Our Home Warranty Review Methodology

Our team is committed to providing comprehensive and unbiased reviews to our readers. We aim to be transparent about our review standards and research process. To rate home warranty companies, our team conducted a focus group and multiple surveys, interviewed experts, and connected with providers for insights. We also analyzed thousands of customer reviews and gathered coverage data. Our team then applied this research to our review standards and compared home warranty companies to help you decide which provider is right for your home.

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Home Warranty Research Process

Our research focused on understanding each provider’s service, coverage, and customer experience.

Customer Insights

Customers share their experiences and perspectives by leaving reviews across various platforms. We’ve read more than 5,700 reviews for home warranty providers and compiled themes to help you better understand the companies you’re considering. 

Our team read customer reviews and Better Business Bureau (BBB) reports, noting common pain points, complaint patterns, and how the company responded to customer concerns.

We also surveyed 2,000 homeowners across the United States about their experiences with home warranty providers. Our team developed questions for each survey to uncover why homeowners bought their home warranties and how they felt about their experiences. The survey questions centered around their experiences filing claims and interacting with customer service representatives, as well as their overall satisfaction.

Finally, our team hosted a focus group with homeowners who purchased various home warranty plans. Our team gathered firsthand information about common pain points and areas of confusion.

Through these sources, we’ve gained insight into the customer experience with each provider we review. These insights also allow us to clarify misconceptions within the industry.

Secret Shopping and Testing

In addition to listening to customers’ stories, we interacted with companies’ websites and customer service teams as a homeowner would. This included taking the following actions:

• Browsing through providers’ websites
• Requesting quotes online
• Calling customer service with questions and for quotes
• Reading sample contracts

We requested quotes from all 50 states for every home warranty provider we researched. Our team then compared average monthly plan prices to determine which providers offer the best value for homeowners. 

Our team also signed up for service with 11 national providers to test their claims process and online portals. 

Industry Interviews

We interviewed 15 real estate agents and other home industry professionals to give us further insight into real-life applications and trends in the home warranty business.

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Factors Evaluated To Compare Home Warranty Companies

To rate companies, we applied the data we gathered to the scoring system we developed. First, we evaluated each provider in six key categories: coverage, cost, trustworthiness, plan transparency, customer support, and flexibility. Within these categories, we rated each provider across 23 factors. Each factor was assigned a point value based on its importance to a homeowner. These scores are on a 100-point scale. We then divided each provider’s final score by 20 to determine a rating out of 5 stars. The categories are outlined in detail below.

Coverage

Coverage carries the most weight in our provider ratings. If you’re looking for financial protection for your home systems and major appliances, a plan’s coverage will be a driving factor in which home warranty you choose. This category rates companies based on available coverage and how coverage caps apply.

Specific Item Coverage Caps 

A coverage cap is the maximum amount a provider will cover for a given repair, a category of repairs, or all repairs for the plan year. In evaluating coverage caps, we prioritize scoring for larger, more essential appliances and systems. Their breakdown is more likely to significantly impact your daily life, and replacing or repairing them is generally more costly than replacing smaller items such as garbage disposals or microwaves.

Built-in system repairs are often the most expensive. Many homes aren’t comfortable or fully functional without working plumbing, electrical, HVAC, and heaters. For appliances, we relied on our 2024 survey of 1,000 home warranty , which revealed that the most commonly purchased home warranty protection was for clothes washers, dryers, dishwashers, ovens, and refrigerators.

We reviewed dozens of home warranty contracts to determine the median coverage offered for each item. Companies that met or exceeded that median coverage cap received higher points. Here’s a breakdown of the median coverage caps used for our scoring:

• Air conditioning: $2,300
• Heating system: $2,300
• Clothes dryer: $2,000
• Clothes washer: $2,000
• Dishwasher: $2,000
• Electrical system: $2,000
• Oven: $2,000
• Refrigerator: $2,000
• Water heater: $1,250
• Plumbing system: $1,000

Our team also considered the coverage caps of add-ons, which allow you to extend your home warranty coverage to include secondary appliances, home maintenance services, or other home items such as pools, guest houses, and sump pumps. We awarded higher points if a provider included a $500 coverage cap or higher for add-ons.

Annual Coverage Limits 

Most providers break down individual coverage caps per item, but a few providers stipulate a total dollar amount that claims will be limited to during a plan term. This coverage cap is not always apparent, but we dug into sample contracts to determine whether each company we reviewed sets an annual coverage cap for its plans.

While most home warranty providers don’t limit the number of claims you can file during your plan, all companies impose a dollar limit to protect their liability. Some companies have a “no lemon policy” that limits the number of claims you must make on an item before it can be replaced. Companies that included an annual coverage limit lost points in this category.

Waiting Period

Most home warranty providers require a 30-day waiting period before you can start using their services. This period begins when you sign up for service. Claims submitted before the waiting period’s conclusion are typically denied. 

The industry standard waiting period is 30 days. However, some providers impose waiting periods on individual system and appliance protections. For example, a provider may have a 30-day waiting period for its coverage plan but a 90-day waiting period for plumbing systems. We deducted points if a provider had such clauses.

Unique Coverage Options

Home warranties can include various coverage items beyond the obvious major kitchen and laundry appliances and built-in systems. If you’re looking for robust coverage, additional coverage items factor into how well a provider will serve your needs. 

Our unique coverage section recognizes companies for offering specific additional coverage, such as upgrades, membership perks, protection against roof leaks, extended appliance coverage, and preexisting condition protection.

Depreciation Policy

Our team also considered depreciation policies, which can diminish a plan’s value. A depreciation policy can result in reduced claims payments based on the item’s age or current market value. We deducted points from providers who have a depreciation policy in their plans.

Cost

A plan’s cost reflects how much coverage you get for your money. Our team considered multiple factors, including average monthly cost, service call fees, surcharges, and payment option flexibility to evaluate how a plan fits into a homeowner’s budget. 

Average Monthly Cost

We requested quotes for each company using the same address to ensure a fair comparison. While we requested quotes for each type of home (single-family, mobile, and condominium) for our reviews, this rating specifically compares providers across an average single-family home smaller than 3,000 square feet. 

Our homeowner survey shows that 72% of respondents choose comprehensive coverage plans. Therefore, we concentrated our reviews on this plan type. We established a monthly comparison range of $70–$80. Companies offering comprehensive plans for less than $70 per month received higher scores than those with higher average costs.

Average Service Call Fee

A service call fee is the amount a provider charges you for item repairs. Based on our research and the quotes we gathered, the typical range of service fees is $65–$125. We found that the average service call fee was closer to $70–$100. Companies that offered service call fees of less than $70 received higher points. If a company offered multiple service call fee options, we calculated the average.

Annual and Monthly Plan Options

Most home warranty companies let you choose between monthly payments or an annual lump sum. Paying annually often gets you a discount or a few months of free coverage. This payment flexibility lets you more easily match your plan to your budget and financial situation. Some companies encourage annual payments with big savings, which can give you several months of coverage at no extra cost. In our assessment, companies that offer both monthly and annual payment options scored higher.  

Surcharges, Extra Fees, and Other Policies

We deducted points for additional fees that can raise plan costs, including surcharges for choosing a monthly payment option and higher service call fees for certain types of repairs and repair timeframes.

Trustworthiness

Providers that are clear and reliable in their communication and service earn more trust from homeowners. To evaluate this, we considered each brand’s reputation across the BBB and other customer review aggregators, the provider’s workmanship guarantee length, and any ongoing legal issues that could impact the consumer experience. 

Brand Reputation and Customer Reviews

Brand reputation includes how customers and third parties view the company. We calculated a brand reputation score based on BBB ratings and customers’ reviews and ratings on the BBB and Trustpilot.

Workmanship Guarantee

A workmanship guarantee provides homeowners with coverage in the event of workmanship errors. It guarantees that if a repair is made by the provider and the item breaks down again for the same issue, the provider will return and do the repair for free without a service fee. The length of these guarantees can vary widely in the home warranty industry, but the standard is coverage for at least 30 days after the original repair. We rated companies with a 90-day or longer workmanship guarantee higher than those that offer the 30-day minimum standard.

Lawsuits

A home warranty company facing legal challenges can significantly impact homeowners, potentially compromising service quality, claim fulfillment, and overall customer satisfaction. Lawsuits or regulatory actions may show serious problems within the company, such as unfair claim denials, delayed repairs, or poor customer service, which could directly impact homeowners seeking help.

Legal troubles can also strain a company’s resources and lead to longer wait times, reduced coverage, or financial instability that could threaten the company’s ability to help policyholders. We awarded bonus points to any provider with no current legal issues.

National Home Service Contract Association Membership

Home warranty companies that are members of industry trade organizations often demonstrate a higher commitment to service quality and ethical business practices. Membership in the National Home Service Contract Association (NHSCA) requires adherence to specific standards and best practices in customer service, claims handling, and overall business operations. Although these memberships are optional, a provider’s commitment to these standards shows their dedication to transparency, accountability, and continuous improvement in serving homeowners. Providers who are NHSCA members received extra points.

Plan Transparency

It’s important to fully understand your specific coverage details. However, some companies provide vague or insufficient information on their websites and sample contracts. Not understanding your contract terms and policies may lead to unexpected claim denials and extra out-of-pocket costs. We based each provider’s transparency scores on the clarity of its contract terms and disclosures in sample contracts and its website.

Website Details

Many customers visit a company’s website when searching for a home warranty plan. However, if a home warranty website lacks clear details about its plans, exclusions, or fees, homeowners can become confused about whether they’re choosing the right plan for their needs. 

Our team assessed each company’s website and online quote tool (if available) and awarded points based on how clear its disclosures regarding service call fees, exclusions, coverage caps, and coverage were. Points were deducted if these disclosures were vague or missing.

Sample Contract Disclosures

Sample contracts give you details on coverage caps, limitations, exclusions, and other important coverage factors. Some providers have confusing terms and conditions that don’t clearly communicate what is actually available. Since it’s important to understand your contract’s fine print before signing up for a plan, we rated companies based on their full disclosures of these key policies and deducted points for vague or unclear terms.

Customer Support

You need accessible and dependable customer support to assist you with emergency repairs. We assessed factors that influence how easy it is to work with a company as a homeowner. Additionally, our team assessed each company’s accessibility by examining the availability of online claim tools and verifying their coverage throughout the United States.

24/7 Claims Line Availability

Ideally, homeowners should be able to report issues and request service at any time, day or night, ensuring that urgent problems are addressed promptly. We gave higher points if a home warranty provider offered a dedicated 24/7 claims line.

Claims Filing Channels

How easy it is to file a claim can make a big difference when you’re dealing with a home system or appliance breakdown. Companies typically allow homeowners to file a claim through one or more of these channels: by phone call, online, and by smartphone app. Those with more options for filing a claim scored higher.

Claims Response Time

We rated companies that guarantee a response time of fewer than 24 hours higher compared to those that take longer, especially 48 hours or more. 

Customer Support Channels

Phone support is the typical way to contact a home warranty company. Though we did award points for this option, we also gave points if multiple support channels were offered, including email or chat, which is a rare feature. 

Online Quote Tool Available

Most providers offer an online quote tool to simplify the shopping experience and avoid having customers call in to get quote details. We awarded points to providers that provided a convenient online tool. 

State Availability

We confirmed that each company was available throughout the United States. We awarded more points if providers serviced 45 states or more. 

Flexibility

Greater flexibility lets you customize the plan to match your home needs and budget. We reviewed each company’s plans and add-ons to determine how customizable they are. We also assessed whether you’re able to choose your service technicians and service call fees or cancel your plan without penalty.

Number of Add-Ons Available

Having a larger selection of add-ons makes it easier to expand your coverage plan. Providers that offer eight or more options scored higher.

Number of Plans Offered

Providers typically offer at least two coverage plan options to give homeowners more choices. We gave more points for three or more plan options.

Service Flexibility

Flexible service makes home warranties more convenient for homeowners. Though many providers will only let you choose a repair person from their pre-vetted network, some let you choose your own technicians. These providers received more points.

Though not yet an industry standard, some companies allow homeowners to choose their service call fees to better fit their budget. We awarded more points to providers that offer this flexibility.

Most home warranty companies allow you to cancel your policy for a full refund within the first 30 days of signing up. A company that doesn’t offer free cancellation doesn’t receive points in this category. 

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Factor Weights for Rating Home Warranty Companies

Here’s how we weighted each factor in our rating system:

How To Interpret Company Ratings

Home warranty providers that receive 90–100 points offer excellent coverage, claim response times, and policy and cost flexibility. Providers that score 80–89 are very good; typically, these providers don’t earn as many coverage points due to lower coverage caps, shorter workmanship guarantees, higher monthly fees, or longer claim response times. However, they still offer excellent value if their coverage plans meet your home’s needs. 

Providers that score 70–79 may have scored lower across several categories and don’t often make it into our top recommendations. Comparing these policies to find the best fit for your home and budget may still be worthwhile, depending on your circumstances.

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How To Choose the Best Home Warranty Company for You

Use these tips to find the best home warranty for your coverage needs:

• Check reputation: Read consumer reviews from third-party sites such as Best Company and Trustpilot to understand the customer experience a provider offers. Trade organizations such as the NHSCA and the Service Contract Industry Council also provide lists of recommended providers that follow fair business practices.
• Determine your coverage needs: Before deciding on a plan, determine which items in your home you want to protect. Many companies offer plans that cover appliances only, systems only, and both systems and appliances. Don’t pay for coverage you don’t need.
• Request multiple quotes: Request quotes from at least three providers before making your final decision. Timothy Meenan, JD, who serves as executive director and general counsel for the Service Contract Industry Council (SCIC), recommends homeowners shop around because there may be another provider with similar coverage at a lower price. He noted that providers are competitive and “trying to do things better, faster, cheaper, and give more consumer choice.”
• Read sample contracts: Comparing contract details for several home warranty providers is a great way to determine which one is best for your needs. All home warranty companies provide a sample contract detailing coverage limits, exclusions, and the provider’s claims process.

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About the This Old House Reviews Team

We are an independent editorial team of subject matter experts who champion the categories and home services we recommend. From the beginning stages of research to the published review articles, our team works diligently to center your interests by identifying common pain points, connecting with people with firsthand knowledge and experience, and crafting content that meets the needs of our audience. We aim to help first-time homebuyers, potential sellers, budget-conscious homeowners, and others from all walks of life streamline their decision-making process for selecting their home services.

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.