water, solar components, and insulation elements.
Elite Home Warranty offers three comprehensive plans, with two plans (Elite Complete and Elite Systems) offering water heater coverage of $2,000. I strongly recommend the Elite Complete plan as it’s only $10 more per month and covers appliances, like your dishwasher, clothes dryer and washer, and refrigerator, including your ice maker and water dispenser (which some home warranty providers make you pay extra for). If you’re not interested in the Elite Complete plan, you can opt for their customization option, which allows you to add water heater coverage to the Elite Appliance plan.
| Plan | Monthly Cost | Service Fee | Available Discounts |
| Elite Appliance | $44.99 | $75 | $150 sign-up, first month free, 30-day free trial (phone) |
| Elite Systems | $49.99 | $75 | $150 sign-up, first month free, 30-day free trial (phone) |
| Elite Complete | $59.99 | $75 | $150 sign-up, first month free, 30-day free trial (phone) |
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Santa Fe, NM. The cost data presented was accurate at the time of writing.
Available Add-Ons
I recommend Elite’s water heater maintenance add-on. At $149.99 per year, it has many benefits, such as standard maintenance, cleaning, tune-up services, and draining and flushing the tank to remove sediment and mineral buildup.
- Attic exhaust fan: $69.99/year
- Central vacuum: $49.00/year
- Effluent pump: $99.99/year
- Ejector pump: $99.99/year
- Free alarm system: $64,99/year
- Freestanding freezer: $59.99/year
- Freestanding ice maker: $59.99/year
- Freestanding spa equipment: $119.99/year
- Generator: $99.99/year
- Geothermal heating and cooling system: $299.99/year
- Grinder pump: $99.99/year
- Guest house: $299.99/year
- HVAC annual maintenance: $299.99/year
- Jetted/hot tub: $99.99/year
- Lawn sprinkler system: $99.99/year
- Lift pump: $99.99/year
- Limited roof patching: $99.99/year
- Pool & spa equipment: $199.99/year
- Pool equipment: $149.99/year
- Premium appliances: $249.99/year
- Premium benefits: $199.99/year
- Premium systems: $299.99/year
- Premium systems Plus: $499.99/year
- Septic system: $129.99/year
- Service lines: $349.99/year
- Sump pump: $99.99/year
- Swamp cooler: $149.99/year
- Trash compactor: $59.99/year
- Water filtration system: $99.99/year
- Water heater annual maintenance: $149.00/year
- Water softener: $99.99/year
- Well pump: $99.99/year
- Wine cooler: $69.99/year
While they aren’t as budget friendly as Select Home Warranty, Elite Home Warranty offers competitive pricing, especially with their fantastic coverage caps. Elite provides $2,000 in water heater coverage, up to $6,000 for appliances, and up to $10,000 for home systems such as your plumbing system, which is far more than most providers offering only $2,000 to $3,000. I feel like this justifies Elite’s slightly higher prices, especially when you factor in their take-charge customer policies. For example, if Elite doesn’t service your fridge or freezer quickly enough and your food spoils, they’ll reimburse you up to $100 for spoiled food. To me, this demonstrates their dedication to putting the customer first.
Elite offers an educational customer service experience. Their agents are professional and knowledgeable and were eager to answer questions during my secret shopping. This is a refreshing change from pushy providers that try to upsell you. On the other hand, I don’t love Elite’s cancellation fee. You’ll be charged an 8% fee if you cancel after your 30-day trial period. While many providers have cancellation fees, this is an exceptionally high one that doesn’t feel good to me.
This BBB-accredited provider has an outstanding reputation, with an A+ rating from the Better Business Bureau and 4.8-star ratings from Yelp and Trustpilot. I’ve yet to see any other home warranty company match these high ratings, which bolsters my confidence in Elite’s service. Positive reviews usually highlight Elite’s informative customer service, which was free of sales pressure, and their high coverage caps. Negative reviews are so few and far between that I couldn’t summarize them.
| Rating Site | Rating | Number of Reviews |
| BBB | A+ / 4.97 out of 5 stars | 402 |
| Trustpilot | 4.8 out of 5 stars | 87 |
| Yelp | 4.8 out of 5 stars | 4 |
Editor’s Note: The ratings provided were accurate at the time of writing.
Elite’s claims process is subpar. I don’t care for their expensive service fee, which is $75 —although you’ll pay $150 for after-hours or premium appliance or system repair visits, which is a considerable difference and twice what Select Home Warranty charges for all service visits. Besides their expensive service fees, Elite Home Warranty has a standard claims process. You can submit claims over the phone or online, depending on your preference.
Elite Home Warranty provides sample policies and detailed breakdowns of what is and isn’t covered on their website, but the number of exclusions is extensive. For example, you must keep up with maintenance and records for all covered items, like your water heater, to have your claims approved. This requirement can be challenging, especially when things get busy, so consider how detailed you are with your home maintenance before enrolling with Elite. Another frustration I have with Elite is that you must wait 12 months before the full coverage cap is available for covered items. This means you’ll receive a smaller reimbursement for the first year when submitting claims. However, their policies are overall transparent and clearcut, giving them a strong score in this category.
Exclusions
Water heater owners should note that routine maintenance and preexisting conditions aren’t covered.
- Natural disaster-related damages
- Preexisting conditions
- Routine maintenance
- Radon monitoring systems
- Fire sprinkler systems
- Solar systems and components
- Flues, venting, chimneys, and exhaust lines
- Acts of God
- Commercial-grade appliances
- Units in a rental property (i.e. apartments)
- Cosmetic damage
- Modified units
Editor’s Note: While this article highlights certain exclusions, it’s imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
You can choose your service provider when working with Elite, but the contractor must be licensed in your state to perform the necessary services. Call Elite’s customer service for authorization and to check that Elite’s 30-day workmanship warranty covers your chosen technician.
Calculate the Cost of Water Heater Home Warranty
Calculate your water heater home warranty cost by plugging in the following fields.
| Appliance | Average Repair Cost | Average Replacement Cost |
|---|---|---|
| Dehumidifier | $50–$200 | $1,300–$2,800 |
| Microwave | $50–$400 | $60–$2,000 |
| Dishwasher | $50–$500 | $400–$3,000 |
| Exhaust Fans | $16–$300 | $250–$950 |
| Electric Range | $100–$500 | $230–$3,000 |
| Gas Range | $100–$500 | $230–$3,000 |
| Dryer | $100–$400 | $450–$2,300 |
| Oven | $100–$430 | $400–$3,000 |
| Washer | $50–$450 | $400–$2,300 |
| Freezer | $90–$500 | $160–$2,900 |
| Refrigerator | $40–$350 | $200–$5,000 |
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Frequently Asked Questions
A home warranty for a water heater isn’t legally required, but it can save you money and stress when your water heater breaks down. Most service call fees from home warranty providers cost around $100 per visit, which is much easier to swallow than paying for an out-of-pocket $800 water heater repair.
The average cost of a home warranty for water heaters is around $60 per month based on my secret shopping for policies with included water heater coverage. However, the average cost of a home warranty varies by location, company, plan type, add-ons, and more.
I recommend researching several home warranty companies, picking your top three, and then calling them for the best deal. Ask about available discounts and sign-up deals and if they have military, AARP, or senior discounts, which providers such as Liberty Home Guard offer.
A home warranty is worth it for water heaters because they can cost thousands of dollars to replace entirely, and you don’t want to be left without hot water for the shower or kitchen sink when you’re struggling to clean hardened food off your plates. If you have a current manufacturer’s warranty, you can probably skip a home warranty for your water heater, but if you don’t, I recommend one because many homeowners will find that it protects them financially when their water heater and home appliances fail.
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