Home warranties provide homeowners with peace of mind when household systems and appliances fail. Appliances like microwaves, dishwashers and clothing dryers function as the main part of our lives within our homes, and when they fail, it can be stressful. These failures are predictable when they’ve gone through enough daily use.
It’s anxiety-producing enough without the added cost of repair and replacement thrown in. Unfortunately, homeowners insurance doesn’t cover damage from everyday wear and tear — but home warranties do.
The reviews team has evaluated Costco’s home warranty options, looking into plans, coverage, customer ratings, cost and more. Costco offers warranty options on appliances purchased in its stores to support homeowners when it comes to the repair and replacement of these items if they fail.
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Today’s Homeowner works with an independent reviews team to create evidence-based research that helps our readers make informed decisions. The reviews are always independent. For transparency, we may be compensated if you purchase through a link.
Ultimately, Costco can’t stack up against traditional home warranties, which cover a wider variety of appliances in addition to systems. American Home Shield has been found the Best Overall Provider for a home warranty for its strong reputation and its wide variety of plans.
Costco offers warranties for appliances, but only those purchased at a Costco warehouse in-person or online at Costco.com. The company partners with SquareTrade, an Allstate company, in order to provide these warranties.
What to Know About Costco Warranty Plans
Costco offers three plans at different coverage rates — an appliance, kitchen suite and laundry suite warranty plan.
Each of these plans covers your appliance for a total of five years. The first two years are covered by Costco Concierge, and the final three are extended protection offered by SquareTrade. The SquareTrade extension must be purchased within 90 days of receipt of your appliance.
Each plan purchased covers one relevant item. For example:
- Appliance plan: Covers one refrigerator, freezer, washer, dryer, range, dishwasher or over-the-counter microwave.
- Kitchen suite: Covers one “suite” or set of items purchased, which may include a dishwasher, microwave and refrigerator all in one.
- Laundry suite: Covers one “suite” or set of items purchased, typically a clothing washer and dryer.
No sample service contract is available online, but more information about these warranties can be found here.
The cost of each warranty type depends on the coverage umbrella you’re looking for. Costco offers plans for appliances that cover between $1,000 and $4,000 worth of damage or replacement needs.
Here’s the breakdown by plan:
|Appliance (Under $1,000)||$79.99|
|Laundry (Under $2,000)||$159.99|
|Kitchen (Under $2,000)||$159.99|
There is no optional coverage beyond these plans.
Costco’s options are fairly expensive. For example, using the least costly Costco examples, covering kitchen and laundry suites alone might cost you $350, whereas another home warranty plan would cover these, as well as other systems and appliances in your home at once for the same price.
How To Make A Claim with Costco Warranty
You can get free technical help to discuss your warranty claim by calling 1-866-861-0450.
Reviews of Costco Warranty
Costco is not accredited by the Better Business Bureau (BBB) and holds an A+ rating. Specific reviews for home warranties are not available. General reviews are mixed. All BBB ratings are as of February 2020.
“They stand behind their products and make delivery and pick-up very easy. I ordered a mattress and did not find it comfortable so called them. The customer service on the phone was EXCELLENT — very nice, respectful, accommodating, and put me at ease. They sent out someone to pick it up, no questions asked, and refunded me the entire amount.
I had an air fryer that quit working after months of weekly use … I took it back for a full refund, no questions asked, except if it was working. The guy at the counter looked up my purchase using my membership card and issued a full refund, no questions asked.
We have been Costco members since 1987 or something very long ago. Always happy with their service.”
— Kathleen K., 12/25/2018, 5 stars, BBB
“Ordered Samsung refrigerator on costco.com on 3/19/2017. Got cancelled on 3/21/2017. Called customer service to find out why … Guy named Lukas told me that he placed my order again and told me [he’d] send a confirmation in 2 hours. Called back to find out status — Brandy H told me that she does not have anything on her record. My order did not go through the first time, but after entering the correct number, it did go through … When I asked the guy on the phone for the delivery date … he argued at first that it takes 2 to 3 weeks but we don’t do anything on the weekend. He was rather ready to CANCEL my order than deliver me on time. Just wonder what kind of customer service is that. Bad experience.”
— S.S., 3/22/2017, 1 star, BBB
Costco Warranty Pros & Cons
Home warranty providers will give homeowners a much better bang for their buck when it comes to protecting their appliances. Here’s how Costco panned out.
|– Ease of purchase done at sale point|
– A+ BBB rating
|– Expensive coverage|
– Covers one appliance or suite only
– No sample service contract
Preferred Provider: American Home Shield
If you’re looking to get more for your money when it comes to covering your home, the Best Overall home warranty provider is American Home Shield. Here are just a few reasons:
- Offers four plan types to choose from for added flexibility
- Operates in 49 states, all except Alaska
- In business since 1971
- Lets customers select their own service fee, either $75, $100 or $125
- Answers service requests within 24 hours 98% of the time
American Home Shield covers 11 critical home systems and 10 essential appliances at once, and a Build Your Own option that allows you to only cover what you need.
American Home Shield claims to have founded the home warranty industry and has a network of more than 15,000 licensed contractors, and professionals throughout 50 states in the US.
Here’s how the home warranty provider stacks up against Costco’s warranty options.
|American Home Shield||Costco Home Warranty|
|Sample Contract Provided||Yes||No|
|Number of Plans||4||3|
|Average Lowest Cost||$600||$110|
|# of States Covered||49||Not Available|
|Excluded States||Alaska||Not Available|
|Waiting Period||30 Days||Not Available|
|Service Fee||$75, $100 or $125||Not Available|
|Years in Business||Since 1971||Since 1976|
|Average Trustpilot Reviews||2.5 Stars||2 Stars|
|Average Google Reviews||Not Listed||Dependent on Location|
Frequently Asked Questions
Does Costco offer a home warranty?
Costco does not offer a blanket home warranty option, but it does offer warranties that cover specific appliances often covered in a home warranty plan. Costco offers warranties that cover single appliances, kitchen suites and laundry suites.
Which home warranty is best?
The best home warranty for you depends on your budget and coverage needs. The reviews team has selected American Home Shield as the best option for homeowners, based on strict research standards.
Is it worth it to have a home warranty?
Whether or not a home warranty is financially valuable depends on how much you spend on your warranty, and the cost of repair or replacement of items without that warranty.
If the costs of repair and replacement exceed the amount you spent on your warranty, then it’s worth it. If those costs do not exceed the amount you spent on your warranty, then it’s up to you to determine whether or not the peace of mind that a home warranty provides is worth the cost.
What is a Costco warranty?
A Costco warranty is a service agreement between a homeowner and Costco that says Costco is responsible for the repair and replacement of appliances purchased at a Costco warehouse, or Costco.com, that fail from normal wear and tear.