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In Conroe, the AC runs hard eight months a year, so a mid-July breakdown can mean a $500 repair or a $10,000 replacement. A home warranty is one way to budget for those surprises. Here’s how to choose one.
How a home warranty works
You pay a monthly or annual premium. When a covered system breaks, you request service, pay a fixed service call fee, and the company sends a contractor to repair or replace the item, up to the plan’s limits.
Home warranties are not insurance. Homeowners insurance covers sudden damage (fire, storms). A warranty covers wear-and-tear breakdowns of systems and appliances.
What to compare
| Factor | What to look for |
|---|---|
| Monthly cost | $40–$90 is typical in Texas |
| Service fee | $75–$150 per visit; some plans let you choose |
| HVAC coverage cap | Look for $3,000+ per item; some caps are as low as $1,500 |
| Exclusions | Refrigerant, code upgrades, “improper maintenance” |
| Response time | Ask how fast they send someone in summer |
| TREC license | Required in Texas; verify it |
Popular plans to compare
When you compare quotes, look at the national providers that operate in Texas (for example American Home Shield, Choice Home Warranty, Select Home Warranty, First American and Cinch). Coverage and caps change often, so read the sample contract for your ZIP code instead of relying on ads.
Tips to get the most from a warranty
- Keep maintenance records. Annual AC tune-ups help you avoid “lack of maintenance” denials.
- Know your caps, especially for HVAC and water heaters.
- Add optional coverage only for things you have (pool/spa, well pump, septic).
- Be persistent. If a claim is denied, ask for the reason in writing and escalate.
Bottom line
A warranty makes the most sense if your AC, water heater and appliances are 8+ years old and an unexpected $1,000+ bill would hurt. If your systems are new, putting $75/month into a repair fund may serve you better.
Frequently asked questions
Are home warranties worth it in Texas?
They can be if you have older AC, water heater or appliances and want a predictable cost. They're rarely worth it for brand-new systems that are still under manufacturer warranty.
Are home warranties regulated in Texas?
Yes. Home warranty (residential service) companies must be licensed by the Texas Real Estate Commission (TREC). Check a company's license before you buy.
How much is a home warranty in Texas?
Most plans cost $40–$90 per month, plus a $75–$150 service fee each time a technician comes out.
