Since 2020, our writers and editors have spent thousands of hours researching the best home warranty companies. We’ve vetted 22 home warranty providers and evaluated them using over 15 data points, including coverage, policy exclusions and pricing. Based on this research, we picked the top eight companies in the market, which include American Home Shield, Liberty Home Guard and Select Home Warranty.

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Money’s Main Takeaways
Home warranties cover home system and appliance malfunctions due to normal wear and tear. Home warranty companies typically offer plans for home systems, appliances or a combination of both. Home warranty companies charge a service call fee. Home warranty companies exclude damage from pre-existing conditions. Why trust us

Our editors and writers review home warranty companies independently, ensuring our content is accurate and guided by editorial integrity. Read the full methodology to learn more.

Based on 15+ data points, including coverage, policy exclusions and pricing
22 home warranty companies evaluated
50+ authoritative sources reviewed

Our Top Picks for Best Home Warranty Companies

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Best Home Warranty Company Reviews

Before you start, keep in mind that most home warranty companies have a waiting period, that is, a certain amount of time you have to wait before you can make a claim. All the companies reviewed below have a 30-day waiting period.

Covers roof leaks60-day repair guaranteeDiscounts for multi-year plansUnavailable in NY, NV, WA and WILow coverage caps for many home servicesHomeowners must provide 3 years of maintenance records to guarantee coverage on some systems

HIGHLIGHTS

Monthly Premiums$44 – $50Available Plans3Service Fees$75State Availability46 statesResponse Time2 days and up to 4 days during weekendsBBB RatingB

Why we chose this company: Select Home Warranty plans include roof leak coverage and multiple discount promotions throughout the year.

Select Home Warranty offers some notable discounts, including two months of free service if you pay for a full year upfront, and special discounts when you sign up for more than one year. The company also has occasional promotions that knock off between $100 and $200 for new sign-ups.

Select has three plans: Bronze Care, Gold Care and Platinum Care, which cost between $42 and $55 per month. Bronze Care covers appliances, while Gold Care focuses on systems. The most expensive plan, Platinum Care, combines both for more comprehensive coverage. Service fee is set at $75. In addition, all three plans cover roof leak repairs.

Do note that the company may cap payouts per system or appliance at $150 if you can’t provide three years’ worth of maintenance records. Other than that, HVAC systems are capped at $3,000, and appliances, plumbing and electrical at $500. Extra coverage options are capped at $400 for repair or replacement.

Select Home Warranty Plans

Bronze Care
($45.67/mo*.) Gold Care
($45.67/mo*.) Platinum Care
($50.25/mo*.) Add-ons – Garbage disposal
– Refrigerator
– Stove, oven
– Built-in microwave
– Cooktop
– Dishwasher
– Clothes washer
– Clothes dryer
– Roof coverage – A/C cooling
– Heating system
– Plumbing system
– Electrical system
– Water heater
– Ductwork
– Roof coverage – A/C cooling
– Heating system
– Plumbing system
– Electrical system
– Water heater
– Ductwork
– Washer
– Garbage disposal
– Refrigerator
– Stove, oven
– Built-in microwave
– Cooktop
– Dishwasher
– Clothes washer
– Clothes dryer
– Garage door opener
– Ceiling fan
– Roof coverage – Central vacuum
– Lawn sprinkler system
– Pool
– Septic system
– Spa
– Stand alone freezer
– Sump pump
– Well pump

*Prices may vary depending on your state. Current quoted prices are valid as of December 2023 for a home in California.

Read the full Select Home Warranty review

Largest home warranty service provider in the countryHighly customizable service plansOffers coverage for home electronicsRepairs are only guaranteed for 30 daysPlans unavailable in AlaskaRoof leak coverage unavailable in Hawaii

HIGHLIGHTS

Monthly Premiums$30 – $80Available Plans3Service Fees$100, $125State AvailabilityNationwide, except Alaska, Hawaii and New York CityResponse Time48 hoursBBB RatingB

Why we chose this company: We chose American Home Shield as our best home warranty for HVAC because it offers free HVAC tune-ups with its premium plan and fewer restrictions in coverage than most competitors.

With American Home Shield, clients can choose from three comprehensive plans and customize them by adding coverage for other systems and appliances, including home electronics and entertainment products.

AHS’ comprehensive plans — ShieldSilver, ShieldGold and ShieldPlatinum — together cover more than 23 home appliances and systems. In addition, its premium plan, ShieldPlatinum, covers up to $1,500 for roof leaks repair, HVAC tune-ups, code violations and AC refrigerant.

You can also add coverage for other systems and appliances, such as septic pumps, pools, home electronics, entertainment products and guest units.

AHS is more lenient than most when it comes to liability limitations. According to its sample contract, coverage includes:

Old items, regardless of age Repairs caused by insufficient maintenance Malfunctions due to rust, corrosion or sediment Improper installations Undetected pre-existing conditions Items without maintenance records Removal of defective items Duplicates of the same item (or appliance)

Monthly payments vary depending on the state and the selected repair service fee, which can be customized from $100 or $125 per service call.

American Home Shield Plans

ShieldSilver
($29.99 – $39.99/mo.*) ShieldGold
($49.99 – $59.99/mo.*) ShieldPlatinum
($79.99 – $89.99/mo.*) Add-ons – Air conditioners
– Heating units
– Ductwork
– Built-in exhaust
– Vents
– Attic fans
– Main breaker
– Fuse panel box
– Doorbells
– Chimes
– Interior electrical lines
– Ceiling fans
– Garage door openers
– Interior plumbing
– Toilet
– Faucets
– Valves
– Whirlpool tub motor and components
– Water heaters – Everything covered by ShieldSilver
– Kitchen refrigerator
– Ranges
– Cooktop
– Oven
– Dishwasher
– Built-in microwave
– Garbage disposal
– Instant hot/cold water dispensers
– Clothes washer
– Clothes dryer – Everything covered by ShieldGold
– Roof leak repairs
– Free HVAC tune-up
– Unlimited A/C refrigerant
– Coverage for code violations and permits – Roof leak repair
– Electronics protection plan
– Pool
– Inground spa
– Guest unit
– Septic pump
– Well pump

*Prices may vary depending on your state. Current quoted prices are valid as of December 2023 for a home in California.

Read the full American Home Shield review

Over 20 items of additional coverage options60-day workmanship guarantee on repairsOverwhelmingly positive BBB reviewsRelatively low payout limits

HIGHLIGHTS

Monthly Premiums$60 – $70Available Plans3Service Fees$90State Availability50 statesResponse Time48 hoursBBB RatingA

Why we chose this company: Liberty Home Guard has the most extensive list of add-ons in the market, including rarely covered items such as gutter cleaning.

Liberty Home Guard stands out for its list of possible add-ons. Customers can choose from over 40 items to add to their coverage — the most extensive list of add-ons in the home warranty market.

The list includes items commonly found in other home warranty companies — pools, spas, well pumps, sump pumps, central vacuums — and other, more rarely covered items such as limited roof leaks, replacing locks, gutter cleaning, pest control and electronics protection.

Liberty Home Guard offers three types of plans: one for appliances, one for systems, and one that covers both. Liberty covers popular systems and appliances such as air conditioning, heating, plumbing, electrical, washing machines, dryers and refrigerators.

Additionally, a realtor portal allows real estate agents to partner with Liberty Home Guard so that you can purchase a home warranty before the closing date. This is particularly useful if you want your protection plan to start immediately after closing your mortgage deal.

Its per-claim service fee is $90, with a payout limit of $2,000 per covered item.

Appliance Guard
($59.99/mo.*) Systems Guard
($64.99/mo.*) Total Home Guard ($69.99/mo.*) Add-ons – Clothes washer
– Clothes dryer
– Kitchen refrigerator
– Built-in microwave oven
– Dishwasher
– Garbage disposals
– Ranges
– Ovens
– Cooktops
– Ceiling and exhaust fans
– Garage door opener – Air conditioning system
– Heating
– Ductwork
– Plumbing system
– Electrical system
– Water heater All systems and appliances covered by the previous plans Over 40 options including:
– Generators
-Septic system pumping
– Second refrigerator
– Trash compactor
– Water filter system
– Pest control
– Carpet cleaning
– Gutter cleaning
– Lawn sprinkler system
– Guest unit

*Prices may vary depending on your state.Current quoted prices are valid as of December 2023 for a single-family home under 5,000 sq. ft. in California.

Read the full Liberty Home Guard review.

Affordable basic plan options with competitive coverage
Essential and Premium plans cover improper installations and code violations
Premium plan covers all costs related to refrigerant recharging
No systems-only plan
Limited list of add-ons
Not available in AK, CT, DE, HI, IL, LA, ME, MI, MN, NH, NY, ND, RI, VI, WI

HIGHLIGHTS

Monthly Premiums$42 – $67Available Plans3Service Fees$75, $100, $125State Availability35 statesResponse Time48 hoursBBB RatingB

Why we chose this company: First American Home Warranty‘s starter plan offers comprehensive basic coverage for key appliances and systems, at a competitive price.

With First American’s Starter Plan, you get comprehensive coverage for nine costly-to-repair appliances and systems starting from $42 a month.

This basic plan offers coverage for:

Plumbing (including stoppage, toilet tanks, bowls and mechanisms) Electrical systems (plugs, wiring, conduit, fuses, circuit breakers and others)

Clients who need more comprehensive coverage can choose the company’s Essential or Premium Plan.

All plans cover damages caused by lack of maintenance, rust, corrosion and chemical or sedimentary build-up, which may be vital if you’re buying an older home. Plans also feature limited roof leak coverage, which include leaks caused by normal tear and wear to tar and gravel, tiles, shingle or composition roofs.

Essential and Premium include coverage for malfunction due to improper installations, modifications and previous repairs. It also covers expenses associated with building permits, hauling and the use of cranes or lifting equipment.

First American lets you choose from three service fee options: $75, $100 or $125. Additionally, most appliances have a payout limit of up to $3,500 for diagnosis, repairs and replacements with the Starter and Essential Plan. With the Premium plan, however, the limit increases up to $7,000.

First American Home Warranty Plans

Starter plan
($42.00 – $57.00/mo.*) Essential Plan
($52.00 – $67.00/mo.*) Premium
($67.00 – $82.00/mo.*) Add-ons – Dishwasher
– Refrigerator
– Kitchen range hood
– Built-in microwave oven
– Range
– Oven
– Cooktop
– Plumbing
– Plumbing stoppages
– Toilet tanks
– Electrical system
– Smoke detector
– Fuses
– Switches
– Doorbells
– Circuit breakers
– Ductwork
– Heating
– Thermostats
– Refrigerant – Everything covered by the Starter plan
– Clothes washer
– Clothes dryer
– Trash compactor
– Water heater
– Exhaust fans
– Attic fans
– Whole house fans
– Ceiling fans
– Garage door opener
– Air conditioning
– Mini-split ductless systems
– Concrete encasement
– HVAC lifting equipment
– Refrigerant recapture or disposal – Everything covered by the Starter and Essential plan
– Luxury appliance coverage
– Garbage disposal
– Full garage door system
– Hose bibbs
– Instant hot water dispenser
– Shower head
– Shower arm
– Ground level cleanout
– Central vacuum system
– Grills
– Filters
– Window AC units – Pool
– Spa
– Additional refrigerators (including wine refrigerator, standing freezer and free standing ice maker)
– Water softener
– Septic tank pumping
– Well pump

*Prices may vary depending on your state.Current quoted prices are valid as of December 2023 for a single-family home under 4,000 sq. ft. in California.

Read the full First American Home Warranty review.

A variety of additional benefits, from discounts to credit monitoringClients can choose their own techniciansPlatinum Plan covers microwave ovens, ice makers and plumbing stoppagesOne-day period for reporting issues with a system or appliance$75 plan cancellation feeSystem plan not available in some areas

HIGHLIGHTS

Monthly Premiums$48 – $72Available Plans4Service Fees$75, $100, $125State AvailabilityNationwide, except HIResponse Time48 hoursBBB RatingB

Why we chose this company: AFC Home Club lets you choose your own service contractors and offers affordable premiums, including two hybrid plans (that cover both systems and appliances).

AFC Home Club (America’s First Choice) caught our attention for its affordable premiums. AFC’s plans include a systems plan, an appliances plan and two hybrid plans covering both systems and appliances.

As with other home warranty companies, AFC pricing depends on the chosen service fee ($75, $100, $125). Monthly premiums for one year contracts range from $40 for the Silver Plan up to $80 for the most comprehensive Platinum Plan (depending on your location).

However, customers can choose between a one-year contract or a three-year contract term, saving up to 10% per month if they choose the three-year option.

In addition, AFC Home Club has one of the strongest service guarantees in the industry: both parts and labor are guaranteed for the life of the contract. This means that you don’t have to pay if you experience the same problem after a repair.

Silver Plan
($48.75 – $54.33/mo.*) Systems
($57.08 – $62.67/mo.*) Gold Plan
($65.42 – $70.92/mo.*) Platinum Plan ($70.92 – $76.50/mo.*) Add-ons – Clothes dryer
– Clothes washer
– Kitchen refrigerator
– Oven
– Range
– Cooktop
– Dishwasher
– Garbage disposal
– Garage door opener – Air conditioning
– Heating system
– Water heater
– Electrical system
– Plumbing system
– Ductwork – Clothes dryer
– Clothes washer
– Kitchen refrigerator
– Oven
– Range
– Cooktop
– Dishwasher
– Garbage disposal
– Garage door opener
– Air conditioning
– Heating system
– Water heater
– Electrical system
– Plumbing system
– Ductwork – Everything covered by the Gold Plan
– Plumbing stoppages
– Built-in microwave
– Ice maker
– Fans – Sump pump
– Septic system
– Central vacuum
– In-ground pool
– Spa
– Stand alone freezer
– Roof leak repair
– Electronics
– Hot water dispenser
– Ice maker
– Double oven

*Prices may vary depending on your state.Current quoted prices are valid as of December 2023 for a home in New York.

Read the full AFC Home Club review.

Available in 47 states180-day workmanship guaranteePlans include rust and corrosion coverageCovers unknown pre-existing conditionsHigher deductibles than some competitors, from $100 to $150Additional coverage options only available while getting a quote

HIGHLIGHTS

Monthly Premiums$31 – $94Available Plans3Service Fees$100, $125, $150State Availability48 states, not available in AK, HIResponse Time48 hoursBBB RatingB

Why we chose this company: Cinch Home Services’ system plan includes coverage for items that other home warranty companies offer as an add-on, such as sump pumps, water dispensers and smoke detectors.

Like other contenders in our list, Cinch Home Services offers three warranty plans: one for appliances, another for systems and a complete home plan, which covers both.

What stands out about Cinch plans is that they include coverage for items that other companies consider add-ons. For instance, Cinch’s appliance plan covers freestanding ice makers and built-in food centers, while its system plan covers sump pumps, doorbells, smoke detectors and tankless water heaters.

Cinch services are backed with a 180-day workmanship guarantee on work performed. This is considerably longer than the 30- and 90-day guarantee most companies offer (except for AFC Home Club, which offers a service guarantee for the life of the contract).

Other benefits include coverage for unknown pre-existing conditions and for malfunctions caused by rust and corrosion.

It does have one drawback: Cinch has higher service fees than other contenders in our list, with fees starting at $100 to $150.

Cinch Home Services Plans

Appliances
($72.99 – $82.99/mo.*) Built-in Systems
($76.99 – $88.99/mo.*) Complete Home
($93.99 – $105.99/mo.*) Add-ons – Refrigerator
– Ranges
– Cooktops
– Range exhaust hoods
– Clothes dryer
– Clothes washer
– Dishwasher
– Built-in food centers
– Freestanding ice makers
– Built-in microwave
– Wall ovens
– Trash compactors
– Water sensor – Air conditioning
– Ductwork
– Attic fans
– Ceiling fans
– Central vacuums
– Doorbells
– Electrical system
– Garage door opener
– Built-in exhaust
– Lighting fixtures
– Garbage disposal
– Heating system
– Instant cold and hot water dispensers
– Plumbing system
– Smoke detectors
– Sump pump
– Toilets
– Faucets and valves
– Whirlpool or jetted tub
– Water heater (including tankless water heaters and circulating pumps)
– Water sensor – All systems and appliances covered by the previous plans
– Homeowners insurance deductible reimbursement of up to $500 – Pool and spa (including heater)
– Septic tank
– Well pump
– Coverage for permits

*Prices may vary depending on your state. Current quoted prices are valid as of December 2023 for a home in New York.

Read the full Cinch Home Warranty review

Offers up to 65% off in Whirlpool and GE brand appliancesColor match for replaced appliances$5 monthly discount with auto-renewalNo coverage for garage doors or roof leaks (available as add-on)Not available in Hawaii and Alaska

HIGHLIGHTS

Monthly Premiums$17 – $60Available Plans3Service Fees$65, $85, $100State AvailabilityNationwide, except AK and HIResponse Time48 hoursBBB RatingNR

Why we chose this company: 2-10 Home Buyers Warranty’s premium plan covers a wide range of items that most home warranty companies don’t, such as turntable platforms, rotisseries, ceramic cooktops and concrete-encased plumbing.

2-10 Home Buyers Warranty has nearly 40 years of experience and offers services to all 48 states in the contiguous United States.

2-10 HBW offers three home warranty plans. Its most basic plan, Simply Kitchen, includes coverage for main kitchen appliances only — such as refrigerators, cooktops, microwaves, oven, dishwasher and ranges. The mid-tier plan, Complete Home, covers the same kitchen appliances along with major home systems, including air conditioning, heating systems, plumbing and electrical.

The Pinnacle Home plan, on the other hand, includes coverage for appliances and systems plus a wide range of components, such as:

Handles, hinges, clocks, racks, latch assemblies, rotisseries, turntable platforms, glass and ceramic cooktops, self-cleaning mechanisms Haul away and disposal fees Attic and bathroom exhausts fans Concrete encased and concealed wiring or plumbing Refrigerant recovery and recharge Interior and exterior hose bibbs

Unlike other home warranty companies, 2-10 HBW doesn’t include coverage for garage door openers, washers or dryers. However, customers can add these to their plan for an additional cost, alongside coverage for roof leaks, pools, septic systems, well pumps, water softeners, HVAC tune-ups and additional refrigerators.

Customers can also choose to increase appliance and systems coverage limits to $5,000 (as opposed to the standard $2,000) by adding the Luxury package for an additional $6 per month.

All three plans come with 2-10 HBW’s Appliance Discounts Program which gives you discounts of up to 65% off on Whirlpool and GE brands. 2-10 HBW also offers to match your appliance color during replacements and a $100 reimbursement if you decide to replace a broken appliance instead of requesting service.

In addition, 2-10 HBW offers a Service Fee Guarantee. This means that if a request is not eligible for service, 2-10 HBW will refund your service fee. It also means that you don’t have to pay another service fee if the same component fails after a service.

Do note that while 2-10 HBW used to have a B rating from BBB, as of March 2023 the company was downgraded to a No Rating (NR). The change in rating is in part because BBB is evaluating a pattern of complaints regarding 2-10 HBW’s customer service.

2-10 Home Buyers Warranty Plans

Simply Kitchen
($25.00/mo.*) Complete Home
($54.00/mo.*) Pinnacle Home
($68.00/mo.*) Add-ons – Built-in microwave
– Dishwasher
– Range
– Oven
– Cooktop
– Refrigerator with ice maker – Built-in microwave
– Dishwasher
– Range
– Oven
– Cooktop
– Refrigerator with ice maker
– Heating system
– Air conditioning
– Heat pump
– Thermostats
– Plumbing system
– Pipe leaks or breaks
– Sump pump
– Water heater
– Line stoppages
– Toilet tank
– Bowl
– Tank assembly parts
– Valves
– Pressure regulators
– Electrical system
– Switches
– Outlets
– Panels
– Doorbell – Everything covered by Complete Home
– Haul away
– Disposal fees
– Filters
– Attic and bathroom exhaust
– Clothes washers
– Clothes dryers
– Burglar and fire alarms – Clothes washer and dryer
– Garage door opener
– HVAC tune-up

*Prices may vary depending on your state. Current quoted prices are valid as of December 2023 for a home in California.

Read the full 2-10 Home Buyers Warranty review.

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Other home warranty companies we considered

We researched a wide array of companies in order to find the best home warranty. The following are companies that didn’t make the final cut.

American Residential Warranty
Available in all 50 statesOffers coverage for electronic devices
Lets you choose your own contractorLimited information about coverage limits

American Residential Warranty is available nationwide and currently offers three home warranty plans.

ARW’s Appliance Max plan covers most common kitchen appliances — like cooktops, ranges, microwaves and dishwashers — along with clothes dryers and washers. Systems Max covers common home systems such as plumbing systems, central home heating and air conditioning. ARW’s Total Max bundled plan covers all systems and appliances, in addition to garage door openers, humidifiers and ceiling fans.

You can also add electronics protection, which covers anything from laptops, gaming consoles and tablets to printers and plasma TVs. Other add-ons include water and sewer line plans.

Read the full American Residential Warranty review.

Choice Home Warranty
Affordable plansStandard service call fee of $85.Lacks flexibility in its coverage options.The Arizona Attorney General sued CHW for allegedly making false promises to customers. Unavailable in California and Washington.

Choice Home Warranty features two plans that cover most appliances and systems and charges a standard $85 service fee. Choice Home Warranty prices are affordable, with plans starting at around $46.

However, the company’s coverage caps are somewhat lower than the competition, and it lacks flexibility on its coverage conditions. In addition, the company has a pending government action in Arizona for allegedly making false promises to customers and using bad-faith refusals to avoid paying for repairs.

Read the full Choice Home Warranty review

Elite Home Warranty
Lets you choose your own technician
Option to choose no service fee
High coverage caps
Limited coverage for the first 90 days
Not available in California, Florida, Illinois, Texas, Washington or Wisconsin
Few years in the industry

With Elite Home Warranty you can buy any of its three main plans or create your own customized plan for the systems and appliances you choose.

Elite is one of the few companies that lets you choose a $0 service call (although that will mean an increased annual premium). You can also increase the policy’s maximum coverage limits for an additional cost. However, aside from the regular 30-day waiting period, the company has a 90-day limited coverage period. During this time, the company will cover up to the amount paid in your agreement.

Elite is available in 44 states and, as of this writing, doesn’t service the following states: California, Florida, Illinois, Texas, Washington or Wisconsin.

ServicePlus Home Warranty
Plans cover a mix of both appliances and systems
Platinum plan covers two AC units and two heating systems
Standard service call fee of $75Doesn’t offer appliance or system only plansNot accredited by the BBBMust purchase ServicePlus premium plan (Platinum) to get coverage for AC and heating systems

Founded in 2016, ServicePlus Home Warranty is a fairly new home warranty company that offers two different plans. The basic one covers a mix of systems and appliances such as plumbing, electrical and most kitchen appliances; the premium one covers all that plus A/C and heating systems, washers, dryers and refrigerators. Customers can also choose over a dozen add-on options to round out their coverage. An important drawback, however: ServicePlus doesn’t offer an appliance or a systems-only plan, which other competitors in our list do.

Old Republic Home Protection
In business for more than 45 years
Offers electronics and smart home equipment coverage plan
Standard service call fee of $75
Only available in 32 statesCovered systems and appliances varies by state
Kitchen refrigerator and washer/dryer coverage available for home buyers onlyDoes not offer quotes online

With over 45 years of experience, Old Republic Home Protection services 32 states, including Hawaii. It offers coverage for a wide range of systems and appliances, although covered components vary by state. Some perks include electronics and smart home equipment plans and coverage for pest control treatments in some locations. Do note, however, that Old Republic Home Protection doesn’t allow customers to request quotes or apply for a home warranty online.

Read the full Old Republic Home Protection review

Landmark Home Warranty

Landmark Home Warranty used to offer two home warranty plans: a systems only plan and a comprehensive plan that covers both systems and appliances. However, Landmark has now partnered with American Home Shield, and offers other types of home warranties through that brand.

Best Home Warranty Guide

This guide covers the basics on what a home warranty is, the different types of coverage plans they offer and how to determine whether that monthly premium is actually worth it. It also includes important factors to keep in mind as you’re choosing a plan.

What is a home warranty?

A home warranty is a service contract that helps you pay for repairs if and when major household systems or appliances break down.

A home warranty is often recommended for two reasons:

It can cover a system or appliance in case it breaks during or after the listing process, and It adds value and attracts homebuyers who worry about unforeseen home repair costs if they buy your house.
How does a home warranty work?

Once a home warranty contract is in effect, you can contact your company and request a service for a covered system or appliance malfunctions.

If the malfunction is listed in your policy, the company will, then, send a qualified contractor in your area to diagnose and repair the problem. Depending on the situation, some providers may opt to replace your item instead, up to the covered amount stated in your contract.

Prior to receiving the service, you are typically required to pay a service fee or deductible ranging from $50 to $150. The exact amount is decided at the moment of choosing a policy and should be listed in your contract.

Is a home warranty worth it?

A home warranty can offer peace of mind by covering unexpected expenses related to systems and appliances malfunctions and normal tear or wear. However, if your major appliances and home systems are brand new and/or covered by manufacturers’ warranties you probably don’t need to purchase a home warranty plan yet.

The following list of factors may help you determine whether purchasing a home warranty is worth it:

Yes, a home warranty is worth it if:

A home warranty might not be worth it if:

You’re purchasing a previously built home, since systems may be approaching the end of their lifespan (usually 5-10 years)

You’re purchasing a newly built home, since new construction usually comes with a warranty from the builder for systems for up to 10 years

The appliances in your house are currently working, but weren’t purchased recently

Your appliances are new — new appliances usually come with a manufacturer’s warranty, and some credit cards also offer extended warranties

You don’t know mechanics or contractors in your area, or don’t have good DIY skills

You have established relationships with contractors or maintenance people, or are good at DIY-ing repairs

How to choose the best home warranty plan

As you browse home warranty companies and plans, keep the following things in mind before signing on that dotted line.

1. Get different quotes and compare

Tiers and covered items can vary widely from company to company, so make sure to compare the plans that include the appliances and systems you want to protect. It’s a good idea to get at least three free quotes from different companies and compare the pricing and coverage.

If needed, call a company representative to clear up any doubts or questions, such as what’s the expected response time when submitting a claim and whether there’s a workmanship guarantee.

In addition to the monthly payment, compare each company’s service call fee. This is the amount you will pay whenever you request a repair from the company. Service fees can range anywhere from $50 to $150, though most home warranty companies typically charge between $75 to $125.

2. Read sample contracts

Identify the limitations and exclusions in the contract and check payout limits. Pay special attention to the appliances you already have and how the policies may treat claims on these in particular.

When in doubt about budgeting maintenance and replacement costs, remember the following rules — although bear in mind that both only provide very rough estimates:

1% rule: When you purchase a home, set aside one percent of its total cost for repairs and maintenance. Square foot rule: Budget about $1 for every square foot of livable space per year for the eventual replacement of a roof or major systems.

Make sure to check the company’s response time, which is the time the company will generally take to initiate a service request. Most companies take within 24 to 48 hours, but there are some exceptions. For instance, companies may take longer weekends and holidays.

3. Check differences in state licensing

Research and review home warranty regulations to ensure the company is licensed and legally allowed to do business in your state.

The insurance commissioner or Department of Consumer Protection oversees home warranty companies in many states. Check out this State Licensing Guide to find your local regulator.

4. Analyze liability limitations

Remember, appliances with active manufacturer warranties, malfunction resulting from rust, corrosion, toxic materials, improper installation, or pre-existing conditions (known or unknown) are typically not covered by a home warranty.

Companies are also not liable for repairs of cosmetic defects, routine maintenance, or malfunctions caused by acts of nature such as fire, flood, earthquakes or storms. (The latter are covered by homeowners insurance or flood insurance policies.)

5. Gauge a company’s reputation

The best home warranty companies are known for providing great customer service and are more flexible in paying claims. They’re open to feedback, and encourage their customers to review or rate their technicians.

When evaluating a home warranty company’s reputation, it’s important to do a comprehensive search for their name online. Make sure to read customer reviews and, especially, be on the lookout for any record of recent legal action taken against the company.

What does a home warranty cover?

Generally, home warranty companies offer coverage for the same array of home systems and appliances. Some companies also offer optional coverage options that you can include for an extra fee.

Companies use a wide range of names for their different plans — Gold, Platinum, Bronze, Basic, Premier, etc. — but most plans fall into three basic categories: a systems plan, an appliances plan and a hybrid or combo plan, which covers both.

Below is a list of common items that most home warranty cover:

Most Common Home Systems Covered:

Most Common Home Appliances Covered

Most Common Add-On Coverage

Heating and air conditioning (HVAC system)

Refrigerators

Pools and inground spas

Plumbing systems

Laundry machines (clothes washer, dryers)

Septic system / septic tanks pumping

Electrical systems

Ranges, stoves, ovens & cooktops

Well pumps

Water heaters

Built-in microwave ovens

Sump pumps

Ductwork

Garbage disposals

Ceiling fans

Doorbells

Garage door opener

Smoke detectors

Central vacuums

Dishwashers

Stand-alone freezer or second refrigerator

Ceiling fans and exhausts

Trash compactors

Lawn sprinkler system

What does a home warranty not cover?

Most home warranty companies exclude damage from pre-existing conditions your system might have and normal wear and tear. Companies may also limit coverage to specific parts of your systems and appliances. These exclusions are typically listed in the fine print, which is why it’s important you read over any contracts carefully.

Other items and events that may not be covered include:

Cosmetic issues, such as scratches or dents Components like light fixtures, knobs, handles or hinges Structural parts of your home, such as doors, windows, chimneys or floors Breakdowns caused by lack of maintenance or improper installation Removal or replacement of damages caused by mildew, mold, rot or fungus Items with altered serial numbers Damage caused by animals or insect infestation
Do home warranties protect brand-new systems and appliances?

If you’ve just installed new appliances or bought a brand new home, your appliances will probably already be protected by a limited manufacturer’s warranty. Since a home warranty won’t cover anything that’s already covered under another type of warranty, you might want to consult with a professional as to whether you need one.

Most homeowners prefer that the manufacturer — Whirlpool, Samsung, GE, etc. — repair their own products if the appliances remain under a manufacturer’s warranty. Generally, you can find the steps for registering your newly bought appliance and the manufacturer’s warranty coverage in the owner’s manual.

How much does a home warranty cost?

A home warranty can cost anywhere from $300 to $700 annually, or between $30 to $80 a month, depending on the type of plan you choose. Typically, systems and appliances-only plans are lower priced than all-inclusive plans.

The service fee, which is the amount you agree to pay for each repair visit, also plays a key role in home warranty plans pricing. Plans with higher service fees will generally cost less per month than plans that charge a lower service fee.

The most cost-effective home warranty plans strike a balance between price, types of items covered, service fee and payout limits.

Factors that influence home warranty costs

Several factors can affect the cost of your home warranty policy, including:

Coverage: The type of home warranty coverage you choose is the factor that most influences your home warranty cost. Systems or appliance-only plans generally cost less than comprehensive plans that cover both major systems and appliances. As is to be expected, the more extensive the coverage, the higher the cost. Add-ons can also increase your premium. Service call fee: Another factor that directly affects the cost of your home warranty policy is the service call fee, or deductibles. Lower service call fees generally imply higher monthly payments, whereas plans with higher service fees cost less per month. Home size: Some home warranty companies consider the type of property and size of your home — that is, the square footage or number of rooms — in their pricing. Larger homes or homes with unique features generally require more extensive (or customized) coverage, which leads to higher premiums. Location: Pricing can vary depending on where you live too, mainly due to differences in cost of living. Companies may also factor in specific environmental conditions that affect the typical wear and tear of home systems in your region. These variations often result in higher or lower premiums.
Home warranty vs. home insurance

The main difference between a home warranty and homeowners insurance is what each one covers and under what circumstances. Below are some key differences:

A home warranty covers the cost of repairing or replacing systems and appliances after breakdowns, malfunctions and normal wear and tear.

Homeowners insurance covers expenses if your house or personal property are damaged by perils like fires and theft.

A home warranty is optional and is generally paid annually or monthly.

Homeowners insurance is required by lenders as part of the mortgage process and is paid annually.

A home warranty can supplement your homeowners insurance policy and help you find a qualified service contractor in your area to perform repairs and installations.

Home insurance may provide liability coverage for accidents that occur in the property.

How to understand home warranty contracts

Before signing up with a particular home warranty provider, take the time to understand the contract. Below are three main points to review:

Check what items are covered: Although most home warranty companies cover similar items, there can be significant variations on their plans. It’s important you read the fine print and confirm that the company provides coverage for the items you want to protect. Understand coverage caps: Generally, home warranty companies list coverage caps for particular systems and appliances. Coverage caps are the maximum amount the company will pay to repair or replace a covered item per contract term. Find what’s not covered: Keep an eye out on the components or events that are not covered. Most providers list specific limitations and exclusions on their contracts. For instance, some companies may cover roof repairs but exclude metal roofs and roof-mounted installations from their coverage.

Questions to ask your home warranty provider

If after reviewing the sample contract you have questions about coverage or the home warranty plan, make sure to ask the provider. These are some good questions to ask:

Is there a waiting period before coverage begins? What is the service fee (or deductible)? Can I choose my own service contractor to perform repairs? Is there a limit on how many times I can request a service? Are there any cancellation fees or penalties? What are the coverage caps or maximum payouts per item or contract term? Are pre-existing conditions covered? Can I customize my coverage after purchasing a home warranty plan? What is the policy on replacements versus repairs?
How to file a home warranty claim

The process of filing a home warranty claim can vary from company to company. However, it could generally include the following steps:

Request a service: Most home warranty companies require that you notify a malfunction as soon as it happens. You can typically do this by calling their customer service number or submitting a claim online, if the company has an online portal. Coordinate repairs: Once your claim is approved, the warranty provider will typically schedule an appointment with a service technician. If your contract states that you can choose your own, you may schedule a visit with an authorized contractor directly. Pay the service call fee: Depending on your home warranty policy, you may have to pay a service call fee or deductible upon requesting a service. This fee should be already specified in your contract.
What voids a home warranty?

Each home warranty provider has its own set of rules regarding the factors that could void your home warranty for a specific system or appliance. In some instances, a home warranty claim may be denied for the following reasons:

Unauthorized repairs or modifications, whether by using an unapproved contractor (licensed or not) or attempting to do the repairs yourself Improper maintenance or installation Home improvement projects Failing to keep your home up to building codes Misplacing ownership documentation The “proper maintenance” gray area

Sometimes home warranty coverage is contingent on the “proper maintenance” of systems and appliances. This means home warranty repairs won’t be covered if the malfunction was caused by a failure to follow the manufacturer’s maintenance specifications. However, companies often don’t provide clear guidelines as to what constitutes proper routine maintenance.

Some contracts give concrete examples such as:

Changing filters Flushing the water heater Sanitizing your water filter Keeping proper refrigerant levels Cleaning coils

However, coverage will ultimately depend on whether the home warranty’s service technicians decide there was proper maintenance.

TIP: If you buy a home warranty, take pictures and document that maintenance of the appliances is being routinely performed.

How do I cancel my home warranty?

The cancellation process can vary from one company to another, however there are some general steps you can follow:

Review your contract: Check the cancellation policy of your contract and any fees that may apply. Most companies charge a cancellation fee that can range from $25 to $75, or 10% of the fees you have yet to pay. This means you may receive a prorated refund. However, companies typically provide a full refund if you cancel within the first 30 days of purchase. Contact the home warranty company: Call or email your home warranty provider and let them know you intend to cancel your policy. A company representative may be able to guide you through the specifics. In some cases, you may need to send a written notice of termination, which you should send via registered post or courier if possible, to make tracking easier. Cancel your payment: If your payments are automatically charged to a credit card or bank account, make sure to cancel the automated payment with the corresponding institution. Follow up: It may be a good idea to request a written confirmation of the cancellation directly from the company.

Keep in mind that even though most home warranty contracts are valid for one year (unless you enroll in a multi-year plan), your home warranty plan may auto-renew if you enroll in automated payments. If that’s your case, make sure to cancel the plan and automatic payment at least two weeks before the renewal date.

Home warranty alternatives

Home warranties have limitations and exclusions that cap payout amounts and/or limit coverage to specific parts, which can still leave some of your valuable appliances without coverage if they malfunction.

They also charge service fees whenever you submit a claim, in addition to charging a monthly or yearly amount.

There are, however, other alternatives to help you cover unforeseen repairs to your home appliances or equipment:

Existing warranties

Many appliances come with manufacturer’s warranties that cover defects and malfunctions for a specific period of time. Before purchasing a home warranty plan, check if your appliances are still covered under the manufacturer (or the retailer if you purchased individual coverage) and whether it’s possible to extend its coverage.

Extended warranties

Many retailers let you purchase extended warranties for brand-new appliances directly from them. It may be worth considering adding this type of protection if you’re planning on buying appliances any time soon. Although not an exact substitute for home warranties, these extended warranties can help you cover unexpected malfunctions, in some cases for up to three years.

We’ve reviewed some options, such as:

Build an emergency fund

Instead of paying a monthly fee to a company, you could also set that money aside as an emergency fund to cover repair services, maintenance costs or other unexpected expenses as they arise.

Provide routine maintenance

Performing and scheduling regular maintenance on your appliances, plumbing and HVAC systems can help you extend their usable life and prevent malfunctions that can arise from improper use or lack of maintenance.

Latest News on Home Warranty Companies
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Best Home Warranty Companies FAQs

Are home warranties worth it?

A home warranty can offer peace of mind by covering unexpected expenses related to system and appliance malfunctions and normal wear and tear. However, if your major appliances and home systems are brand new and/or covered by manufacturers’ warranties you probably don’t need to purchase a home warranty plan yet.

How much is a home warranty?

A home warranty can cost roughly between $400 and $1,000 a year. This does not include the service fee, which is established in your contract. Companies typically charge between $75 to $125 for every repair call.

How long do home warranties last?

Home warranties typically last one year, although you can often choose the term length. Many home warranty companies offer annual and multi-year plans as options.

Do home warranties cover plumbing?

Yes, most home warranty companies cover plumbing systems and stoppages. This may cover line leaks and breaks, toilet flushing mechanisms, water softener pipes, and stoppages in drains, vents and/or sewer lines.

Do home warranties cover HVAC?

Yes, most home warranty companies cover HVAC systems, although coverage may vary by company. This can include tune-ups and repair of eligible components such as thermostats, fuses, motors, condensers and compressors. Some may also include refrigerant recaptures and recharging.

What are the best home warranty companies?

According to our research the best home warranty companies are American Home Shield, First American Home Warranty, Liberty Home Guard, AFC Home Club, Select Home Warranty, Cinch Home Services and 2-10 Home Buyers Warranty.

Top home warranty companies should cover a wide range of systems and appliances, have higher payout limits, be flexible in paying their claims and have good customer service.

How We Chose the Best Home Warranty Companies of 2023

Since we first started reviewing home warranty companies in 2020, we’ve spent over a thousand hours researching the top providers in the country, thoroughly vetting 22 different home warranty companies.

Our methodology focuses on four key factors: transparency in services offered, claims processing, cost and quality of customer service.

We carefully analyzed sample contracts from our top contenders and evaluated them on criteria such as contract terms, types of malfunctions or failures covered, payout limits, cost-efficiency and service fees. We also analyzed and compared their plans, coverage limitations and pricing.

We compared them using the following factors:

Services offered. We compared companies’ offerings and coverage caps to find the ones that offered the best value and covered the most systems and appliances.

Claims processing. We preferred companies that offered multiple ways to file a claim and quick response times. Each company we selected has typical response times of 48 hours or less and different channels to submit a claim, such as over phone or online.

Cost. We contacted companies to obtain quotes whenever prices weren’t openly disclosed on their websites using New York and California addresses.

Availability: We focused on companies offering nationwide services or that were available in at least 30 states.

Legal actions: We evaluated whether these companies have pending or recent regulatory or legal actions to assess their reputation and good standing.

Customer service. We checked every company’s standing with the Better Business Bureau (BBB), including their accreditation (or lack thereof), rating and reviews. In our list, we only included companies who, if they were registered with the BBB, had a rating of B or higher.

Note that BBB ratings take into account factors such as number of complaints, time in business, transparent business practices, licensing and any government actions against a business to determine how a particular business is “likely to interact with its customers.” A business can receive a rating from A+ to F.

Summary of Money’s Best Home Warranty Companies of December 2023

Original: Money.com: 7 Best Home Warranty Companies of December 2023