Best Home Warranty Companies
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Key Takeaways
- The best home warranty companies are Liberty Home Guard and American Home Shield, based on our extensive research of 13 home warranty providers.
- A home warranty costs $661 annually on average, or $55 per month, depending on your plan and coverage.
- Our home warranty survey revealed that 92.7% of policyholders were satisfied with their home warranty plan, while less than 1% were dissatisfied.
Did You Know?
- In the last 30 days, more than 2,500 people bought home warranties from the above providers. Liberty Home Guard is our most popular provider, with 55% of buyers choosing to cover their homes with an LHG plan.
Our Top-Rated Home Warranty Companies
These are the best home warranty companies based on our research:
- Liberty Home Guard: Best Customer Support
- American Home Shield: Best for Comprehensive Coverage
- Select Home Warranty: Best Budget Plan
- Elite Home Warranty: Best for Customized Coverage
- First American Home Warranty: Best for High-End Items
- AFC Home Warranty: Best Technician Flexibility
- Cinch Home Services: Best Additional Perks
- 2-10 Home Warranty: Best Workmanship Guarantee
Compare Home Warranty Companies
The table below compares pricing and other key attributes of our top recommended home warranty providers.
| Company | BBB Rating | Monthly Cost | Service Fee | Visit Site |
|---|---|---|---|---|
| NR** | $49–$59 | $65–$125 | VISIT SITE | |
| B | $29–$89 | $100–$125 | VISIT SITE | |
| B- | $44–$47 | $60–$75 | VISIT SITE | |
| B | $42–$82 | $100–$125 | VISIT SITE | |
| B | $35–$94 | $75–$125 | VISIT SITE | |
| B+ | $44–$58 | $70 | VISIT SITE | |
| B+ | $30–$56 | $100–$150 | VISIT SITE | |
| A | $27–$61 | $65–$100 | VISIT SITE |
Note: BBB ratings are accurate as of August 2024.
Note: We based the pricing information in this table and throughout the article on sample quotes we obtained for a 2,115-square-foot, single-family home in Tempe, Arizona. Your pricing may vary depending on your home’s location, size, type, and plan selections.
Reviews of the Best Home Warranty Companies
Here’s a closer look at our top picks for home warranty providers.
Liberty Home Guard
Best Customer Support
American Home Shield
Best for Comprehensive Coverage
Select Home Warranty
Best Budget Plan
Elite Home Warranty
Best for Customized Coverage
First American Home Warranty
Best for High-End Items
AFC Home Warranty
Best Technician Flexibility
Cinch Home Services
Best Additional Perks
2-10 Home Buyers Warranty
Best Workmanship Guarantee
Which Home Warranty Companies Didn’t Make the List?
When we narrowed down our list of top home warranty providers, we eliminated some companies based on their limited plan selection, coverage, and availability, as well as their reputations. Below are some reputable home warranty providers that didn’t make our list but are still viable options for homeowners with specific coverage needs.
The Home Service Club (HSC)
The Home Service Club only offers two coverage plans, with coverage caps as low as $500 and assigned service call fees. The company currently holds a C rating with BBB and offers limited hours for its claims line. However, you might consider HSC if you need affordable plans under $65, backed by an extended 90-day workmanship guarantee.
HomeServe
HomeServe offers 17 coverage plans with system-only protection and no add-ons. Plan availability and exclusions vary by area, and coverage caps per system differ. However, the company doesn’t charge service call fees for most of its plans and includes a year-long workmanship guarantee. HomeServe works best for homeowners seeking specific coverage for one or two essential systems.
America’s Preferred Home Warranty (APHW)
America’s Preferred Home Warranty provides limited plan options, offering two plans for single- and multifamily homes only. The company has few service fee options, and its lowest plan includes a $125 service call fee. In addition, the company offers a 30-day workmanship guarantee for home systems only. APHW may be a good option for budget-conscious homeowners needing system-only coverage for under $60.
Our Home Warranty Research Process
To choose the best home warranty companies, our team reviewed 13 home warranty providers and compared 31 coverage plans, including service call fees, exclusions, and other key contract details. We read 5,700 customer reviews, surveyed 2,000 homeowners, and held focus groups to determine common pain points and home warranty experiences. We spoke with 15 home warranty experts to learn more about the industry. Finally, we conducted firsthand testing through secret shopping and by testing the claim process of several home warranty providers.
Based on our research, we developed a detailed methodology to score each company. We scored based on the following categories: coverage, cost, trustworthiness, plan transparency, customer support, and flexibility. We awarded points for each category and converted scores to a final 5-star rating scale.
Our Home Warranty Experts
We’ve spoken to more than 15 home warranty professionals throughout our home warranty research and coverage. We consulted the following three experts for insights on this article.
- Arthur Chartrand: Chartrand served as legal counsel and former executive director for the National Home Service Contract Association (NHSCA).
- Timothy Meenan, JD: Meenan serves as executive director and general counsel for the Service Contract Industry Council (SCIC).
- Mark Buskuhl: Buskuhl is the Founder & CEO of Ninebird Properties, a cash house buyer based in the Dallas-Fort Worth area.
How Much Does a Home Warranty Cost?
Based on our research, a home warranty typically costs $516–$861 per year or $43–$72 per month for a standard coverage plan. You should also factor in service fees, which typically range from $65–$125 per visit. Several factors can impact your total costs, such as your chosen plan, home size, location, and add-on coverage.
Your payment frequency could also affect your costs. Most providers offer monthly or annual options for their plans. It’s not uncommon for a provider to offer free months of service or discounted rates for an annual plan. In fact, it’s the preferred plan option, based on our survey of 1,000 homeowners with home warranty coverage. We learned that 52.50% of homeowners chose an annual plan, while 45.8% selected a monthly one.
We recommend getting quotes from at least three providers to find the best rates and coverage.
How Much Can You Save With a Home Warranty?
A home warranty plan can help homeowners save money compared to the costs associated with the standard repair or replacement of a home component. Below, we’ve listed the average costs for the standard replacement of several home systems and appliances. We’ve also listed the amount of money you can save on component replacement with a home warranty plan from Liberty Home Guard—one of our top-ranked providers.
| Home Component | Average Standard Replacement Cost | Home Warranty Savings |
|---|---|---|
| HVAC System | $2,500–$8,000 | Savings up to $1,280 over standard replacement |
| Washer and Dryer | $1,000–$2,000 | Savings between $280 and $1,280 over standard replacement |
| Water Heater | $1,302 | Savings up to $582 over standard replacement |
Home warranties can help you save money on emergency repairs and replacements. These costs can quickly add up without one—especially if you need multiple home repairs. They also help lower costs for older systems and appliances that need frequent repairs and high-cost systems and appliances. Home warranties help offset these costs, making the repairs more affordable.
To illustrate the potential savings a home warranty could offer, we’ll use an air conditioning system as an example. It was the top priority for home warranty coverage, according to our survey, with 69.2% of surveyed homeowners seeking protection for this crucial system.
Let’s say you have a five-year-old AC system that needs repairs. On average, AC repair costs can range from $100 to $650. Without a home warranty, you'd be responsible for the entire repair bill out-of-pocket. However, with a home warranty that includes a $2,000 coverage cap for air conditioning systems, a covered repair would be fully paid for by the warranty provider. In the event of a replacement, that $2,000 coverage could significantly offset the replacement costs, potentially eliminating or substantially reducing your out-of-pocket expenses.
To maximize the savings of a home warranty plan, it is essential to select coverage options that provide adequate protection for your most critical systems and appliances. Opting for plans with lower coverage caps may limit your potential savings and result in higher out-of-pocket expenses when repairs or replacements are needed.
Use the table below to compare repair and replacement costs for common appliances.
| Item/System | Average Cost to Repair | Average Cost to Replace |
|---|---|---|
| Exhaust Fans | $16–$300 | $250–$950 |
| Refrigerator | $40–$350 | $200–$5,000 |
| Dehumidifier | $50–$200 | $1,300–$2,800 |
| Microwave | $50–$400 | $60–$2,000 |
| Washer | $50–$450 | $400–$2,300 |
| Dishwasher | $50–$500 | $400–$3,000 |
| Freezer | $90–$500 | $160–$2,900 |
| Dryer | $100–$400 | $450–$2,300 |
| Oven | $100–$430 | $400–$3,000 |
| Electric Range | $100–$500 | $230–$3,000 |
| Gas Range | $100–$500 | $230–$3,000 |
Note: Life span and repair cost data sourced from InterNACHI and Home Depot.
Are Home Warranties Worth It?
Yes, home warranties are worth the investment because they provide financial relief in case of unexpected repairs or replacements. They benefit homeowners with little do-it-yourself experience or limited repair savings and help protect residents with expensive appliances or older homes requiring more frequent repairs.
- Claim Approval: Our survey of 2,000 policyholders revealed 98% of plan holders got their recent claim approved.
Claims Experience: In our follow-up survey of 1,355 homeowners across the United States, 82% of policyholders rated their experience with the claims process as "Good" or "Excellent."
Home warranties can benefit most homeowners, but in some situations, they're unnecessary. Buskuhl says, "For those who have newer appliances and systems that are still under manufacturer's warranty, a home warranty may not provide much added value." He also said that a home warranty may not be worth it if you have significant savings put aside for home repairs.
For example, the average out-of-pocket cost to replace a washer and dryer is between $1,000 and $2,100. For homeowners with appliance coverage through their home warranty, their cost would be the price of a service call.
That makes the average out-of-pocket cost that a home warranty policyholder can expect to pay to replace their washer and dryer just $100, plus their monthly premium.
With those numbers in mind, home warranty appliance coverage can save homeowners between $850 and $1,950 for a full washer and dryer replacement in 2024.*
*Note: This savings assumes that the policyholder has not already met or exceeded their appliance coverage cap for the year.
What Are the Basics of a Home Warranty?
Still unsure about the benefits of a home warranty? We’ll get into its purpose, plans, and average costs below.
What Do Home Warranties Cover?
A home warranty plan covers the repair, service, or replacement of major home systems and appliances when they break down due to wear and tear. Many companies split coverage options into systems, appliances, and combination plans.
The systems and appliances most commonly covered by home warranties include the following items:
- Air conditioning
- Built-in microwaves
- Clothes dryers
- Clothes washers
- Dishwashers
- Ductwork
- Electrical
- Garbage Disposals
- Heating systems
- Ovens
- Plumbing
- Refrigerators
- Water heaters
What Do Home Warranties Not Cover?
Home warranties don’t typically cover built-in systems and appliances incorrectly installed, modified, or malfunctioning due to neglect, misuse, accidental damage, or an “act of God.” Many companies exclude your home’s structural elements, such as the drywall or windowpanes. Additional exclusions include any items protected by a manufacturer’s warranty and miscellaneous items such as dials, knobs, or other nonessential components.
How Do Home Warranties Work?
Home warranties protect home systems and appliances when faced with unexpected failures. Here’s an overview of the entire process:
- Step 1: Enroll in a plan: Choose a reputable home warranty company and sign up for service. Plans typically last one year and require a 30 to 90-day waiting period before coverage begins.
- Step 2: File a claim: File a claim with your home warranty company online, over the phone, or through the mobile app. Your company may ask for maintenance documentation or photos of the broken item.
- Step 3: Schedule a repair: The home warranty company arranges for a service technician to complete the repairs. Depending on the company, you may be allowed to choose your preferred technician.
- Step 4: Pay the service call fee: Once the claim is approved, the technician will visit your home to complete the repairs. You’ll be charged the preapproved service call fee for your visit.
How To Choose a Home Warranty
Choosing a home warranty company requires careful research and assessments to ensure the company meets your needs. We’ve provided the following steps below to aid in your home warranty shopping.
- Determine your coverage needs: Assess your current appliances and systems to determine which ones need the most coverage. While newer items won’t need immediate servicing, older items may require more frequent repairs.
- Plan your budget: Consider how much you can spend for monthly and annual premiums. These costs should include potential add-ons and service call fees.
- Confirm availability: Research available home warranty companies in your area and confirm coverage for your area or ZIP code. We also recommend verifying each company's technician's network and available technicians in your area.
- Request multiple quotes: We recommend getting quotes from at least three providers. You should compare coverage plans, costs, add-on pricing, and technician policies.
- Read sample contracts: Review sample contracts for coverage caps, exclusions, add-on limits, and coverage details. Meenan suggests choosing a home warranty company that provides easily accessible sample contracts with excluded items clearly listed. “I wouldn’t buy one if it didn’t show me a sample set of terms and conditions,” says Meenan.
- Check customer reviews: Read feedback on third-party review sites to gauge customer satisfaction and experiences. You should also consult friends, family, and neighbors about their home warranty providers and experiences.
What’s the Difference Between Home Warranties and Homeowners Insurance?
Home warranties and homeowners insurance differ in the protections they offer. Home warranties cover appliance and system breakdowns that result from normal wear and tear. Homeowners insurance covers structural damage to your home due to covered perils, such as theft, natural disasters, and fire. But these two types of coverage cannot replace each other. Instead, they offer complementary purposes for protecting your home
We recommend having both a home warranty and homeowners insurance for comprehensive protection of your home. Combining these two types of protection lets you enjoy peace of mind knowing your home and its vital components are fully covered against many potential issues.
Does a Home Warranty Cover Existing Problems?
Typically, home warranties don't cover existing conditions. However, AHS is an exception, as its home warranty plans cover items with preexisting conditions within its standard plan. You can read our detailed American Home Shield review to learn more.
What Is the Best Home Warranty Company With No Waiting Period?
AFC Home Warranty is the best home warranty with no waiting period for a new home sale. Coverage can begin immediately with a valid home inspection report after closing the home. Most home warranty companies have a 30-day waiting period. Read our AFC Home Warranty review to learn more.
How Can You Avoid Home Warranty Scams?
As you shop for home warranty companies, you may come across fraudulent or untrustworthy providers. If you notice one or more of the following warning signs, the potential home warranty provider might be a scam.
- Aggressive sales tactics: Be wary of any providers using high-pressure sales tactics, making unsolicited calls, or pitching door-to-door. These pushy salespeople try to force you into making a quick decision.
- Negative reviews and complaints: We recommend researching each company and checking third-party online reviews. Be cautious of any company with many negative reviews, complaints, or legal issues.
- Poor communication: Untrustworthy companies will limit communication by offering one or two contact methods and maintaining limited office hours. Delayed or unanswered calls and emails could also indicate a poor home warranty company.
- Unclear contract terms: Check for any ambiguous or vague contract terms, such as coverage caps, exclusions, and other crucial details. Reputable home warranty companies provide contracts with transparent policies and terms.
- Unusual payment requests: Be mindful of any company asking for large up-front payments or unusual payment methods. Respectable providers will offer monthly and annual plans instead.
How Are Home Warranties Regulated?
Each state independently regulates home warranties and service contract licensure. For example, the Department of Licensing and Regulation handles service contracts in Texas. Arizona’s Consumer Protection Division of the Department of Insurance regulates home warranties in that state.
Many states have rules based on the Service Contract Model Act that the SCIC and National Association of Insurance Commissioners (NAIC) promoted to state legislatures. Since 1988, the SCIC has worked to promote industry regulation nationwide. Regulation ensures your home warranty company is financially sound and can fulfill its promises. State regulations also ensure various consumer protections, such as the following measures:
- Contracts that are clear and use easy-to-read print
- Extensive disclosures of what is covered and excluded
- The ability to cancel and receive a full refund within a certain period (typically 30–45 days)
Quick Tip
- While you’re shopping for a home warranty policy, it’s a good idea to check with your state’s regulatory body to confirm the company is licensed to operate where you live. You can also read through a sample contract. Many sample contracts have state-specific clauses that clarify the protections and exclusions you’re subject to.
How to Read Home Warranty Service Contracts
Home warranty contracts vary, but providers use similar policy terminology and provisions. As you read through a home warranty contract, check for sections covering items, exclusions, and coverage limits. The tips below outline how to read and understand your home warranty company’s policy terms.
- Check plan coverage: Read the fine print to see if the provider covers all the home items you’d like protected. Most companies cover systems and appliances, but it's important to confirm that your choice covers what you need.
- Review exclusions: Your company will have certain instances or components that it won’t cover even on a covered item. Your home warranty company may exclude appliances and systems with preexisting conditions from coverage. Be aware of your company’s specific coverage exclusions and limitations to reduce denied claims and unwelcome surprises. According to our survey, 98% of homeowners got their claims approved.
- Understand the claims process: Find out what steps your home warranty provider takes to process claims. Confirm how soon it will send a service technician to your home after processing your claim. In addition, ask how long emergency claims or claims outside normal business hours take to process.
- Verify technician availability: Find out if the service providers it enlists are local to your area. Doing so can eliminate the headache of waiting for your warranty company to find an in-network technician. Chartrand recommends asking your company where it sources its service technicians.
- When in doubt, ask questions: Call your provider and ask a representative to clarify sections you don’t understand in the service contract. We recommend verifying plan length, renewal policies, and cancelation fees.
Quick Tip
- You should verify each company’s in-service technician network availability in your area. Our experts also recommend asking your company where it sources its service technicians.
Home Warranty Glossary
This glossary includes definitions for some of the most common terms you will come across during your home warranty buying journey.
Coverage Terms
- Coverage cap: A coverage cap, or coverage limit, is the upper limit that a home warranty company will pay toward the repair or replacement of a home component.
- Home warranty add-ons: Add-ons are optional coverage that you can purchase in addition to your standard home warranty plan to receive financial protection for home components that aren’t typically covered.
- Exclusions: Exclusions are contract terms that detail any home component or specific instance for which the home warranty company will not provide coverage.
Service Terms
- Service call fee: A service call fee is what you will pay to a home warranty company for a service call. This is not a deductible, and you will need to pay a service call fee each time a service technician repairs or replaces a home component.
- Claims process: Home warranty customers must go through a claims process to receive payment for repairing or replacing home components covered by the warranty plan. Typically, you submit a claim over the phone or online through some providers.
- Workmanship guarantee: A workmanship guarantee is a type of assurance many home warranty companies provide to prevent customers from paying additional service call fees if a recently repaired home component develops a new or recurring issue.
Miscellaneous Terms
- Preexisting conditions: A preexisting condition is a repair or maintenance issue for a home component that occurred prior to enrolling in a home warranty plan. Many home warranty companies exclude components with preexisting conditions from their coverage plans.
- Depreciated value: If a home component covered under your home warranty plan depreciates in market value, your home warranty provider may factor the reduced value into the amount that it pays out for claims.
- Emergency services: Some home warranty companies provide customers with access to emergency services for home component failures that need immediate attention. These emergency services expedite the repair or replacement process, with some companies providing service within 24 hours.
Comparing a Home Warranty to an Emergency Fund
While home warranties offer valuable protection, maintaining an emergency fund can be a flexible financial safety net for homeowners during unexpected crises. An emergency fund provides several advantages over a home warranty in certain situations.
You won't have to pay the recurring monthly or annual payments or repair service fees associated with a home warranty plan. You can choose any service technician you prefer rather than being limited to a home warranty provider’s restricted network. An emergency fund also eliminates the need to submit claims and await approval, giving you immediate access to funds for repairs without the risk of claim denials.
While an emergency fund offers flexibility, relying solely on it for home repairs has potential drawbacks. Building a substantial emergency fund specifically for home repairs can be a financial challenge for many homeowners. Major system and appliance repairs or replacements often come with significant costs, requiring a sizable reserved fund to cover the costs.
In addition, if the emergency fund falls short, homeowners may need additional funding sources, such as personal loans, home equity loans, or dipping into other savings accounts. This can strain overall finances.
We recommend weighing your options before investing in a home warranty and choosing the best option based on your current financial situation.
Finding the Best Home Warranty Company for You
The best home warranty company for you depends on your unique coverage needs and budget. It’s important to choose a home warranty that fits your situation. If you need more unique coverage, we recommend Liberty Home Guard since for its extensive add-on catalog and specialized plan options. For more universal coverage, consider American Home Shield, which received high scores for its generous coverage caps and comprehensive protections. The rest of our top picks offer other benefits, including affordable plans, high-end appliance coverage, and fully customizable plans.
We suggest carefully reading service contracts to understand each company’s terms and exclusions. You should also pull multiple quotes to find the right plan for your home.
FAQs About Home Warranties
What is a home warranty?
A home warranty is a service contract between you and a home warranty provider that covers repair and replacement costs for major appliances and systems. These plans help lower the costs of unexpected appliance or system breakdowns.
What are common home warranty complaints?
The most common home warranty complaints include the following issues:
- Inexperienced technicians
- Long wait times for appliance or part replacements
- Slow or refused claims payouts
- Slow responses to complaints
- Unclear coverage limits
These traits are the hallmarks of poor home warranty service and are not typical of every provider on the market. Before buying, we recommend asking questions about claim policies, wait times, and coverage limits to ensure you understand your home warranty company’s terms.
What is a service call fee?
A service call fee (or trade service call fee) is an out-of-pocket expense you pay to a home warranty company for a service call. Home warranty companies outline these fees in your home warranty plan and may offer a choice between two or more fee options. Service fees vary between home warranty providers, but typically range between $65 and $125 per service call.
Is a home warranty required to buy a new home?
A home warranty isn’t required to buy a new home, but we recommend getting coverage as an extra layer of financial protection on your important home systems and appliances. Many sellers offer a home warranty as an added perk for potential buyers.
How important is a longer workmanship guarantee?
A longer workmanship guarantee means a warranty will cover a previously repaired system or appliance past the 30-day industry standard. Typically, you are responsible for paying another service call fee if a repaired item breaks again after the workmanship guarantee window ends. Having an extended workmanship guarantee provides extra peace of mind and value for those with older systems and appliances.
What is usually included in a home warranty?
Home warranties include coverage for systems and appliances that break down due to normal wear and tear. Coverage will depend on your plan, but examples of covered appliances include your laundry machine, refrigerator, oven, and more.
Our Rating Methodology
We use a detailed rating methodology to objectively score each home warranty company we review. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts, and running focus groups and homeowner surveys.
We use this information to score each provider in six comparison categories that we think are most important when choosing a home warranty. We rate each provider across 23 factors within those categories. Each factor is assigned a point value based on its importance to a homeowner, totaling 100 points. We convert the final scores to a 5-star rating.
Here’s a breakdown of our weighted factors:
- Coverage (35%): This category looked at how comprehensive each provider’s coverage was, including whether they covered unique items. Companies that covered the most items and had higher annual limits received the highest scores. We docked points from providers that impose long waiting periods or had depreciation policies that decrease your payouts for aging items.
- Cost (20%): We looked at average monthly prices and service call fees. We gave the most points to companies that offer pricing at or below the industry average and don’t impose any surcharges or extra fees.
- Trustworthiness (15%): To gauge reputation and reliability, we reviewed customer ratings across sites like the Better Business Bureau and Trustpilot as well as companies’ responses to complaints. We also checked for National Home Serice Contract Assocation (NHSCA) membership. Providers with the highest ratings and longest workmanship guarantees received higher scores. We deduced points for any ongoing legal issues.
- Plan transparency (10%): We read terms, policies, and disclosures in provided contracts and on each company’s website. Providers with transparent contract details and policies received more points.
- Customer support (10%): Companies with multiple claims filing options, fast response times, and accessible customer support scored well in this category.
- Flexibility (10%): We awarded more points for providers offering more plan options, larger add-on catalogs, the ability to choose your own technician, and customer-friendly cancellation policies.
Related Resources
We’ve compiled several easy-to-digest guides based on our extensive home warranty coverage research. Learn more below.
More on Home Warranties
- What Is a Home Warranty?
- Home Warranty vs. Homeowners Insurance
- Residential Service Contract
- Cheapest Home Warranty Companies
Related to Home Systems
- Best Home Warranty for HVAC
- Best Water Heater Home Warranty
- Best Sewer Line Home Warranty
- Best Plumbing Home Warranty
Related to Home Appliances
- Home Appliance Insurance
- Appliance Extended Warranties
- Best Refrigerator Warranty
- Home Depot Extended Warranty
- American Home Shield Review
- Best Home Warranty for High-End Appliances
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