The 8 Best Home Warranty Companies (2023 Guide!)
A home warranty is something all homeowners should look into. It’s a contract that provides the owner with discount repairs and replacement services. We evaluated dozens of companies focusing on home warranties before deciding on the best of the best.
Our top picks have been vetted and compared to dozens of the best home warranty companies available. We’ve sifted through and analyzed thousands of home warranty reviews and we only recommend those we would trust with our own homes. Here are the five best home warranty companies proven to help you protect your home & appliances from costly repairs and replacements.
The 5 Best Home Warranty Companies
- Best Overall : American Home Shield Repairs
- Best Runner-Up: Liberty Home Guard
- Best on a Budget: Select Home Warranty
- Best Value: America’s First Choice Home Club
- Most Popular: First American Home Warranty
Best Overall : American Home Shield Repairs
American Home Shield stands out for its flexible service fees and excellent reputation. They are an award-winning home warranty company that allows you to pick your own premiums and deductibles. Unlike other warranty plans, HVAC systems are covered on the company’s most basic option. They work with you to arrive at fees and premiums that are suited for your budget They also allow you to choose your own contractors if you wish.
They offer three plans. The most basic plan covers all built-in systems and doesn’t have a coverage cap. The next option has a coverage cap of $3000 which applies to home appliances but does not include an HVAC tune up. The premium plan has a $6000 coverage limit per appliance. It also includes coverage for roof leaks, code upgrades up to $1000, HVAC tune-ups and discounts on air filters.
The company allows customers to choose service call rates of $75, $100 or $125. Like most plans, the more you pay for service calls, the lower your premium will be and vice versa.
They have over $2 billion paid out in claims in the past 5 years with a professional network of over 17,000 contractors serving 1.8 million members over their 45 years of home warranty experience.
- Flexible fees that can be worked out according to the customer’s budget
- Generous coverage caps
- Coverage for pre-existing conditions
- Does not offer coverage on as many items most providers cover
Best Runner-Up: Liberty Home Guard
Liberty Home Guard is rated as one of the best home warranty companies due to their fast response time. They have a live chat on their website that is not offered by most other companies which allows customers to get a status update on home repairs right away.
The plans Liberty offers vary greatly. Even the most basic package covers appliances like washers, dryers, and dishwashers, but you’ll have to upgrade to a higher level if you want one that includes home systems like HVAC, electrical, and plumbing repairs.
You can also choose add-ons like pest control, gutter cleaning, generator coverage, and more to cover everything in your home.
Service fees are added to your account based on your plan and range from $65 to $125. All items are covered up to $2000 and come with a 60-day guarantee.
Liberty Home Guard is the BBB’s only A+ accredited home warranty company in existence. They have 24/7 claims support and dedicated account management to ensure fast response times during emergencies.
You can start using Liberty Home Guard for just $1/day with no commitment.
- 60-day guarantee on repairs
- Low service call fee
- Service fees can get confusing
- Plans and service fees are not customizable
Best on a Budget: Select Home Warranty
This company is a favorite due to its affordability. Their service plans are all priced below $50 and include roof leak coverage which usually costs $400 annually and is not included in most plans. Even the most basic plan covers appliances including washers, dryers, refrigerators, and cooktops.
The more inclusive plan covers systems like HVAC, plumbing, electrical, and water heaters for the same cost, and the highest tier plan covers all the systems and appliances included in the first two plans as well as ceiling fans and garage door openers.
You can also opt for add-ons to cover central vacuums, sprinkler systems, pools, spas and more.
Systems are covered up to $2000 and appliances have a coverage cap of $500. Some plans come with a 30-day guarantee.
Select Home Warranty also promises to beat any competitor’s price to keep prices low. There are low-cost plans that include options for both appliance and system coverage. All coverage comes with 24/7 support and a workmanship guarantee.
There are no home pre-inspection requirements to sign up, and there are great promotions throughout the year which tend to waive monthly payments.
- Discounts available for multi-year coverage plans
- Company responds to most claims within 12 hours
- Standard plans don’t cover fixtures
- Lower coverage caps as compared to competitors
Best Value: America’s First Choice Home Club
America’s First Choice makes the list for its customizable options, its variety of add-ons, and the fact that it offers four different plans. It’s ideal for homeowners who are looking for some personalization in their home warranty policies. The plans offered range from major appliances, all the way to ice makers and built-microwaves.
There are also a variety of add-ons available for sump pumps, spas, septic systems, and more.
Service call fees are priced at $75, $100, and $125. Appliances are covered by a $2000 cap. Systems vary depending on their value. Guarantees are available for workmanship on repairs and replacements and vary based on the plan.
Some of the other benefits of America’s First Choice include the ability to get a quote in 30 seconds. They also allow you to choose your own service technician that responds to your claim. There is also a 24/7 live support line to help with emergencies.
If something is repaired, it comes with a lifetime work guarantee on parts and labor.
- The company offers perks including credit monitoring, emergency alerts, and identity protection
- Customization is available within the 4 plan options
- Claims must be reported within 24 hours of discovering the issue
- Members must pay a $75 fee if they cancel the plan within the first 30 days
Most Popular: First American Home Warranty
First American Home Warranty is exceptional due to its basic plan pricing. You can get in on the ground floor with this company for just $36. It also offers a First-Class Upgrade that covers appliances with pre-existing issues which is rare in the home warranty industry.
The basic plan covers most appliances, while the premier plan covers all appliances covered in the Basic Plan as well as home systems.
You can also get a variety of add-ons for central air conditioning, additional refrigerators, septic systems, and more.
All service fees are $85. There is a $3500 coverage limit for appliances and no set limit for built-in systems. The work is guaranteed for 30 days.
First American Home Warranty has been in business for more than 35 years, and will replace items even if they were improperly installed, modified, or maintained.
- Pest control is included in coverage
- Affordable rates
- Air-conditioning coverage is only available as an add-on
- Coverage is only available in 35 states, considerably less than most companies offer
Honorable Mentions:
We had a high bar in picking the best of the best home warranty companies. These companies didn’t make the cut (frankly, they’re not as great as our top picks – but were also considered).
CINCH
Cinch gets a nod due to its exceptionally long, 180-day work guaranty. It also offers a $500 home insurance deductible for homeowners that purchase the Complete Home Plan. Here’s a review of what their plans include:
- Appliances ($27.99-$50.99): As the name suggests, this plan covers various home appliances.
- Built-in Systems ($32.99-$57.99): This plan offers coverage for built-in systems.
- Complete Home Care Plan ($39.99-$67.99): This plan covers appliances and built-in systems. It also includes the $500 home insurance deductible.
Add-ons range from $4.58 and $22 per item and include pools, spas, septic tanks, and water pumps.
Service fees are priced at $100, $125, and $150. Coverage caps are $1500 for air conditioning and $1000 for plumbing systems. This will be subtracted from the total coverage limit of $10,000 for all covered items.
You can also purchase a Premier Upgrade Package that increases caps to $1000 which can be helpful in emergency situations.
CINCH has thousands of reliable, fast, local technicians on speed-dial, ready to help with your claim. They also offer a $500 homeowner insurance deductible reimbursement with a 180-Day Workmanship Guarantee.
CINCH is BBB accredited with 40 years of experience, and gets great customer reviews for their 24/7 customer service.
- Homeowners are eligible for a credit of $25 for air conditioners and water filters
- A $50 Green Reward rebate is available for energy efficient products
- The policy covers items damaged by rust or corrosion
- Roof leak protection is not included in any Cinch plans
- Limited list of add-ons
2-10 Home Buyers Warranty
2-10 is a great choice for home warranty coverage as it provides affordable pricing, a wide range of add-ons, customizable service fees, comprehensive plans, and transparent coverage cap limits. It offers 3 plan options.
The cheapest plan covers a wide range of kitchen appliances such as refrigerators, built-in microwaves, and dishwashers. The next plan up covers all appliances including those in the basic plan as well as built-in home systems. The premium plan covers all systems and appliances included in the complete home plan as well as attic and basement exhaust fans, washers and dryers, faucets and faucet handles, cut-off switches and more.
Add-ons of the plan include freestanding freezers, additional refrigerators, additional wine coolers, washers, dryers and more.
Service fees are priced at $65, $85, and $100.
- Flexible call service fee model
- Workmanship is guaranteed through the time you hold your plan
- Contract terms are broken down into language the homeowner can easily understand
- It can take the company up to 48 hours to respond to the claim
- No systems-only plans available
- There is a 30 day period before coverage starts
ARW Home
Formerly known as American Residential Warranty, ARW offers exceptionally low service call fees and customizable plans. It comes with a comprehensive electronic plan and add-ons for food spoilage and humidifiers, which are rarely included in other warranty policies. Plans include the following:
- Kitchen Plus ($39.99): This covers six kitchen appliances as follows: refrigerators, cooktops, dishwashers, built-in microwaves, kitchen exhaust fans, and garbage disposals. It also applies to water heaters and interior electrical systems.
- Heating and Cooling ($43.78): This basic plan offers coverage for heating and cooling systems, humidifiers, and interior electrical systems.
- Platinum Plan ($54.50):: The Platinum Plan includes everything in the Kitchen Plus Plan and Heating and Cooling Plan combined. You can opt to purchase it without air-conditioner coverage which will lower your premium.
- Platinum Premier ($64.99): The Platinum Premier offers the same coverage the Platinum Plan provides but also applies to plumbing systems, ductwork, ceiling fans, and garage door openers. Like the Platinum Plan, you can also purchase it without air-conditioning coverage to lower your premium.
- 4-in1 Bundle ($134.99): The 4-in-1 bundle offers all items listed above as well as washers, dryers, sewer and water line stoppage, and stand-alone add-on packages.
Add-ons include swimming pools, spas, plumbing systems, water heaters, range, ovens, cooktops, and more.
Service call fees stand at an affordable $55.
There are several reasons why an agent may want to partner with a home warranty company. They can recommend that sellers get a warranty from their partner company and offer it to buyers as part of their package. This will make the home more attractive, so it gets more, and higher, offers.
Agents can also refer new buyers to home warranty companies making their ownership experience more pleasant which, in turn, improves their professional reputation.
But the efforts you make to connect buyers and sellers to warranty companies will only work to your advantage if you partner with reputable providers. This guide covers the top eight choices so you can find the one that’s right for you.
A home warranty company can save homeowners a considerable amount of money. Now that you know the best ones out there, you can decide which to partner with to provide your client with a great experience. Which do you think is best suited to your client’s needs?
What is a Home Warranty?
A home warranty is a contract that provides discounts on certain repairs and replacements. Unlike home insurance, it is not required. However, it’s a good idea for homeowners to have it.
Homeowners insurance covers structural damage to the home caused by theft, natural disasters, or fire. It differs from a warranty which covers the cost of repairing or replacing an item that breaks down due to normal wear and tear. It is used for systems and appliances such as:
- Air conditioners
- Built-in microwaves
- Garbage disposals
- Plumbing
- Heating systems
- Refrigerators
- Water heaters
- Electrical systems
- Ovens
- Ductwork
- Dishwashers
- Washers and dryers
What to Look for in a Home Warranty Company
There are several things to consider when choosing a home warranty company to partner with. These are as follows:
- Type of Plan: Home warranty companies typically have a variety of plans available. Some will cover only appliances; others will cover only systems while still others cover both systems and appliances. The company you choose should offer the plan that’s right for you.
- Rates: It goes without saying that you’ll want to choose a company that offers affordable rates. When shopping for rates, consider the premium as well as the service call pricing.
- Review the Sample Contracts: The companies you’re considering should provide you with a sample contract that you can review before signing on the dotted line.
Are Home Warranties Worth It?
The short answer – Yes! Home warranties are well worth the cost. You’ll trade costly repairs for as little as $29 per month. A home warranty is especially worthwhile in times when your budget is stretched thin and your nerves are shot (during the holiday season or when you close on a new house).
Second, don’t overlook the peace of mind you’ll feel when your major home systems and appliances are protected.
Finally, the best home warranty providers give you access to a network of licensed professionals in your area. You won’t have to read plumber reviews or ask your neighbors for a referral ever again. Your home warranty company will often let you pick from a number of verified technicians in your area, so you can ensure you get the most trusted repairs.
Who Pays for a Home Warranty?
Home buyers and sellers, realtors, and rental property owners can all buy a home warranty and benefit from a home protection plan.
Home buyers will pay for home warranty coverage if they purchase the plan after closing on the home. However, it’s becoming more common for the seller to pay for a one-year home warranty if they offer it as part of the home sale.
Real estate agents sometimes pay for a home warranty for the seller in order to cover potential repairs that pop up while the home is being listed. Realtors may also offer a home warranty to the buyers they’re representing as a kind of thank-you gift and a way to ease anxious buyers’ minds.
Rental property owners can bake the cost of a home warranty into the tenant’s monthly rent.
Methodology
Our in-house real estate experts spent hundreds of hours researching, scoring, and ranking the home warranty companies on the market. We looked at everything from pricing and ease of use to the specific real estate industry features that are available. We’ve ranked and rated each company on 5 different factors to come up with the very home warranty company available. The short version of factors considered are:
- Value: Finally, the home warranty prices are relatively inexpensive when you look at the standard cost of repair or replacing appliances. The national average cost for repairing a washing machine is $200. A new washing machine can easily cost upwards of $500. Paying just a $50 service fee for a technician to come out and repair your washer when you have a home warranty plan sounds like a much better option.
- Trustworthiness: Having a home warranty also saves you the hassle of having to attempt the repairs yourself or to try a professional to do them for you. The company can send out their own technician who they know and trust to fix any problematic appliances or systems.
- Coverage Plan: Having a home warranty also saves you the hassle of having to attempt the repairs yourself or to try a professional to do them for you. The company can send out their own technician who they know and trust to fix any problematic appliances or systems. Workmanship guarantees mean that you don’t have to worry about paying for shoddy work that will just cost you more in the long run. Some companies offer 90-day guarantees on parts. When you compare home warranties, it’s always a good idea to check whether they offer guarantees and for how long.
- Support: Sometimes when things go wrong at home — especially when expensive systems or appliances appear to break — we panic. It’s even worse if a problem occurs at night or on a weekend, in which case you could be waiting for hours to days in order to get a hold of someone to help you. That’s not the case when you have a home warranty. The best home warranty companies offer 24/7 claims assistance so you’ll never feel alone.
- Overall performance: At the end of the day, all home warranty plans need to have a good ROI. Our experts looked for how the features meet the specific needs of home owners. At the end of the day you need more direct messaging features with easy access to history since some home warranty companies won’t keep up with records. Being able to easily communicate with electricians, plumbers, etc. in different ways is a must, so our experts took that into consideration when coming up with the below recommendations.
