Plain-words guide

Coverage limits: the numbers that decide what your warranty is worth

The brochure says 'we cover your systems and appliances'. The contract says up to a number — and the number is the product. Here are the caps that matter, from the sellers' own published sample terms.

The three kinds of cap

Per-item: the most they'll pay for one failed item in a term. Per-claim: the most for one service visit. Aggregate: the most across the whole term. A plan can look generous on one and be thin on the others.

What the big sellers publish

Company	Published cap shape (sample terms, Oct 2026)
American Home Shield	$5,000 per system; appliances $2,000 (Gold) / $4,000 (Platinum); $50,000 aggregate
Choice Home Warranty	$3,000 per item per 12 months, with $500 sub-caps (plumbing access, ductwork, well pump)
First American	Appliance caps by tier up to $7,000; no aggregate term cap per its FAQ
Cinch	$10,000 per term aggregate (plan-dependent per-item limits)
Select Home Warranty	$500 per appliance; $3,000 HVAC

From the sample agreements read for the company files — your tier, state, and purchase year change the numbers; your issued agreement controls.

The cap is only half the trap: the buyout basis

When a unit can't be repaired, companies may offer cash instead of a replacement — calculated on their cost. Choice's agreement (§E.3) says it openly: cash in lieu is based on "our actual cost (which at times may be less than retail)", excluding shipping, tax, and installation. That's how a $4,400 air conditioner becomes a $560 check. Before accepting any cash offer, run the buyout worksheet: their number against two real installed quotes.

What to do with cap math

Compare each cap to the replacement cost of the system it covers — a $3,000 item cap against a $5,500 air conditioner means the plan is a discount coupon, not protection. That comparison, run per system, is the renew-or-cancel worksheet in the kit — and the readiness checker runs it for your company automatically.

Go deeper

Included in the $39 WarrantyDecoded Kit

The evidence-file system — the day-one baseline file (photos, serial numbers, inspection report) that makes 'pre-existing' hard to claim
Maintenance logs organized by denial reason — each log page names the denial it defeats ('not maintained' dies when the records exist)
The claim-call script — what to say when you call a claim in, and the things to never say on a recorded line
The denial-appeal ladder — written appeal, escalation, your state's correct complaint door, and the arbitration/small-claims routing your contract actually allows
The cash-out worksheet — their 'actual cost' check vs. the real replacement price, so you know the gap before you accept it
The renew-or-cancel worksheet — caps against the replacement cost of YOUR oldest systems, with the numbers filled in

Get the WarrantyDecoded Kit — $39

One payment. Yours to keep. For any home warranty company, any plan.