Best Home Warranty Companies

Home warranties are designed to help homeowners pay for expensive home repairs related to the breakdown of major home systems, like heating or plumbing, and major appliances, like refrigerators or water heaters. Home warranty providers do this by charging customers a monthly premium in exchange for providing repairs at a set service call fee, which can save homeowners thousands of dollars over the length of their contract.

To buy a home warranty, find a company you trust and select a plan that covers the systems and appliances essential to your home. You can buy a home warranty by following these steps:

1. Determine your coverage needs
   Most home warranty providers offer coverage for both appliances and home systems. These plans are provided in combination plans or separately as individual appliance-only or systems-only coverage plans. Combination plans are ideal for most customers, but some homeowners may prefer to cover only one or the other. If your appliances are new and covered under a manufacturer’s warranty, you may want to opt for a systems-only home warranty plan to cut down on your monthly premium cost.
2. Know what you can afford
   Companies that provide home warranties charge a monthly premium for their services, generally around $50 a month. If cost is a significant factor for you, shop around for the best deal or consider opting for less coverage to reduce the price.
3. Research and compare providers
   Researching home warranty providers is the most critical step when choosing a plan. As you research, we recommend comparing the following factors:
   • The monthly or yearly cost
   • Service call fee
   • Plan options
   • The number of covered systems and appliances
   • What optional or add-on coverage is available
   • The service recall period
   • Any caps or maximum payout limits the company sets in their contract terms

   Once you select your provider and are ready to make a purchase, you’ll likely be required to enter a 30-day waiting period before your service contract goes into effect. Once this period has passed, you can use your home warranty as often as needed.

Companies sell home warranties that target different needs. Some of the most common types of home warranties are:

Homeowners warranty
Homeowners can purchase a home warranty at any time. Providers offer home warranties that fit different needs, so you can find one that works for you whether you're getting ready to sell your home or planning on staying in it for the foreseeable future.

Homebuyer’s warranty
People often buy home warranties at the same time a house is purchased. These warranties become effective on the day of closing and can be purchased by the buyer or by the buyer’s real estate agent. Homebuyers can purchase this type of warranty up to 90 days after closing.

Seller’s home warranty
Purchasing a home warranty while your house is on the market is a smart move. Not only can you quickly fix any issues that crop up while your home is for sale, you can help close the deal by providing potential buyers a home warranty that transfers into their name after the sale. This warranty helps relieve a buyer's anxiety about future repair bills, so it’s especially useful to purchase home warranties when selling an older home.

Home warranties for rental properties
Landlords greatly benefit from the security of a home warranty. You’re protected against unexpected costs when major systems or appliances malfunction, and you can budget the warranty price into your overall expenses and adjust your rental fees to cover the cost.

New construction warranty
New construction warranties are provided by home builders to offer extra protection for new properties. These warranties are available in different terms, ranging from a one-year warranty to ensure the overall quality of the construction to 10- or even 20-year warranties for critical items such as the home’s foundation.

Other home warranties
Warranties aren’t just for single-family houses. Home warranty providers also offer condo home warranties and mobile home warranties.

When choosing a home warranty plan, the most important things to review are cost and coverage. You can break any home warranty offer down into a few main components.

• Monthly premium
  This is the price you pay each month for coverage, regardless of whether you use the service. The average monthly cost for home warranties ranges between $40 and $60 per month, but don’t be tempted by a lower monthly price before you compare coverage. Paying a little more is often worth it for more comprehensive coverage.
• Number of covered systems and appliances
  Most companies offer several home warranty plans. Many providers divide their offerings into home appliance warranties, home system warranties and combination plans. A combination plan generally gives you the best value.
• Claim submission process
  See what the process is when something goes wrong in your home and you need to file a claim. Do you have to jump through hoops? Wait several days for processing? Look for a company with multiple methods of contact, including a U.S.-based call center and a 24/7 online claim submission portal. Most home warranty companies provide their promised maximum turnaround time for a service call in their contracts. Look for a company that sends someone out within 24 hours. Be sure to see what the company’s policy is for weekend and holiday repairs.
• Service call fee
  You pay a service call fee each time your home warranty company sends a technician to your property. A typical service call fee is $75. Some home warranty companies offer a higher service call fee in exchange for a lower monthly premium — this may be a good trade-off for those in newer homes with a lower chance of needing high-cost repairs.
• Service recall period
  The service recall period is the length of time the home warranty company guarantees a repair — typically 30 to 90 days. If you experience a repaired problem again within this window of time, you don’t have to pay a second service call fee to have a technician come out and make the repair again.
• Limitations in the service contract
  Many home warranty companies provide sample contracts on their website. While no one wants to read through more than 20 pages of small print, these are valuable resources worth reviewing — especially if you know what to look for. We recommend scanning for the following:
  • Is an inspection required before purchasing a home warranty?
  • Are there any set caps or maximum payout limits for the contract term or on a per-item basis?
  • What is the company’s item replacement policy?

To select our top picks for the best home warranty companies, we looked at average cost, coverage, contract terms and conditions and service call fees for the top 15 home warranty companies in the industry.

Company name Contact

Logo Summary Number of plans: 4 plan options Contract length: 1 year

American Home Shield is one of the biggest players in the industry, and it offers some of the best coverage on the market. We love the company for its “Build Your Own” plan, which allows customers to completely customize their coverage to protect exactly what they need at the best price. We recommend AHS for customers looking for complete coverage. AHS does not require a pre-inspection, and you can get a plan at any time, regardless of the age of your home’s systems and appliances.

Company name Contact

Summary Number of plans: 3 plan options Contract length: Monthly, annual and multi-year

Liberty Home Guard offers customers comprehensive coverage for systems and appliances, including your refrigerator’s ice maker and whirlpool baths, which often require add-on coverage under other warranty plans. Liberty also offers a wide range of optional add-ons, including coverage for pools and spas, sump pumps, well pumps and septic systems as well as less common options such as re-key, pest control and cleaning services. Total Home Guard covers household appliances and home systems. Liberty Home Guard advertises that customers can pay less than $1 a day for their Appliance Guard or Systems Guard plans and less than $1.50 a day for their Total Home Guard plan.

Company name Contact

Logo Summary Number of plans: 2 plan options Contract length: 1 year

Choice Home Warranty offers coverage for most major home systems and appliances, regardless of their age. Claims can be submitted 24/7 with Choice’s online account center. You can adjust your plan to include as much coverage as you need with two predesigned plans and a list of add-on coverage options. The company offers two plans: Basic or Total. Plans cover major home appliance and system repairs, but the Total Plan includes a few critical items the Basic Plan does not, including air conditioning systems, refrigerators, washers and dryers. Unlike many companies, Choice Home Warranty offers limited roof leak coverage as an optional, add-on coverage option.

Top home warranty companies compared

Average yearly cost	$600	$540	$450
Plans available	4	3	2
Service call fee	$75, $100 or $125	$75	$85
Service recall period	60 days on parts 60 days on labor	60-day workmanship guarantee	60-day promise
Availability	49 states Unavailable in AK	48 states Unavailable in CA and WA	48 states Unavailable in CA and OK
Support	24-hour online claim system	24-hour claims system	24-hour call center for claims
Customer satisfaction	American Home Shield reviews	Liberty Home Guard reviews	Choice Home Warranty reviews

	Average yearly cost	Plans available	Service call fee	Service recall period	Availability	Support	Customer experience
	$600	4	$75, $100 or $125	60 days on parts 60 days on labor	49 states Unavailable in AK	24-hour online claim system	American Home Shield reviews
	$540	3	$75	60-day workmanship guarantee	48 states Unavailable in CA and WA	24-hour claims system	Liberty Home Guard reviews
	$450	2	$85	60-day promise	48 states Unavailable in CA and OK	24-hour call center for claims	Choice Home Warranty reviews