Top Picks
- American Home Shield tops our list as the best home warranty company due to its comprehensive coverage.
- Choice Home Warranty is our second choice since it offers budget-friendly, mid-range coverage.
- The average home warranty costs typically range from $47–$82 per month or $564–$984 per year.
Top Home Warranty Providers
After reviewing 13 home warranty providers, we chose the following companies as our top picks:
- American Home Shield: Best Comprehensive Coverage
- Choice Home Warranty: Best Basic Plan Coverage
- Elite Home Warranty: Best for Customized Coverage
- First American Home Warranty: Best for High-End Items
- AFC Home Warranty: Best Technician Flexibility
- Liberty Home Guard: Best Customer Support
- Cinch Home Services: Best Additional Perks
Compare Home Warranty Companies
The table below compares our top seven home warranty companies based on monthly cost, service call fees—or per-use charges for technician visits—and other factors we consider important when selecting a home warranty provider.
| Company | Logo | Our Score (Out of 5) | Monthly Cost | Service Fee |
|---|---|---|---|---|
American Home ShieldGet Quote |  | $36–$100 | $100–$125 | |
Choice Home WarrantyGet Quote |  | $60–$68 | $100 | |
Elite Home WarrantyGet Quote |  | $45–$60 | $70 ($150 for after hours and weekends) | |
First American Home WarrantyGet Quote |  | $77–$130 | $100–$125 | |
AFC Home WarrantyGet Quote |  | $44–$82 | $75–$125 | |
Liberty Home GuardGet Quote |  | $57–$68 | $65–$125 | |
Cinch Home ServicesGet Quote |  | $51–$68 | $100–$150 |
Note: Pricing is based on sample quotes obtained in all 50 U.S. states for single-family homes over and under 5,000 square feet. Costs were averaged together to determine typical price ranges. Pricing may vary depending on your home’s location, size, and your coverage choices.
When Deciding on a Home Warranty, Ask Yourself:
- Which home systems and appliances do I need coverage for?
- How often do I expect to use warranty coverage?
- What level of coverage would work best for my budget?
- Do I need add-on coverage such as pool or septic system protection?
- How does the company handle preexisting conditions or maintenance neglect?
Our Review of the Top Home Warranty Companies
When scoring home warranty companies, we focused on several key factors that impact a homeowner’s buying decision, such as coverage options for essential systems and appliances, customer satisfaction ratings, pricing, and add-on availability.
Based on our 2025 survey of 2,000 home warranty users nationwide, we highlighted the top-three add-on selections among respondents: roof-leak coverage, secondary appliance protection, and septic system coverage.
American Home Shield
American Home Shield Overview
American Home Shield (AHS) stands out for its coverage of preexisting conditions, including rust, corrosion, and sediment damage—issues rarely covered by other providers. The only other company offering similar coverage is Cinch Home Services. American Home Shield also offers generous coverage limits of up to $4,000 for home appliances, $5,000 for most systems, and no plumbing and electrical caps. This makes it a good option for homeowners with older homes needing frequent repairs.
However, American Home Shield has limited add-ons, restricting your ability to customize your plan. Providers typically offer 8–12 add-ons, but American Home Shield only has six. In addition, the company’s most comprehensive plan, ShieldPlatinum, is priced slightly higher than other top-tier plans we reviewed. Still, American Home Shield is a solid choice if you’re dealing with older homes or items that need frequent repairs.
American Home Shield offers the following key add-on coverage options:
- Roof-leak coverage: Yes
- Secondary appliance coverage: No
- Septic system coverage: Yes
Pros and Cons
Pros
- Covers preexisting conditions and damage, a common exclusion in the home warranty industry
- Includes unlimited coverage for most electrical and plumbing system components
- Bundles roof-leak coverage with its ShieldPlatinum plan, a rare feature
Cons
- Charges slightly higher for its top comprehensive plan than some other providers
- Only has six add-on options, offering limited plan customization
Plan Details and Cost
AHS offers the following three plans for homeowners:
- ShieldSilver ($36 per month): The ShieldSilver plan covers 14 systems, including HVAC, electrical, and plumbing.
- ShieldGold ($50 per month): The ShieldGold plan covers 14 systems and nine home appliances, including dishwashers, laundry appliances, and refrigerators.
- ShieldPlatinum ($100 per month): The ShieldPlatinum plan includes the ShieldGold coverage and adds roof-leak coverage, HVAC tuneups, and other benefits.
Our Experience with American Home Shield
Our American Home Shield tester filed a claim for a bathroom and kitchen floor leak and found the process quick and easy. Using his smartphone, he logged into his account, described the issue by selecting icons, and submitted the claim. Within five minutes, he received confirmation via email and text and a call from a local contractor offering flexible appointment times.
The contractor arrived early the next day, completed the repair within two hours, and provided professional, courteous service. He also offered advice on addressing mold caused by the leak. Our tester was pleased with the service and only had to pay the service call fee.
Choice Home Warranty
Choice Home Warranty Overview
Choice Home Warranty is a good option for budget-conscious homeowners seeking mid-range coverage. Its comprehensive plans cost less than $70 per month, making it more affordable than most other providers in our review. Choice Home Warranty provides a generous $3,000 coverage cap per item, higher than Liberty Home Guard and Cinch Home Services. Additionally, its 90-day workmanship guarantee on parts and 60-day labor guarantee offer peace of mind, with no extra fee for repairs needed within those time frames.
However, its Basic Plan excludes coverage for essential appliances such as air conditioners, refrigerators, and washers, which other companies typically include as standard. Choice Home Warranty also has a $100 service fee for all plans, unlike competitors that offer several service fee options for more pricing flexibility. Additionally, the company faces an ongoing legal case with the Arizona Attorney General over allegations of deceptive practices, such as using fine print to avoid covering repair costs.
Choice Home Warranty offers these key add-on coverage options:
- Roof-leak coverage: Yes
- Secondary appliance coverage: Yes
- Septic system coverage: Yes
Pros and Cons
Pros
- Backs its repairs with a 90-day guarantee for parts and a 60-day guarantee for labor
- Charges under $70 per month for comprehensive plans
- Includes a $3,000 cap for most covered repairs
Cons
- Charges a $2.50 fee with its monthly payment option
- Excludes AC, refrigerator, and laundry appliance coverage from its lowest-tier plan
Plan Details and Cost
Choice Home Warranty provides two coverage plans:
- Basic Plan ($60 per month): The Basic Plan covers seven systems and seven appliances, such as heating, ovens, and plumbing.
- Total Plan ($68 per month): The Total Plan covers eight systems and 10 appliances, including air conditioning, clothes washers and dryers, and refrigerators.
Our Experience With Choice Home Warranty
Our Choice Home Warranty tester has filed multiple claims with the company. As an example, she started a claim regarding her oven over the phone, taking about five minutes to reach an agent. She was then directed to the online portal, which was easy to use but required her to file her issue—smoking from her oven—under the description “burner stove.” After filing, she received email confirmation within 24 hours.
While the company has provided our tester with contractors for various claims, service timing and quality varied. Some contractors fixed issues right away, while others needed multiple visits or left without resolving the problem. Appointment times were inconsistent, ranging from one day to one month, causing frustration, especially when waiting for repairs on our tester’s fridge and air conditioning.
Elite Home Warranty
Elite Home Warranty Overview
Unlike other top providers, which offer set coverage plans, Elite Home Warranty has a fully customizable option and an extensive add-on catalog with over 30 options. In addition to its three standard plans, Elite offers a “Customize Your Own” option, allowing you to choose the major appliances and systems you want covered. This is the most customizable home warranty plan in our review, helping you avoid overspending on coverage for items you don’t need.
Elite charges a $70 service call fee, which is reasonably priced compared to other providers. However, a $150 service fee applies for off-hour repairs, high-end appliances, or most add-ons. Other providers, including American Home Shield and First American Home Warranty, don’t charge extra for these repairs. Elite also has a $15,000 aggregate limit, the maximum amount the company will pay for covered repairs or replacements during your contract. You will have to pay additional repair costs out-of-pocket once you hit this cap.
Elite Home Warranty’s key add-on coverage options include the following:
- Roof-leak coverage: Yes
- Secondary appliance coverage: Yes
- Septic system coverage: Yes
Pros and Cons
Pros
- Backs repairs with a 90-day workmanship guarantee, triple the length of the industry standard
- Offers a completely customizable plan option not found with other providers
- Provides 30 add-ons, the second-largest catalog in this review after Liberty Home Guard
Cons
- Charges higher service call fees for after-hours appointments and high-end appliance repairs
- Imposes a $15,000 annual aggregate limit on claim payouts
Plan Details and Cost
Elite Home Warranty provides the following three coverage plans:
- Elite Appliances ($45 per month): An appliance-only plan that covers eight appliances, including built-in microwaves, clothes washers and dryers, and ovens.
- Elite Systems ($50 per month): A systems-only plan that covers eight key home systems such as cooling, heating, and water heaters.
- Elite Complete ($60 per month): A comprehensive plan that combines coverage to include eight appliances and eight systems.
Our Experience with Elite Home Warranty
Our Elite Home Warranty tester submitted an online claim to repair a high-end dishwasher, providing necessary details such as the appliance’s serial number. The process was simple, and within 30 minutes, a claims specialist contacted him to schedule a next-day appointment. Upon learning it was our tester’s preferred contact method, the representative quickly switched to email communication.
The technician arrived as planned but needed to order out-of-stock parts. After the initial visit on Tuesday evening, the technician returned Monday morning with the parts and completed the repair in under an hour. Despite the delay, our tester was satisfied with the service.
First American Home Warranty
First American Home Warranty Overview
First American Home Warranty offers top appliance coverage in our review. The Starter and Essential plans include $3,500 in coverage, rising to $7,000 with the Premium Plan. These high coverage limits make First American a good option for homeowners with high-end appliances. For comparison, American Home Shield’s highest plan caps appliance coverage at $4,000. First American also provides unlimited coverage for most systems, unlike American Home Shield, which offers this level of protection only for plumbing and electrical. Additionally, you can add the First American Advantage upgrade to cover damage from improper installation or modification.
However, First American only offers comprehensive plans covering both systems and appliances, limiting flexibility compared to providers with system-only or appliance-only options. The Starter Plan also excludes air conditioning and washers and dryers, requiring an upgrade for this coverage.
First American offers the following key add-on coverage options:
- Roof-leak coverage: Yes
- Secondary appliance coverage: Yes
- Septic system coverage: Yes
Pros and Cons
Pros
- Covers improper installations and modifications under the First American Advantage upgrade
- Includes up to a $7,000 appliance cap, the highest in this review
- Provides unlimited coverage caps on most home systems
Cons
- Doesn’t offer appliance-only or system-only plans, so you may pay for coverage you don’t need
- Excludes some key systems and appliances from its basic plan
Plan Details and Cost
First American Home Warranty offers three comprehensive plans:
- Starter Plan ($77 per month): The lowest-tier plan offers appliance and system coverage for some major items, such as built-in microwaves, heating systems, and refrigerators.
- Essential Plan ($100 per month): The next plan tier includes Starter Plan items, plus air conditioning, ceiling/attic/exhaust fans, and clothes washers and dryers.
- Premium Plan ($130 per month): The highest-tier plan covers all items in the Essential Plan, plus luxury appliances, roof leaks, and window air conditioning units.
Our Experience With First American Home Warranty
Our First American Home Warranty tester filed a claim for a broken garage door opener and found the process was simple and intuitive. After logging in to his online account, he submitted a claim describing the issue. First American immediately confirmed receipt, sending a text with the assigned contractor’s contact information. Within an hour, the contractor called to schedule an appointment for the following Monday, as the claim was submitted on a Friday.
The contractor arrived on time, completed the repair in 20 minutes, and provided a clear explanation of the issue and the fix. The tester was satisfied with the service he received, and he only paid a service call fee.
AFC Home Warranty
AFC Home Warranty Overview
AFC Home Warranty is our top choice for pricing flexibility, offering four plans and three service call fee options to fit your budget. While Elite Home Warranty also has four plans, it lacks the same service call fee flexibility. AFC Home Warranty stands out with its workmanship guarantee, which lasts for the duration of your policy, potentially saving you money on fees for repeat repairs. Additionally, you can choose your own service technician, which is uncommon in the industry.
However, AFC Home Warranty has low $500 caps for electrical and plumbing systems, which may not cover more complex repairs. Its depreciation policy also reduces claim payouts for items five years or older, and the company doesn’t cover preexisting conditions, making it less ideal for homeowners with older systems or appliances. Instead, AFC Home Warranty could serve as a starter plan for new homes that might require fewer system or appliance repairs.
AFC Home Warranty’s key add-on coverage options include the following:
- Roof-leak coverage: Yes
- Secondary appliance coverage: Yes
- Septic system coverage: Yes
Pros and Cons
Pros
- Has an unlimited workmanship guarantee
- Lets you choose your own technician
- Offers four coverage plans and three service call fees for plan customization
Cons
- Applies a depreciation policy to items five years old or older
- Offers low electrical and plumbing coverage caps
Plan Details and Cost
AFC Home Warranty offers four coverage plans:
- Silver Plan (Call for a quote): This plan includes nine appliances, including cooktops, garage door openers, and kitchen refrigerators.
- Gold Plan ($44 per month): This plan covers nine appliances and six home systems, including air conditioning, heating, and plumbing.
- Platinum Plan ($51 per month): This plan covers 10 appliances and nine home systems, such as built-in microwaves, plumbing stoppages, and faucets.
- Diamond Plan ($82 per month): This plan includes Platinum Plan coverage, plus coverage for electronics and exterior sewer and water lines.
Our Experience With AFC Home Warranty
Our AFC Home Warranty tester filed a claim for a running toilet that wouldn’t fill. She found the online claim process intuitive and quick, taking about five minutes. Although the provider communicated frequently through phone calls and text messages, she found the texts a bit overwhelming. Despite this, she was pleased with the customer service and was impressed that the company found a contractor in her rural area.
Although the first contractor’s repair didn’t solve the problem, a second contractor promptly fixed the issue. Overall, the issue took about one-and-a-half weeks to resolve, but our tester was satisfied with the outcome and didn’t incur any out-of-pocket costs for the second repair visit.
Liberty Home Guard
Liberty Home Guard Overview
Of the 13 companies we reviewed, Liberty Home Guard offers the most extensive add-on catalog with 42 options, followed by Elite Home Warranty with 30 options. Liberty offers various add-ons, including secondary items, professional kitchen appliances, pools, and guest houses. The company also features some unique home service add-ons, such as gutter cleaning and pest control, all of which can help streamline home maintenance with a single provider. Plus, the company has a mobile app and live chat for customer convenience.
However, Liberty has lower $500 caps for electrical and plumbing systems, compared to the $2,000 industry standard, and doesn’t offer unlimited coverage on some items such as American Home Shield or First American Home Warranty. In addition, the company doesn’t disclose its service call fees upfront, which can vary from $65—$125 and complicate budget planning.
Liberty Home Guard offers the following key add-on coverage options:
- Roof-leak coverage: Yes
- Secondary appliance coverage: Yes
- Septic system coverage: Yes
Pros and Cons
Pros
- Has the largest add-on catalog in this review with 42 options
- Extends a 60-day workmanship guarantee, double the industry standard
- Offers a 24/7 live-chat support option, a rare feature
Cons
- Has lower electrical and plumbing caps than other providers
- Lacks the service call fee flexibility of other providers, such as AFC Home Warranty or First American Home Warranty
Plan Details and Cost
Liberty Home Guard offers three plan options:
- Appliance Guard ($57 per month): An appliance-only plan that covers nine appliances, such as built-in microwaves, dishwashers, and kitchen refrigerators.
- Systems Guard ($62 per month): A systems-only plan that covers six systems, including cooling, electrical, and plumbing.
- Total Home Guard ($68 per month): A combination plan includes comprehensive coverage for nine appliances and six systems.
Our Experience With Liberty Home Guard
While we haven’t tested Liberty Home Guard’s claims process firsthand, our secret shopping process provided valuable insights.
When we called Liberty Home Guard for a sample quote, a representative answered in under 30 seconds. The online chat feature also resulted in quick responses, though it initially connected us to an automated bot that repeated information from the website. We had to request an agent twice before reaching a real person.
Additionally, Liberty Home Guard’s online quote tool highlights the most common add-ons in your state, making it easier to identify coverage options tailored to your area. We haven’t seen this level of personalization with other home warranty tools.
Cinch Home Services
Cinch Home Services Overview
Like American Home Shield, Cinch Home Services covers rust, corrosion, and preexisting conditions, making it a solid choice for homeowners with older systems or appliances. It also stands out for its affordability, offering budget-friendly plans along with perks such as a $25 credit for air conditioners or water filters and an annual $500 homeowners insurance deductible credit.
However, Cinch’s $10,000 annual coverage cap is lower than competitors such as Elite Home Warranty. The company also excludes roof-leak coverage from both plans and add-ons, unlike many other providers. Additionally, Cinch offers only six add-ons, primarily focused on pool and spa coverage, giving homeowners fewer options compared to other companies.
Here’s a list of the key add-on coverage offered by Cinch Home Services:
- Roof-leak coverage: No
- Secondary appliance coverage: No
- Septic system coverage: Yes
Pros and Cons
Pros
- Covers items damaged by rust, corrosion, and preexisting conditions
- Offers a $500 annual reimbursement towards your homeowners insurance deductible
- Provides a $25 credit for air conditioners or water filters with each plan
Cons
- Excludes roof-leak coverage from its plans and add-ons
- Offers only six add-ons mostly limited to pools and spas
Plan Details and Cost
Cinch Home Services offers the following three home warranty plans:
- Appliances ($51 per month): This appliance-only plan includes 12 appliances, such as built-in food centers, ranges, and wall ovens.
- Built-In Systems ($57 per month): This systems-only plan includes 16 built-in systems, such as air conditioners, garbage disposals, and plumbing.
- Complete Home ($68 per month): This plan covers 12 appliances and 12 built-in systems, and offers up to a $500 homeowners insurance deductible reimbursement.
Our Experience With Cinch Home Services
Our Cinch Home Services tester filed an online claim for a low-pressure faucet, completing the process in about 10 minutes without needing documentation. The claims portal was intuitive, but follow-up questions required our tester to make a phone call to customer service.
Our tester’s claim was denied due to an incorrect entry—she mistakenly listed the wrong dates for when the faucet last worked, placing it outside her coverage period. While she ultimately resolved the issue without using her warranty coverage, she regretted not contacting customer support to correct the error.
How Much Does a Home Warranty Cost?
On average, a home warranty costs $47–$82 per month, based on quotes we received from our top-rated providers. This makes the median price of a home warranty about $56 per month. However, the total cost can vary depending on a few factors, such as the provider you pick, the level of coverage you need, and the service fee. Service fees generally range from $75–$125, depending on the provider and plan. Below, you’ll find a comparison of different home warranty providers, monthly costs, and service fee options.
| Provider | Monthly Cost* | Service Fee |
|---|---|---|
| American Home Shield | $36–$100 | $100–$125 |
| Choice Home Warranty | $60–$68 | $100 |
| Elite Home Warranty | $45–$60 | $70 |
| First American Home Warranty | $77–$130 | $100–$125 |
| AFC Home Warranty | $44–$82 | $75–$125 |
| Liberty Home Guard | $57–$68 | $65–$125 |
| Cinch Home Services | $51–$68 | $100–$150 |
How Much Can You Save With a Home Warranty?
A home warranty can save you money by lowering the costs of major home repairs or replacements. How much you’ll save depends on which systems and appliances your plan covers and how often those items break down.
Below, we compare common household appliances and systems, showing the average replacement costs and potential savings with a home warranty. We calculated these savings using a sample home warranty plan that costs $672 per year and has a $2,000 coverage cap for appliances and systems. Note that our calculations don’t include service call fees.
| Appliance or System | Cost to Replace* | Possible Savings |
|---|---|---|
| Air conditioner | $3,900–$8,000 | $3,228–$7,328 |
| Oven | $800–$2,500 | $128–$1,828 |
| Water heater | $880–$1,800 | $208–$1,128 |
What Do Home Warranties Cover?
Home warranties cover major home systems and appliances that fail due to normal wear and tear, meaning issues caused by everyday use rather than accidents or neglect. This coverage helps homeowners manage repair or replacement costs without significant out-of-pocket expenses.
Most home warranties include the following items in their coverage:
Systems:
- Air conditioning
- Ductwork
- Electrical systems
- Heating (including furnaces and heat pumps)
- Plumbing
- Water heaters
Appliances:
- Built-in microwaves
- Clothes dryers
- Clothes washers
- Dishwashers
- Garbage disposals
- Ovens, cooktops, and ranges
- Refrigerators
What Do Home Warranties Not Cover?
While home warranties provide financial coverage for many systems and appliances, homeowners should note certain plan exclusions. These exclusions often involve conditions, damages, or situations that fall outside the scope of standard home warranty coverage.
Here’s an overview of common home warranty exclusions:
- Cosmetic damage or non-functional parts
- Damage from natural disasters or weather events
- Failures caused by neglect, misuse, or insufficient maintenance
- Improper installation or maintenance
- Items still under manufacturer warranties
- Known or unknown preexisting conditions
- Rust, corrosion, or sediment buildup
- Secondary damage caused by appliance or system failures
According to our 2025 survey, only 5% of respondents have had a claim denied. Among those respondents, 31% cited preexisting item damage as the primary reason for coverage denial. Understanding the exclusions outlined above can help set realistic expectations and decrease your chances of a denied home warranty claim.
Survey Insights from Homeowners Nationwide
In 2025, we surveyed 2,000 homeowners with home warranty plans to understand their protection needs, shopping trends, and claims experiences. Here’s an overview of our results:
Why Homeowners Purchased a Home Warranty
- 54% of respondents purchased a home warranty to protect older systems and appliances.
- 28% received coverage as part of their home purchase.
Top Priorities When Choosing a Home Warranty
- 58% of respondents ranked sufficient coverage as their top priority.
- 25% considered pricing the second most important factor, highlighting affordability.
- 41% chose American Home Shield as their provider, making it the most popular option among homeowners.
Most Important Items
- Heating and furnace systems were the top coverage priority for 31% of homeowners.
- Air conditioning coverage was a priority for 25% of respondents.
- For appliances, the most common choices included water heaters (44%) and refrigerators (30%).
- Popular add-on coverages included roof-leak protection (36%), additional system coverage (28%), and extra appliance coverage (24%).
Claims Process Insights
- 50% of respondents filed a claim for a system repair or replacement.
- 90% of claims were approved, with 49% resulting in a successful repair and 39% resulting in a replacement.
Reasons for Denied Claims
- 31% of denied claims were due to preexisting conditions, which is a common exclusion in most plans.
- 25% were denied because the item wasn’t covered under the home warranty contract.
Quick Tip
- We recommend carefully reviewing your home warranty agreement to avoid surprises and claim denials.
How We Collected Our Survey Data
To understand real homeowner experiences with home warranties, we surveyed 2,000 home warranty policyholders across all 50 U.S. states in 2025. The survey gathered insights on why homeowners chose their warranties, their satisfaction with coverage options, and their experiences with filing claims and customer service. We also examined factors such as pricing, add-on coverage choices, and plans for renewing their warranties.
How To Choose a Home Warranty Company
Selecting a home warranty company involves thorough research and evaluation to ensure the coverage aligns with your needs. The following steps can help guide you through the process of choosing the right provider.
- Assess your needs: Determine which systems and appliances you need covered, considering each item’s age, condition, and importance in your home. Consider supplementary coverage for additional items such as pools, sump pumps, or wells.
- Compare coverage plans: Review plans from at least three providers, focusing on covered items, exclusions, and optional add-ons. Make sure a plan aligns with your needs and offers sufficient coverage.
- Check reviews and ratings: Research online customer reviews, ratings, and company reputations to assess reliability and service quality. We also recommend asking friends, family, and neighbors about their home warranty providers and experiences.
- Understand costs and fees: Compare premiums, service fees, and any additional costs to ensure a company’s pricing aligns with your budget. Read a sample contract to learn more about hidden costs that could add up over time.
- Read sample contracts thoroughly: Review terms, coverage limits, exclusions, and fine print to avoid surprises when you file claims. Pay close attention to repair and replacement policies, cancellation terms, and any conditions that may impact coverage.
Are Home Warranties Worth the Money?
Yes, home warranties are often worth the investment. These plans provide financial protection by covering unexpected repairs or replacements if your major systems and appliances break from everyday use. According to our 2025 survey, 80% of homeowners reported being satisfied with their plans, highlighting the value of this coverage in protecting against costly breakdowns.
To explore how home warranties can benefit various homeowners, we spoke with Austin Glanzer, co-founder of 717 Home Buyers.
- For first-time homebuyers: A home warranty can act as a safety net, covering repair and replacement costs for costly items such as appliances and home systems. “When we work with home buyers—and especially first-time homeowners—we recognize that they’re often making the biggest purchasing decision of their lives,” Glanzer said. “A home warranty can provide extra assurance to minimize additional expenses over the long term.”
- For homeowners with older homes: Older appliances and systems are more prone to breakdowns, which can lead to costly and unexpected repairs. A home warranty helps turn these unpredictable expenses into manageable, predictable costs. “When a consumer buys a home as-is with older appliances, a home warranty can limit the cost of replacing these ‘big-ticket’ items as they wear out,” Glanzer explained.
- For busy families: Home warranties typically cover key items such as water heaters, refrigerators, and HVAC systems, keeping your home running smoothly. If something breaks, the warranty company connects you with qualified technicians, saving you time and eliminating the hassle of finding repair help on your own.
- For homeowners on a tight budget: A home warranty can offer value for homeowners looking to minimize unexpected costs without compromising on essential coverage. This plan provides peace of mind by managing repair or replacement costs and helping families stay within their budget while ensuring the home’s key systems and appliances remain functional.
While most plans include a service fee per call, a home warranty still offers peace of mind and reduces the stress of managing repairs. Glanzer advises homeowners to plan for these fees, but the simplicity and reliability of a warranty can make a difference in handling unexpected breakdowns.
FAQs About the Best Home Warranty Companies
How does a home warranty differ from homeowners insurance?
A home warranty covers the repair or replacement of home systems and appliances, such as HVAC systems or refrigerators, that break due to normal use. Homeowners insurance protects against property damage or loss due to events such as fires, theft, or natural disasters.
What items should you look for in a home warranty contract?
When reviewing a home warranty contract, look for coverage details, such as included systems and appliances, service fees, limits on repair and replacement costs, claim processes, and any exclusions for preexisting conditions or specific items.
How do you renew a home warranty plan?
Home warranty plans typically get renewed annually. Providers will notify you ahead of time, and you can choose to renew your plan or adjust coverage. Note that some home warranty plans automatically renew each year.
Can you still purchase a home warranty after closing on a home?
Yes, you can purchase a home warranty after closing on a home. Many companies offer coverage for new homeowners even after a home purchase is complete.
Our Rating Methodology
We used a thorough and objective rating methodology to evaluate each home warranty company. Our process included researching through conversations with company representatives, obtaining quotes, analyzing sample contracts, and conducting homeowner surveys and focus groups. We also tested the sign-up and claims process for 11 top home warranty companies and conducted secret shopping to learn more about the customer experience.
Using this data, we scored each provider across six key comparison categories essential when selecting a home warranty. Each company received a total score of 100 points, which we converted into a 5-star rating.
Here’s a breakdown of our weighted factors:
- Coverage: This category evaluated the comprehensiveness of each provider’s coverage, including whether plans cover unique items. Providers offering the most coverage and higher annual limits received higher scores. Points were deducted for having long waiting periods or depreciation policies that lowered payouts for aging items.
- Cost: We assessed average monthly prices and service call fees. The most points went to providers with pricing at or below industry averages and no additional fees or surcharges.
- Trustworthiness: We reviewed customer ratings on sites such as the Better Business Bureau and Trustpilot to measure reliability. We also checked for National Home Service Contract Association (NHSCA) membership. Higher scores were given to providers with strong customer ratings, long workmanship guarantees, and no ongoing legal issues.
- Plan transparency: We evaluated the clarity and transparency of each provider’s terms, policies, and disclosures, both in contracts and on company websites. Providers with clear and accessible contract details were rewarded with higher scores.
- Customer support: This category looked at how responsive and accessible customer support was, considering factors such as multiple claims filing options and fast response times. Higher scores were given to companies that can provide efficient and helpful customer support.
- Flexibility: We awarded higher scores to providers offering a wider range of plan options, a more extensive selection of add-ons, the ability to choose your technician, and customer-friendly cancellation policies.
