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Warranty

8 Best Home Warranty Companies of 2024

By chiara MONEY RESEARCH COLLECTIVE

The best home warranty companies can help owners pay for the repair or replacement of common systems and appliances in case of a failure or breakdown, including those caused by normal wear and tear. Knowing that their home warranty will pay these expenses gives peace of mind to homeowners who would rather pay a fixed monthly fee than get hit with expensive home repair bills.

The home warranty industry has a contentious reputation. Many homeowners have reported that home warranty providers delay and often deny claim payment, leaving homeowners with high repair bills for services covered under their warranty contract.

So how can you separate the good home warranty companies from the not-so-great ones? We pored over dozens of service contracts and features to identify the top home warranty companies that offer the best possible value to homeowners.

Our Top Picks for Best Home Warranty Companies

Best Home Warranty Reviews

Why we chose them: American Home Shield offers three comprehensive plans and a range of optional add-ons to suit any home (and homeowner). Their plans also include coverages that other companies don’t, such as protection against code and permit violations, home electronics coverage, and free HVAC tuneups for the life of the plan.

American Home Shield, or AHS, is the oldest home warranty company in the US, with over 50 years of experience. They currently offer home warranty coverage in 49 states (excluding Alaska) to more than 2 million customers.

AHS offers 30-day repair guarantees with service fees ranging from $100 to $125. While they usually assign a technician, you can choose your contractor in some cases, though there are additional steps. If authorized, your contractor must contact AHS after diagnosing the issue before proceeding with repairs or replacements.

You can choose from three primary AHS plans: ShieldSilver, ShieldGold and ShieldPlatinum. ShieldSilver, the company’s basic plan, covers 5 major systems and starts at $19.99 per month. Their most popular plan is the Gold plan, which starts at around $50 per month and covers 14 major systems and appliances. Their Platinum plan is the most comprehensive, starting at about $80 monthly in most areas. Note that AHS’s pricing varies depending on your state, so be sure to get a custom quote to confirm your monthly premium.
You can add additional coverages and features, including limited roof leak coverage, home electronics protection, and coverage for code violations or improperly installed systems. American Home Shield customer service can guide you in creating a personalized warranty for you and your home. Learn more by visiting our full American Home Shield home warranty review.

We chose them because American Residential Warranty has a flat trade service fee, which is lower than its competitors. Some of their plans have a no deductible or service fee option. Service is available in all 50 states, and consumers don’t need to commit to a long-term contract thanks to the company’s month-to-month service plans.

There are many reasons why American Residential Warranty (ARW) made our list. For example, the company offers service in all states, charges a flat trade service fee that’s less than what’s charged by the other companies on this list, and has an A+ rating with the Better Business Bureau, but it is not BBB-accredited.

If homeowners want to use their contractors, ARW will allow them to do so. The contractor only needs to call in for authorization before completing any necessary repairs. ARW also has a robust network of technicians to pull from if needed.

ARW has three coverage plans, which you can upgrade to include protection against code violations, improper installations, permit issues, and previous home modifications. On the downside, customers need to call customer service whenever they need to file a claim because ARW doesn’t have an online claim submission tool.

Why we chose them: Liberty Home Guard makes it easier for consumers to build a policy that perfectly suits their home, budget and needs. With over 35 add-on coverage — such as gutter cleaning, pest control, lawn sprinkler and reverse osmosis system coverage — Liberty Home Guard offers more customization features than any other home warranty provider.

Liberty Home Guard offers three protection plans and a wide assortment of optional add-ons — including wine fridge protection! Liberty dispatches someone from its network of technicians to provide service within 24 to 48 hours of filing the claim.

Service fees range from $65 to $125, and a 60-day workmanship guarantee backs repairs. Coverage typically begins after a waiting period of 30 to 60 days, depending on the plan. However, new homebuyers may be able to start their coverage on the closing day.

Why we chose them: Unlike most home warranty companies, America’s First Choice Home Club lets property owners select their technicians as long as they are licensed, bonded and insured. AFC Home Club also stands behind completed repairs for longer than their competitors: up to three years, compared to the typical 30- to 60-day guarantee other companies offer.

AFC Home Club offers four home warranty plans, with service available in all states except Hawaii. Buyers, sellers and current homeowners can get a quote online in seconds, with plans covering anywhere from six to 18 household systems.

While AFC Home Club has a nationwide network of service providers, they also allow homeowners to use their technicians for repairs as long as they are licensed and insured. Service fees range from $75 to $125, though any repairs are covered as long as the policy remains valid (up to three years).

Along with appliance and home system coverage, a home warranty with AFC Home Club also comes with free credit monitoring and various discounts on home internet, kitchen appliances, home security services, and more.

Why we chose them: Select includes roof leak coverage standard on all three of their home warranty plans, while most companies list this coverage in their optional add-ons for an extra cost.

Select Home Warranty is available to homeowners in 47 states and offers three service plan options. Each of these plans includes roof coverage, and homeowners can start a claim 24/7 via an online claim form or over the phone. Trade service fees range from $75 to $100, and they guarantee their covered repairs for 30 days.

Some household systems have relatively low coverage caps or maximums. For instance, HVAC systems may be limited to $2,000 in coverage, while appliance repair or replacement could be limited to just $500. In Select’s terms and conditions, the company also reserves the right to request up to three years of maintenance records on any system; without that, the limit for covered services could be just $150. Find out more from our full Select Home Warranty review.

Why we chose them: Old Republic Home Protection provides responsive, knowledgeable and friendly customer service.

Old Republic Home Protection (ORHP) provides excellent customer service. They’re available 24/7/365 and agents are friendly and helpful. While many companies only offer pricing when you provide them with your personally identifiable information, ORHP is transparent with their pricing information. They have brochures with detailed plan descriptions available for download on their website.

ORHP offers five yearly plans that range from $295 to $820 for a single-family home. All plans are highly customizable, with add-ons such as HVAC tuneups starting at $25 per month, swimming pools starting at $180 and solar water systems starting at $250. They also offer one or two-year plans, and you can use a contractor in their network or an authorized outside contractor upon approval. Pricing varies highly by location, so be sure to review your state’s specific pricing with a sample service contract.

One downside to ORHP is that their plans are only available for 27 states. Additionally, you’re responsible for paying a lump sum for your first contract. Add-ons must be added in the first 60 days before the plan locks in. Check out our Old Republic Home Warranty review to learn more.

Why we chose them: Cinch Home Services offers a variety of unique benefits and discounts.

Cinch offers three plans –Appliances, Built-in Systems and Complete Home. Monthly premiums range from $30.99 to $93 depending on your state and the deductible you choose: $100, $125 or $150.

Cinch stands out for its wide variety of benefits, such as coverage for pre-existing conditions, rust and corrosion. The company also offers discounts on new appliances. If you enroll with an agent on the phone, you’ll get the first month free (discounts apply to all plans).

There are some areas where Cinch falls short. You can only use contractors in their network to perform maintenance services, and while the plans are quite comprehensive, they don’t offer any roof leak protection. Also, Cinch offers fewer add-ons than its competitors. Nonetheless, the add-ons are reasonably priced and range from $5 to $22 in most areas. Visit our full Cinch Home Services home warranty review for more details.

Why we chose them: We chose First American Home Warranty because it offers extensive appliance coverage, including high spending caps and optimal appliance replacement coverage.

First American Home Warranty offers two plans. The Basic plan covers new and old appliances in good condition. The Premier plan is an appliance and systems plan that covers electrical, plumbing, heating and ductwork. They offer additional coverage options with add-ons for central A/C, pool and spa, well pump, septic tank pumping system and HVAC tuneup. The add-ons range between $2 and $20, depending on your location.

First American Home Warranty stands out for its generous appliance coverage. The company has a spending limit of $3,500 on repair or replacement costs. Washers/dryers, water heaters, furnaces and air conditioners don’t have spending limits. For covered items, First American will replace appliances with comparable, newer models if they can’t fix them, and plans include delivery and installation.

Coverage is only available in 35 states. Interestingly, our research revealed that while First American has affordable plan prices for many areas of the U.S., including California, midwestern states — such as Ohio and Missouri — have significantly higher plan prices in comparison.

You can find more about First American Home Warranty in our First American review.

Home Warranty Guide

Are home warranties worth it?

To determine whether a home warranty is worth it, homeowners and home buyers should balance several factors. Weather patterns are one of the main variables to consider. In areas where heating or cooling systems are or will be working overtime, there’s a higher chance of HVAC systems breakdowns. In such cases, a home warranty’s fixed service fee could be a smart move to save some money.

How to read home warranty service contracts

When reading a home warranty contract, customers should pay attention to specific details. One of them is the effective dates on the contract. The service contract expiration date should go on the household calendar because the homeowner must decide whether to renew.

Information about renewals is another section customers should read thoroughly. It should note whether renewals are automatic or not. Regarding cancellation policies, the contract should also state if cancellations require an additional fee.

Customers should also review sections like what their policies cover, any exclusions that may apply, and information about how to file claims.

How is a home warranty different from homeowners insurance?

Home warranties are optional service contracts that cover expected aging and ultimate breakdown of home appliances and systems. Home warranties work by covering a portion of repairing or replacing an appliance or home system but won’t cover total home protection from theft or natural disasters.

On the other hand, mortgage lenders usually require homeowner insurance to cover unexpected events that lead to damage. What does homeowners insurance cover? It may cover perils such as theft, burglary, fire, storms and other acts of nature, to name a few. It also protects homeowners against liabilities to third parties injured while on the property.

For more information, check out our home warranty vs. home insurance article. To learn more about home insurance options, check out our article about the best homeowners insurance companies.

Do homeowners insurance cover appliances?

Homeowners insurance usually covers home appliances, but knowing exactly under what conditions is essential. Typically, it provides coverage if the appliances get lost or damaged due to accidents or acts of nature, like a fire or lightning strike. However, if it’s just regular wear and tear that’s causing issues with your appliances, the homeowners insurance probably won’t cover the cost of repairs or replacements. So, it’s crucial to read the contract’s fine print and understand your policy to decide whether you need additional appliance coverage.

Check out the best home warranties for appliances to find an option that meets your needs.

What does a home warranty cover?

Each home warranty plan covers major home systems, appliances, or both. You can typically customize your plan with add-ons. Many companies offer add-ons for built-in systems (such as central vacuum systems), stand-alone items (such as freezers) and amenities (such as spas and pools). Coverage varies greatly depending on the company, plan and add-ons you choose:

What is covered: What is not covered:
Heating systems

Air condition systems

Electrical systems

Septic systems

Plumbing systems

Plumbing stoppages

Clothes washer

Clothes dryer

Refrigerator

Dishwasher

Built-in microwave

Range, oven, cooktop

Garage door opener

Doorbells

Garbage disposal

Water heater

Ice maker

Well pump

Sump pump

Septic tank

Ceiling fans

Attic fans

Exhaust fans

Trash compactor

Ductwork

Additional refrigerators

Stand-alone freezers

Water dispenser

 Improper or faulty installation

Improper maintenance or neglect

Accidental damage

Cosmetic issues

Misuse or mistreatment of appliance

Structural issues of a system

Items covered by a warranty from a separate company

Asbestos removal

Radon testing and mitigation

What is the average cost of a home warranty?

The average home warranty cost can range from $40 to $70 per month in most states, but pricing varies by location. Ultimately, how much a home warranty costs depends on the carrier, plan, optional add-ons, and specific home features, such as size and location. In addition to the cost of your plan, you’ll also be responsible for a service fee, which can run you between $65 to $125 for each maintenance visit.

What is a service fee?

The home warranty service fee — also called a trade call fee — is what homeowners pay when they ask the warranty company to send a technician for repairs or inspection of a covered item. If there’s an issue with a covered appliance, homeowners can contact their warranty provider to schedule a service visit.

When is a home warranty a good idea?

Here are a few things to consider when determining whether a home warranty is right for you:

  • How comfortable are you with household repairs? A home warranty might be less valuable if you’re handy around the house and don’t mind fixing things. However, buying a home warranty may be more beneficial if you’re a new homeowner or are uncomfortable with repairs.
  • How old is the home, and how old are the appliances and systems within the home? New homes often come with builder warranties on the structure and the electrical and plumbing systems. On the other hand, a manufacturer’s warranty or a retailer’s appliance insurance plan, such as the one offered when you buy a Home Depot refrigerator, generally covers new appliances for one to five years. Home warranties may be unnecessary for new properties and appliances but valuable for older homes with aging appliances, HVAC, electrical, and plumbing systems.
  • Do you have an existing network of trusted technicians? Most home warranty companies will require technicians from their network to perform repairs. If you already have a trusted electrician, plumber, or general contractor, you may be unable to work with them on warranty-related repairs.

For more information, check out our article to help you decide whether home warranties are worth it.

Summary of the Best Home Warranties

chiara