Do You Earn Rewards on a Home Warranty?
How home warranties code
A home warranty company rings up under an insurance or services category code, outside the usual bonus buckets like dining and groceries, so most cards earn their base rate on the annual or monthly premium. It is similar to how other coverage is treated, as in paying insurance with a credit card. A card that rewards a broad set of recurring bills could do slightly better if you have one.
Service fees and repairs
When you file a claim, you typically pay a service-call fee to the technician, which also earns only the base rate. Any repairs beyond what the warranty covers would code as home services, also usually base rate. So the whole home-warranty relationship earns modestly, at your card’s base rate.
The best card for a home warranty
Since there is no home-warranty bonus, a strong flat-rate card earns the most on the premium and any fees. Set it to autopay and value the points at a flat 1 cent. Compare the flat-rate earners in best cash back cards.
Frequently asked questions
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