Checked against the original HWA contracts and its BBB profile. Last checked: November 12, 2026 (direct agreement and BBB profile); the real estate form was last read on November 7, 2026. Every figure below cites the form and section it comes from.
Quick answer: Home Warranty of America (HWA) publishes two different contracts, and the one you receive decides your rights. The direct-to-consumer agreement (form DTC-2022) has a 30-day waiting period and no arbitration. The real estate form (HWA RE 052023B, 2024) has no waiting period, covers unknown pre-existing conditions for buyers, but requires binding AAA arbitration and a class action waiver. Both cap most items at $5,000 per 12 months.
Key takeaways
- HWA uses two contract forms, so check which one you were given.
- Waiting period: 30 days on the direct form, none on the real estate form.
- Most items are capped at $5,000 per 12 months on both forms.
- Disputes: the real estate form requires binding AAA arbitration; the direct form has no arbitration clause.
BBB: B, not accredited, 952 complaints in three years, 284 in the last 12 months and 185 customer reviews (checked November 12, 2026).
Our HWA score: ★★★★★ 3.8 out of 5
Based only on HWA’s contracts and its BBB profile. See how we rate home warranty companies.
Our HWA Score, Explained
We score six categories from the contract text and the BBB profile. Where the two HWA forms differ, we score the weaker one, because you cannot choose which form you receive.
| Category | Score | Why |
|---|---|---|
| Coverage | 4.5 | Gold, Platinum and Diamond tiers cover appliances, plumbing, electrical, heating and cooling (RE form, sections D and E). |
| Dollar limits | 4.0 | $5,000 per covered item per 12 months (G.1); many items have lower sub-limits, and professional-series appliances are capped at $2,000. |
| Waiting period / pre-existing | 4.0 | DTC: 30-day wait and no pre-existing coverage. RE: no wait and unknown pre-existing conditions covered for buyers. |
| Disputes | 2.5 | The RE form requires binding AAA arbitration and waives class actions (section J). The DTC form has no arbitration. |
| Cancellation | 4.0 | Cancel any time; refund less service costs, with an administrative fee of up to $50 (RE form, section I). |
| BBB | 3.5 | Rated B, not accredited, 952 complaints in three years (284 in the last 12 months) on November 12, 2026. |
Average: (4.5 + 4.0 + 4.0 + 2.5 + 4.0 + 3.5) ÷ 6 = 3.75, rounded to 3.8.
Two HWA Contracts, Two Sets of Rules
HWA’s website offers a direct-to-consumer agreement (DTC-2022) and a real estate brochure with its own agreement (HWA RE 052023B, ©2024). They are not the same contract. The RE form itself ends with “Sample contract. Actual terms vary by state.”
| Term | Direct (DTC-2022) | Real estate (RE 2024) |
|---|---|---|
| Waiting period | 30 days (I.A.2) | None for real estate plans (FAQ, p. 3); 30 days if no real estate transaction (C.7) |
| Pre-existing conditions | Not covered (VII.P) | Buyers: unknown ones covered; known ones not (C.4) |
| Arbitration | No ✓ (VIII.A) | Yes ✗ binding AAA, documents only (J.1) |
| Class action waiver | Yes | Yes (J.2) |
| Per-item limit | $5,000 (I.A.6) | $5,000 (G.1) |
| Aggregate limit | $15,000 (VII.Q) | Not found in this form |
| First term | 12 months | 13 months for annual plans (C.8) |
HWA Dollar Limits
- $5,000 per covered item per 12-month period for access, diagnosis and repair or replacement (G.1).
- Heating, cooling and ductwork: $5,000 each per 12 months (D.9).
- Tankless water heaters: $1,000 (D.7). Trash compactor, burglar and fire alarm, instant hot water dispenser: $500 each.
- Professional-series appliances such as Sub-Zero, Viking or Wolf: $2,000 per system unless you buy the $100 Premium Appliance Upgrade (G.17).
- Roof leak: $1,000. Pool and spa: $1,500. External water line and external sewer line: $1,500 each.
- Access to hidden items through walls, floors or concrete: up to $500 (G.2).
What HWA Covers
Items below are from the 2024 real estate form for homes under 5,000 square feet.
| Item | Gold | Platinum | Diamond |
|---|---|---|---|
| Plumbing, stoppages, sump pump | ✓ | ✓ | ✓ |
| Water heater (tankless limited to $1,000) | ✓ | ✓ | ✓ |
| Electrical system | ✓ | ✓ | ✓ |
| Heating, cooling, ductwork | ✓ | ✓ | ✓ |
| Dishwasher, disposal, microwave, range/oven | ✓ | ✓ | ✓ |
| Garage door opener, central vacuum, fans | ✓ | ✓ | ✓ |
| Kitchen refrigerator | ✗ | ✓ | ✓ |
| Clothes washer and dryer | ✗ | ✓ | ✓ |
| Re-key (up to 6 locks) | ✗ | ✓ | ✓ |
| Toilets (up to $600 each), slab leaks ($500) | ✗ | ✓ | ✓ |
| Orange Plus: code $250, permits $250, haul away, improper installation $750, insurance deductible $1,000 | ✗ | Optional $160 | ✓ |
Optional add-ons priced separately include pool and spa, well pump, roof leak, septic, termite (AK, CO, FL, ID, MT, OR, TX, UT, WA only), pest control (not in AZ, HI, NM, NV, TX), and the Premium Appliance Upgrade (RE form, section E and price sheet).
Waiting Period and Pre-Existing Conditions
The direct agreement says coverage starts after a 30-day wait (I.A.2) and that conditions known before the start are not covered (I.A.4, VII.P). The real estate form says there is no waiting period for real estate plans, and that Home Buyer’s coverage includes unknown pre-existing conditions that a visual inspection or simple mechanical test would not have found (C.4). Known pre-existing conditions are not covered in either form. Homes with no real estate transaction wait 30 days, unless you show proof of prior coverage with no lapse (C.7).
HWA Service Fee
The RE price sheet lists a $100 Trade Call Fee, with an optional reduced $75 fee that costs $35 more at purchase. The FAQ says the fee is paid directly to the technician, while the contract text says the service fee must be paid in advance of scheduling (page 7). The direct agreement says the amount is printed on your coverage letter (I.B.14, III.E), so we cannot state one number for every customer.
How HWA Claims Work
- Request service as soon as the problem appears and before the term ends (RE B.1).
- HWA begins contacting a service provider within 4 hours; acceptance can take more than 48 hours in some cases (RE B.2).
- HWA chooses the provider, and services done without prior approval are not reimbursed (RE B.3, B.6).
- Work that fails within 30 days is corrected without a new service fee (RE B.5).
- HWA may pay cash at its wholesale cost instead of repairing; you then cannot claim on that item for one year (G.3).
- Parts that are not reasonably available: if the item still does its main job, HWA will not repair or replace it (G.6).
Contact and claims
Claims, direct agreement: 1-800-496-7116 (DTC-2022, as printed in the contract).
Claims, real estate plans: 888-492-7359, 24 hours a day (RE 052023B), or HWAHomeWarranty.com.
Numbers copied from HWA’s own contracts and brochure on November 7, 2026. Cancellation: 1-888-492-7359 or the customer portal (RE I.3).
Disputes: It Depends on the Form
The direct agreement has no arbitration clause. It waives jury trials and class actions and sets the venue as the county of the covered property (VIII.A). The real estate form is stricter: one arbitrator, administered by the American Arbitration Association, decided on documents only; the decision is final and non-appealable; you waive class actions and attorneys’ fees; and you must file one arbitration per agreement (J.1 to J.4, G.16). Small claims court is allowed if the dispute fits its limits (J.3).
Claim refused? See how to respond to a denied claim.
Cancellation and Renewal
- You may cancel at any time (RE I.2).
- Within 30 days of the order date you get your fee back less service costs HWA incurred. After that you get a pro rata refund, also less service costs.
- An administrative fee of the lesser of $50 or the legal limit applies (RE I.2.c). The direct agreement (VIII.D) gives a full refund within the first 30 days if no claim was made; otherwise the refund is pro rata, less the actual cost of services and an administrative fee of the lesser of $30 or 10% of the purchase price.
- Agreements renew automatically to a monthly plan, with at least 30 days’ written notice for fixed terms (H.2). Transfer to a new owner is free (H.1).
How Your State Changes the Terms
- The company that owes you service differs by state. In Utah it is Home Warranty Administrator of Utah, Inc. doing business as Choice Home Warranty; in California the direct agreement names Home Service Club of California, Inc.; in New York it is Home Service Club Warranty Corp.
- Georgia (direct agreement): bonded by Travelers Casualty and Surety Company of America, with a direct claim against the insurer if a claim is unpaid after 60 days. Kentucky: bonded by Platte River Insurance Company.
- Texas: regulated by the Texas Department of Licensing and Regulation, (512) 936-3049. Virginia complaints: (800) 552-7945. Arizona residents may use the Department of Insurance and Financial Institutions process under the direct agreement (VIII.A).
- Oklahoma (direct agreement): if you cancel, the refund is based on 90% of the unearned pro rata fee, less the actual cost of any service. In D.C., Ohio, Pennsylvania, Tennessee and Utah, 30% of the price is allocated to personal property and 70% to real property.
HWA states that these are service agreements, not insurance (RE K.2 and K.3).
Where HWA Is Available
The contracts list state-specific obligors for Alabama, Arizona, Arkansas, California, Florida, Georgia, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Massachusetts, Minnesota, Nevada, New Hampshire, New Mexico, New York, Oklahoma, South Carolina, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., Wisconsin and Wyoming. Other states use American Global Obligors, Inc. as the obligor. Covered homes must be under 5,000 square feet unless extra fees are paid (RE C.3).
HWA BBB Rating and Complaints
On November 12, 2026, the Better Business Bureau showed Home Warranty of America with a B rating, no accreditation, 952 complaints in three years (284 in the last 12 months) and 185 customer reviews. The profile notes an ownership change in January 2022, in which the new owner bought assets and not liabilities. Ratings change, so check the BBB profile before you buy.
Who HWA Suits, and Who Should Look Elsewhere
Suits: home buyers who want no waiting period and unknown pre-existing coverage, and owners who want high per-item limits across many appliances.
A refused claim can be answered in writing; our claim denial letter generator helps you put it together.
Look elsewhere: anyone who will not accept binding arbitration if they receive the real estate form, and anyone who wants one fixed service fee in writing before buying. To compare, read our American Home Shield, Choice, First American and Liberty Home Guard reviews, or the full comparison.
Home Warranty of America Reviews: FAQ
Is Home Warranty of America legit?
HWA offers written service agreements with stated limits and state obligors. Its BBB rating is B and it is not accredited (November 12, 2026).
Does HWA have a waiting period?
The direct agreement has 30 days. The real estate form has none for real estate plans.
Does HWA use arbitration?
The real estate form does (AAA, binding). The direct agreement does not.
How much does HWA cost?
The 2024 real estate sheet lists $475, $575 and $675 for one-year Gold, Platinum and Diamond single-family plans. Current prices on the website may differ. For typical market prices, see our home warranty cost guide.
Can I cancel HWA?
Yes, at any time, with a refund less service costs and an administrative fee of up to $50 in the RE form.
Sources
- Home Warranty of America direct service agreement, form DTC-2022 (and CA DTC-2022), hwahomewarranty.com
- Home Warranty of America real estate brochure and agreement, HWA RE 052023B (©2024), hwahomewarranty.com
- Better Business Bureau profile for Home Warranty of America, checked November 7, 2026
Last updated: November 7, 2026. Contract versions can change; check the agreement you receive.