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5 Best Home Warranties for Heat Pumps in 2023
By Susan Doktor MONEY RESEARCH COLLECTIVE
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- Does not cover pre-existing issues
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- No inspection or maintenance records required
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To put it simply, a heat pump is a mechanical device that transfers heat from a colder area to a warmer area. Pretty much every home has a heat pump: you might not realize it, but there’s one hiding in your refrigerator!
Increasingly, however, heat pumps are used for heating and cooling entire homes. By some estimates, there are more than 17 million homes with heat pumps in the US. Heat pumps are all-in-one devices that do the work of your heating and air conditioning systems. They come in three basic varieties to suit a wide range of homes: ducted, ductless and geothermal. Heat pumps are considered one of the most energy-efficient HVAC systems you can install in your home.
Heat pumps are powered by electricity. They use refrigerant to heat and cool your home. They’re made up of four primary parts: the main pump, the evaporator, the condenser and the compression and expansion valve. Although they’re reliable, like all home systems, they’re subject to breakdowns. Repair and replacement costs for malfunctioning heat pumps can vary, but one thing’s for sure: fixing a broken heat pump is one more unexpected maintenance expense that can take a bite out of your budget. That’s why many homeowners decide to buy a home warranty. Home warranties can help you mitigate and manage your home maintenance costs.
Not all home warranty providers include heat pumps in their system coverage and among those who do, coverage limits vary. Let’s take a look at five companies that offer heat pump protection and compare their plans and prices. All prices quoted are for a single-family home located in Billings, Montana. If you live in a big city in California or New Jersey, you can expect your costs to be higher.
Table of Contents
Our Top Picks for Best Home Warranties for Heat Pumps
Best Home Warranties for Heat Pumps Guide
Best Home Warranties for Heat Pumps FAQs
How We Chose the Best Home Warranties for Heat Pumps
Our Top Picks for Best Home Warranties for Heat Pumps
Liberty Home Guard
- Systems-only, appliances-only and combination plans available
- Offers several opportunities to customize your plan
- Online chat available
- Coverage caps of $2,000 per system
- Higher service call fees
According to Liberty Home Guard’s sample contract, a systems plan covers up to two mini-split systems with up to 5-ton capacity. It’s unclear whether that capacity is for each mini-split head or a combined total. But not all heat pumps are mini-splits. Non-mini-splits may not be covered and geothermal units are among the policy’s exclusions. In addition, coverage for any system is limited to $2,000 per year. That’s not even close to the cost of replacing a mini-split, should yours be beyond repair.
Liberty Home Guard offers the following prices:
- Appliance Guard: $49.99
- Systems Guard: $54.99
- Total Home Guard: $59.99
American Home Shield
- Choose your own deductible
- No caps on system coverage
- No maintenance records required for coverage
- No exclusions for items that haven’t had proper maintenance
- Workmanship guarantee is just 30 days
One advantage of choosing American Home Shield is that the company’s plans feature fewer exclusions than many of the companies we’ve reviewed. Not surprisingly, home warranty plan prices are considerably higher than many of the companies we reviewed. AHS offers three plans as follows:
- ShieldSilver: $59.99
- ShieldGold: $79.99
- Shield Platinum: $109.99
The ShieldSilver plan covers five major systems in your home: your water heater plus your heating, cooling, plumbing and electrical system. The ShieldGold plan steps up with coverage for major appliances in your kitchen and laundry room. The ShieldPlatinum plan covers everything in the American Home Shields’ cheaper plans and also offers limited roof leak coverage, free HVAC tune-ups and unlimited refilling of refrigerant in air conditioners. It also includes coverage for repairs that must be made due to code violations, which is a relatively uncommon home warranty feature of special interest to vintage homeowners.
Under its heating and air conditioning coverage, AHS includes the following heat pump features:
- Ducted electrical split and package units
- Mini-splits
- The cost to reclaim and remove A/C refrigerant
Choice Home Warranty
- Get your first month free
- Two plans to choose from
- Both plans cover system and appliance breakdowns
- No systems-only or appliance-only plans
- Fewer optional add-ons
At Choice Home Warranty, you can choose from two plans, Basic and Total, both of which can be tailored to meet your needs. The Basic plan includes coverage for certain appliances such as your refrigerator, oven and built-in microwave, as well as select systems including heating, electrical, water heaters and plumbing. If you opt for the Total plan, your contract will cover additional home appliances like your washer, dryer and extra systems such as your air conditioner and ducts. You can further customize your coverage by adding central vacuuming systems, stand-alone freezers, second refrigerators and sump pumps. Service calls cost $85, which falls within the mid-range of the companies we surveyed.
Prices for Choice Home Warranty plans are as follows:
- Basic Pan: $46.67
- Total Plan: $53.33
First American Home Warranty
- Customizable service call fee from $75 to $125
- Sample contract published on website
- Covers ductless mini-split HVAC systems
- No dollar limit on refrigerant replacement
- Starter Plan offers less coverage than other basic plans
- Limited add-on coverage options
- No systems-only or appliances-only options
First American Home Warranty provides homeowners with a choice of three combination systems/appliances plans, namely Starter, Essentials and Premium. First American offers the ability for customers to customize their deductibles, which can help to reduce monthly payments.
While the Starter Plan is a basic option that excludes some common appliances like washers and dryers, it covers all major systems such as HVAC, plumbing and electrical. If you own an older home, this plan can be beneficial in protecting against costly repairs. However, it doesn’t provide coverage for ductless mini-split HVAC systems. If you opt for the Essentials or Premium plan, you can get coverage for these energy-efficient systems for a modest cost increase. This is especially appealing for homeowners looking to reduce their overall utility costs.
We selected a $125 deductible for our quote. Prices for First American Home Warranty plans are as follows:
- Starter Plan: $52.00
- Essentials Plan: $62.00
- Premium Plan: $77.00
Cinch Home Services
- Rare 180-day workmanship guarantee
- Wide range of appliance parts and components covered
- Limited add-on coverage
- High deductibles
- No sample contract published on website
Unlike many home warranty companies that offer bundled system and appliance coverage, Cinch Home Services still provides separate coverage options to cater to a wider range of homeowners’ needs. With coverage starting at $34.99 for an appliances-only plan and $39.99 for a systems-only plan, Cinch Home Services offers an affordable solution to those who want to protect their kitchen and laundry appliances or their homes’ built-in systems exclusively. Additionally, the company provides a combination plan for customers seeking more comprehensive coverage.
Cinch Home Services also offers customers the choice of three service call fees, which range from $100 to $150. While these deductibles may seem high when compared to some competitors’ options, they help to keep monthly payments low. It’s worth considering whether a low monthly payment or low service call fees are more important to you, as high service call fees can offset the savings from a low monthly payment if you file multiple claims.
Once you’ve selected a plan, Cinch Home Services allows you to customize it with add-ons like pools and spas, septic system plumbing and well pumps. Another option is the Premier Upgrade Package, which offers additional coverage for permits, code upgrades and more.
One of Cinch Home Services’ notable advantages is its homeowners’ insurance reimbursement policy. Here’s how it works. Suppose you file a home warranty claim with Cinch for your plumbing system, which is covered by your plan, and a technician is sent to repair the leaks. If the leaking pipes caused damage to your ceiling or floor, resulting in a homeowner’s insurance policy claim to fix them, Cinch will reimburse you for a portion of your insurance deductible, up to $500. This reimbursement feature has the potential to significantly reduce the cost of an annual home protection plan from Cinch.
Cinch Home Services will cover heat pumps so long as they are the primary heating system in your home. When used as a secondary HVAC source, heat pumps are excluded from covered items.
Prices for Cinch Home Services plans are as follows. Quotes reflect a $150 service call fee:
- Appliances Plan: $34.99
- Built-in Systems Plan: $39.99
- Complete Home Plan: $49.99
Best Home Warranties for Heat Pumps Guide
Main things to know before purchasing a home warranty for heat pumps
The main thing you need to know about heat pump warranties is that not all home warranty providers — even those that offer other HVAC system coverage — may not offer coverage for these relatively new devices. If you use a heat pump in your home, it’s imperative that you read your home warranty contract carefully to see what kind of coverage you’re buying. You should also be aware that coverage limits apply to heat pump repair and replacement. If your home warranty plan has low coverage limits — as many low-cost plans do — the cost of replacing your heat pump will well exceed them.
In addition, you should be aware that nearly all home warranty service providers impose a 30-day waiting period before you can make a claim. Coverage is limited to repairs that result from normal wear and tear, and pre-existing conditions are excluded.
What does a home warranty cover for heat pumps?
That depends on the specific HVAC coverage listed in your home warranty contract. Some plans will cover only the major components of your heat pump. Others will cover you for refrigerant replacement when your system needs a boost. American Home Shield also includes periodic HVAC tune-ups in its coverage.
What are the exclusions of a home warranty for heat pumps?
Exclusions for heat pumps vary from contract to contract. If you use a heat pump as a supplementary source of heating and cooling, one notable exclusion you should look for is whether your policy covers secondary HVAC systems. Some plans also exclude coverage for ductwork so unless you have a ductless heat pump, you should also be on the lookout for that exclusion. One more thing that’s worth noting is you can’t submit a claim for repair of your heat pump while its manufacturer’s warranty is still in force.
How much does a home warranty cost for heat pumps?
Home warranty costs vary widely. Some home warranty providers only offer combo plans that include both system and appliance coverage; these plans tend to be more expensive than single coverage plans. Your least expensive option is to choose a systems-only plan that includes heat pumps in its heating and cooling system coverage.
How does a heat pump home warranty work?
You can’t buy a home warranty that covers heat pumps exclusively. Heat pump warranties are one small component of overall home warranty protection. So they work pretty much the same way as any other aspect of your policy. Homeowners pay monthly or annual premiums. When a system or appliance malfunctions, it’s up to the homeowner to file a claim (service request). The home warranty company will then dispatch the appropriate service provider to fix the problem — in the case of heat pumps, an HVAC repair specialist. Homeowners are responsible for paying service call fees each time they need.
Best Home Warranties for Heat Pumps FAQs
How do I know if my home needs a home warranty for heat pumps?
First you have to figure out whether your home has a heat pump! That sounds pretty basic, but if you’ve just purchased a new home, you may not recognize heat pump equipment and wonder what the heck those large humming units in your backyard are for. Heat pumps aren’t as easy to spot as icemakers or garage door openers.
If you had your home inspected before purchasing your home, look to your home inspection report for guidance. It will describe the cooling and heating units in your home. Your inspector will also comment on the age and condition of the HVAC units in your home. If your heat pump and other home systems are old, that’s a good reason to consider purchasing a home warranty. However, if your heat pump and other systems are new, they may still be covered under their original manufacturer’s warranties. In this case, home warranty coverage may not be so urgent a purchase.
Does a home warranty for a heat pump come with a deductible?
Yes, any time you make a claim or service request under your home warranty, you will be responsible for paying a service fee, which is commonly referred to as a deductible. Deductible amounts are typically anywhere between $60 and $150 nowadays. Low deductibles are usually associated with higher premiums. Many home warranty companies allow you to select the deductible that suits your budget.
What's the difference between a heat pump warranty and a service contract?
The terms home warranty and service contract are typically used interchangeably. Some people get confused about the difference between home warranties and homeowner’s insurance, though. The two cover very different situations. You may want to read up on home warranties versus homeowner’s insurance to be sure you understand which home repairs are covered under each.
Does a home warranty for a heat pump cover pre-existing conditions?
No, pre-existing conditions of any kind are generally not covered under home warranties.
How We Chose the Best Home Warranties for Heat Pumps
The purpose of buying home warranty protection is to minimize your home maintenance costs. Home warranties provide homeowners with both financial protection and the peace of mind that comes with it. When writing our home warranty reviews, we used a consistent methodology. For each company review, we considered a wide range of factors, including the cost of coverage, coverage limits and exclusions, service call fees and more. We favored companies that provided many plan options, including add-on coverages for less common home features. We also researched ratings with such organizations as the Better Business Bureau and Trustpilot and read the customer reviews published by those organizations.
