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Costco Home Warranty — Our Take

Can a Costco home warranty protect your systems and appliances? We break down Costco’s coverage for common home items.
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Costco sells protection plans administered through Allstate for appliances purchased from Costco stores and Costco.com. These protection plans are similar to home warranties in that they protect customers from the high cost of covered repairs or replacements on major appliances. Unfortunately, there's not a Costco home warranty plan that offers protection for both home systems and appliances purchased from any vendor.

If you're looking for a home warranty, consider getting a free quote from American Home Shield, a top home warranty provider that offers comprehensive protection for important systems and appliances as well as coverage for items with undetectable pre-existing conditions. To get a free quote, fill out this online form or call 844-529-9298.

Costco Protection Plans

Laundry Suite

The Laundry Suite protection plans cover a washer and dryer. These appliances are protected for two years by Costco Concierge and three years by Allstate. Costco sells a Laundry Suite plan for washers and dryers under $2,000 and a Laundry Suite plan for washers and dryers costing $2,000 or more.

The Laundry Suite protection plans are exclusive to Costco members and must be bought within 90 days of purchasing your washer and dryer. The plans cover power failure and unexpected leaks. Additionally, if your washer or dryer can't be repaired within 14 days of a technician's initial on-site visit, Costco will reimburse you for laundry services up to $50 during years three to five of your protection plan.

Kitchen Suite

The Kitchen Suite protection plans cover kitchen appliances such as your refrigerator, microwave, and dishwasher. Costco sells a plan for kitchen suites under $2,000, a plan for kitchen suites costing between $2,000 to $4,000, and a plan for kitchen suites costing over $4,000.

Similar to the Laundry Suite plans, the Kitchen Suite protection plans must be obtained within 90 days of your purchase and they're exclusive to Costco members. These plans cover food spoilage caused by mechanical failure of an appliance (up to $300) during years three to five of the protection plan, and they cover unexpected leaks and power failures.

Individual Appliances

Costco offers separate coverage plans for individual washers, dryers, refrigerators, dishwashers, freezers, microwaves, and ranges. The company sells three plans: one for appliances under $1,000, one for appliances costing between $1,000 and $2,000, and one for appliances that cost over $2,000.

These extended warranty plans must be bought within 90 days of the appliance's purchase date and they're exclusive to Costco members. Like the Kitchen Suite, these plans cover unexpected leaks, power failure, and spoiled food up to $300 during years three to five of the protection plan.

Costco also offers protection plans for the following:

  • Cameras/tablets under $300
  • Cameras/tablets between $300 and $650
  • Cameras/tablets above $750
  • Apple iPads
  • Televisions under $500
  • Televisions between $500 and $1,000
  • Televisions above $1,000
  • Computers under $500
  • Computers above $500

Benefits and Exclusions of Costco Protection Plans

Costco's plans come with a free 30-day trial and 24/7 customer service. They also include fast repairs and replacements, and the plans can be transferred to a new owner.

As previously mentioned, only Costco members can purchase these protection plans. Additionally, they don't cover certain types of damage, such as:

  • Defects due to the initial installation, assembly, or hookup of the product
  • Cosmetic damage that doesn't affect the functionality of the covered product
  • Failures related to a lack of cleaning or preventive maintenance
  • Accidental damage
  • Loss
  • Theft

Cost of Costco Protection Plans

Compare Costco pricing for each individual protection plan below:

  • Appliances under $1,000: $89.99
  • Appliances between $1,000 and $2,000: $119.99
  • Appliances above $2,000: $159.99
  • Kitchen Suites under $2,000: $174.99
  • Kitchen Suites between $2,000 and $4,000: $299.99
  • Kitchen Suites above $4,000: $399.99
  • Laundry Suites under $2,000: $174.99
  • Laundry Suites above $2,000: $219.99
  • Cameras/tablets under $300: $29.99
  • Cameras/tablets between $300 and $650: $49.99
  • Cameras/tablets above $750: $79.99
  • Apple iPads: $79.99
  • Televisions under $500: $34.99
  • Televisions between $500 and $1,000: $64.99
  • Televisions above $1,000: $99.99
  • Computers under $500: $69.99
  • Computers above $500: $99.99

Customer Reviews of Costco Protection Plans

Allstate Protection Plans, the parent company that offers Costco protection plans, holds an A+ rating from the Better Business Bureau (BBB) and has been accredited since 2007. In general, positive experiences mention the company's efficient claims process and professional customer service team. Here's a sampling of customer reviews regarding these protection plans:

"Easy to work with, prompt response. We were given the option of a refurbished replacement or a refund. They sent a refund check within five days. Great customer service!"—Tania G. on 12/19/2020 via BBB

"Do not use this service. They will overcharge for a repair service and then tell you your service is canceled because they spent too much on repairs."—Steve P. on 02/08/2019 via BBB

How to Submit a Claim

If you have a question about your Costco membership or the products you've purchased at Costco, you can contact customer service at 800-955-2292. If you have any questions about your service plan, call Allstate at 877-927-7268.

Verdict & Recommendation

Costco offers a variety of appliance protection plans through Allstate, but the plans cover only a few systems and appliances and they're available only to Costco members. If you aren't a Costco member and want more comprehensive protection for your major home systems and appliances, we recommend buying a home warranty plan from a top-ranked provider, such as American Home Shield, Choice Home Warranty, or Select Home Warranty.

Top Home Warranty Recommendations

To help our readers find the best home warranty for their needs, our Reviews team analyzed a variety of companies by looking at factors such as customer service, coverage, and pricing. Our research found that American Home Shield, Choice Home Warranty, and Select Home Warranty offer the best home warranties in the industry.

American Home Shield offers three coverage options that cost between $39.99 and $64.99. The company is available in all states, except Alaska, and it has a B rating from the BBB. To get a free quote from American Home Shield, call 844-529-9298 or complete this form.

Choice Home Warranty provides two coverage plans and is best for older homes because it doesn't deny coverage based on the age of your house. Its home service plans cost between $41.69 and $50, and its service fee is $85. To get a free quote from Choice Home Warranty, call 929-400-6165 or complete this form.

Select Home Warranty is one of the most affordable home warranty companies in the industry. It offers three plans that range from $41 to $47 and has a standard $75 service call fee. To receive a free quote from Select, call 888-370-3956 or fill out this online form.

Home Warranty Rating Methodology

The Home Service Research Team at Better Homes & Gardens strives to provide unbiased and objective reviews to readers by compiling relevant information on home warranty companies and rating the providers on a variety of factors.

Here's what our review process looks like:

  • We examine each provider's website to determine plan details, coverage, customer service offerings, and other benefits. We also speak with company representatives to get more insight on plan details.
  • We read sample contracts from each home warranty company to analyze and compare coverage details, limits, and exclusions.
  • We read at least 100 third-party customer reviews for each home warranty company to determine the real-life benefits and drawbacks of each provider.
  • We gather cost information for a variety of home warranty plans in different states by completing online quote forms and speaking with sales representatives to simulate the quote process.
  • We revisit each company's offerings on a seasonal basis, ensuring that we include the most up-to-date information in our reviews.

We also created a 100-point rating system to score companies based on objective factors, such as plan options, coverage, and customer service:

Factor

What we consider

Plan Options

The number and type of plan options offered to customers

Coverage

The types of items included in a policy

Cost

How much each plan costs and the service fee options

Company Reputation

How the company is perceived through Better Business Bureau (BBB) ratings and a company's years in business

Customer Service

The customer service team's availability, what guarantees are offered, and what customer communication channels are provided (online customer portals, quote forms, etc.)

Unique Benefits

Factors that make the customer experience more seamless, such as allowing customers to choose their own contractor

Overall, the Home Service Research Team has reviewed over 70 home warranty companies to select the top-rated providers in the industry.

Frequently Asked Questions

Which is the best home warranty company?

Our analysis of the home warranty industry found that American Home Shield is the best overall home warranty company. Select Home Warranty and Choice Home Warranty are other excellent options to consider.

Are home warranties worth it?

Whether home warranties are worth it or not depends on your financial situation. Home repairs and replacements typically cost $2,000 or more, which can disrupt the financial stability of many homeowners. With a home warranty plan, you can save money by paying monthly for coverage that will protect you should something need repairing or replacing, and you'll have peace of mind knowing that the most important systems and appliances in your home are covered.

How do you spot a bad home warranty company?

The worst home warranty companies typically offer little contact information, unclear coverage limits, and vague language in contracts. It's always a good idea to check third-party review sites to see what past customers have to say about their experiences with a certain company.