Costco Home Warranty Review (2024)
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If you have a Costco membership, you’re eligible for a SquareTrade protection plan when you purchase a new appliance or suite of appliances from a Costco warehouse or the Costco site. This service agreement guarantees that Costco is responsible for replacing and repairing appliances when the damage falls under the terms of your service contract.
We don’t recommend Costco SquareTrade as it only provides protection for a limited number of appliances and is only available to Costco members. Instead, we recommend Liberty Home Guard as a better home warranty option. This is due to its extensive add-on catalog, which offers greater flexibility in plan protections.
Our review explains Costco SquareTrade protection plans in depth and recommends top home warranty companies that provide better protection.
Key Takeaways
- Costco members have exclusive access to the SquareTrade protection plan, which covers kitchen and laundry appliances purchased at Costco stores.
- Traditional home warranty plans offer more comprehensive coverage and don’t require exclusive club memberships to sign up.
- Our 2024 home warranty survey found that 72.6% of homeowners choose a comprehensive plan for both systems and appliances, protection that the Costco plan doesn’t offer.
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Costco Home Warranty Pros and Cons
Pros
- Has an A+ rating from the Better Business Bureau (BBB)
- No service fees
- Provides 24/7 customer service
Cons
- No sample contract available online
- Covers one appliance or suite instead of multiple home systems and appliances
- More expensive than other home warranty providers
State Availability
Costco Home Warranty is available in 49 states, however, is not available in Alaska. For those living in AK, check out our picks for the best home warranty companies in Alaska.
What Home Warranty Plans and Coverage Does Costco Offer?
Costco offers a variety of plans through SquareTrade, separated by types of appliances and their associated costs. Each plan covers your appliances for a total of five years—the first two years are covered by Costco Concierge and the remaining three years are covered by SquareTrade extended protection.
Here are the available Costco coverage plans:
Appliance Plan
This plan covers a single refrigerator, freezer, washer, dryer, range, dishwasher, or microwave.
Kitchen Suite
With a Kitchen Suite protection plan, customers can cover a set of purchased items. For example, you can bundle coverage for a dishwasher, microwave, and refrigerator under this plan.
Laundry Suite
With this plan, you can cover a clothes washer and dryer.
Benefits Included in All Plans
When you buy a Costco warranty, you can also enjoy the following benefits:
- 24/7 customer service
- Hassle-free online claims processing
- Free shipping for all home repairs
- No hidden fees
- Free 30-day trial
Coverage Exclusions
Costco SquareTrade plans are exclusive to Costco members. They don’t cover physical damage, intentional damage, accidental damage, loss, or theft. If you sell your appliance or suite, the protection plan is transferable to the new owner. However, you can’t transfer plans from one item or suite to another.
Note: Customers must purchase a SquareTrade plan within 90 days of buying the appliance to receive coverage.
How Much Does a Costco Warranty on Appliances Cost?
The cost of each Costco warranty will depend on the type of coverage you choose. Here’s a pricing breakdown of each Costco plan.
Appliance Suite | Cost |
|---|---|
|
Appliance (Under $1,000) |
$79.99 |
|
Appliance ($1,000–$2,000) |
$99.99 |
|
Appliance ($2,000+) |
$119.99 |
|
Kitchen Suite |
|
|
Kitchen Suite (Under $2,000) |
$159.99 |
|
Kitchen Suite ($2,000–$4,000) |
$299.99 |
|
Kitchen Suite ($4,000+) |
$399.99 |
|
Laundry Suite |
|
|
Laundry Suite (Under $2,000) |
$159.99 |
|
Laundry Suite ($2,000+) |
$199.99 |
Compared to other home warranty plans, Costco plans are slightly more expensive for the coverage you get. For example, a Kitchen Suite ($4,000+) plan costs $399.99 and includes coverage for only major kitchen appliances, whereas a basic home warranty plan typically costs around $300 and includes coverage for major appliances and systems.
How Do You File a Claim With Costco?
To file a claim, call 1-866-861-0450 for assistance with your broken appliance.
Costco Home Warranty Reviews
Costco maintains an A+ rating from the BBB but is not accredited by the organization. There are limited online reviews specifically mentioning the Costco home warranty. However, the reviews we found about the company’s warranty coverage were mostly negative. Reviewers expressed frustration with poor customer support and the delayed replacement process.
Here’s a sampling of Costco warranty reviews:
“I purchased a TV which came with the extended warranty, but unfortunately, I spent several days speaking with Costco Concierge. [E]ach time, they sent me an email requesting a reply with photos, but their system was down and it was unsuccessful. I spoke with the supervisor, and he did the same… I haven’t gotten my issue sorted yet and still need help… As an executive member I’m so disappointed and frustrated and will never buy electronics from Costco. They don’t care about their customers anymore.” — Ben B. via TrustPilot
“I bought a refrigerator from Costco with White Glove service. The delivery guy broke the hinge when installing it, but we did not discover it right away. It took almost a year and at least a dozen calls to get them out for service. I had to order the parts myself because they kept saying they were out of stock. Now here we are out 17 months on the 2-year warranty, and the fridge is not cooling. It won’t even keep ice frozen. I call them up, and they say it will be 2 weeks before they can get a serviceman out.… I only bought from Costco because of the ‘free extended warranty.’ …I do not recommend Costco or their appliance warranty. Be warned.”— Lorrie G. via Yelp
Costco Home Appliance Warranty: Is It Worth It?
Costco warranty plans are available only to Costco members and cover only a few major home appliances. If you’re looking for more comprehensive home coverage at an affordable price, check out our preferred home warranty providers below.
Top Home Warranty Provider Comparison
Liberty Home Guard, American Home Shield, and Select Home Warranty are some of the best home warranty companies in the industry due to their multiple plan offerings, competitive pricing, and easy claims process. These companies offer more comprehensive coverage that better suits typical homeowners’ needs.
Our team surveyed 1,000 home warranty policyholders to better understand the type of coverage that homeowners want. We found that 72.6% of homeowners choose a comprehensive plan, including appliance and system coverage. We also discovered that 69% of respondents wanted system coverage for air conditioning, 59% sought protection for their electrical systems, and 55.8% wanted a plan for their heating systems. Our recommended home warranty companies offer better options if you want more comprehensive home protection.
Compare Home Warranty Providers
Below is our list of the best home warranty companies. The table compares them on key factors such as monthly cost, service fees, and claims response time.
| Star Rating | BBB Rating | Monthly Cost | Service Fee | Response Time | Link | ||
|---|---|---|---|---|---|---|---|
| Liberty Home Guard | | NR** | $49–$59 | $65–$125 | Up to 48 hours | VISIT SITE | |
| American Home Shield | | B | $29–$89 | $100–$125 | Up to 48 hours | VISIT SITE | |
| Select Home Warranty |  | B- | $44–$47 | $60–$75 | 48-84 hours | VISIT SITE | |
| Elite Home Warranty |  | B+ | $44–$58 | $70 | Up to 48 hours | VISIT SITE | |
| First American Home Warranty |  | B | $42–$82 | $75–$125 | 4-48 hours | VISIT SITE | |
| AFC Home Warranty |  | B | $35–$94 | $75–$125 | 24-48 hours | VISIT SITE | |
| Cinch Home Services |  | B+ | $30–$56 | $100–$150 | 2-24 hours | VISIT SITE | |
| 2-10 Home Buyers Warranty |  | A | $27–$61 | $65–$100 | Up to 48 hours | VISIT SITE |
| Liberty Home Guard | |
|---|---|
| Logo |
 |
| Star Rating | |
| BBB Rating | NR** |
| Monthly Cost | $49–$59 |
| Service Fee | $65–$125 |
| Response Time | Up to 48 hours |
| American Home Shield | |
|---|---|
| Logo |
 |
| Star Rating | |
| BBB Rating | B |
| Monthly Cost | $29–$89 |
| Service Fee | $100–$125 |
| Response Time | Up to 48 hours |
| Select Home Warranty | |
|---|---|
| Logo |
|
| Star Rating | |
| BBB Rating | B- |
| Monthly Cost | $44–$47 |
| Service Fee | $60–$75 |
| Response Time | 48-84 hours |
| Elite Home Warranty | |
|---|---|
| Logo |
 |
| Star Rating | |
| BBB Rating | B+ |
| Monthly Cost | $44–$58 |
| Service Fee | $70 |
| Response Time | Up to 48 hours |
| First American Home Warranty | |
|---|---|
| Logo |
|
| Star Rating | |
| BBB Rating | B |
| Monthly Cost | $42–$82 |
| Service Fee | $75–$125 |
| Response Time | 4-48 hours |
| AFC Home Warranty | |
|---|---|
| Logo |
|
| Star Rating | |
| BBB Rating | B |
| Monthly Cost | $35–$94 |
| Service Fee | $75–$125 |
| Response Time | 24-48 hours |
| Cinch Home Services | |
|---|---|
| Logo |
|
| Star Rating | |
| BBB Rating | B+ |
| Monthly Cost | $30–$56 |
| Service Fee | $100–$150 |
| Response Time | 2-24 hours |
| 2-10 Home Buyers Warranty | |
|---|---|
| Logo |
|
| Star Rating | |
| BBB Rating | A |
| Monthly Cost | $27–$61 |
| Service Fee | $65–$100 |
| Response Time | Up to 48 hours |
| Company | BBB Rating | Monthly Cost | Service Fee | Visit Site |
|---|---|---|---|---|
| NR** | $49–$59 | $65–$125 | VISIT SITE | |
| B | $29–$89 | $100–$125 | VISIT SITE | |
| B- | $44–$47 | $60–$75 | VISIT SITE | |
| B | $42–$82 | $75–$125 | VISIT SITE | |
| B | $35–$94 | $75–$125 | VISIT SITE | |
| B+ | $44–$58 | $70 | VISIT SITE | |
| B+ | $30–$56 | $100–$150 | VISIT SITE | |
| A | $27–$61 | $65–$100 | VISIT SITE |
To get the best home warranty for you and your home, we recommend getting quotes from at least three providers, as pricing will depend on where you live, the square footage of your home, and the protection plan you choose. Once you have quotes from all three companies, you can compare your options and go with a home warranty company that’s right for you and your budget.
FAQ About Costco Home Warranty
Does Costco offer a home warranty?
While Costco doesn’t offer a blanket home warranty option, they do offer SquareTrade protection plans that cover specific appliances. Costco offers warranties for single appliances, kitchen suites, and laundry suites.
How much does a home warranty cost?
The average cost of a home warranty is between $300–$600 a year and deductibles can range between $75–$125 per claim. Note: warranty plans for a single-family home may be slightly cheaper than plans for duplex, triplex, or multiplex homes.
What does a home warranty cover?
A home warranty covers a variety of home systems and appliances, including air conditioning systems, electrical systems, water heaters, refrigerators, dishwashers, and other mechanical systems.
Who needs a home warranty contract?
A home warranty can protect all types of homeowners, from first-time home buyers to seasoned homeowners living in older homes to mobile homeowners. If you’re looking for move coverage on major home systems and appliances or just want to feel financially secure in the event of an unexpected breakdown, a home warranty may be a good option.
Additional Home Warranty Resources
- Best Home Warranty
- American Home Shield Reviews
- Detailed Review of First American Home Warranty
- Select Home Warranty Reviews
- AHW Home Warranty Reviews
Our Rating Methodology
We back up our home warranty ratings and recommendations with a detailed rating methodology to score each provider objectively. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts, and conducting focus groups and consumer surveys.
We score each provider against our review standards, which include four comparison categories: coverage, value, trust and transparency, and availability and service. We rate each provider across 31 factors within these categories. Each factor is assigned a point value based on its importance to a homeowner, totaling 100 points. We then convert the final scores to a 5-star rating.
Here’s a breakdown of our weighted factors:
- Coverage (40%): We scored coverage based on included home systems and appliances, add-on options, and unique benefits. We also compared coverage caps and policy exclusions.
- Additional coverage items
- Annual coverage cap
- Home systems coverage
- Major appliances coverage
- Obstructed wall coverage cap
- Value (30%): We compared the coverage level received to monthly pricing to determine plan value. We considered premium pricing, service fees, and flexibility in customizing plan costs.
- Average monthly cost
- Cost flexibility
- Lowest service fee
- Trust and Transparency (16%): We evaluated each company’s reputation using the Better Business Bureau ratings and customer reviews on third-party review sites. We read through plan change policies, workmanship protections, and sample contract availability.
- Brand reputation
- Policy change flexibility
- Sample contract availability
- Workmanship guarantee length
- Availability and Service (14%): We award higher scores for faster claim processing and response times. We also considered service technician policies, including options to choose your technician.
- Claims process
- Guaranteed response time
- Service flexibility
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.
