Best Home Warranty Companies

When comparing home warranty companies, we looked at cost, plan coverage, terms and general customer satisfaction. These three providers all offer ample coverage options with pricing varying by location and plan.

For the quotes listed below, we chose each company’s most popular plan, generally a mid-tier plan covering all essential systems and appliances, and were quoted prices for the Midwest.

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 offers some of the best coverage on the market. We love them for their “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 requires no pre-inspection, and you can get a plan at any time, regardless of the age of your home’s systems and appliances.

• Availability: Able to serve customers in 49 states (sorry, Alaska!)
• Plans: 4 total plan options available—Appliances, Systems, Combo and Build Your Own. AHS's plans provide a diverse range of coverage and make it easy to find what you're looking for.
• Pricing: We were quoted $49.99 per month for the combination plan, which works out to about $600 per year paid monthly.
• Service call fees: AHS lets you choose the price of your service call fees. The options are $75, $100 or $125. Those who opt for a higher service call fee will pay lower monthly cost. This is a great option for customers with newer homes who anticipate needing less repairs throughout the year. We like that they let you have more control over what you pay.

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 dispenser and whirlpool baths, which often come as add-ons under other warranty plans. Liberty also offers a wide range of optional add-ons from the typical—pools and spas, sump and well pumps, septic systems to the less common like re-key, pest control and cleaning services.

Liberty offers multiple contract terms and a 60-day workmanship guarantee.

• Availability: Services customers in 48 states (sorry, California and Washington!)
• Plans: 3 plans available—Appliance Guard, Systems Guard and Total Home Guard. Total Home Guard covers both household appliances and home systems. Optional coverage is available to add-on to any of the plans for items like pools, sump pumps and more.
• Pricing: 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. Certain promotions may include free months.
• Service call fees: $75
• Contract length: Monthly, annual and multi-year contracts available.

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 via Choice’s online account center 24-hours a day, 7 days a week. You can adjust your plan to include as much coverage as you need with two pre-designed plan options and a list of ala carte add-on coverage available.

• Availability: 48 states
• Plans: 2 plan options available—Basic or Total. Plans are available to cover major home appliance and system repairs, but the Total Plan covers a few critical items the Basic Plan does not, including air conditioning systems, refrigerators, washers and dryers. Limited roof leak coverage is also available as optional, add-on coverage.
• Pricing: Plans are available starting around $35/month. The average cost for a full year of service is $450.
• Service call fees: $85
• Contract length: 1 year

Should I get a home warranty?
If you’re worried about finding the funds to pay for unexpected repairs or how to find a reliable contractor, you may want to opt to spend a few hundred dollars on a home warranty for protection. Particularly, you may want to consider a home warranty in the following situations:

• You’re not handy: Those who have not owned a home before or are unfamiliar with maintaining major systems and appliances should consider how much a plan covers and how much they are willing and able to take on themselves. Many industry professionals recommend that new homeowners select a more comprehensive plan that will help them acclimate to the responsibilities of owning a home.
• You don’t have a large savings account: If you don’t already have a sizeable rainy day fund set aside for life’s unexpected moments, like your AC going out or your dishwasher calling it quits, a home warranty will provide protection for a relatively small monthly price tag.
• You own an older home: Older homes usually mean older appliances and systems. Purchasing a home warranty can help provide extra assurance that your vintage charmer will be around (and in working order) for generations to come. Be sure to pay close attention to how plans treat pre-existing conditions. While most home warranty companies do not conduct inspections, claims are likely to be denied if the breakdown is a result of a known problem or defect.
• You’re preparing to sell your home: Sellers and listing agents should consider purchasing a plan to attract home buyers and protect the house while it’s on the market.

MORE: How to decide if a home warranty is worth it

Should I renew my home warranty?
To decide if your home warranty is worth renewing, you’ll want to ask yourself a few questions.

1. How old is your home?
2. How old are the systems and appliances in your home?
3. Did you use your home warranty in the previous year?

If you’re the owner of an older home or the systems and appliances in your home are over ten years old, you might want to think seriously about renewing your home warranty. If you’re on the fence, one of the best questions you can ask yourself is: have you used your home warranty? If you’ve used it, did the warranty save you a significant amount of money on repairs? Was the company easy to work with? If you didn’t use it, do you feel your monthly payment may have been better put into a personal home repair savings account?

Also consider if you want to make any adjustments to your plan, like adding or removing covered items to make your policy a better fit for your home.

What are the different types of home warranties?

Homeowner warranty

Homeowners can purchase a home warranty at any time. Whether you’re a new homeowner, getting ready to sell your home, or planning on staying in your current home for the foreseeable future, a home warranty should be available to you from a number of providers. Most homeowner warranties do not go into effect until a 30-day waiting period has passed.

Buyer direct home warranty

A buyer direct home warranty is a warranty purchased at the same time a home 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. A buyer can purchase this type of warranty up to 90 days after a closing.

Real estate home warranty

Whether they’re representing buyers or sellers, sometimes real estate agents choose to purchase a home warranty as a courtesy for their clients. If you’re a listing agent you can get some peace of mind that your client will easily be able to fix any issues that crop up while the home is on the market. If you represent buyers, a warranty can help you clinch the sale by relieving any anxiety about repair bills.

Home warranties for rental properties

Landlords can greatly benefit from the security of a home warranty. You’ll be 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 a home builder 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 like the home’s foundation.

Other home warranties

Warranties aren’t just for single-family houses. Condo warranties and mobile home warranties are also available.

Who should pay for a home warranty?
Who pays for a home warranty may differ depending on the location and circumstances of the sale. Buyers, sellers, real estate agents and current homeowners are all eligible to buy a home warranty protection plan. In many places, it is customary for the seller or real estate agent to package a home warranty as part of the purchase price of the home as an added benefit to the buyer. This can be particularly attractive for first-time buyers, or when the home on the market is an older property.

Home warranty seller benefits

• Protect your home while it’s on the market
• Attract more interested buyers
• Close deals faster

Home warranty buyer benefits

• Peace of mind, especially when buying an older home
• Convenient, reliable service around the clock
• Renewable each year

Can I buy a home warranty after closing?
Yes, a home warranty can be purchased at any time.