American Home Guard, a Pennsylvania-based company, operated from 2013 until its sudden closure in 2018 following numerous complaints and negative reviews exposing it as a scam. Customers who had purchased policies before the shutdown were unable to reach the company or obtain refunds, making this a cautionary tale for home warranty buyers.
We’ll offer tips on choosing a reliable new home warranty company, key factors to consider when selecting a plan, and our recommendations for top home warranty providers.
How To Choose a New Home Warranty Provider
Selecting the right home warranty provider goes beyond cost. A company with a strong reputation and reliable service can make a significant difference when you need it most. Use the tips below to help choose the best provider for your needs:
- Check for exclusions and limitations: Read service contracts and the fine print carefully. Make sure the provider offers the coverage you need and confirm that preexisting conditions or maintenance issues won’t result in a denied claim.
- Evaluate service fees and costs: Compare monthly or annual premiums and service fees. Find a balance between affordability and the level of service you expect. Home warranty costs about $47–$82 per month on average and companies charge between $75–$125 for service call fees for each repair visit. We recommend getting quotes from at least three companies to make an informed comparison.
- Research reputation and reviews: Start by looking at trusted sources such as the Better Business Bureau (BBB) and Trustpilot. Read both positive and negative feedback to get a comprehensive understanding of any potential provider. Also, check for ongoing lawsuits or patterns of repeated poor customer service.
- Review contract terms: Consider contract length, renewal options, and cancellation policies to avoid unexpected fees or locked-in commitments. Always read a sample home warranty contract to verify these terms. If you have questions, contact customer support for clarification.
- Verify licensing and accreditation: A licensed provider should ensure your warranty is legitimate and legally recognized in your state. Many states have home warranty regulations to govern companies and protect homeowners.
Key Features To Look For in a Home Warranty Plan
Once you’ve chosen a provider, take a closer look at the specifics of its plans to guarantee you’re buying the right coverage. Here’s a list of essential features to consider when choosing a home warranty plan:
- Comprehensive coverage: Choose a plan that offers the coverage you need, which may include major systems such as your HVAC, electrical, and plumbing, as well as home appliances such as refrigerators and dishwashers. Look for flexibility to add coverage for pools, well pumps, or other unique needs.
- Fast claims processing: A simple, fast claims process with 24/7 support can save you time and frustration. Check if the provider has a mobile app for easy claim submissions.
- Flexible deductibles and fees: Consider a pricing structure that works best for your budget. While cheaper home warranty plans may save on monthly costs, they could lack comprehensive coverage. Some providers let you adjust the service call fee, offering potential savings.
- High coverage limits: Review coverage caps for repairs and replacements. High limits can help prevent unexpected out-of-pocket expenses for major repairs.
- Qualified technicians: Make sure the company employs licensed, experienced service professionals. Some providers allow you to choose your own technician for greater flexibility.
- Transparent terms: A clear, straightforward contract with well-defined coverage, exclusions, and responsibilities ensures you’re fully informed about what’s covered and what isn’t.
- Workmanship guarantees: Look for a provider that offers warranties on their work, providing peace of mind if a repair needs revisiting. While most companies offer 30-day guarantees, some providers like AFC Home Warranty and Elite Home Warranty offer longer protection.
Top-Rated Home Warranty Picks
Selecting a reliable home warranty company can feel daunting, especially if you’re new to the process. To simplify your decision-making, we’ve carefully reviewed top providers that offer comprehensive coverage, affordable plans, and quality customer service.
| Company | BBB Rating | Monthly Cost | Service Fee | Visit Site |
|---|---|---|---|---|
| NR** | $49–$59 | $65–$125 | VISIT SITE | |
| B | $29–$89 | $100–$125 | VISIT SITE | |
| B- | $44–$47 | $60–$75 | VISIT SITE | |
| B | $42–$82 | $100–$125 | VISIT SITE | |
| B | $35–$94 | $75–$125 | VISIT SITE | |
| B+ | $44–$58 | $70 | VISIT SITE | |
| B+ | $30–$56 | $100–$150 | VISIT SITE | |
| A | $27–$61 | $65–$100 | VISIT SITE |
Our Top Recommendation: American Home Shield
American Home Shield (AHS), which is different than American Home Guard, is our top choice for home warranty coverage. The company provides comprehensive coverage with limits up to $4,000 for appliances and $5,000 for systems. A standout feature of American Home Shield is its inclusion of coverage for preexisting conditions, meaning it will cover items with damage or issues that existed prior to the start of coverage. Most other home warranty providers exclude preexisting conditions, making American Home Shield a solid choice for homes with older systems and appliances.
Other Recommended Home Warranty Providers
Although American Home Shield is our top recommended company, it may not suit your home protection needs. Below are additional top providers that offer flexible coverage options, competitive pricing, and quality customer service to help you find the best home warranty for your specific situation.
| Company | Logo | Star Rating | BBB Rating | Monthly Cost | Service Fee |
|---|---|---|---|---|---|
American Home ShieldGet Quote | | B | $36–$100 | $100–$125 | |
Choice Home WarrantyGet Quote |  | B | $60–$68 | $100 | |
Elite Home WarrantyGet Quote |  | B | $45–$60 | $70 ($150 for after hours and weekends) | |
First American Home WarrantyGet Quote |  | B | $77–$130 | $100–$125 | |
AFC Home WarrantyGet Quote |  | B | $44–$82 | $75–$125 | |
Liberty Home GuardGet Quote |  | NR | $57–$68 | $65–$125 | |
Cinch Home ServicesGet Quote |  | B+ | $51–$68 | $100–$150 |
Our Rating Methodology
We evaluated each home warranty company using a detailed rating methodology designed to provide an objective assessment. Our research process included speaking with company representatives, requesting quotes, reviewing sample contracts, and gathering insights from focus groups and homeowner surveys. In addition, we tested 11 home warranty companies, focusing on their sign-up process and claims procedures to ensure a comprehensive evaluation.
Each provider was rated across six key categories that we considered essential when selecting a home warranty. The scores were then totaled to a maximum of 100 points, which were converted into a 5-star rating.
Here’s an overview of our weighted factors:
- Coverage: We assessed how comprehensive each provider’s coverage is, including unique items and higher annual limits. Points were deducted for enforcing long waiting periods or depreciation policies that lowered payouts for aging items.
- Cost: We examined average monthly prices and service call fees, awarding the highest points to companies that offer competitive pricing without additional surcharges or hidden fees.
- Trustworthiness: We evaluated customer ratings from sites such as the BBB and Trustpilot, company response times, and NHSCA membership. Providers with high customer review ratings and long workmanship guarantees scored higher, while points were deducted for ongoing legal issues.
- Plan Transparency: We reviewed the clarity of contract terms, policies, and disclosures, rewarding companies that provide transparent and easy-to-understand information.
- Customer Support: Companies that offer multiple claim filing options, fast response times, and accessible customer support were given top marks.
- Flexibility: We favored providers with a wide range of plan options, extensive add-on catalogs, the ability to choose your own technician, and customer-friendly cancellation policies.