Best Home Warranty Companies of 2026

We compared 48 companies and chose the top home warranty providers

    • Best overall
      Cinch Home Services
      4.1(12,262)
    • Best value
      American Home Shield
      3.7(109,502)
    • Claims handling
      Old Republic Home Protection
      3.9(2,104)
    +3 more
    Author picture
    Fact-checked by: Jon Bortin

    Best Home Warranty Companies of 2026

    Home warranties help save you money when essential systems or appliances break down. But not all plans are worth their cost. To help homeowners make confident decisions, the ConsumerAffairs Research Team compared dozens of home warranty companies.

    Based on our analysis, Cinch Home Services, American Home Shield and Old Republic Home Protection are some of the best home warranty companies in the U.S.

    Why trust ConsumerAffairs?
    • Our recommendations are based on what reviewers say.
    • 4,811,308 reviews on ConsumerAffairs are verified.
    • We require contact information to ensure our reviewers are real.
    • We use intelligent software that helps us maintain the integrity of reviews.
    • Our moderators read all reviews to verify quality and helpfulness.

    Our top 7 home warranty company picks

    1. Best overall: Cinch Home Services
    2. Best value: American Home Shield
    3. Best claims handling: Old Republic Home Protection
    4. Best coverage variety: First American Home Warranty
    5. Best technicians: Regency Total Warranty
    6. Best for quick service: Choice Home Warranty
    7. Best for roof coverage: Select Home Warranty

    We picked our top seven home warranty providers based on coverage options, customer reviews and other factors. Read our full methodology for details on the key criteria we used to define and rank the best home warranty companies.

    Our picks may be Authorized Partners that compensate us, but this does not affect our recommendations or evaluations. Our publishing policy ensures that the journalistic content and user reviews on ConsumerAffairs remain independent of commercial influences.

    Learn more about home warranties
    Cinch Home Services logo
    Monthly premium cost
    $38.99 to $66.99
    Service call fee
    $100, $125 or $150
    Labor guarantee
    180 days
    Availability
    48 states
    Why we picked it

    Based on our analysis of recent reviews, Cinch Home Services has the best claims handling process, best coverage variety and best technicians. We also like that it has a 180-day labor guarantee, fair prices and quick service. 

    Reps will contact a contractor within two hours after you report a problem. We think it’s worth considering for many coverage needs. This is true whether you want basic or premium coverage.

    Pros
    • Low starting costs
    • Workmanship guarantee
    • Covers unknown preexisting conditions
    • Easy claims process
    • Quick response times
    Cons
    • Relatively high service fees
    • Some customer service complaints
    • Occasional repair delays
    2x Award Winner
    Selected for having one of the highest satisfaction rates for Best Customer Service and Best Overall Process
    Plans and pricing

    Cinch Home Services has three plan options: an appliances plan (starting at $27.99, $36.32 or $39.99 per month), a systems plan (starting at $54.99, $63.32 or $66.99 per month) and the Complete Home plan (starting at $77.99, $86.32 or $89.99 per month), which includes the coverage from the other two plans.

    Service call fees are $100, $125 or $150 — choosing a lower deductible increases the plan’s cost. Each plan includes a water sensor to detect leaks.

    Add-ons and discounts

    • Optional add-ons:
      • Septic tank and pumping: $4.58
      • Well pump: $12.50
      • Premier upgrade package: $12.50
      • Pool and spa (heater included): $22
    • Discounts: First month free in some cases
    What reviewers say

    Cinch Home Services customers seem particularly happy with the company’s handling of claims. They also say it’s quick to complete services.

    American Home Shield logo
    Monthly premium cost
    $29.99 to $89.99
    Service call fee
    $100 or $125
    Labor guarantee
    30 days
    Availability
    48 states
    Why we picked it

    American Home Shield has some of the most comprehensive coverage on the market — and it comes at a reasonable price, earning it our pick for best value. We also like that the AHS app makes claims easy to file. It has a feature that lets you video-chat with a home repair expert.

    Pros
    • You can customize plans
    • Efficient claims process
    • Knowledgeable technicians
    • No home inspection required
    • 30-day workmanship guarantee
    • Cancel at any time
    Cons
    • Some customer service issues
    • Occasional service delays
    • Rates may increase over time
    3x Award Winner
    Selected for having one of the highest satisfaction rates for Best Customer Service, Best Overall Value and Best Overall Process
    Plans and pricing

    Base plans from AHS start at $29.99 a month. You can choose a $100 or $125 deductible, but be aware that this affects your monthly cost. All plans have a total limit of $50,000 per agreement term.

    • ShieldSilver ($29.99 or $39.99): Covers 14 major systems, including heating, cooling, electrical and plumbing. This plan has a $5,000 limit per covered HVAC system. 
    • ShieldGold ($49.99 or $59.99): Covers 24 appliances and systems, including kitchen and laundry equipment. It has a $5,000 limit per HVAC system. Each appliance has a $2,000 limit.
    • ShieldPlatinum ($79.99 or $89.99): The most comprehensive plan. It has the same HVAC limit. But it raises the appliance limit to $4,000 per year. It also covers roof leaks up to $1,000.

    Add-ons and discounts

    • Optional add-ons
      • Septic pump: $4.99
      • Roof leak repair: $9.99
      • Well pump: $9.99
      • Guest unit: $12.99
      • Electronics protection: $14
      • Pool and spa: $20.99
    • Discounts: AARP and military service; $50 discount for covering multiple properties
    What reviewers say

    Reviewers on our site frequently mention being happy with American Home Shield’s claims handling, its speed of service and the way it honors refunds and payouts.

    Old Republic Home Protection logo
    Monthly premium cost
    $50 to $80
    Service call fee
    $100 or $125
    Labor guarantee
    None specified
    Availability
    25 states
    Why we picked it

    We selected Old Republic Home Protection because ConsumerAffairs reviewers consistently praise the company for its service professionals, speedy repairs and smooth claims handling. We also like that it offers customizable combination plans (each covers both appliances and systems).

    Pros
    • Clear pricing
    • Customizable coverage
    • Educational resources
    • Discounts available
    Cons
    • No guarantee of coverage if you choose your own contractor
    • Not available nationwide
    Plans and pricing

    Old Republic plans start at $50 per month. All plans are combination plans. This means they cover both appliances and systems, not just one type.

    Service fees are either $100 or $125. You can choose a higher service fee and a lower monthly cost. Or you can pick a lower service fee and a higher monthly cost. Contracts range from one to five years.

    • Basic: $50 a month (lower service fee) or $55 (higher fee). It covers 22 basic systems and appliances.
    • Deluxe: $55 or $60, depending on your service fee. It covers everything in the Basic plan plus six more items.
    • Elite: $75 or $80 (varies by service fee). It covers everything in the Deluxe plan. It also has more plumbing coverage.

    Add-ons and discounts

    • Optional add-ons
      • Second refrigerator: $4.17
      • Septic system: $6.25
      • Roof leak repair: $8.33
      • Well pump: $8.33
      • Pool and spa: $20
    • Discounts: First-year decreased rates; seasonal promotions
    What reviewers say

    Old Republic Home Protection reviewers on our site frequently mention satisfaction with its network of technicians and its speed of service.

    First American Home Warranty logo
    Monthly premium cost
    $42 to $82
    Service call fee
    $100 or $125
    Labor guarantee
    None specified
    Availability
    35 states
    Why we picked it

    Thousands of verified First American Home Warranty customers report speedy, high-quality repair and replacement of their systems and appliances. We also like that the company's plans have low starting costs and flexible service fees. Reviewers often mention good experiences with customer service agents and technicians.

    Pros
    • Low starting costs
    • Low service call fees
    • No age limit on appliances
    • Month-to-month contracts
    Cons
    • Not available in all states
    • Occasional delays
    • Some customer service complaints
    2x Award Winner
    Selected for having one of the highest satisfaction rates for Best Customer Service and Best Overall Process
    Plans and pricing

    First American plans cost $42 to $82 per month. They are all combination plans. This means they cover both appliances and systems. Service call fees are $100 or $125 (a lower service fee will result in higher monthly premiums).

    • Starter: Covers major systems like heating, plumbing, electrical and ductwork, common kitchen appliances and toilets. Monthly premiums are $42 or $47.
    • Essential: Includes everything in the Starter plan plus fans, garage doors, washers and dryers. Monthly premiums are $57 or $62.
    • Premium: Most comprehensive plan, covers everything in the Essential plan, plus hot/cold water dispensers and central vacuums. Monthly costs are $77 or $82.

    Add-ons and discounts

    • Optional add-ons
      • Septic pump: $4.99
      • Roof leak repair: $9.99
      • Well pump: $9.99
      • Guest unit: $12.99
      • Electronics protection: $14
      • Pool and spa: $20.99
    • Discounts: Reduced premiums for paying annually
    What reviewers say

    Happy First American Home Warranty customers frequently highlight both the price and speed of service.

    Regency Total Warranty logo
    Monthly premium cost
    $44.99 to $49.99
    Service call fee
    $60 to $100
    Labor guarantee
    Unclear
    Availability
    50 states
    Why we picked it

    Regency Total Warranty customers frequently mention the company’s smooth claims handling and quality technician network, which is a huge consideration when choosing home warranty coverage. Regency offers two combination plans: EssentialGuard and TotalGuard. These cover both systems and appliances. Most companies only offer systems-only or appliances-only plans.

    Pros
    • Both plans cover systems and appliances
    • Reasonable starting costs
    • Fast, easy claims, according to reviewers
    • Available nationwide
    Cons
    • No electronics plan
    • Some water heater exclusions
    Plans and pricing

    Regency’s two plans offer different degrees of coverage for your home’s systems and appliances. Costs start at $44.99 per month, with a potential savings of $50 per year if you pay annually.

    • EssentialGuard: Covers three home systems and 10 appliances. Starts at $39.99 monthly or $429.99 annually.
    • TotalGuard: Covers five home systems and 14 appliances. Starts at $45.83 per month ($499.99 per year).

    Add-ons and discounts

    • Optional add-ons
      • Pools and spas
      • Well pumps
      • Sump pumps
      • Central vacuums
      • Limited roof leaks
      • Septic systems
      • Second refrigerators
      • Stand-alone freezers
      • Septic tank plumbing
    • Discounts: Seasonal promotions; limited roof leak protection
    What reviewers say

    Regency Total Warranty customers are overwhelmingly happy with its fast service, skilled technicians and fair pricing.

    Best for quick service
    Choice Home Warranty logo
    Monthly premium cost
    $46.83 to $54.75
    Service call fee
    $100
    Labor guarantee
    60 days
    Availability
    49 states (not Washington)
    Why we picked it

    Choice Home Warranty responds to service requests within four hours, earning it our pick for quick service. This is a big plus when your air conditioner breaks in the summer. It also helps when your heater fails in winter. Choice Home Warranty reviewers also love its network of repair professionals.

    Pros
    • Optional roof leak coverage
    • No transfer fee
    • 24/7 customer service
    • No home inspection required
    Cons
    • $500 roof repair cap
    • Not available nationwide
    Plans and pricing

    Basic plans start at $49.17 per month and Total plans start at $57.50 per month. Both have a flat $100 service fee. Contracts last one year — expect to pay a $50 cancellation fee if you cancel early. However, you can transfer the contract with no penalty.

    • Basic: Covers 14 systems and appliances, including heating, electrical and plumbing.
    • Total: Includes everything in Basic and covers your washer and dryer, refrigerator and air conditioning system.

    Add-ons and discounts

    • Optional add-ons
      • Ice maker: $2.08
      • Second refrigerator: $3.33
      • Stand-alone freezer: $3.33
      • Sump pump: $3.33
      • Central vacuum: $3.33
      • Septic tank pumping: $5.42
      • Roof leak repair: $5.83
      • Well pump: $8.33
      • Sprinkler system: $8.33
      • Septic system: $10
      • Pool and spa: $15
      • Additional spa: $15
    • Discounts: Reduced premiums with annual payments; free extra month
    What reviewers say

    Choice Home Warranty customers often mention the company’s quick service and its skilled technicians.

    Best for roof coverage
    Select Home Warranty logo
    Monthly premium cost
    $60.42 to $63.75
    Service call fee
    $75 to $100
    Labor guarantee
    180 days
    Availability
    47 states
    Why we picked it

    Of the home warranty companies we analyzed that offer roof leak coverage, Select Home Warranty has the highest percentage of 5-star reviews that mention roof coverage. The company offers a payout if there’s a leak in any occupied area of your home.

    The roof coverage add-on usually costs $99 per year. But the company often runs specials. These let you add it to a new plan at no extra cost. You can also get a discount for signing up for multiple years of protection.

    Pros
    • Unlimited number of repairs on covered items
    • Transferable warranties
    • Roof coverage available
    • Frequent discounts
    • Claims service available 24/7
    Cons
    • Doesn’t cover all repairs
    • Some customer service complaints
    • Not available nationwide
    1x Award Winner
    Selected for having one of the highest satisfaction rates for Best Overall Value
    Plans and pricing

    Select Home Warranty offers three plans with monthly prices ranging from $60.42 to $63.75. You can reduce your premiums by paying annually instead of monthly.

    Add-ons and discounts

    • Optional add-ons
      • Sump pump: $3.33
      • Well pump: $3.33
      • Stand-alone freezer: $3.33
      • Central vacuum: $3.33
      • Septic system: $5.83
      • Sprinkler system: $5.83
    • Discounts: Two months free if paid annually
    What reviewers say

    Happy Select Home Warranty customers highlight the company’s affordable plans and comprehensive coverage options.

    Methodology: How we found the best home warranty companies

    The ConsumerAffairs Research Team used a research-backed, data-driven approach informed by our expert editors to choose the best home warranty companies. We looked at thousands of verified reviews and analyzed companies’ plans and pricing, service call fee options, service guarantees, roof leak and electronics coverages, and other additional benefits (e.g., discounts, etc.).

    Companies got a normalized score out of 10 for each weighted metric, with the top-performing company getting a 10 and other companies earning relative scores. We then added together these scores to get a final score. The metrics included:

    • Reviews: We considered reviewer satisfaction with each company’s customer service, claims handling, service technicians, coverage, price, speed and refunds.
    • Number of plans: We looked at the number of available plans. This showed us how much coverage variety each company offers. Companies with more plans received higher scores.
    • Service call fee options: We gave preference to companies with a wider variety of service fee options.
    • Service guarantee: Companies with longer service guarantees got higher scores. 
    • Roof leak repair coverage: Companies that include roof leak repair in the highest number of plans received the highest scores. Companies that only offer roof leak repair as an add-on got lower scores. Companies that don’t offer this coverage got a score of zero.
    • Electronics coverage: For the “best coverage variety” category, we gave higher scores to companies that offer electronics coverage add-ons.
    • Extra benefits: Companies that offer extra perks got higher scores. These include discounts for new appliances.
    • Starting price: We asked companies for quotes for the lowest-cost plans with the highest service call fees, and awarded the highest score to the companies with the cheapest premiums.

    The company with the highest score in each award’s uniquely weighted formula was given the “Best” designation. In cases where a company received a top score across multiple categories, the company with the next-highest score was named the winner.

    Home Warranties Buyers Guide

    Jump into our guides and start learning

    Top Picks

    See who reviewers like

    Cinch Home Services logo
    American Home Shield logo
    Old Republic Home Protection logo
    See our top picks

    Simplify your search

    Compare plans tailored to your home & budget.

      Keeping household appliances and systems in working order can be expensive and cause major headaches, but a home warranty can save you money on repairs when these systems or appliances break down.

      All home warranty companies charge a monthly fee and a service fee for repairs. But each one offers different coverage options, prices and exclusions. In this guide, learn more about how home warranties work, what they cover and how to choose the best home warranty company for your needs.

      Key insights

      The average annual cost for a home warranty is about $684 in 2025.

      Jump to insight

      A home warranty can be worth it if you have an older home. It can also help if you’re buying or selling a house. It’s useful if you don’t have a big savings account.

      Jump to insight

      Home warranties only cover systems and appliances, so don’t expect coverage for all your household items (e.g., furniture, art).

      Jump to insight

      How to choose the best home warranty company

      To choose the right home warranty company, start by figuring out what kind of coverage you need. Compare plans, sample contracts and reviews for each company you’re considering.

      1. Figure out what kind of coverage you need

      Do you want to cover your appliances, systems or both? Are you looking for comprehensive or basic coverage?

      • Appliances-only plan: Good if your systems (like HVAC) are newer but your appliances are aging
      • Systems-only plan: Better if you’re not concerned about appliance repair costs but couldn’t afford repair or replacement of your major home systems
      • Combination plan: Best if both your home’s systems and appliances are old, or if you want higher coverage limits across the board

      2. Compare costs and value

      Get quotes from multiple companies (and ask if they match prices). As you research different plans, compare these things.

      • Monthly and annual fees: Look at the total cost for the year, not just the base plan cost. This is important if you're adding extra coverage.
      • Service call fee options: Each time a contractor comes out, you’ll pay a service fee (often $55 to $125). Some companies let you choose your deductible. In general, the higher the fee, the lower your monthly cost.
      • Coverage exclusions: Watch for payout caps and limits on specific items. For example, a plan may only cover up to $500 for refrigerator repair. You pay the difference if the fix costs more.
      • Costs for add-ons (e.g., second refrigerator, sump pump): If you want add-on protection for extras like pools, well pumps or additional appliances, make sure to factor in those costs.

      3. Look at sample contracts, including the fine print

      Most companies offer sample contracts you can review. You might have to search the website or contact customer service. Be sure to read the contract carefully and get answers to any home warranty questions you have before committing.

      The sample contract generally provides more extensive information about:

      • Covered items
      • Exclusions (like preexisting conditions) and coverage caps
      • Waiting periods
      • The claims process
      • Additional fees (like for canceling your warranty)
      • Terms and limitations

      4. Read reviews

      The best way to understand what to expect from a home warranty company is to read reviews. Look for reviews from current and past customers on sites like ConsumerAffairs, BBB and Trustpilot.

      In our experience, home warranty customers care most about an easy claims process — without frequent claim denials — but happy reviewers also frequently mention the following:

      • Experienced, timely contractors: Contractors should know their craft, show up on time and complete repairs efficiently. A company with a reliable network of service providers can make or break your experience.
      • Transparent pricing: You don’t want surprise costs. Look for clear information about service fees, coverage limits and exclusions.
      • Good customer service: A courteous customer service team can smooth out stressful situations by carefully navigating claims and resolving issues quickly.

      Home warranty company complaint trends and red flags

      Our analysis of more than 300 recent complaints about the lowest-rated home warranty companies shows several recurring problems:

      • Difficult claims process: Many companies require phone calls, long hold times, repeated documentation and multiple callbacks before even scheduling service.
      • Unreliable contractors: Customers report no-shows, unqualified technicians and repairs that cause more problems.
      • Questionable denials: Claims are often rejected for vague “preexisting conditions” or loopholes buried deep in the contract.
      • Extreme delays: Parts are “on backorder,” appointments are rescheduled repeatedly, and each step adds days or weeks.
      • Fine-print traps: Coverage limits, age caps and exclusions often appear only after the diagnostic visit and service fee.
      • Wear-you-down tactics: Many reviewers say the process is so frustrating that homeowners eventually give up or pay out of pocket.

      Key takeaway

      Some home warranty companies seem designed to delay, deny and frustrate rather than provide real protection. If you’re considering a plan, read your entire contract carefully, understand what’s covered and document every interaction from the start.

      How much does a home warranty cost?

      Home warranties cost $684 a year, on average, as of June 2025. The total cost of a home warranty depends on your base plan’s premium, service call fees and any add-ons you opt for.

      Monthly or annual premiums

      You can expect monthly fees to run between $30 and $90 a month. This is based on quotes we got from 22 companies. Comprehensive plans average around $60 per month.

      You typically pay a monthly fee of $30 to $90. You also pay a service call fee of $50 to $150 each time you make a claim.

      Service call fees

      Each time you make a claim, you pay a service call fee. This is like a deductible. It’s what you pay for a technician to visit your home and find the problem.

      Home warranty providers typically charge $50 to $150 per visit, depending on your plan and location.

      Add-on coverage

      Many home warranty companies let you customize your plan with add-ons (e.g., for a pool or sump pump). Depending on the company and item, expect to pay anywhere from $2 to $25 per month per add-on.

      Other home warranty cost factors

      Home warranty prices vary widely depending on a few factors:

      • Home size and type: Larger homes usually require broader coverage, which can mean higher premiums. If you have a small condo, you’ll likely spend less.
      • Level of coverage: Cheaper home warranty plans generally cover fewer items. Comprehensive plans that cover both systems and appliances tend to be pricier.
      • Location: Where you live matters — the cost of labor and materials differs by region.
      • Discounts: Many companies offer discounts (e.g., for multiyear plans) and other promotions.

      Example: total annual home warranty costs

      • Comprehensive coverage ($60 per month): $720 per year
      • Add-on for roof leak repair ($10 per month): $120 per year
      • Three claims ($100 service fee): $300
      • Total: $1,140 per year

      What does a home warranty cover?

      Home warranty plans cover the repair and replacement of home appliances and systems as a result of normal wear and tear.

      Home warranty system coverage

      • Electrical
      • HVAC
      • Plumbing
      • Water heater
      • Ductwork

      Home warranty appliance coverage

      • Washers
      • Dryers
      • Kitchen appliances (e.g., your dishwasher, refrigerator, oven/range/cooktop, garbage disposal and built-in microwave)

      Optional coverage

      • Central vacuum
      • Guest unit
      • Pool and spa
      • Roof leak
      • Septic systems
      • Stand-alone freezer
      • Sump pump
      • Water softener

      Home warranty exclusions

      Home warranty plans typically name specific exclusions. Even if your appliance or system is covered, the company may deny your claim if it’s for the following:

      • Preexisting conditions
      • Cosmetic damage (e.g., dents or scratches)
      • Improperly installed appliances or systems
      • Appliances or systems that have been modified with a third-party component
      • Anything currently under another warranty
      • Structural issues like foundation cracks
      • Specific components of a covered item.

      » MORE: Getting the most out of your home warranty

      Home warranty coverage limits and caps

      Home warranty contracts also include an annual per-item payout cap. Costs above that limit are your responsibility.

      For example, say your HVAC costs $3,200 to fix. But your limit is $3,000. You'll pay the extra $200 plus your service fee.

      Appliance caps usually range from $1,500 to $3,000 per item. System limits are typically higher, ranging from $2,000 to $5,000 per item. Add-on items have limits as well.

      Some providers also set a maximum they’ll pay in total over a plan year.

      Is a home warranty worth it?

      A home warranty may be worth it if your home is older, you’re selling your home, or you own a rental property. Many homeowners like their warranty plans for peace of mind. But not everyone gets a chance to use their coverage.

      When is a home warranty worth it?

      A home warranty is helpful if any of these are true. 

      • Your home is older: If your home has older systems or appliances, they're more likely to break down.
      • You’re selling your home: In some areas, it’s common for the seller or agent to include a warranty in the sale price. This can make your home more attractive to potential buyers.
      • You own a rental property: A home warranty for a rental property protects you from unexpected and costly repairs to major systems and appliances, providing a safety net for your investment.
      • You’re a first-time homebuyer: A warranty can give you peace of mind. This is true if you’re not sure how long your home's systems and appliances will last. It also helps if you worry about repair costs.
      • Your appliances are nearing the end of their lifespan: Most major appliances last nine to 12 years. Many HVAC systems can start to age after just five years of use. A warranty can cover the repair or replacement of these items.
      • You can’t afford a huge repair expense: Instead of spending hundreds or thousands for a single repair, you can pay relatively small amounts each month for warranty coverage.

      » COMPARE: Top home warranty for older homes

      When is a home warranty not worth it?

      A home warranty may not be worth it if: 

      • Your home is new: If your home is a new build, its systems and appliances may still have a manufacturer warranty. You don’t want to end up paying for duplicate coverage.
      • You have a large emergency fund: Monthly warranty payments are good for budgeting. But you might not benefit in the long run if you can afford to pay for repairs yourself.
      • You have specific contractors you prefer: Some warranty providers have limited technician networks. A warranty may not be for you if you want full freedom to hire your own contractors without restrictions.

      How much can you save with a home warranty?

      Ultimately, how much a home warranty can save you depends on the cost of any covered repair or replacement that comes up.

      The Consumer Financial Protection Bureau's Home Loan Toolkit stresses reserving 1% to 3% of a home's value for repairs and maintenance per year. For most homes, this would be far more than a $300 to $900 yearly home warranty premium, plus a few $100 service fees. That could mean saving several thousand dollars if something goes wrong.

      Average repair/replacement costs for covered items

      As illustrated below, home repairs can be pricey. Say you paid $900 for a year of coverage. And you would have spent $3,000 that year on a plumbing problem. It was definitely worth it.

      Home warranty pros and cons

      Financial peace of mind is great, but there are some potential downsides to consider. Most importantly, you have to weigh the cost of coverage versus your potential savings over time.

      Pros

      • Cost control for essential repairs
      • Convenience
      • Transferability to new homeowner
      • Potential savings

      Cons

      • Claims processes can be difficult
      • Coverage limits and caps
      • May not be able to choose your contractor
      • Chance you won’t use it

      FAQ

      What is a home warranty?

      A home warranty is technically a service contract agreement — a plan that covers the cost to repair or replace major systems and appliances that break down from normal use. Plans are designed to protect you financially when things like your plumbing or refrigerator break down and are no longer covered under a manufacturer's warranty.

      Who regulates home warranty companies?

      Every state has some home warranty regulations and requirements. In some states, the insurance commissioner is the regulating authority. In other states, the real estate commission or another agency governs home warranty regulations.

      The regulating authorities help protect consumers from fraud and mistreatment by monitoring companies and giving residents a way to file complaints when necessary.

      How long do home warranties last?

      Most home warranty contracts last 12 months. Each year, you have the option to renew coverage. If you decide to buy a new home warranty, be sure to read the contract’s terms and coverage exclusions.

      Most home warranties take effect after 30 days, with exceptions for contracts purchased as part of a real estate transaction or if you previously had coverage.

      What is the difference between a home warranty and homeowners insurance?

      Home warranties and homeowners insurance serve different purposes. Homeowners insurance covers situations where your home or belongings are damaged or lost due to fire, vandalism or theft. A home warranty doesn’t replace homeowners insurance but provides an extra layer of financial protection.

      Put simply, home warranties cover items that fail because of normal wear and tear. Homeowners insurance covers damage and loss caused by outside forces such as fire and severe weather. It’s often required by mortgage lenders.

      Do home warranties cover plumbing?

      Yes, most systems plans cover plumbing, though specifics vary. Generally, plumbing coverage includes repairs for gas, drain, water and vent lines; shower and tub valves; built-in bathtub pumps; and clearing of sink, shower, tub, toilet, drain and sewage stoppages.

      Do home warranties cover HVAC?

      Yes, most home warranty systems plans cover some HVAC elements, though coverage may be limited or capped depending on the plan. Check out sample contracts to be sure your AC and heating systems are covered. As with most types of warranty coverage, general maintenance like HVAC tuneup typically isn’t included.

      » COMPARE: Best warranties for furnaces

      Do home warranties cover foundation repair?

      No, most buyer and seller home warranties don’t cover structural elements like foundation. If you purchase a new-construction home, however, look into what type of coverage your builders provide. They should offer coverage for your home’s structure for a certain period of time.

      What is a red flag on a home warranty?

      A major red flag on a home warranty is an unclear or vague service contract, particularly regarding exclusions, coverage limits and claim procedures. Other warning signs include high-pressure sales tactics, difficulties reaching customer service, numerous negative reviews and hidden fees.

      More details about home warranty red flags:

      • Unclear or vague contracts: The service contract should clearly define what is covered, what is excluded, coverage limits, fees and how to file a claim. Vague language, hidden exclusions or complicated cancellation processes are all major concerns.
      • High-pressure sales tactics: Reputable companies will not use aggressive sales techniques. If a company pressures you to act immediately or threatens a limited-time offer, reconsider.
      • Poor customer service: If reaching customer service is difficult or representatives are unhelpful, it signals the company may be hard to work with during a claim.
      • Negative reviews and complaints: Look for consistent complaints about denied claims, billing issues or poor service.
      • No state registration: Make sure the company is registered to operate in your state. Lack of registration could mean less legal protection for you.
      • Frequent claim denials: Companies that habitually deny legitimate claims may be trying to avoid paying for repairs. Look for reviews mentioning claim handling.
      • Misleading marketing: Overly optimistic promises or deceptive language in ads often hide real limitations in the coverage.
      • Demands for sensitive information: No legitimate company will ask for your Social Security number or bank account details upfront, especially over unsolicited calls or emails.

      Get expert advice on home warranties

      We asked experts for their insights into the advantages and financial benefits of home warranties.

      Based on your knowledge, which home systems are prone to fail and could potentially benefit from a coverage plan?
      Carlos Martín

      Carlos Martín

      Director, Remodeling Futures Program, Harvard University

      Everything in your home will eventually need repair or replacement, including the home itself. The length of each product’s lifetime depends on a range of factors—the way we traditionally build in the U.S., the quality of the materials installed, the amount you use the appliances and systems, the care and maintenance you put in, and even the environmental conditions in which your home is located. For example, homes in places with increasing summer temperatures are likely to keep their air-conditioning running continuously. However, the roof, external paint and siding, and internal humidity could also be subject to rough conditions that force a replacement far quicker than if they were located in another area of the country.

      Generally, the rule of thumb is that appliances will last 10-15 years before they need replacing; equipment like water heaters and fixtures, roofs, external walls, and HVAC systems will last 15-30 years; and core structural components, plumbing systems, and electrical systems should last 30-50 years—assuming proper maintenance and standard operations. While items like appliances need to be replaced more frequently, the big home systems will cost a lot more when they fail. So, consumers should consider how long they intend to be in a home, how frequently they want to replace items for aesthetic or functional reasons beyond operational performance, and how much attention they want to put into maintenance when picking coverage plans.

      Read their bio
      Ben Bigelow

      Ben Bigelow

      Associate professor and director, Lemon Construction Science Division, University of Oklahoma

      None of a home’s systems are “prone” to fail. It really just depends on variables like how old they are, whether they are from a reputable manufacturer, and how well they have been cared for (or not) over their lifetime. My home is 22 years old, and I’ve been in it for 7 years. It has been fairly well cared for, still has the original water heater (one small problem, a simple sensor replacement) and has the original HVAC system (it has had basic servicing done a few times over its lifetime). The kitchen appliances were replaced when the previous owner did a remodel, and, unfortunately, they suck! However, that has more to do with the brand, which will remain nameless, than anything else. So, if I’m considering a coverage plan for my home, I’m primarily considering who made the appliances and how old they are.

      Read their bio
      What financial steps can a homeowner take to prepare for unexpected repair expenses?
      Yi Liu

      Yi Liu

      Assistant professor, finance, St. John Fisher University

      Homeowners should consider setting up a dedicated emergency fund for home repairs. It’s generally recommended to save 1% to 3% of your home’s value each year to cover unexpected repair costs. Additionally, investing in a home warranty that covers major systems and appliances can provide extra financial protection. Regular maintenance, such as HVAC servicing, roof inspections, and plumbing checks, can also help prevent costly repairs in the future.

      Read their bio
      Golnaz Motie

      Golnaz Motie

      Assistant professor, economics, Western Kentucky University

      There are three steps that can help homeowners to prepare for unexpected repair expenses:

      1. Homeowners should make a list of repairs that are not covered by their homeowners’ insurance. That list should include information about the costs of the repairs and how often such repairs might be needed.
      2. Homeowners should save a fixed amount of money each month for a home emergency fund. The amount of money needed in such a fund depends on the estimated costs of repairs in each homeowner’s list of repairs mentioned above.
      3. The probability of facing unexpected repairs depends on the age of the home systems and the appliances. If a home is relatively new, the homeowner should keep track of receipts and warranties for systems and appliances. If they have purchased an older home with outdated systems and appliances, or if their appliances do not have warranties, they should consider getting a home warranty that can help them with expenses associated with normal wear and tear not covered by most homeowners’ insurance.

      Read their bio
      In your experience, what are the most common causes of financial burdens for homeowners related to home systems or appliances?
      Thomas Patrick

      Thomas Patrick

      Professor, finance, The College of New Jersey

      Financial burdens occur when septic systems, wells, water mains, or roofs need extensive repairs. If all of the home appliances are very old, a house can become a “money pit” where one appliance after another needs to be replaced.

      Read their bio
      Golnaz Motie

      Golnaz Motie

      Assistant professor, economics, Western Kentucky University

      Lack of foresight is the most common cause of financial difficulties for homeowners when home systems or appliances must be repaired or replaced. Homeowners who have failed to save for such expenses or secure a home warranty can face expensive repairs or replacements for which they are unprepared.

      Read their bio
      Yi Liu

      Yi Liu

      Assistant professor, finance, St. John Fisher University

      From my experience, significant financial burdens often stem from repairs to HVAC systems, roofing issues, and plumbing problems. Electrical failures, especially those involving outdated wiring, can also be expensive to fix. Moreover, major appliances like refrigerators, ovens, and washing machines frequently need repairs or replacements, adding to homeowners’ financial strain. Foundation issues, though less common, can lead to substantial expenses when they do occur.

      Read their bio

      Not sure how to choose?

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        Guide sources

        ConsumerAffairs writers primarily rely on government data, industry experts and original research from reputable publications to inform their work. Specific sources for this guide include:

        1. National Home Service Contract Association, “Regulatory History of Home Service Contracts in United States.” Accessed Nov. 25, 2025.
        2. Federal Trade Commission, “So what’s the deal with ‘home warranties’?” Accessed Nov. 25, 2025.
        3. Cornell Law School Legal Information Institute, “Home warranty.” Accessed Nov. 25, 2025.

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