Best Home Warranty Companies

We compared 49 companies and chose the top home warranty providers

    • Best overall
      Cinch Home Services
      4.1(11,824)
    • Best value
      American Home Shield
      3.8(106,157)
    • Claims handling
      Old Republic Home Protection
      4.0(1,794)
    +3 more
    Author picture
    Fact-checked by: Jon Bortin

    Best Home Warranty Companies

    Home warranties help cover the cost of repairs and replacements for your home’s major systems and appliances. Our research team compared dozens of companies and chose our top seven home warranty picks based on plan options, customer reviews, coverage limits and price. Based on our analysis, Cinch Home Services, American Home Shield and Regency Total Warranty are some of the best home warranty companies in the U.S.

    Why trust ConsumerAffairs?
    • Our recommendations are based on what reviewers say.
    • 4,676,272 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: Regency Total Warranty
    4. Best coverage variety: Old Republic Home Protection
    5. Best technicians: Choice Home Warranty
    6. Best for quick service: First American Home Warranty
    7. Best for roof coverage: Select Home Warranty

    Read our full methodology for details on how we selected 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.

    Key insights

    Cinch Home Services is our pick for the best overall home warranty company in 2025. American Home Shield wins for best value, and Regency Total Warranty is best for claims handling.

    Jump to insight

    The average annual cost for a home warranty is about $684 as of June 2025.

    Jump to insight

    A home warranty can be worth it if you have an older home, are buying or selling a house or 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

    Compare our top picks

    Learn more about home warranties
    2025 Buyers Choice Award Winner
    Cinch Home Services
    Monthly premium cost
    $38.99 to $66.99
    Service call fee
    $100, $125 or $150
    Labor guarantee
    180 days
    Availability
    48 states

    We chose Cinch Home Services as our No. 1 pick for its 180-day labor guarantee, its reasonably priced plans and its quick service — expect reps to contact a contractor within two hours once you report an issue. We think it’s worth considering for a variety of coverage needs, whether you’re looking for 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

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

    Cinch Home Services has three plan options: an appliances plan (starting at $38.99, $47.32 or $48.99 per month), a systems plan (starting at $43.99, $52.32 or $55.99 per month) and the Complete Home plan (starting at $54.99, $63.32 or $66.99 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.

    You can add extra coverage to a plan for an additional monthly fee.

    • Septic tank and pumping: $4.58
    • Well pump: $12.50
    • Premier upgrade package: $12.50
    • Pool and spa (heater included): $22
    2x Award Winner
    Selected for having one of the highest satisfaction rates for Best Customer Service and Best Overall Process
    2025 Buyers Choice Award Winner
    American Home Shield
    Monthly premium cost
    $29.99 to $89.99
    Service call fee
    $100 or $125
    Labor guarantee
    30 days
    Availability
    48 states

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

    Pros

    • Customizable 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

    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.

    Base plans from AHS start at $29.99 a month. You can choose a $100 or $125 deductible, but be aware 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 also has a $5,000 limit per covered HVAC system and limits each covered appliance to $2,000.
    • SheldPlatinum ($79.99 or $89.99) is the most comprehensive plan. It has the same HVAC system limit but raises the annual per-appliance limit to $4,000 and includes roof leak coverage up to $1,000.

    The following coverage is available for an additional monthly fee.

    • 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
    3x Award Winner
    Selected for having one of the highest satisfaction rates for Best Customer Service, Best Overall Value and Best Overall Process
    Buyers Choice Award Finalist
    Old Republic Home Protection
    Monthly premium cost
    $50 to $80
    Service call fee
    $100 or $125
    Labor guarantee
    None specified
    Availability
    27 states

    We selected Old Republic Home Protection as our top pick for coverage variety due to its customizable combination plans (each covers both appliances and systems). ConsumerAffairs reviewers also consistently praise the company for its service professionals, speedy repairs and smooth claims handling.

    Pros

    • Clear pricing
    • Customizable coverage
    • Educational resources
    • Discounts available

    Cons

    • No guarantee of coverage if you choose your own contractor
    • Not available nationwide

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

    Old Republic plans start at $50 per month. All plans are combination plans, meaning coverage includes a selection of both appliances and systems rather than one or the other.

    Service fees are either $100 or $125 — you’ll have to decide if you’d rather pay a higher service fee and lower premiums each month or a lower service fee and higher monthly premiums. Contracts range from one to five years.

    • Basic plans cost $50 a month if you choose the lower service fee or $55 if you opt for the higher fee. Coverage includes 22 basic systems and appliances.
    • Deluxe plans cost $75 or $80, depending on your service fee. Coverage includes everything in the Basic plan plus six additional items.
    • Elite plans cost $75 or $80 (this varies by service fee selection). Coverage includes everything in the Deluxe plan, plus increased plumbing coverage.

    For an additional monthly fee, you can add the following extra coverage.

    • Second refrigerator: $4.17
    • Septic system: $6.25
    • Roof leak repair: $8.33
    • Well pump: $8.33
    • Pool and spa: $20
    Buyers Choice Award Finalist
    Choice Home Warranty
    Monthly premium cost
    $49.17 to $57.50
    Service call fee
    $100
    Labor guarantee
    30 days
    Availability
    49 (not Washington) states

    Choice Home Warranty reviewers love its network of repair professionals, earning it our pick for best technicians. The company also stands out for the inclusion of HVAC coverage in its most basic plan, and its policy is to respond to service requests within four hours. (And anyone who’s ever had their air conditioning break in the summer or heating go out in the winter knows the importance of a fast response time.)

    Pros

    • Optional roof leak coverage
    • No transfer fee
    • 24/7 customer service
    • No home inspection required

    Cons

    • $500 roof repair cap
    • Not available nationwide

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

    Basic plans start at $49.17 per month and Total plans start at $57.50 per month. Both have a flat $85 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: This plan covers 14 systems and appliances, including heating, electrical and plumbing.
    • Total: This plan includes everything in Basic and covers your washer and dryer, refrigerator and air conditioning system.

    Add the following coverage to your plan for an additional monthly fee.

    • 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
    Best claims handling
    Regency Total Warranty
    Monthly premium cost
    $39.99 to $45.83
    Service call fee
    $60 to $100
    Labor guarantee
    Unclear
    Availability
    50 states

    Regency Total Warranty customers frequently mention the company’s smooth claims handling, which is a huge consideration when choosing home warranty coverage. Regency offers two combination plans for both systems and appliances, EssentialGuard and TotalGuard (versus the more standard systems-only and appliances-only options).

    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

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

    Regency’s two plans offer different degrees of coverage for your home’s systems and appliances. Costs start at $39.99 per month, with a potential savings of $50 per year if you pay annually.

    • EssentialGuard: This plan covers three home systems and 10 appliances. It starts at $39.99 monthly or $429.99 annually (as of publishing).
    • TotalGuard: This plan covers five home systems and 14 appliances. It starts at $45.83 per month ($499.99 per year).

    Regency offers additional coverage for the following:

    • Pools and spas
    • Well pumps
    • Sump pumps
    • Central vacuums
    • Limited roof leaks
    • Septic systems
    • Second refrigerators
    • Stand-alone freezers
    • Septic tank plumbing
    2025 Buyers Choice Award Winner
    First American Home Warranty
    Monthly premium cost
    $42 to $82
    Service call fee
    $100 or $125
    Labor guarantee
    None specified
    Availability
    35 states

    Thousands of verified First American Home Warranty customers report speedy, high-quality repair and replacement of their systems and appliances, making it our recommendation for quick service. The company’s plans also have fairly low starting costs and flexible service fees, and reviewers frequently 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

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

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

    • Starter: This basic plan covers major systems like heating, plumbing, electrical and ductwork, common kitchen appliances and toilets. Monthly premiums are $57.00 or $62.00.
    • Essential: This mid-tier plan includes everything in the Starter plan plus fans, garage doors, washers and dryers. Monthly premiums are $57 or $62.
    • Premium: First American’s most comprehensive plan covers everything in the Essential plan, plus hot/cold water dispensers and central vacuums. Monthly costs are $77 or $82.

    Additional coverage is available with the following monthly fees.

    • 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
    2x Award Winner
    Selected for having one of the highest satisfaction rates for Best Customer Service and Best Overall Process
    2025 Buyers Choice Award Winner
    Select Home Warranty
    Monthly premium cost
    $60.42 to $63.75
    Service call fee
    $75 to $100
    Labor guarantee
    180 days
    Availability
    47 states

    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 runs frequent specials that 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

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

    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 the extra coverage to your plan for an additional monthly fee.

    • 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
    1x Award Winner
    Selected for having one of the highest satisfaction rates for Best Overall Value

    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 essential 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 come with a monthly premium and a service fee for repairs, but each offers varying tiers of coverage options, pricing structures 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.

      How to choose the best home warranty company

      It’s important to choose the right home warranty company and plan for your home. Service contracts can be confusing, but below are some tips for finding the right coverage.

      1. Consider your needs and compare plans: Do you want to cover your appliances, systems or both? Comprehensive coverage or basic? Once you decide what type of plan you need, get quotes from multiple companies — some may match prices. As you research different plans, compare the numbered of covered items, service call fee options, coverage exclusions, and monthly and annual fees.
      2. Look at sample contracts: See if companies have sample contracts to review — you might have to do a little digging on the website or contact customer service. The sample contract will provide more extensive information about coverage, exclusions, the claims process, additional fees, and terms and limitations. It should also explain how to cancel your home warranty. Be sure to read the contract carefully and get answers to any questions you have before making a commitment.
      3. Read reviews: The best way to understand the experience you’re likely to have with a home warranty company is to read reviews from current and existing customers on sites like ours. Overall, customers care about an easy claims process — without frequent claim denials — experienced, timely contractors, transparent pricing and good customer service.

      » LEARN: How to find a remodeling contractor

      How much does a home warranty cost?

      As of publishing, home warranties typically cost between $30 and $90 a month, according to quotes we received from 22 companies. The average yearly cost is about $684.

      Premium plans average around $60 per month. You pay a service call fee (similar to a per-claim deductible) for a technician to visit your home and diagnose the problem. Today’s providers typically charge anywhere from $50 to $150 per visit, depending on your plan and location.

      Paying annually, signing a multiyear contract and taking advantage of promotions can reduce overall costs.

      Your costs depend on the plan you choose and any add-on coverages. Basic plans covering fewer systems and appliances cost less, while comprehensive plans that cover both systems and appliances have a higher price tag. Prices will also vary depending on where you live, as the cost of labor and materials differs by region.

      » COMPARE: Best cheap home warranties

      Is a home warranty worth it?

      Home warranties are often worth it — it just depends on your specific circumstances. Many homeowners appreciate their warranty plans simply for the peace of mind, but not everyone has a chance to actually use their coverage. Your finances, the condition of your home and the age of your appliances all impact your likelihood of making a warranty claim.

      If any of your appliances or systems are near the halfway point of their lifespan, you might want a home warranty. Most major appliances last 9 to 12 years, and many HVAC systems start aging out after just 5 years of use.

      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. ”
      — Thomas Patrick, finance professor, The College of New Jersey

      Buyers, sellers, real estate agents and current homeowners are all eligible to buy a home warranty. In some areas, it’s common for the seller or real estate agent to package a home warranty into the purchase price. If you’re a first-time homebuyer and aren’t familiar with repairing home systems and appliances, a home warranty may be especially worth it. If you have a rental property, a home warranty protects you against unexpected costs when major systems or appliances malfunction.

      The Consumer Financial Protection Bureau's Home Loan Toolkit stresses reserving funds for repairs and maintenance, often estimating 1% to 3% of a home's value per year. On a $375,000 home, that translates to $3,750 to $11,250 set aside annually. That’s far more than the typical $300 to $900 home warranty annual premium, plus two or three $100 service fees.

      When is a home warranty not worth it?

      A home warranty may not be worth it if:

      • Your systems and appliances are new and still under a manufacturer’s warranty.
      • You have a large emergency fund and prefer to self-insure. As David in Georgia told us in a review, “We paid for an annual subscription which is $700, and we got paid 300 and something dollars for this specific repair. If I put $650 in the bank, I could have just taken $350 out to pay for this repair.”
      • You want full freedom to hire your own contractors without restrictions.

      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 process
      • Fine print with limitations
      • Less choice with contractor
      • Chance you won’t use it.

      What does a home warranty cover?

      Home warranty plans cover specific home appliances and systems. Providers differ slightly in their coverage, but systems plans generally cover electrical, HVAC, plumbing, water heater and ductwork. Appliance coverage typically includes washers, dryers and kitchen appliances (e.g., your dishwasher, refrigerator, oven/range/cooktop, garbage disposal and built-in microwave).

      Add-on coverage is usually available for an extra fee. Usually, you can add the following to any base plan:

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

      What a home warranty doesn’t cover

      Home warranty providers won’t cover an appliance or system with a known preexisting condition; anything where the damage is cosmetic, such as a dent or scratch; an improperly installed appliance or system; an appliance or system that’s been modified with third-party components; or anything that’s currently under another warranty.

      Keep in mind that even when an item is covered, there are exclusions in all home warranty plans that may lead to the company denying your claim. Specific components of a covered item might also be excluded. Additionally, most contracts include a per-item payout cap (often around $3,000), so costs above that limit become your responsibility.

      » MORE: How to get the most from your home warranty

      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 state-level regulations and requirements that home warranty companies must follow. 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 home 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.

      • Home warranty: Covers items that fail because of normal wear and tear.
      • Insurance: Covers damage and loss caused by outside forces such as fire and severe weather. It’s often required by mortgage lenders.

      » MORE: A breakdown of home maintenance costs

      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. Here's a more detailed look at red flags to watch out for:

      • 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

      Methodology

      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 were given a score out of 10 for each metric, with 10 going to the company with the highest value and other companies receiving relative scores. We then added together these scores to get a final score. Scores were then normalized to a 100-point scale. For each, we used a weighted scoring system that took into account all these aspects:

      • Reviews: We considered reviewer satisfaction regarding each company’s customer service, claims handling, service technicians, coverage, price, punctuality/speed and refunds/payouts. Each aspect had its own 10-point scale.
      • Number of plans: We considered the number of available plans to determine how much coverage variety each company offers. Companies with more plans received higher scores in the “best overall,” “best value” and “best coverage variety” categories.
      • Service call fee options: We gave preference to companies with a wider variety of service fee options.
      • Service guarantee: Companies with longer service guarantees (like Cinch Home Services) received higher scores.
      • Roof leak repair coverage: Companies that include roof leak repair in the highest number of plans received the highest scores. Companies that offer roof leak repair exclusively as an add-on received lower scores; those that don’t offer this coverage received a score of zero in this area.
      • 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, including discounts for new appliances, received higher scores.

      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 article include:

        1. National Home Service Contract Association, “Regulatory History of Home Service Contracts in United States.” Accessed April 8, 2025.
        2. Federal Trade Commission, “So what’s the deal with ‘home warranties’?” Accessed April 8, 2025.
        3. Cornell Law School Legal Information Institute, “Home warranty.” Accessed April 8, 2025.

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