Austin Home Buyer Guide

Residential Service Contracts, aka Home Warranties

About Your Seller's Contribution — TREC Contract, Paragraph 7, Section H
Per your executed purchase contract, the seller has agreed to contribute toward the cost of your residential service contract as specified in Paragraph 7, Section H. Your Shipman Partners agent will confirm the exact contribution amount in the email accompanying this guide. Before finalizing your selection, confirm that the plan's annual premium falls within the seller's contribution. Any amount above the contracted limit would be your responsibility at closing.
A Message From Your Shipman Partners Team
We Evaluated the Market So You Don't Have To

In the weeks before closing, your title company will send you a list of 14 or more home warranty companies and ask you to select one. For most buyers, that list arrives with no guidance at an already demanding point in the transaction.

Shipman Partners has independently evaluated the residential service contract companies active in the Austin MSA, reviewing coverage terms, customer claim experiences, out-of-pocket cost structures, and contractor performance specific to Central Texas. This guide presents our findings so you can make a confident, well-informed selection before your closing date.

$8K–$15K
Typical full HVAC replacement cost in the Austin market
$85–$125
Your out-of-pocket service fee per claim, per technician visit
100°+ Days
Austin exceeds 100°F annually, making HVAC your most critical post-closing protection
Understanding Your Out-of-Pocket Costs
The seller's contribution covers your annual plan premium up to the contracted amount. Separately, each time you file a claim after closing, you pay a service fee directly to the technician at the time of the visit, typically $85 to $125 per visit depending on the plan you select. Think of it as a copay. Where a plan gives you a choice of service fee, selecting the lower option maximizes your protection per dollar of the seller's contribution.
The Shipman Partners Approved List
Fidelity National Home Warranty
Enhanced Plus Plan — Recommended Selection
Strong Choice
Service Fee Per Claim
$90 per visit — Texas plans
Local Advocacy
Dedicated Austin account representative available to intervene directly on your behalf when a claim requires escalation
Workmanship Guarantee
30-day guarantee on all completed repairs; pre-screened local contractor network throughout the Austin MSA
Coverage Highlights
Heating & Cooling Systems Plumbing Electrical Water Heater Refrigerator Dishwasher Oven / Range / Cooktop Built-in Microwave Garbage Disposal Washer & Dryer Garage Door Opener Pest Control (Included) Re-Key Service (Included) Optional Pool & Spa Optional Well Pump Optional Roof Leak
Why We Recommend This
Fidelity's defining advantage is a local Austin representative who can advocate directly for our clients when a claim requires escalation. Having a named, reachable contact with authority to intervene is a genuine differentiator in an industry where claims can stall in a corporate queue. The lower $90 service fee is also a meaningful out-of-pocket advantage over the life of your coverage. Ask your Shipman Partners agent to introduce you to the local representative at the time of enrollment.
American Home Shield
ShieldPlatinum Plan — Maximum Coverage Option
Older Homes
Service Fee Per Claim
$75–$125 per visit — your choice at enrollment
Pre-Existing Conditions
ShieldPlatinum explicitly covers unknown pre-existing conditions, rust, and corrosion, a critical contractual advantage for older Austin homes
HVAC & Total Coverage
Up to $5,000 per HVAC system with a $50,000 total agreement limit for the contract year
Coverage Highlights
Heating & Cooling Systems Plumbing Electrical Water Heater Refrigerator Dishwasher Oven / Range / Cooktop Built-in Microwave Garbage Disposal Washer & Dryer Garage Door Pre-Existing Conditions (Covered) Rust & Corrosion (Covered) Roof Leak Repair (Included) Code & Permit Corrections Expert Video Chat Access $50,000 Annual Agreement Limit
Best Suited For
ShieldPlatinum is our recommendation for buyers purchasing homes built before 2000, or any home where the inspection identified aging mechanical systems. The contractual coverage of unknown pre-existing conditions, rust, and corrosion provides written legal protection that most plans exclude, and that distinction can be the difference between a covered claim and a significant out-of-pocket expense on an older Austin home. If your inspection raised questions about system age or condition, this is the plan to discuss with your agent.
A Note About the Other Companies on Your List

The title company's list will include companies beyond those covered in this guide. Our research process reviewed actual customer claim narratives, contractor performance in the Austin market, coverage limit adequacy for Central Texas conditions, and the regulatory and legal history of each provider. Several companies that commonly appear on title company lists did not perform at the level we hold our clients' vendors to, and we have deliberately excluded them from this recommendation.

If the title company's list does not include First American, Fidelity National, or American Home Shield, or if you have any questions about another company on the list, please contact your Shipman Partners agent before making a selection. We are glad to help you evaluate any option not covered in this guide.

Three Simple Steps
01
Review the List
When the title company's warranty list arrives, locate First American, Fidelity National, or American Home Shield. Select the plan in this guide that best fits your home's age and condition.
02
Confirm the Cost
Before enrolling, verify that your chosen plan's annual premium falls within the seller's contribution specified in your contract. Optional add-ons such as pool or spa coverage may increase the total premium.
03
Contact Us First
If our recommended companies are not on your list, or if you have any questions at all, reach out to your Shipman Partners agent before making a selection. We are here to help at every step.