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State guide · TXNo paid placement

Home warranty
in Texas.

Texas home warranty companies register with the Texas Department of Licensing and Regulation under Chapter 1304 of the Occupations Code, which exempts these contracts from the Insurance Code.

Regulated as a service contract3 reviewed providers ranked
Photo · Phil Hearing / Unsplash
Why Texas is different

Texas home warranty companies register with the Texas Department of Licensing and Regulation under Chapter 1304 of the Occupations Code, which exempts these contracts from the Insurance Code. House Bill 1560, effective September 1, 2021, repealed Chapter 1303, under which the Texas Real Estate Commission had licensed them. Providers back their contracts with reimbursement insurance, a funded reserve and a security deposit of at least $25,000, or a $100 million net worth. A residential service contract must promise that, under normal circumstances, service will start within 48 hours of your request. You can cancel at any time. Within the first 30 days you get the full price back less any claims paid, with no fee. After that the refund is prorated, less claims paid and a fee of up to $50.

Source: Tex. Occ. Code ch. 1304 (Service Contract Providers and Administrators) (State statute, accessed 2026-10-07) · Texas H.B. 1560 (87th Leg., 2021), enrolled (State statute, accessed 2026-10-07) · Texas Department of Licensing and Regulation: What Should I Know About Residential Service Contracts? (State regulator, accessed 2026-10-07) · Texas Department of Licensing and Regulation: Service Contract Providers FAQ (home warranty regulation moved from the Texas Real Estate Commission to TDLR effective September 1, 2021) (State regulator, accessed 2026-10-07)
Coverage-priority context · TX

What breaks in Texas.

Issue 01
Extreme summer heat driving very high air-conditioning load and compressor failures
Issue 02
Expansive clay soils across central and north Texas stressing slab plumbing
Issue 03
Hard water accelerating water-heater sediment buildup and failure
§ 02Best providers in Texasranked by Warranta editorial score · /5 scale · how we score
01
American Home Shield
Homeowners who want broad systems coverage and a choice of service fee.
Score
4.1/5
Read review →
02
First American Home Warranty
Owners of newer homes who prioritize appliance coverage and some improper-installation protection.
Score
3.8/5
Read review →
03
Choice Home Warranty
Budget-focused homeowners who want a predictable flat service fee and straightforward plan choices.
Score
3.7/5
Read review →
§ 03Common questions for Texas
When does coverage start after I buy a plan?
When the waiting period in your contract ends. Providers set different lengths. Liberty Home Guard's sample policy starts coverage 30 days after purchase and requires covered items to be in working order that day. American Home Shield's 2024 Texas sample plan agreement shows an initial waiting period of 0 days. Under Liberty's terms, a covered item that breaks on day 20 falls inside that 30-day holding period and is not covered, so read each provider's sample contract before you buy.
Can I buy a plan after something has already broken?
You can buy one, but the two sample contracts we read would not pay for a breakdown you already have. Liberty Home Guard's sample policy "does not cover any known or unknown pre-existing conditions." American Home Shield's 2024 sample plan agreement says a covered breakdown "must occur during the Plan Agreement Term," and it excludes earlier breakdowns that "were either known by you or were reasonably detectable by you."