Repair costs for systems and appliances for your condo or townhome can put a dent in your budget, especially if an item has to be replaced.
But here's the thing:
For a small monthly fee, you can have a home warranty policy that protects your most substantial investment – your home.
In this post we will evaluate the top 4 best home warranty companies for a condo or townhouse.
Our #1 Pick
American Home Shield (AHS) is the pioneer of this industry and has been around for almost 50 years. They are our number one pick for policy flexibility and having some of the lowest rates int he industry.
As Seen On...
Find Out Who Made Our Top 4 Best Home Warranty Companies
Plus More Details On Each Company, Why You Need A Home Warranty, What Does It Cover, And How To Apply For Coverage.
1. American Home Shield – Best Overall
American Home Shield has been in business the longest, and they have the most extensive customer base – 1.8 million strong.
Though you might see some negative reviews on social media, we admire AHS for responding to each comment personally and professionally.
Given how many customers they have, their complaint rate is relatively low, indicating that the overwhelming majority of the customers are highly satisfied with their coverage.
Features and Benefits
Want to learn more? Read our full American Home Shield review here.
2. First American Home W. - Best for Appliances
According to their data, 63% of their customers file at least one claim per year.
First American Home saves its customers an average of $180 million per year in covered repairs and replacements.
They have low-cost plans starting as low as $28 monthly for appliances and $42.50 for major home systems.
If you’re looking for appliance-only coverage, First American Home Warranty is your best bet.
They also have a $3,500 cap on appliances, which is among the highest in the industry.
Features and Benefits
Want to learn more? Read our full First American Home Warranty review here.
3. Select Home Warranty - Best For Term Limits
Select Home Warranty also has different coverage available depending on your needs. Choose from three levels – bronze, gold, and platinum.
A bronze plan covers your everyday appliances; gold is restricted to systems coverage; platinum includes both.
All plans also come with free roof coverage. Select Home Warranty is known for running promotions around each major holiday, so we recommend checking for holiday discounts before signing up.
Features and Benefits
Want to learn more? Read our full Select Home Warranty review here.
4. AFC Home Club - Best for Flexibility
America’s First Choice Home Club has unprecedented flexibility.
You get to choose your own contractor, AND, the repairs done on your appliances and systems are guaranteed for the life of your policy.
By comparison, most other home warranty companies limit their guarantees to 30, 60, and 90 days.
Features and Benefits
Want to learn more? Read our full AFC Home Club review here.
What Is a Home Warranty?
A home warranty is a contract that covers the repair or replacement cost of any malfunctioning system or appliance that you’ve purchased coverage for.
Home warranties are distinct from homeowner’s insurance because insurance protects your investment from damages due to fires, floods, wind, and other disasters.
A warranty, on the other hand, repairs items that break or malfunction due to normal wear and tear.
Who Needs a Home Warranty?
Any homeowner can benefit from a home warranty policy. It protects you from unexpected and costly repairs in your home.
For example, if your air conditioner or water heater malfunctions, it can cost hundreds of dollars (or thousands) to repair or replace it.
If you have a home warranty, then your only expense is the service fee for the technician to come to your home.
This service fee is pre-negotiated in your contract and ranges from about $75 to $120. Think of it like an insurance deductible.
How Does a Home Warranty Work for a Condo?
Home warranties for condos work similarly to warranties for detached houses, but there is a notable exception.
Even the best home warranty for a condo is going to exclude coverage on any shared systems. For example, depending on the community, common systems can include:
If any appliance or system is shared between you and another homeowner, then, unfortunately, it can’t be covered with a home warranty policy.
The good news is that the condo’s Homeowners Association is typically responsible for the repair or replacement of common elements.
If one of your covered appliances or systems breaks, then you would submit a claim to your warranty company.
The company would then reach out to a contractor in its network to schedule an appointment with you to evaluate the situation.
Based on the technician’s assessment, your appliance or system could be repaired or replaced.
Your only financial obligation is the cost of the visit from the technician, which is predetermined by your home warranty policy.
How Much is a Home Warranty for a Condo?
The cost of a home warranty for a condo varies depending on your geographic location and what you need coverage for.
Expect to pay anywhere from $300 to $600 or more annually.
How Does a Home Warranty Work for a Townhome?
Townhomes are very similar to condos, and the terms are often used interchangeably.
The key difference is that townhomes are usually two levels (while a condo can be one or two levels), and one or two walls can be connected to your neighbors.
Townhomes are typically rented, and in that case, the renter would not purchase a home warranty policy.
Instead, the owner or property manager would be responsible for the repairs.
If you do own a townhome, then the home warranty coverage would work the same way as it does for condos.
How Much is a Home Warranty for a Townhome?
The price for a policy will vary, though it can be cheaper than a standalone, detached home since it doesn’t cover repairs for appliances and systems that are shared with another townhome.
Just like a condo, expect to find policies ranging from $300 to $600 or more annually.
Take Action - You Decide
If you need a home warranty for your condo or town home it's time to take action.
We have done the research and laid out the best companies available in the market. Home warranties are an essential part of buying a home.
Even financial experts recommend setting aside 1% of the value of your home for repairs and replacements of systems and appliances.
If you are a new homeowner, you might not have this cash set aside. Given that home warranties start at under $1 a day, having a policy is a smart decision.
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