Ever wonder what a plumbing leak can do to your budget?
According to the North Texas Municipal Water District, a single leak in your toilet supply line, which flows at 2-3 gallons per minute, can result in water losses up to 4,000 gallons each day. A clothes washer hose, which can leak up to 12 gallons per minute, can result in a loss of more than 12,000 gallons in 24 hours. While the cost of a single gallon of water may sound small — the US average is $0.009 — over a day’s time, your financial losses can add up too. That toilet line leak may wind up costing $36 dollars a day. It may wind up causing water damage to your ceilings, walls, and floors, too. Needless to say, if one of your pipes springs a leak, it’s best to call a plumber and get it fixed pronto.
While your home insurance policy may cover the cost of property damage to your home, from carpet cleaning to damage caused by roof leaks, it doesn’t cover the cost of paying a plumbing contractor to fix your plumbing problems. It’s not a plumbing protection plan. For that you need plumbing insurance.
The thing is, straight plumbing insurance for homeowners isn’t widely available in the US. Try searching for plumbing insurance and you’ll be led to insurance policies for plumbers and other small businesses, including such insurance types as general liability, professional liability, and workman’s compensation insurance.
But plumbing insurance for homeowners is widely available as part of home warranty coverage. So let’s take a look at the best home warranty companies and help you find the plumbing coverage should a plumbing issue arise in your home.
Table of Contents
Our Top Picks for Best Plumbing Insurance
Liberty Home Guard
- Systems-only policy available
- Highly-rated among consumers
- Wide range of optional coverages
- More expensive than competitive systems-only plans
- Systems Guard plan doesn’t include coverage for septic systems, well pumps or sump pumps
Liberty Home Guard’s Systems Guard plan for a single-family home located in a small midwestern city costs $54.99 per month. If you pay for your plan annually, you’ll pay $549.99 per year, which amounts to two months of coverage for free.
But coverage under the company’s basic systems plan is limited. If you opt for additional coverage for such items as septic systems, sump pumps and well pumps, the cost for coverage jumps to $97.79 per month.
Liberty Home Guard does enjoy a positive reputation among consumers. And we can say with some authority that many home warranty companies do not. The company earns an A- rating from the Better Business Bureau and customers who review it on the BBB website award it 4.59 out of 5 stars.
Choice Home Warranty
- Choice of two combination systems-and-appliances plans
- Both plans cover plumbing systems and plumbing stoppages
- Above-average ratings on Trustpilot and Google
- No systems-only plan available
- C rated by the BBB with poor customer reviews
Choice Home Warranty is one of the better-known home warranty companies and almost invariably appears in most publications’ top ten lists of home warranty providers. It’s not the oldest home warranty company out there, but, founded in 2009, it’s no fly-by-night company. Longevity and experience in the home warranty industry count for something in our book.
One potential downside of Choice Home Warranty is that the company doesn’t offer separate coverage for home systems exclusively. It bundles it with home appliance coverage in each of its plans. So while you may not officially “need” home appliance protection, that’s what you’ll get with Choice Home Warranty.
Covered items under the company’s Basic plan include home appliances such as your refrigerator, oven and built-in microwave, as well as some systems, including plumbing. All that coverage is available for the modest price of $47.92. If you step up to Choice Home Warranty’s Total plan, you’ll also get protection for your clothes washer and dryer, as well as coverage for your air conditioning system. So if your budget can accommodate these premiums, you may well be attracted to a combination plan that provides you even greater peace of mind.
American Home Shield
- Option to choose systems-only coverage
- Choose your own service call fee (deductible)
- No maintenance records required for coverage
- Doesn’t exclude items that haven’t had proper maintenance
- Higher premiums than other systems-only plans
- Comparatively high deductibles add to overall cost
American Home Shield offers homeowners the opportunity to purchase coverage for home systems only. If you don’t want appliance coverage, you don’t have to buy it, plain and simple.
For systems-only coverage that includes plumbing protection, homeowners can opt for the company’s ShieldSilver plan. In addition to covering plumbing, the plan also includes coverage for your electrical, heating and cooling systems. The ShieldSilver plan has a monthly cost of $59.99, which is higher than many competitive systems-only plans. The company allows homeowners to select their own deductible — either $100 or $125. These are also on the high side, which can drive the cost of coverage up further. Included in the plan’s plumbing coverage is protection for interior plumbing lines, water heaters, toilets, faucets, valves and whirlpool motors and components.
American Home Shield has been in business since 1971. That makes it one of the oldest and most experienced home warranty companies in the US. The company earns a respectable B rating from the Better Business Bureau, but consumer reviews are often at odds with that positive rating.
Select Home Warranty
- Offers a systems-only plan for plumbing coverage
- Save money by purchasing multi-year contracts
- Get 12 months for the price of 10 months when you pay annually
- Service call fee may be expensive for some customers
- May be difficult to cancel your plan
Plumbing coverage through a home warranty plan is bundled with other systems coverage — and sometimes with appliance coverage, too. Select Home Warranty gives homeowners the opportunity to limit coverage to systems only through its Goldcare plan.
For $44.42 per month, Select Home’s Goldcare plan covers a home’s plumbing, electrical and heating systems. It also provides coverage for water heaters and the ductwork associated with forced hot air heating systems. Compared to other similar plans, the Goldcare plan is on the lower end of the spectrum.
Select Home Warranty plans are available for condominiums and multi-unit properties. You’ll have to call the company for specific pricing.
We have to take Select Home Warranty to task, however, for not quoting its service call fee (or fees) on its website. Nor does the company publish a sample contract. Knowing the cost of service calls is an essential part of judging the value of a home warranty product.
First American Home Warranty
- Customize your service call fee from $75 to $125
- Sample contract provided on website
- No systems-only coverage available
- Doesn’t provide information on add-on coverage options
First American Home Warranty is one of those companies that bundles systems coverage — including plumbing systems — with appliance coverage in all of its plans.
Its lowest price plan, the Starter plan, is available for $44 per month when you choose a $125 deductible. You can also select a deductible of $75 or $100, but doing so will drive up your monthly premium. The Starter plan limits plumbing coverage, however, to interior pipes, plumbing stoppages, and toilet tanks, bowls and mechanisms. It does not cover water heaters or plumbing fixtures, which are frequently subject to corrosion under normal wear and tear.
If you step up to the Essential Plan, which costs $54 per month (with a $125 deductible), you will get coverage for your water heater. For $69 per month, the company’s Premium plan will cover your instant hot water dispenser, as well.
We give First American points for publishing a sample contract on its website, for explaining its deductible schedule, and making it easy to compare plans side by side. While nearly all home warranty companies provide free quotes, we found that First American makes it particularly easy. But our reading of the company’s sample contract underscores how important it is to get down to the nitty gritty of coverage with any plan you consider. In First American’s case, we noticed a discrepancy between its coverage descriptions and the information contained in its sample contract. The first states that shower heads and arms are covered under its Essential and Premium plans while the second states that shower heads and arms and other fixtures are not covered. So take our advice and make time to read sample contracts when available. And when they’re not, ask for one.
America’s First Choice Home Club
- Long workmanship guarantee: up to three years with a three-year plan
- Choose systems-only, appliances-only or combination coverage
- Choose your own service tech or an AFC Home Club contractor
- Choose a $75, $10, or $125 deductible
- $75 cancellation fee
- No sample contract provided on website
America’s First Choice Home Club offers customers looking for plumbing insurance three choices. You can elect to get plumbing coverage under a systems-only plan or get it through your choice of two combination systems-and-appliances plans.
The company’s systems-only plan, available for $42.42 per month, covers such plumbing problems as leaky pipes, but it does not cover plumbing stoppages. If you step up to the company’s Gold plan, priced at $49.17 per month, plumbing stoppages are included. When you purchase the company’s Platinum plan, which costs $53.67 per month, faucets and ice makers are added to the list of covered items. Septic system coverage can be added for an additional fee to any plan. All prices quoted reflect a $125 service call fee. But America’s First Choice Home Club does offer homeowners the opportunity to customize their deductibles. That’s another way customers can influence their monthly premiums.
One feature of AFC Home Club’s plans that stands out is the opportunity to choose your own service technicians. While the company maintains its own roster of service contractors, if you have a great plumber who has already earned your confidence, you can direct your business to him or her.
Our Guide to the Best Plumbing Insurance
Main things to know before purchasing plumbing insurance
Plumbing insurance, when part of an overall home warranty plan, covers a wide range of interior plumbing problems. Home warranty plans do not, however, generally cover problems with sewer lines.
Home warranty plans resemble homeowners insurance in that you will pay a monthly premium to keep your plan in force. You will also pay service call fees each time you file a home warranty claim. Service call fees are akin to deductibles in a homeowners policy and they’re sometimes referred to that way.
What does plumbing insurance cover?
That depends on the home warranty plan you choose. It’s always best to review the specific plumbing coverage a plan offers. You can do that by reading home warranty providers’ sample contracts. If a home warranty company doesn’t include one, you should request a copy before you sign up for a home warranty. Covered items vary from home warranty company to home warranty company, so it’s important to read the coverage details of any plan you’re considering.
Here’s a comprehensive list of plumbing problems that a home warranty systems policy may cover:
- Problems related to your interior plumbing system
- Plumbing stoppages
- Water heater issues
- Problems with your heating and air conditioning
- Garbage disposal leaks
- Faucet leaks
- Shower head leaks
- Sump pumps
- Well pumps
- Septic systems and septic pumps
- Other add-on covered items such as stand-alone freezers, pools, and spas
How much does plumbing insurance cost?
You can purchase separate, comprehensive plumbing protection for about $40 per month. But many home warranty companies offer plans that cover all of your major home systems, including HVAC, electrical and plumbing for about the same price. Many customers opt for home warranty coverage for that reason. Be aware, though, that home warranties often note protection for your sewer lines among their exclusions.
Who needs plumbing insurance?
Arguably, any homeowner is a good candidate for plumbing insurance. But if you live in a newly-constructed home, plumbing insurance or a home warranty plan may be redundant with your home’s manufacturer’s warranty. Once your new home warranty expires, or if you live in an older home, it makes sense to purchase plumbing coverage.
Best Plumbing Insurance Companies FAQs
What plumbing systems are not covered by plumbing insurance?
That depends on the policy. Some plans are bare bones and won’t cover such items as septic systems and well pumps. But you can purchase additional coverage for those home features for an extra fee.
Does homeowners insurance cover plumbing issues?
Homeowner’s insurance may cover damage to your home that results from plumbing issues. But it doesn’t cover repairs.
Can I have plumbing insurance if I live in a condo?
Home warranties that include plumbing insurance are typically available for condos. As a condo owner, you may share responsibility for plumbing repair costs with your homeowner’s association. The amount you receive from your home warranty company will never exceed your own out-of-pocket costs for any repair you claim.
Is plumbing insurance required by law?
No, not for homeowners. However, plumbing contractors and other businesses may be required to carry some types of business insurance, such as a general liability policy.
How We Chose the Best Plumbing Insurance
Our methodology began with looking at the availability and pricing of plumbing insurance as a separate purchase for homeowners. That type of insurance is a rare animal and we found that it doesn’t always represent as good a value as home warranties that cover major home systems. So we focused on home warranty companies and reviewed them for coverage and price. We compared their workmanship guarantees — the amount of time after you’ve paid for a service call that the company will guarantee a technician’s work — and each company’s reputation among consumers. We also gave extra points to home warranty companies that offered the most transparency around pricing, coverage limits and exclusions.
Summary of Our Guide to the Best Plumbing Insurance
If you’re considering purchasing plumbing insurance, here are the steps you can take to ensure you get the coverage you’re looking for at a price that suits your budget:
- Research plumbing-only insurance, if it’s available in your area
- To limit your expenses, look for a home warranty company that offers systems-only coverage
- Compare coverage and prices for several plans
- Look for subtle differences in plumbing coverage, such as whether plumbing stoppages are included or excluded from the plans you consider
- Read or request a sample contract from the home warranty provider
- Don’t be afraid to ask questions. If you’re confused by something you read online, make a call to the company.
Susan Doktor, senior writer at Money.com, is a journalist, business strategist, and veteran homeowner. She writes on a wide range of personal finance topics, including mortgages, real estate, and home improvement. Follow her on Twitter @branddoktor.
