We can all agree that buying a home is one substantial financial commitment for anyone to undertake. According to Zillow, the average price of homes in the USA is estimated to be around $250,000, a whopping 4.1% increase from last year. Hence why “Home warranties” are becoming more and more popular.

With a primary goal of protecting your investment, Home Warranty is a contract designed to save homeowners from unexpected expenses on household appliances repairs. Home Warranties serves to protect your investment from uncertainties that may not be covered by traditional home insurance.

With an annual premium ranging from $300-$500, and an additional $50 to the technician working on-site, home warranties are considered somewhat inexpensive. This warranty covers but not limited to:

Understanding how a typical Home Warranty plan works will give you a better experience of why it’s essential to have a home warranty on your new home.


Allied Home Warranty was established in Texas in 2004. It was incorporated to help homeowners carry out needed repairs on their properties but on a budget. Allied Home Warranty provided services to homeowners and real estate agents. In 2018, Allied Home Warranty was sold to OneGuard, Texas, an insurance company providing home warranties out of Texas.

Despite the change to OneGuard Home warranty, policyholders with Allied Home Warranty completed the full term of their plan and were given the option to keep your coverage but under OneGuard and at a different rate. You can reach out to OneGuard at 1-844-482-7394 if you have any inquiries.

While in operations, Allied Home Warranty had its head office in Houston, Texas but offered coverage to policyholders around the country.

Plans, Products, and Coverage:

Allied Home Warranty serviced homeowners and real estate brokers, offering plans that are well suited to each party.

For homeowners, they offer:

For Real Estate Brokers, Home Allied Warranty offers:

These plans are like the basic and premium plans, with the only significant difference being that clients get additional benefits. Home Allied Warranty revealed that homes covered with their warranty sell 50% faster with no delays.

Allied Home Warranty built its offerings to ensure flexibility in both the Basic and Premium plans, allowing policyholders full access to customize their policies to their needs. They priced condos and regular home properties using the same model. However, there was an additional cost of $300 for duplexes and an incremental $300 for any additional floor.

Equipment Coverage

Pros and cons of signing with Allied Home Warranty

Pros Cons
Fair compensation for clients Poor communication skills
Little payment delay Delay repairs
Easy plan term options Unexpected cost
Value for money Unfavourable feedbacks
  Unprofessional contractors
  Tricky Terms and conditions


A contract binds a customer to a company, with many clauses hidden between the lines hence why it’s important to always go through your contracts before putting pen to paper.

Allied home warranty maintained a comprehensive contract that covered all engagement ranging from cancellations, third-party involvement, and payment processes.

  1. Cancellation: contract cancellation came with a $25 fee.
  2. Third-party involvement: If you have been making your payment using a third party, a credit card, or bank draft, Allied warranty automatically renews your contract and continues to process your payment, but a fee of $25 may apply for each payment transaction that returns unpaid.
  3. Also, if a third party is processing your payment, a charge of $5.95 may apply.

The signed contract shows your plan summary and schedule for your complete coverage.

Air conditioner, Heating, and Ductwork- covers two systems, including seasonal tune-ups.

These major equipment replacements can cost up to several thousands of dollars but ultimately were covered by Allied Home warranty when they were operational. Items like leak tests, refrigerant, modifications and access costs, or upgrades required for existing appliances to work with new ones were not covered.

Interior Plumbing and Stoppages:

Allied Home warranty covered leaks in drain, sewer, showerheads, gas or vent lines. For stoppages in stein/sewer lines, an existing cleanout is used. The standard disposal, modifications, access, and restoration of the sewer system were not covered.

Water Heater:

Allied Home warranty covered the electric or tankless water heaters. In contrast, items like modifications, access, and code requirements and disposal weren’t covered.

Exterior Plumbing:

Allied Home warranty covered leaks in water, drain, or gas lines outside the client’s home’s confines. But did not cover access, code requirements and restoration.

LIMIT: up to $1,000 per contract or up to $2,000 per contract.


Allied Home warranty covered electrical wiring, ceiling fans, breaker panel, outlets, breakers, and switches. Items like modifications, access, and code requirements weren’t covered.

The limits for this is up to $500 per contract or up to $1,000 per contract.

Surge Protection:

Allied Home warranty covered damages to; Television, DVD plates, game systems, computers, stereos, refrigerators, microwaves, ovens, and dishwashers if it’s caused by power lighting or electrical surge.

The limit to surge protection is:

  1. Up to $500 per contract, or up to $1,000 per contract
  2. Up to $1,000 per contract
  3. Up to $2,000 per contract
  4. Up to $4,000 per contract.

It’s important to note that claims with detectable pre-existing conditions were not covered.

A Claim is a malfunction. Therefore, it is essential to keep open communication with the company. Inform your Home warranty company of any existing malfunction in your appliances during your coverage period or before a service contractor is sent to work on them. Any claim found after your coverage period will be left as it is. Allied Home Warranty initiated a 48-hour service, which the client is responsible for paying to the service contractor sent for each claim.

Allied Home Warranty determined each claim’s scope, deciding if it needed to be repaired or replaced. Items repaired came with a 30-day guarantee.

Allied was not responsible for upgrades, modifications, emergency after hours, weekend fees, code violations, and permits. It also did not give any reimbursement for unauthorized repairs, as any reimbursement for authorized repairs will be at the home warranty company’s cost.

Allied provided replacement systems with similar features, capacity, and efficiency in replacement cases, but wouldn’t be responsible for matching dimensions, brand or color.

A few policyholders shared that they were not disappointed with the Allied Home Warranty customer service model. This was because the company only worked with affiliate contractors and service providers who had previously established a trusting relationship with Allied home. With quite a number of dedicated lines and emails, Allied home warranty had support available 24/7. This model was built on enhancing personal service with policyholders.


Feedbacks obtained from customers shows that Allied Home Warranty had the right balance of good and bad reviews. Here’s what a few previous policyholders had to say.

“I’m thoroughly impressed with AHW and how quickly they fixed my plumbing issue. The person on the phone was very helpful. The men that came to do the repair were punctual and went right to work to fix the problem. There were also no surprises/hidden fees. I’m a very happy customer.”—Susan Castro

Reviews generally praised the wide-net coverage, which insures most major home appliances. Pricing was considered fair. With most major appliances failing 10-15 years after purchase, homeowners would be looking at a 5.000 – 10,000 dollar bill every decade on repairs or replacements. Although paying for a home warranty plan does add up over time, customers find that it’s a lot easier committing to a smaller, regular monthly bill than 4 figure surprises when things suddenly failed.ALTERNATIVES TO ALLIED HOME WARRANTY

Better Business Bureau shared that Allied home had an A+ rating before it sold to OneGuard Texas. Though there were some unsatisfied policyholders as well, a higher number of policyholders wished Allied home was still operational. Notwithstanding, here are a few reliable alternatives to Allied Home warranty.

1.)    American Home shield: Considered one of the oldest warranty companies in the USA, American home shield offers four plans with flexible service fees ranging from $75-$125 and reliable customer service representatives available 24/7.

2.)    First American Home Warranty: Offers unlimited coverage on ductwork, cooling and heating, and the two plans it offers. First American Home Warranty established it competitive advantage on offering protection on systems that weren’t properly installed and maintained.

3.)    Choice Home Warranty: Unique for its lack of discrimination on home age when potential policyholders are trying to access coverage. With a responsive customer service department, Choice Home Warranty offers two plans and boasts of a 90-day repair guarantee.


What’s the cost for Home Warranty?

The cost for a home warranty depends on your home’s size, the type of coverage you choose, and your location. Basic coverage costs $300 per year, and a Comprehensive coverage goes for $600 a year, while Service fee ranges from $50-$125 per claim.

What does a home warranty cover?

A house warranty covers major house appliances like air conditioning, refrigerators, dishwashers, ductwork, electrical wiring. Some companies also offer optional services like swimming pools and hot tubs.

Why do I need a home warranty?

Home appliances are bound to fail at some time. To avoid costly repairs fees, it’s best to sign up for a home warranty to save these costs, especially when you own the house.

Does a home warranty actually save me money?

Some people make the mistake of comparing the life-time cost of a warranty with the individual cost of major appliances. Let’s say your central heating unit fails after 15 years. That’s going to be a $6,000+ replacement as those kind of units are generally not repairable after failure. Over those 15 years you might have paid $7,500 in home warranty –  so you might wonder if you actually would have been better off without it?

Aside from the fact that it’s unlikely you’re going to be dealing with only a single appliance failure in a 15-year period (add in a washer-dryer combo failure and you’re break even) there’s also a significant difference between paying $50 a month or footing a $5000 one-time bill. Most Americans do not have $5,000 lying around when things go wrong, and many of them will have to take on debt to cover those kind of expenses. The small, regular payments for home warranty offer a safer alternative.

Is home inspection necessary before signing up for home warranty coverage?

Getting a home inspection before signing up for a home warranty coverage could be of great importance, especially when it comes to filing claims and deciding on which systems and appliances are covered. However, most companies don’t require a home inspection before signing up.

Do Home Warranties cover Claims?

Most Home Warranty companies don’t cover claims. Claims are appliances with pre-existing conditions, and most Home warranty companies only protect appliances on the contract. However, there are a few home warranty companies that cover appliances with pre-existing conditions.

Final thought

With the closure of the Allied Home Warranty, our recommendation would be to compare quotes from the three alternatives we listed above. All three home warranty companies have offerings well suited for new homebuyers, old homeowners, and real estate brokers. You’ll surely find a plan that’ll help you sleep better at night.


Leave a Reply

Your email address will not be published. Required fields are marked *