Costco Home Warranty Review

Best for Costco members

If you’re a Costco member who plans on purchasing a new appliance soon, you may be interested in purchasing a Costco home warranty. But what is a home warranty? And are there any downsides you should know about before purchasing one? Read on to learn more about the pros and cons of getting a home warranty from Costco.

Costco home warranty pros and cons

Pros explained

Doesn't charge service fees

When you purchase a home warranty — sometimes also known as a service contract, protection plan or extended warranty — you often have to pay a one-time service fee whenever the covered items need repairs or maintenance. This can be $150 or even more with some companies. But Costco’s home warranty plans charge no service fees. So, in many cases, your appliance can get the repairs or maintenance it needs without costing you a thing.

Provides 24/7 customer service

Another major benefit is Costco's warranty support team, which offers 24/7 customer service. Your Costco home warranty comes with this support at no additional charge. If your appliance breaks down over the weekend or in the middle of the night, you will still be able to get in touch with someone who can help you process your Costco appliance warranty claim and resolve the problem.

Covers all parts of the appliance

Some extended warranties only cover normal wear and tear or accidental damage to certain parts of the appliance. Costco’s warranties don’t have these limitations. When you have an active Costco warranty, you have coverage for all parts of the appliance.

In addition, there aren’t any hidden fees or service charges. This means you don’t have to worry about experiencing a non-covered issue with your appliance or having to pay extra for service from a specialized technician. Your Costco home warranty will cover it all.

Cons explained

Doesn't offer coverage for major home systems

One drawback of Costco home warranties is that they won't cover all of your appliances, nor will they cover home systems like plumbing, electrical or HVAC. You can only purchase plans for certain types of appliances that you purchased at Costco.

This may not matter to you if you already have active coverage for older appliance purchases. But if you want coverage for a major home system, you won't be able to purchase that coverage through Costco.

Warranty coverage is only available for appliances purchased from Costco

The other thing you should know about Costco warranties is that coverage is only available for major appliances purchased at Costco. This means you need to have an active Costco membership to qualify since membership is required to shop at the chain. Furthermore, you won’t be able to purchase a home warranty from Costco for an appliance you’ve bought at another store.

Major appliance purchases are automatically enrolled in Costco’s Concierge program, which extends the manufacturer’s one-year warranty to a second year for free. If you want an additional three years of protection, then you need to enroll in coverage within 90 days of your purchase.

Covers only one appliance or suite

One of Costco’s most significant coverage limits is that its plans only cover one appliance or suite of appliances at a time. Traditional home warranty companies may offer more expansive plans that bring more peace of mind to your family, such as coverage for all of the appliances in your kitchen or laundry room. That being said, you may only need coverage for a single appliance or suite of appliances that you purchased at Costco. If so, Costco can be a solid option.

Costco home warranty plans

There are several different Costco warranty policy options to choose from. Here’s an overview of what each includes.

Appliance protection

The first option you can purchase is a standalone appliance protection plan. This warranty offers protection for a single appliance, such as a stove or refrigerator, that you’ve purchased at Costco.

Kitchen suite protection

If you’re looking for extended warranties that cover more than one appliance, Costco’s “suite” warranty packages will be your best bet. They cover all of the major appliances in a single room as long as you’ve purchased all of those appliances from Costco.

The company’s kitchen suite protection plan could cover your refrigerator, stove, dishwasher and microwave, assuming they were all purchased at Costco. Like other home warranties from Costco, these plans include coverage for 100% of parts and labor costs and on-site service, so you don’t have to worry about transporting your appliance anywhere when it needs work.

Laundry suite protection

Costco offers a similar “suite” package of protection for the washer and dryer in your laundry room. These plans offer joint protection for those appliances and include the same coverage of 100% parts and labor costs with no hidden fees. This type of coverage may be your best option if you recently purchased both a washer and a dryer from Costco.

Costco home warranty pricing

Costco bases its home warranty pricing on the cost of the appliances that you want to have covered. For example, the company charges $89.99 for a warranty that covers one appliance that costs under $1,000. But it charges $159.99 for major appliances above $2,000.

Here’s a closer look at all of the different home warranty plans and pricing options you will have to choose from at Costco:

The appliances that are covered and the amount of coverage that you have will depend on the plan you choose. But all other details are shared across all plans. For example, each Costco extended warranty comes with these features:

• Coverage for both mechanical and electrical failures
• 100% parts and labor coverage
• No deductible or hidden fees
• On-site service or brand-new replacements (no refurbished replacements)
• 24/7 online claims
• Complex part coverage for pieces that may stop working years after purchase

Since all plans include the same type of coverage, all you need to decide is the appliances that you want to include under your home warranty and the maximum coverage amounts you need.

Costco’s home warranty prices compare favorably to traditional home warranties, which can range from $350 to $600 per year.

Costco home warranty financial stability

Costco is one of the largest retail companies in the world, with a current market capitalization of about $230 billion. Costco’s home warranties are offered in partnership with All-State. All-State currently has an A rating from the credit rating agency Fitch, which indicates a high credit quality and an expectation that the company has a low risk of defaulting. AM Best, a credit rating agency that focuses on the insurance industry, gave All-State a Financial Strength Rating of A+ (Superior).

Costco home warranty accessibility

Availability

Costco home warranties are available in every state. However, you can only purchase a warranty from Costco if you also bought the appliance you want to have covered from the company. This means that you need to be a Costco member to qualify for one of these warranties.

Contact information

The easiest way to connect with Costco about an active home warranty is to call the company’s concierge line at 866-861-0450. You can reach a representative who can answer your questions or process your home warranty claim from 5:00 a.m. to 10:00 p.m., seven days per week, excluding holidays.

Costco covers the first two years of your home warranty. After that, the remaining three years of your warranty are covered by Allstate. If you’re in years three through five of your warranty, you should contact Allstate to file a claim. You can file a claim on the company’s website or call 877-927-7268.

User experience

Costco doesn’t have an app or online customer portal that you can use to access your home warranty information. It’s unlike traditional warranty companies in this regard. However, the company’s concierge line is always available to help provide the answers you’re after, which means you can always get support from a person instead of having to chat with a bot online.

Costco home warranty customer satisfaction

Customer satisfaction is a big factor when considering whether home warranties are worth it. If previous customers don’t seem happy with their experiences, then you’re unlikely to be as well.

Costco has an A+ rating from the Better Business Bureau. However, there aren’t many reviews that specifically address the company’s home warranty program. Because there isn’t a sizable cache of these reviews online, it's difficult to reliably research how customers feel about the plans.

How we evaluated Costco home warranty

We considered a variety of factors while completing this Costco home warranty review. Here are some of the categories that influenced our assessment:

• Coverage: We considered what Costco’s home warranties covered and whether there are any service fees or hidden charges for consumers to worry about.

• Price: We looked at how Costco’s home warranty pricing compares to other options on the market.

• Customer service: We considered how easy it is to get in touch with a customer service agent when you have questions or need to file a claim.

• Availability: We looked at how easy it is for consumers to access the home warranties offered by Costco.

• Financial stability: Finally, we considered the financial stability of Costco and All-State because it’s important to ensure that your provider will have the financial ability to pay out future claims.

Some of these factors may matter more to you than others. If Costco home warranties don’t seem like a good fit for your goals, you may want to research the best home warranty companies to see if you can find a better fit.

Summary of Money's Costco home warranty review

Costco’s home warranties offer comprehensive coverage with no hidden fees, but only for appliances purchased at Costco. They can cover individual appliances or suites of appliances, such as your kitchen suite or laundry and washing machines.

Costco’s warranties can be convenient if you are planning on buying an appliance or a suite of appliances from Costco. But they may not be right for you if you’re interested in buying from multiple retailers or don’t already have a Costco membership.