In Texas, home warranties are legally called residential service contracts, and the companies that sell them must be licensed by the state. Heavy reliance on air conditioning makes cooling coverage and its caps a central question for many Texas homeowners.
Plans available in Texas
Choice Home Warranty publishes that it serves Texas. 2-10 Home Buyers Warranty, American Home Shield, First American Home Warranty, Home Service Club, Home Warranty of America, Old Republic Home Protection don't publish a state list and say availability varies by area, so confirm by ZIP code. Plan terms below come from each provider's sample contract, which can differ by state.
| Checked Oct 23, 2026 |  2-10 Home Buyers Warranty |  American Home Shield |  Choice Home Warranty |  First American Home Warranty |  Home Service Club |  Home Warranty of America |  Old Republic Home Protection |
|---|---|---|---|---|---|---|---|
| Plans | 2 plans (best of those shown) Systems, Pinnacle | 3 plans (best of those shown) ShieldSilver, ShieldGold, ShieldPlatinum | 2 plans (best of those shown) Basic Plan, Total Plan | 3 plans (best of those shown) Starter Plan, Essential Plan, Premium Plan | 2 plans (best of those shown) Standard Coverage, Comprehensive Coverage | 2 plans (best of those shown) Premier Plan, Premier Plus Plan | 3 plans (best of those shown) Basic, Deluxe, Elite |
| Heating & cooling cap | $5,000 (best of those shown) per system | $5,000 (best of those shown) per system | $3,000 (best of those shown) per system | Not stated (best of those shown) | $2,000 (best of those shown) per system | $5,000 (best of those shown) per system | $6,500 (best of those shown) per system |
| Best appliance cap | $2,000 (best of those shown) per appliance, top tier | $4,000 (best of those shown) per appliance, top tier | $3,000 (best of those shown) per appliance, top tier | $7,000 (best of those shown) per appliance, top tier | $2,000 (best of those shown) per appliance, top tier | $5,000 (best of those shown) per appliance, top tier | $7,000 (best of those shown) per appliance, top tier |
| Overall limit | $50,000 (best of those shown) per term | $50,000 (best of those shown) per term | Not stated (best of those shown) | No limit (best of those shown) | $9,000 (best of those shown) per term | $15,000 (best of those shown) per term | No limit (best of those shown) |
| Service fee | You choose (best of those shown) | $100 or $125 (best of those shown) | $100 per claim (best of those shown) | Set in your plan (best of those shown) Not published | Choice of deductible levels (best of those shown) | Set in your plan (best of those shown) Not published | Per trade; you select the amount (best of those shown) |
| Code & permit upgrades | Excluded (best of those shown) Not covered | Limited (best of those shown) Platinum only, up to $250 | Excluded (best of those shown) Code corrections and permits excluded | Limited (best of those shown) Optional Advantage add-on: $500 (Essential), $1,500 (Premium) | Excluded (best of those shown) Code modifications and permits excluded | Limited (best of those shown) Only with OrangePlus add-on: code $250, permits $250 | Limited (best of those shown) Deluxe $500, Elite $1,000; not on Basic |
| Unknown pre-existing issues | Limited (best of those shown) Only if not reasonably detectable | Limited (best of those shown) Excluded only if known or reasonably detectable | Excluded (best of those shown) Known or unknown pre-existing excluded | Excluded (best of those shown) Covered only for real estate transaction customers | Excluded (best of those shown) Conditions existing before the effective date excluded (homeowner plans) | Excluded (best of those shown) Pre-existing conditions excluded | Excluded (best of those shown) Malfunctions before the effective date excluded |
| Cancellation | Anytime (best of those shown) Yes, prorated refund | Anytime (best of those shown) Yes; pro-rata refund, admin fee after 30 days | Anytime (best of those shown) Yes; admin fee may apply after 30 days | Restricted (best of those shown) Full refund within 30 days if no claims; after a claim, non-cancelable | Restricted (best of those shown) Pro rata refund, but you may owe service costs above fees paid | Anytime (best of those shown) Yes; pro rata refund less service costs and a small admin fee | Non-cancelable (best of those shown) Non-cancelable except listed reasons (state rules vary) |
| Waiting period | 30 days (best of those shown) | 30 days (best of those shown) | 30 days (best of those shown) | Not stated (best of those shown) | Not stated (best of those shown) | 30 days (best of those shown) | Not stated (best of those shown) |
| Availability | Varies by ZIP (best of those shown) No state list published | Varies by ZIP (best of those shown) No state list published | All states (best of those shown) except WA | Varies by ZIP (best of those shown) No state list published | Varies by ZIP (best of those shown) No state list published | Varies by ZIP (best of those shown) No state list published | Varies by ZIP (best of those shown) No state list published |
| Sample contract | Read it (best of those shown) | Read it (best of those shown) | Read it (best of those shown) | Read it (best of those shown) | Read it (best of those shown) | Read it (best of those shown) | Read it (best of those shown) |
| Links | Review | Review | Review | Review | Review | Review | Review |
Covered Limited Excluded Best Most favorable term among the providers shown From each provider's sample contract and plan pages. Not a quote; terms can vary by state.
Who oversees home warranties in Texas
Since September 1, 2021, TDLR has overseen residential service companies (home warranties), taking over from the Texas Real Estate Commission. You can verify a company's license with TDLR's license search and file complaints through TDLR's Service Contract Providers complaint form. Texas Department of Licensing and Regulation (TDLR)
How to check a Texas home warranty company
Before buying, confirm the company holds a current TDLR license as a residential service company. Use TDLR's Verify a License search under the Service Contract Provider program.
If a claim goes wrong and the company won't resolve it, TDLR handles complaints against residential service companies and their administrators. Older guides may still point you to the Texas Real Estate Commission; that oversight moved to TDLR in 2021.
- A residential service contract is not required to buy a home in Texas, even if one is offered at closing.
- You can choose your own provider rather than the one suggested in a real estate transaction.
Texas climate and what it means for coverage
Long, hot summers mean air conditioning runs hard for much of the year across most of Texas. For many homeowners, the most important parts of a plan are the cooling coverage, the cap on HVAC repairs or replacement, and limits on refrigerant, ductwork, and system-matching upgrades.
Hard water is common in parts of Texas, which can shorten the life of water heaters and some appliances. Check whether a plan excludes failures caused by sediment or mineral buildup.
What to check in the Texas version of a contract
Many providers publish a separate sample contract for each state. Before you buy, make sure the contract you read is the Texas version, then check:
- The covered-items list and any per-item or annual caps for the systems you care about most.
- The service fee, and whether it is charged per visit, per trade, or on denied claims.
- Exclusions for pre-existing conditions, maintenance, and code or permit upgrades.
- Cancellation and renewal terms, including how any refund is calculated.
- Any state-specific notices printed in the contract. These often explain who regulates the contract in Texas and where to complain.
Texas home warranty FAQs
Who regulates home warranties in Texas?
The Texas Department of Licensing and Regulation (TDLR) licenses residential service companies, the legal term for home warranty companies in Texas. Oversight moved there from the Texas Real Estate Commission in 2021.
Do I have to buy a home warranty when I buy a house in Texas?
No. A residential service contract is optional, and you can choose your own provider.
Where do I complain about a Texas home warranty company?
First follow the company's own appeal process. If that doesn't resolve it, file a complaint with TDLR using its Service Contract Providers complaint form.
What should Texans look at most closely in a plan?
For most homes, the HVAC coverage: the per-item cap, refrigerant limits, and whether code or compatibility upgrades are covered when a system is replaced.
Sources
- TDLR: Residential Service Companies (Home Warranties) transfer to TDLR
- TDLR news: Residential Service Companies (Home Warranties)
- USGS Water Science School: Hardness of water
This page is general education, not legal, financial, or insurance advice. Home warranty terms vary by provider, plan, and state; the contract you sign controls what is covered. Spotted an error? Request a correction.