5 Cheapest Home Warranty Companies (2024)
Great home warranty coverage doesn’t have to break your budget. The key is finding an affordable plan that doesn’t sacrifice on quality.
Based on our research, we chose Liberty Home Guard (LHG) as the top affordable home warranty provider, thanks to its low-cost specialized plans and largest selection of low-cost add-on options. We also picked American Home Shield (AHS) for its comprehensive plans and generous coverage limits.
To find the cheapest home warranty companies, we reviewed 31 plans from 13 of the top home warranty providers and compared coverage, monthly costs, service fees, and add-on expenses. We also consulted industry experts and conducted secret shopping. Finally, we scored each provider based on 31 key factors to find the top budget-friendly companies. Keep reading to discover our complete list of the cheapest home warranty companies for your home.
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.
Summary of Top Cheap Home Warranty Providers
After evaluating 13 national home warranty providers across 31 factors, we narrowed the top contenders to the five least expensive home warranty companies. Though some companies rate lower in our overall ratings, we ranked them based on which has the lowest prices.
- Best Customer Support: Liberty Home Guard
- Best Budget Plan: Select Home Warranty
- Best Plan Flexibility: AFC Home Warranty
- Best for High-End Items: First American Home Warranty
- Best for Comprehensive Coverage: American Home Shield
Compare Top Cheap Home Warranty Companies
When surveying 2,000 homeowners, we found that was the leading consideration for most homeowners when choosing a home warranty plan. The table below compares the monthly cost, service call fees, and other important factors of our picks for the most affordable home warranty providers.
|
|||||
---|---|---|---|---|---|
|
|||||
|
|||||
|
|||||
|
|||||
#1 out of 16 companies | #2 out of 16 companies | #3 out of 16 companies | #4 out of 16 companies | #5 out of 16 companies | |
NR | B- | B | B | B | |
Monthly Cost |
$49–$59 | $44–$47 | $34–$92 | $47–$87 | $49–$109 |
Service Fees |
$65–$125 | $60–$75 | $75–$125 | $75–$125 | $100–$125 |
Customer Support Options |
Email, Phone, Online Chat, Online Portal | Email, Phone, Online Portal | Phone, Online Portal | Phone, Online Portal | Phone, Online Portal |
Response Time |
Up to 48 hours | 48-84 hours | 24-48 hours | 4–48 hours | Up to 48 hours |
Pros |
|
|
|
|
|
Cons |
|
|
|
|
|
Summary |
We recommend Liberty Home Guard for homeowners who need coverage for multiple HVAC systems and extensive add-on customizations. |
We recommend Select Home Warranty for homeowners who need affordable HVAC-only coverage. |
We recommend AFC Home Warranty for homeowners who want extensive HVAC coverage and protections for new systems. |
We recommend First American Home Warranty for homeowners who need robust plan options for HVAC and high-end appliances. |
We recommend American Home Shield for homeowners who need comprehensive coverage for older homes. |
Promotions |
$200 Off + 2 Months Free + Roof Leak Protection | 40% Off Home Warranty Plans | Fall Sale: $250 Off + Free Roof Leak Coverage | $100 Off with Code “PROTECT” | Black Friday Savings: 50% OFF Select Plans |
Rating Categories |
Liberty Home Guard | Select Home Warranty | AFC Home Warranty | First American Home Warranty | American Home Shield |
Coverage |
|||||
Value |
|||||
Trustworthiness |
|||||
Plan Transparency |
|||||
Customer Support |
|||||
Flexibility |
*BBB ratings are accurate as of March 2024.
We based the pricing information in this table and throughout the article on sample quotes we obtained for a 2,373-square-foot, single-family home in Houston. Your pricing may vary depending on your home’s location, size, type, and plan selections.
How We Rated Cheap Home Warranty Companies
To select the most affordable home warranty companies, we reviewed 13 providers and compared 31 coverage plans. We considered premium costs, coverage limits, add-on expenses, and overall value. We consulted home warranty experts to learn about industry standards and best practices for homeowners. We also gained insight into the customer experience through mystery shopping and testing the claims process for several providers.
After concluding our research, we created a detailed methodology to score each company. We scored based on four categories: coverage, value, trust and transparency, and availability and service. We awarded points for each category and converted scores to a final 5-star rating scale.
Our Home Warranty Experts
We spoke with over 15 home warranty experts during our home warranty process. Specifically, we turned to the following two experts for insights on this article:
- Dave Bringer: Bringer is the Owner and Head Technician of Bringer Appliance Repair based in Louisville, Kentucky.
- Daniel Cabrera: Cabrera is the founder of Sell My House Fast San Antonio, a home-buying real estate business.
What To Expect From a Cheap Home Warranty
When considering an affordable home warranty, you should understand typical inclusions, key benefits, and estimated costs.
What Does a Cheap Home Warranty Cover?
A cheap home warranty offers coverage for the same systems and appliances as a more expensive home warranty. However, a cheaper policy usually has lower coverage limits per covered system and appliance. Consider your needs and budget before choosing a home warranty plan.
Here’s an overview of commonly covered items:
Systems
- Air conditioning
- Ceiling fans
- Central vacuum
- Ductwork
- Electrical
- Garbage disposal
- Heating
- Instant water dispenser
- Water heater
Appliances
- Built-in microwave
- Clothes dryer
- Clothes washer
- Dishwasher
- Oven
- Range
- Refrigerator
- Stove
- Trash compactor
Home warranty companies may also provide optional coverage for the following items:
- Guest house
- Pool
- Roof leaks
- Septic system
- Spa
- Sump pumps
- Well pump
How Much Does a Cheap Home Warranty Cost?
A home warranty generally costs between $38 and $80 per month, or $456–$840 per year. Basic plans fall on the lower end of the spectrum, while more comprehensive coverage costs $60 or more.
The total cost of your warranty includes more than just the monthly premiums. Your location, specific coverage plan, home age, and service fees can also impact the bottom line. Here are some key factors contributing to overall costs:
- Add-ons: You may want to use add-ons to protect other items, such as your pool, spa, guest unit, or septic system. Remember that each add-on increases your monthly and annual costs. We recommend limiting add-ons to essential items.
- Coverage: Most home warranty companies offer various plans, including systems or appliances-only and combination options. Match your selected plan to your current needs. Opt for a lower-priced plan that provides the coverage you need rather than overspending on comprehensive coverage you won’t use.
- Home age: Older appliances and systems require more frequent repairs and replacements. Bringer says, “Older homes need home warranties because their appliances and systems have most likely used their manufacturer’s warranty coverage.” Few home warranty companies offer protection for older items with preexisting conditions. When they do, these protections are often bundled into comprehensive plans with a higher price tag. Opting for a more inclusive plan with additional coverage will save you more in the long run than a barebones option.
- Service fees: These service fees typically range between $60 and $125, with some companies allowing you to choose your service fee. While secret shopping, we learned that a lower service fee results in a higher monthly premium and vice versa. Many companies offer two or more options for better pricing customization with their plans. Remember, you will pay this service fee every time you need a repair or replacement, so select the options that you’re comfortable paying.
What Are the Benefits of a Cheap Home Warranty?
In addition to protecting important items when they break down, a low-cost home warranty offers the following benefits:
- Eliminates the hassle of finding your own qualified contractor
- Helps lower major system and appliance repairs or replacement costs
- May be an enticing feature for potential homebuyers
- May include unique benefits such as discounts on maintenance-related supplies or other services
- Protects your budget by covering the cost of unexpected events
Cheap Home Warranty Provider Reviews
Below is a detailed review of our top choices for affordable home warranty providers.
How Do I Shop for a Cheap Home Warranty?
The cheapest isn’t always the best when looking for an affordable home warranty. While the above companies offer affordable pricing and comprehensive plans, some home warranty companies offer extremely limited coverage for a low price. In addition, some providers have exclusions that could cost you more money in the long run.
Before signing up for a home warranty, consider the following factors to ensure you find a cheap home warranty with excellent protection:
- Assess your coverage needs: Before looking for an affordable home warranty plan, determine your exact coverage needs. Limit coverage to only essential appliances, systems, and add-on coverage. Make a list of your coverage needs and find coverage plans that match them.
- Avoid unnecessary premium costs: You’ll pay more for comprehensive plans than system- or appliance-focused coverage. We recommend getting a quote from at least three providers. Compare quotes, prices, and coverage before making a final decision.
- Check for promotions: Compare current promotions and offerings from each provider to see how much money you could save on your contract. Many companies provide a few months of free coverage and discounts for choosing an annual plan.
- Read through exclusions: Companies often include coverage caps and exclusions on certain items in their contract. Cabrera recommends inquiring about the limitations and exclusions to fully comprehend what exact items, components, or circumstances aren’t covered under the warranty contract. Avoid plans with too many exclusions, as you may end up paying more out-of-pocket for unprotected items than you save on covered repairs.
How Are Home Warranties Regulated?
Each state regulates home warranties independently. For example, the Department of Financial Services oversees home warranty companies in New York. New Jersey’s Division of Consumer Affairs, however, regulates service contracts.
Many states follow the Service Contract Model Act, which establishes rules and requirements providers must follow to do business within a state. Governmental regulation assures that your home warranty provider is financially sound and holds the appropriate level of financial reserves to pay out claims. These regulations also ensure various consumer protections, such as the following:
- Customer cancellation within a set timeframe (30–45 days) to receive a full refund
- Fine print that is clear to read and understand
- Full disclosures of covered items and exclusions
Quick Tip
- Before signing up with a provider, check your state’s regulatory body to confirm the home warranty company is licensed to operate in your state. In addition, read through its sample contract. Many providers have state-specific clauses that outline the coverage and exclusions most applicable to you.
Home Warranty Cost Calculator
Our team created a calculator to break down the estimated annual cost of owning a home warranty.
To calculate your projected annual cost, use the following steps:
- Enter your monthly premium
- Enter your service call fee
- Enter your estimated number of claims
It’s best to request a quote directly from one of our recommended home warranty providers, as annual costs and service fees vary.
Use the table below to compare your calculated cost to repair and replacement costs for common appliances.
Appliance | Average Repair Cost | Average Replacement Cost |
---|---|---|
Dehumidifier |
$50–$200 |
$1,300–$2,800 |
Microwave |
$50–$400 |
$60–$2,000 |
Dishwasher |
$50–$500 |
$400–$3,000 |
Exhaust Fans |
$16–$300 |
$250–$950 |
Electric Range |
$100–$500 |
$230–$3,000 |
Gas Range |
$100–$500 |
$230–$3,000 |
Dryer |
$100–$400 |
$450–$2,300 |
Oven |
$100–$430 |
$400–$3,000 |
Washer |
$50–$450 |
$400–$2,300 |
Freezer |
$90–$500 |
$160–$2,900 |
Refrigerator |
$40–$350 |
$200–$5,000 |
Life span and repair cost data sourced from InterNACHI and Home Depot
FAQ About Cheap Home Warranty
Who pays for a home warranty?
Homebuyers, sellers, realtors, and rental property owners can all pay for a home warranty. Homebuyers will pay for coverage if they purchase a plan at any point during homeownership or after the closing process. Sellers, real estate agents, or realtors might pay for coverage as part of the home sale. Rental property owners could pay for a home warranty and include part of the cost in their tenants’ rent.
When can I buy a home warranty?
You can buy a home warranty at any point during homeownership. However, we recommend buying a home warranty when you first purchase your home so coverage can begin sooner.
What does a home warranty not cover?
Home warranties generally don’t cover appliance removal and disposal fees, commercial property coverage, cosmetic damage, hazardous waste handling fees, routine maintenance and more. Before signing up, we recommend reading your provider’s sample contract to determine what is and isn’t covered by your policy.
Is buying a home warranty cost-effective?
Yes, buying a home warranty can be cost-effective because it can save you hundreds of dollars on repairs and replacements when home systems and appliances break down. Even if you don’t have an issue with a system or appliance, it’s always a good idea to have protection in case something unexpected happens, leaving you to pay expensive repair or replacement costs.
How Do I Find the Best Home Warranty Company in My Area?
Find in-depth reviews on the best home warranty companies for each state below.
Find Home Warranty Pros in Your State
Related Resources
We’ve compiled several easy-to-digest guides based on our extensive home warranty coverage. Learn more below.
More on Home Warranties
Related to Home Appliances
- Home Appliance Insurance
- Appliance Extended Warranties
- Best Refrigerator Warranty
- Home Depot Extended Warranty
- Sears Appliance Warranty
- Best Home Warranty for High-End Appliances
Related to Home Systems
- Best Home Warranty for HVAC
- Best Water Heater Home Warranty
- Best Sewer Line Home Warranty
- Best Plumbing Home Warranty
Our Methodology
We back up our home warranty ratings and recommendations with a detailed rating methodology to objectively score each provider. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts from each company, and conducting focus groups and consumer surveys. We then score each provider against our review standards for coverage, cost, trustworthiness, plan transparency, customer support, and flexibility to arrive at a final score on a 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews Team at [email protected].