By Dan Simms
Updated Jan 10, 2023
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If you own a townhouse or condo, a home warranty is an excellent way to insulate yourself from surprise expenses that aren’t covered by most home insurance policies. A good home warranty has a low monthly cost and covers damage to common household appliances, helping you pay for repairs or replacements when disaster strikes. In this article, we’ll teach you what to look for when shopping for a home warranty in general and cover special considerations for condos and townhouses.
A home warranty is a policy that helps you pay for repairs and replacement costs to home appliances and systems above and beyond what homeowner’s insurance plans cover. The best home warranties can save you thousands of dollars in repairs for only a few hundred dollars per year. You can think of a home warranty as an all-in-one extension of the manufacturer’s warranty for all of your townhouse’s appliances and systems. Continue reading to learn how to choose the best home warranty for your condo or townhouse.
Why Trust House Method
House Method’s Experts collected and analyzed 2000+ critical data points to identify what makes a great home warranty company in the eye of the consumer. Our reviews team used this data to assess over 60 home warranty providers for coverage extent, annual cost, and national availability to provide unbiased reviews so homeowners can confidently navigate key decisions about their homes.
Sifting through the nearly endless number of home warranty options can be a daunting task, so we’ve gone ahead and done the hard work for you. We’ve compiled this list of the best home warranty providers for townhomes on the basis of cost, coverage, customer opinions, and a whole host of other factors. Below you’ll find an in-depth discussion of the top five home warranty providers specifically for people who own townhouses. Let’s take a look at the companies that came out on top.
Choice Home Warranty has an excellent track record of providing top-notch home warranties to homeowners and townhouse owners for nearly 15 years. The company separates itself from its competitors by offering clear contracts, transparent pricing, and extensive coverage that includes generous limits. Choice Home Warranty is one of the most widely loved home warranty companies, as evidenced by the extensive collection of stellar customer reviews available online.
Choice Home Warranty packages its coverage into two main plans: the Basic Plan and the Total Plan. Townhouse owners probably won’t be interested in most of the add-on options since most only apply to appliances and systems found in single-family houses. Both plans offer coverage for many common appliances, with the Total Plan covering the most expensive ones.
If Choice Home Warranty sounds like what you’re looking for, head over to the company website and fill out this online form or call 929-400-6164 for a free quote.
For even more information about Choice Home Warranty, check out our Choice Home Warranty review.
Select Home Warranty has provided home warranties to countless satisfied customers since 2012. The company boasts a solid B rating with the Better Business Bureau and excels at offering customers many low-cost plans to choose from. Select Home Warranty offers both preset plans and standalone coverage, making it a great choice for condo owners who might not need all the bells and whistles included in the plans designed for standalone homes.
Select Home Warranty prioritizes affordability by offering potential customers a choice of three premade plans that can each be supplemented with standalone services as needed. This model is especially attractive for townhouse owners since it allows them to pay for the coverage they need without paying for services that don’t apply to them.
Fill out this form or speak with a representative at 888-370-3953 to receive a free quote.
Take a look at our Select Home Warranty review for more information.
With an impressive 50 years in the industry, American Home Shield has more home warranty experience than the previous two companies combined. The company’s consistent B rating from the Better Business Bureau over such a long history is impressive, and its reputation for excellent customer service cements the company as one of the industry leaders in terms of customer satisfaction. American Home Shield offers more customization options than its competitors, making it especially attractive for townhome owners who don’t need as much coverage as other homeowners.
American Home Shield’s warranty options are offered as three flagship plans: ShieldSilver, ShieldGold, and ShieldPlatinum.
If you’d like a free quote from AHS, fill out this contact form or call the company at 888-365-2839.
The Home Service Club distinguishes itself from other home warranty companies by offering industry-leading response times and providing coverage as soon as ten days after you sign up. The company has been around since 2008 and amassed scores of satisfied customers over its 15 years in the home warranty business. The Home Service Club is an excellent choice for townhouses since the company’s cheapest plan covers a wide range of home systems and appliances.
Home Service Club bundles its plans into a basic plan, called the Standard Coverage Plan, and an advanced plan called the Comprehensive Coverage Plan. These plans are a bit more expensive than the plans offered by the other companies we’ve covered so far, although they also cover more, balancing out the elevated cost somewhat. The Standard Plan stands out for townhome owners since it covers an impressive array of appliances and home systems, protecting most of what townhouse owners are looking for without requiring piecing coverage together through add-ons.
Fill out this form or call 800-842-9334 for a free coverage estimate.
Read our comprehensive review of The Home Service Club for a more detailed look at what the company has to offer.
Liberty Home Guard is a relative newcomer to the home warranty industry, but the company has already made a name for itself by offering tons of coverage options and providing superlative customer service. The company has an impressive A rating from BBB and a slew of positive reviews online that you would expect to see from a much older business. Liberty Home Guard stands behind its coverage with a 60-day guarantee for all services, allowing its customers to rest easy at night with the peace of mind that they’re getting high-quality workmanship.
Liberty Home Guard offers three main plans: the Appliance Guard plan, the Systems Guard plan, and the comprehensive Total Home Guard Plan. The company also offers a staggering 42 optional add-ons that make it one of the most customizable home warranty companies around. It’s worth mentioning that Liberty Home Guard’s coverage caps are lower than the industry standard at around $1,500 per covered item, so make sure you factor this in before deciding to go with the company.
To contact Liberty Home Guard, you can fill out this contact request form or call the company at 866-451-2281.
Check out our Liberty Home Guard review for more information.
Many people confuse a home warranty for homeowner’s insurance, and while the two are similar in some ways, there are important fundamental differences between them. A home warranty typically covers things that are not usually covered under homeowner’s insurance, like damage to major appliances or primary home systems. Homeowner’s insurance is more focused on protecting you from larger problems that affect the property or cause structural damage, like natural disasters and fires.
Another key difference between the two is when coverage is available. Generally speaking, homeowners insurance requires major damage to the home before anything will be covered. This is partially why each claim requires that you pay a sizable deductible before you receive compensation, usually totaling several thousands of dollars. A home warranty, on the other hand, covers less catastrophic issues, like appliance failure, home system maintenance, and more routine issues. There is no deductible with a home warranty, but rather a service fee, usually totaling around $85.
If you own a townhouse, you probably want to have both homeowner’s insurance and a home warranty to protect you from major property damage and save you money when the time comes to replace your appliances. People who rent a condo or townhouse don’t need homeowners insurance — they should instead look into condo insurance — and many mistakenly assume they also don’t need a home warranty.
However, even if you’re renting, having a low-cost home warranty can help you replace the smaller appliances like microwaves and, in some cases, electronics is often an excellent idea. Similarly, landlords who rent out townhouses can benefit greatly from having a home warranty in place, as it can cover damages and expedite the repair or replacement, often helping to keep your tenant happy.
All townhouse owners can benefit from a home warranty, even those who rent their townhouse out rather than live there themselves. The cost of replacing and repairing most household appliances adds up faster than most people realize and having work done on larger systems like the plumbing or electrical system can easily run you multiple hundreds, if not thousands, of dollars.
Home warranties are especially important for home buyers who purchase older townhomes since they often have original systems and older appliances. Unfortunately, many of the core appliances and systems in a townhouse have similar lifespans, which can lead to a continuous stream of expensive repairs and replacements as everything reaches its end of life simultaneously. In these situations, having a home warranty will very likely save you thousands of dollars and help you avoid the headaches of finding reputable technicians on your own. If the piece of real estate in which your townhouse is located was built 20 or more years ago, a home warranty will likely serve you well.
A home warranty is extremely important if you rent your townhouse since renters usually don’t take as much care of appliances and systems they don’t own, meaning more than normal wear and more frequent maintenance expenses for you. Additionally, establishing a healthy professional relationship with your renters is essential for long-term success, and that means providing fast service that is easily attainable through a home warranty company.
Most townhouse home warranties cover all the major systems and appliances found in a typical townhouse. This includes your washer and dryer, dishwasher, microwave, air conditioner, oven and range, garbage disposal, cooktop exhaust fan, and ceiling fans. Specific coverage varies by company, with some providers offering coverage for expensive electronics like televisions and computers.
Townhouse home warranties also cover most household systems like electric, plumbing, HVAC ductwork, central vacuuming, toilets, and hot water heaters. Unfortunately, many companies only offer coverage through plans designed for single-family homes, which means condo owners are left paying for coverage they won’t use. The best option is to choose a plan that doesn’t cover irrelevant items like pools, spas, and garage door openers — unless, of course, your condo has these systems and leaves you responsible for them.
Plans with many optional add-ons are great for townhouses since they let you pick and choose the coverage you need. You can save considerably by choosing a basic plan and supplementing with a few add-ons in many cases, although not always. Some companies treat add-on coverage as a luxury choice, and building your own plan out of optional coverage is often more expensive. Add-on coverage is usually reserved for big-ticket items and large systems, like pools and sprinkler systems. The notable exception to this rule is Liberty Home Guard since it packages over 40 coverage options under optional add-ons.
Most home warranties will come with exclusions, which often include cosmetic repairs — although your HOA might cover these if they’re on the exterior of the building — purposeful damage — which, unfortunately, could be caused by renters if you lease out your townhouse — and pre-existing conditions. If you recently purchased your townhouse, you can check with the prior owner, your real estate agent, or the building manager to see if any pre-existing conditions exist. Be mindful that these might not be covered by your warranty.
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Townhouse home warranties cost between $40 and $70 on average, with most companies offering several coverage plans at different price points that suit a range of budgets. Basic coverage for your main appliances and home systems will usually run you between $50 and $60, with more comprehensive packages pushing $70.
Townhome owners are often disappointed to discover that home warranties for townhouses cost as much as home warranties for standalone homes. The reason for this is that home warranty companies price their coverage based on what items they cover, coverage caps, and service fees. None of those factors differ between townhouses and single-family homes, so the coverage rates are similar.
One of the most important pieces of information to have before committing to a home warranty are what the coverage caps are. Coverage limits are often expressed in a per-item way, meaning the home warranty will cover repairs or replacements up to a certain dollar amount for each item your policy covers. You can think of them as a reverse deductible.
For example, Liberty Home Guard covers up to $1,500 dollars per item covered by your plan. If your refrigerator costs $2,000 to replace, the company will only cover $1,500. If your dishwasher then needs service, Liberty Home Guard will still cover up to $1,500 even though you already exceeded the limit for your refrigerator coverage.
Another cost you need to be aware of when shopping for a townhouse home warranty is service fees. The general trend in the industry is for more expensive plans to have lower service charges, although some companies fix the service charge across all plans. Service fees can vary substantially between companies, so make sure to choose a company and plan with fees you’re comfortable with, especially if you expect you’ll need many service visits.
Home warranties for townhouses are easy to understand once you know how the coverage works. Here’s how it works.
Before you can reap the rewards of a home warranty plan, you have to purchase one and wait for the coverage to kick in. Most townhouse home warranties take about 90 days to establish coverage, meaning you won’t be able to request service until this waiting period ends. Some companies — like The Home Service Club — have much shorter wait times, as little as 10 days in some cases. Consider looking for a company that offers expedited home warranty coverage if you need coverage ASAP.
Once you choose a plan that works for you, you can make the annual payment and wait for coverage to kick in.
Once you have your new home warranty in place, you only need to keep an eye out for any breakdowns that crop up with one of your covered appliances or systems. If you rent out your townhouse, be sure to discuss your warranty with your tenants and encourage them to let you know of any issues that they identify. Having this conversation will not only help find and fix issues before they become severe — thereby saving you money — but will also help build a positive relationship with your tenants.
When an issue arises, you’ll need to file a claim with your home warranty company. This is often a simple process that can be done online or over the phone. Consult your home warranty provider’s website for specific information about the claim filing process. Before you make the call or file online, be sure to check your service contract and exclusions to make sure your specific problem is covered.
If you rent out your townhouse, you might want to make a trip yourself to inspect the issue before filing a claim to ensure that it’s covered. If it’s not, and you file a claim before confirming, you will be subject to the service fee — an average of $85 — anyway.
One of the best parts about having a home warranty is that you don’t have to find a service technician yourself. Your home warranty company will dispatch a service technician to your townhouse to take a look at the problem. Once your item is fixed, you only have to pay the home warranty service fee, and you’re done.
Make sure you understand your home warranty’s coverage limits, so you’re not blindsided by unexpected expenses. Every home warranty comes with coverage caps that leave you responsible for any repairs or replacements that exceed the threshold. Coverage limits are important to know since they can help you decide when a replacement is more appropriate than a repair.
There is no one-size-fits-all home warranty that is best for all townhouses, but there are some general guidelines that apply to most condos and townhouses. Most townhouses need coverage for common appliances like dishwashers, ovens, and clothes washers and dryers. Luckily, virtually every home warranty company offers coverage for these items, making it easy to choose one based on other factors like cost.
Townhouses can also benefit from having coverage for major home systems like electrical and plumbing. This coverage is harder to get without additional coverage that might not apply to townhouses, such as coverage for sprinkler systems and pools.
The unsatisfying answer is that the best home warranty for townhouses is one that fits your budget and offers the most specific coverage for the appliances and systems you want to protect.
Surprisingly, there isn’t much difference between home warranties for townhouses and standalone homes. This makes sense when you think about it since home warranties cover appliances and systems, not structural damage like a homeowner’s insurance policy. This means that a home warranty can have similar or identical coverage regardless of whether the purchaser lives in a townhouse or single-family home.
Technically, no, but you also don’t technically need homeowner’s insurance and yet having it is an extremely good idea. Townhouse home warranties soften the blow when one of your expensive appliances or systems suddenly stops working. Having a plan that covers systems and appliances affords you peace of mind knowing you won’t have to scramble when something stops working.
People without a home warranty often delay service until they can absorb the cost, leading to substantial inconvenience until they can save enough cash to foot the bill. A home warranty takes the pain out of dealing with unexpected repairs since you’re only responsible for the service fee. This makes it much easier to get the service you need immediately and saves you from having to play the waiting game.
Most home warranties cover major appliances and house systems in some combination. Plans are usually organized into tiers, with lower-priced plan options covering fewer items or less expensive items. Some companies — like American Home Shield and Liberty Home Guard — divide their plans into three categories: an appliance plan, a systems plan, and a complete home protection plan. This structure typically works well for townhouses since not all townhouses have the same systems, but most have a similar set of appliances.
Virtually all home warranty companies also offer additional coverage a la carte. These optional add-ons can help you craft a customized plan and fill in any coverage gaps you might find in the premade plans. Add-ons can be helpful for townhouse home warranties since they let you pick and choose coverage items instead of being locked into a pre-determined set of coverage you might not need.
Some home warranty companies have exclusions for certain items or preexisting problems, so make sure you understand what is and is not covered before you sign a service contract. Exclusions are often tied to geographical locations, with disaster-prone areas like Texas, California, Hawaii, and Alaska featuring more exclusions than other locations.
Prices vary dispensing on your home warranty service provider and the specific plan you choose, but the average is between $40 and $70 dollars per month. This estimate does not include service fees that must be paid on every service visit and do not factor in coverage limits. All home warranty providers have coverage caps limiting what they’ll pay for any given item they cover. Most home warranty holders won’t exceed the coverage limits, although it depends on how generous the company’s limits are and can happen in extreme circumstances.
We hope you found this guide useful and will use this information to find the right home warranty plan for your townhouse. The five companies presented here represent the industry leaders in terms of coverage options, price, and customer service. All of these providers have outstanding records of serving townhouse owners across the country and offer the most coverage at the most competitive rates.
If you’re looking for the best overall coverage, with high coverage caps, customizable plans, and excellent customer service, your best bet is to go with Choice Home Warranty. The company is one of the most well-respected in the home warranty space and offers tons of useful information like sample contracts and transparent pricing on its website.
On the other hand, if you’d like a more budget-friendly plan that still offers high-quality service, consider Select Home Warranty. Its low service fee makes filing a claim a no-brainer and the low monthly costs across all its plans make it easy to get the coverage you need even on a strict budget.
At House Method, transparency and trust are our most important values for the reader.
To create this rating system, our team spent hours researching over 60 companies, analyzing 2500+ key data points, getting the thoughts and opinions of 1000+ homeowners, and speaking to home warranty company representatives directly. We also dug into the fine print on each company’s service agreement to ensure no detail was left out.
We developed an objective home warranty review and rating methodology to score each home warranty company based on several criteria. We used a five-point scale with a point index ranging from 0.00 to 1.00. The minimum awardable value is 0.0, whereas 1.00 is the maximum. These numeric points are translated into star ratings, using whole star increments between one and five.
Here is a quick breakdown of our five core scoring categories:
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