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Home / Home Warranty guides / The Home Warranty Cap Is the Only Number That Matters

The Home Warranty Cap Is the Only Number That Matters

Six contracts read line by line: what the caps are, what every one of them refuses, and the break-even maths.

Written by Team RankingRight
September 2, 2026 · 4 min read

Why the monthly price misleads

Two plans at $50 a month are not comparable if one caps HVAC at $2,000 and the other at $5,000. A full system replacement runs $6,000 to $12,000. The cap decides whether the contract solves your problem or contributes to it.

The caps we found

  • American Home Shield: $5,000 HVAC (Platinum)
  • First American: $3,500 HVAC, $7,000 appliances
  • Liberty Home Guard and Cinch: $3,000 HVAC
  • Choice: $3,000 per item
  • Select: $2,000 HVAC, $3,000 for the whole year

What every contract refuses

  1. Pre-existing faults. American Home Shield and Cinch are the exceptions — both cover faults a visual inspection could not have found.
  2. Lack of maintenance. The most common denial. Keep service records and filter receipts; they are your evidence.
  3. Code upgrades, permits and disposal, unless you buy the upgrade that covers them.
  4. Cosmetic damage and anything still under manufacturer warranty.

The break-even

At $700 to $1,400 a year including service fees, you need roughly one significant claim a year. Systems under ten years old rarely produce that. A 15-year-old furnace often does.

Before you sign

Download the sample contract — every provider publishes one — and read three things: the per-item cap, the definition of pre-existing, and the cancellation terms. Ten minutes there is worth more than any review, including this one.

General information from reading published contracts, not insurance or legal advice.

» See the full rankings: Best Home Warranty Companies of 2026, Best Home Warranty for HVAC and Heating, Cheapest Home Warranty Plans .