A home warranty is different from homeowners insurance. It covers the repair and replacement of major home systems and appliances when they break down from normal use.
On average, it costs around $50 per month for comprehensive coverage, which protects both systems and appliances. The total cost of a home warranty is made up of a monthly premium and a service fee that you pay when you make a claim and a contractor visits your home to diagnose the problem.
Below, we compare the lowest-cost home warranty companies and explain how you can evaluate what policy will work best for you. Keep in mind that the cheapest home warranty plan might not always be the best value.
Top 6 cheap home warranties
We found five of the cheapest home warranty companies with decent ratings. The service fees differ based on the coverage plan you choose, but monthly costs start around $30 or less. All of our top picks offer combo plans that average less than $60 per month. Read our methodology to learn how we made our picks.
Home warranty companies usually have plans where you can pay a lower monthly fee but have a higher service call fee. Most companies also provide a discount if you pay for a year of coverage upfront.
- HomeServe: Our pick for low starting costs
- First American Home Warranty: Our pick for combo plans
- 2-10 Home Buyers Warranty: Our pick for service fee options
- Cinch Home Services: Our pick for guaranteed repairs
- America's 1st Choice Home Club: Our pick for value
- OneGuard Home Warranties: Our pick for low service fee
All prices are based on a quote for a house of less than 5,000 square feet in Austin, Texas. Information is accurate as of publishing.
- Starts at $7.99 per month
- Annual premiums: $95.88 to $699.96
- $100 service fee
- 20% off your first year on TotalHome plans
HomeServe offers relatively inexpensive plans. For example, you can get a plan specifically for exterior water service line coverage for just $7.99 per month. Interior plumbing and drainage system coverage is $12.99 per month on its own.
At around $58, the average monthly costs for combo plans are pretty standard. Still, it’s nice that you can add additional coverage at any time after you sign up. Service recall periods are typically one year.
Some recent reviewers highlight that HomeServe provides peace of mind at a good value. We like that you can submit claims 24/7 through an app. Plans are available throughout the U.S. and parts of Canada.
- Starts at $38 per month
- Annual premiums: $420 to $546
- $85 service fee
- Discount for paying annually
First American Home Warranty offers flexible payment options to cover repairs and replacements. The average combo plan costs $48.50 per month and comes with a flat-rate service fee.
The Basic plan covers your essential major appliances (refrigerator, washer, dryer, oven and cooktop). It doesn’t cover things like your garage door opener or water heater. With the Premier plan, you also get coverage on plumbing, electrical and heating systems.
If something goes wrong, you can request service 24/7 through an online portal. Some recent reviewers say claims are processed quickly. A service provider contacts you to schedule an appointment. Depending on the diagnosis, the repair or replacement process begins right away.
You can cancel within 30 days for a full refund. Beyond that, you could still be eligible for a prorated refund (minus the amount for any claims paid).
- Starts at $18 per month
- Annual premiums: $264 to $720
- $65, $85 or $100 service fee
- Save $5 a month with auto-renewal discount
2-10 Home Buyers Warranty works well if you are looking for a wide range of coverage options and a variety of price points. The company has been in business for 41 years and has paid 97.5% of claims, according to its website.
The average 2-10 combo plan costs $51 per month. You can get coverage for most appliances and home systems, plus there is add-on coverage available. Once you sign up, you have 30 days to add coverage or cancel the plan.
If you have a newly built home, consider the structural warranty (usually homebuilders cover the cost). Read recent reviews to learn more.
- Starts at $27.99 per month
- Annual premiums: $335.88 to $743.88
- $65, $85 or $100 service fee
- Discounts if you decide to buy a new appliance
Cinch Home Services is a home warranty company that offers coverage for many appliances and major systems in the home. In addition to systems-only and appliances-only plans, there is a full-home coverage package that covers both appliances and systems like electrical and plumbing. The company has been in business for over 40 years.
The company offers a 180-day workmanship guarantee on repairs. The plan also offers benefits like a free water sensor for leak detection and a $25 credit for air filters. Additional perks Cinch Home Services offers include coverage for preexisting conditions and coverage even if there is rust or corrosion present.
The price for Cinch Home Services falls in the middle range of the low-cost options, but with its added perks, it is a good choice for a cheaper home warranty. Read recent reviews to learn more.
- Starts at $32.08 per month
- Annual premiums: $330 to $550
- $75, $100 or $125 service call fee
- Discount for paying annually
America’s 1st Choice Home Club offers affordable coverage with four plan options. On average, comprehensive coverage costs $55 per month. You can find add-ons for items like pool/spa, a septic system, a stand-alone freezer and a sump pump.
It’s not the cheapest of the cheap, but you get enough extra perks in plans to make it a great value — free credit monitoring and identity protection from MoneyTips, discounts on household items, home security discounts and savings at restaurants and retailers.
Another major benefit of America’s 1st Choice Home Club is the ability to choose your own licensed and insured technician. There is also a guarantee on repairs for up the three years. The policy doesn’t cover preexisting conditions or appliances or systems with signs of rust or corrosion.
Homeowners can contact America’s 1st Choice Home Club to make a service request by phone or online 24 hours a day. Recent reviews for the company are generally positive.
- Starts at $32 per month
- Annual premiums: $384 to $708
- $69 service call fee
- Military discounts
OneGuard Home Warranties offers low-cost home warranty plans in Arizona, Nevada and Texas. If you live in one of these states, it is worth considering a plan from the company. Plans cover appliances, systems or both, and each includes services such as carpet cleaning, pest control and window cleaning.
Policies from OneGuard Home Warranties don’t cover items that break from improper use or that were malfunctioning before coverage took effect. The company works with a network of home service providers to complete service calls.
Plans that cover both systems and appliances cost less than $60 per month with a $69 service call fee.
OneGuard Home Warranties has been in business over 30 years. The company provides affordable home warranty coverage, especially if you are interested in home maintenance services. Read recent reviews to learn more.
Cheap home warranties to avoid
One concern when purchasing a home warranty is avoiding red flags. There are several warning signs that indicate a home warranty isn’t legitimate or the right company for you.
Slow claims process
When you need to make a service claim, the last thing you want is for it to be a hassle. Do your research about the claims process for any home warranty company you are considering. Does the home warranty provider have a way to file a claim online or through an app? Can you call if you want? Can you make a claim 24/7? If there isn't a clearly laid-out way to make a claim for service, cross the company off your list.
Bad customer reviews
Customers can tell you a lot about a company. If there’s a large number of reviews that mention difficult claims filing, denied claims, poor repairs or bad customer service, you should look elsewhere.
Limited service network
Researching a home warranty company’s service technician network is important. First, make sure the company has a process to check contractor licensing and insurance. Then ask how many contractors are in your area. If the company doesn’t have enough contractors near where you live, it could lead to difficulty scheduling repairs and longer waiting times.
Repair and replacement restrictions
You might assume you don’t need to look too closely at the home warranty contract, but you definitely want to read it. The contract should cover the following topics below, and you should make sure the terms meet your expectations so there are no surprises.
- What are the repair limits? All home warranty companies have dollar limits for repairs. This means that for each system or appliance, there is a maximum amount of money the company will pay for a repair. The numbers listed as limits should be consistent with what the costs are in your area. Companies also limit what parts or components of a system or appliance are covered; check the terms for each household item.
- What is the replacement policy? If an appliance or system can’t be repaired, the home warranty company should offer a replacement. If there is a replacement, there will be a limit on the amount the company will pay. Understanding these details can save you a headache if you end up with something that can’t be fixed.
- What is the time frame for repairs? You can get this information from the home warranty company, but it is also something you can research by reading customer reviews. The company might say it aims to have a technician come out within 48 hours, but customers might note longer times before a contractor arrives.
What factors influence the cost of a home warranty?
Some home warranties are as expensive as $100 per month, while others sit below the $20 mark.
The range of costs for a home warranty varies widely. Some cost $100 or more per month, while others cost below $20 monthly. There are many factors that companies use when determining the cost of their services. Here are some of the main ones:
- Plan type: What items the home warranty covers has a large effect on the cost. If you choose a plan with more items covered, like a combo plan that covers both appliances and systems, the cost will be higher than a policy that covers just appliances or systems.
- Service call fee: The service call fee, or the amount you pay each time you make a claim and a contractor comes to your home, varies between companies. Some companies offer multiple options. In general, the higher your service call fee is, the lower your plan cost is.
- Geography: Where you live can affect the cost of your home warranty. If you live in a city where contractors charge more, the cost of your plan is going to be higher.
What to look for in a home warranty (besides cost)
Cost matters when you’re choosing a home warranty. However, you also want to make sure you are selecting a reputable provider with the right coverage for your home. Consider the factors below when making your decision.
- Differences between the service plans: If you have something specific you want covered, make sure it's in the plan you select. This is especially important if it's something that not all companies cover in their standard plans, like roof leaks.
- Coverage limits: Warranty companies have caps on how much they'll pay to repair certain appliances and systems. You will usually have to pay for any costs that go above the limit. Check also for parts and components that are excluded from coverage.
- Service provider network: Some companies allow you to choose your own licensed service technician, but most assign a contractor from their networks. Check that a company screens contractors for proper licensing and insurance.
- Replacement policy: The fine print of a home warranty contract states the criteria for replacing a product when it can’t be repaired properly. Understanding the replacement policy is an important factor when choosing a provider.
- How to submit a claim: Most home warranty companies now offer the ability to submit claims online, through an app or by calling a toll-free number. Before purchasing a plan, you should know how to submit a claim and make sure it’s convenient for you.
- Customer service access: If there’s a breakdown and you try to call customer service and cannot get a person on the phone, it only adds to your frustration. Look for a company that gives you 24/7 access to customer service.
- Positive customer reviews: Customer reviews speak volumes about a home warranty company. Read them to learn about homeowners’ experiences with the provider.
Compare our top picks
Compare our picks for cheap home warranty companies on premiums, service fees and ratings.
|Monthly premiums*||Average combo plan*||Service fee*||Overall satisfaction rating*|
|America's 1st Choice Home Club||$32.08 to $55||$55||$75, $100 or $125||4.3|
|Cinch Home Services||$27.99 to $61.99||$56||$100, $125 or $150||4|
|2-10 Home Buyers Warranty||$18 to $67.79||$51||$65, $85 or $100||2.8|
|OneGuard Home Warranties||$32 to $59||$59||$69||4.2|
|First American Home Warranty||$38 to $48.50||$48.50||$85||3.8|
|HomeServe||$7.99 to $58.33||$58.33||$100||4|
*As of publishing
Are home warranties it?
Whether or not a home warranty is worth the price depends on your home’s characteristics, your financial situation and your personal preferences. If you have older appliances and systems that may break down, you don’t want to spend 100% out of pocket for repairs. Also, if you just like having financial protection, purchasing a home warranty might be a good idea. But it comes with the risk of paying for a plan you won't use at all. If you’re looking for a balance between having coverage and not breaking the bank, our picks for the cheapest home warranties should come in handy.
To find the top affordable home warranties, we compared 17 companies on starting monthly premiums, average costs for combo plans and service fees. To make our final selections, we also considered overall customer satisfaction ratings, giving preference to companies rated above 2.5 stars on our site. Availability was also a factor — we gave preference to companies that are widely available throughout the country.
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