Best Home Warranties for Rentals

Methodology

To find the best warranty coverage for rental properties, we researched 49 home warranty companies and scored them using measurable criteria grouped into two main categories:

1. Key home warranty company features

Companies earned higher scores for offering:

• Landlord-specific plans
• Longer service guarantees
• Discounts for multiple properties
• More coverage options

2. Customer satisfaction metrics

We conducted sentence-by-sentence sentiment analysis of thousands of verified customer reviews to measure satisfaction with:

• Coverage
• Pricing fairness
• Refunds and payout experience
• Customer service quality
• Claims handling
• Punctuality and speed
• Service technicians

The ConsumerAffairs Research Team takes a data-driven approach guided by our expert editors. Each company received a score from 1 to 10 for every metric, with 10 awarded to the top performer in that category. Metrics are weighted differently for each award calculation.

The company with the highest score in each category’s uniquely weighted formula was given the “Our pick for” designation. In some cases where a single company received the top score across multiple categories, the company with the second-highest score was named the winner.

A guide to home warranties for rental properties

Owning a rental property may involve dealing with maintenance calls at inconvenient times. A home warranty can reduce stress by covering repair costs and handling the logistics when systems and appliances break down. Below, we’ll explain how to choose the right coverage and what warranties typically include for rental homes.

How to choose a home warranty for a rental property

Rental properties need warranties that can handle heavy tenant use and minimize repair delays.

Here are four steps to pick a dependable home warranty:

1. Identify your property’s weak points

Look at what’s most likely to fail based on age and tenant usage patterns. In rentals, refrigerators, dishwashers and HVAC systems may break down more frequently than in owner-occupied homes. If your property has all older appliances but newer plumbing and electrical, an appliances-only plan saves money while covering your biggest risks.

Check your contract for coverage caps. For example, many warranties cap HVAC repairs at $1,500 or appliance fixes at $500, which might not cover full replacement costs for older units. Look for a plan with high payout limits for your most vulnerable appliances and systems. Also check whether the policy excludes preexisting conditions — if your water heater was already leaking before coverage started, you’ll likely pay out of pocket when it fails.

2. Compare service fees against expected claims

Request quotes from at least three providers and focus on the service fee structure. If you expect multiple repair calls per year (common with older rentals), consider choosing lower service fees even if monthly premiums run higher. Properties with newer equipment benefit from higher service fees that reduce monthly costs since you’ll likely file fewer claims.

Pro tip

Remote landlords and property managers should understand how claims work, including who can request service, approve repairs and coordinate with tenants.

3. Read contracts for rental-specific exclusions

Sample contracts reveal the rental property coverage limits that matter most for landlords. First, confirm that the contract applies to non-owner-occupied homes. Next, assuming that tenant-occupied properties are eligible, check whether property-manager-managed homes qualify and whether there are any vacancy limitations. It’s also worth investigating whether both short-term and long-term rentals can be covered.

Note that under a home warranty you may not be able to choose your own contractor. Among our picks for this article, only Old Republic Home Warranty and Regency Total Warranty allow you to go outside of their service provider network, although strict preauthorization restrictions apply. Additionally, home warranty coverage typically doesn’t apply to building code upgrades, although American Home Shield’s ShieldPlatinum plan does include this benefit.

4. Prioritize fast contractor response times

In occupied rentals, a fast response time when something breaks down is key. Choosing a home warranty company with 24/7 claims processing and emergency dispatch capability can help.

Read landlord reviews to find providers known for quick dispatches in your area. When a tenant’s air conditioning breaks down in summer, waiting a week for repairs strains your relationship and risks lease violations. Companies with large local contractor networks typically schedule service within 48 hours, minimizing tenant frustration and potential vacancy costs.

To avoid repeat service calls that can rack up additional fees, verify how long each company’s repair guarantee lasts. Some providers offer a workmanship guarantee for only 30 days, whereas others extend a 180-day repair guarantee or back their repairs for the full length of your contract.

Warranty coverage for rental properties

Landlords face repair costs that property insurance won’t touch. When your tenant’s refrigerator dies or the HVAC system quits from years of constant use, you’re on the hook. Home warranties step in to cover these mechanical failures, handling both the repair costs and contractor coordination.

You can expect standard warranty plans to cover the following:

• HVAC systems (heating and cooling)
• Plumbing and electrical systems
• Water heaters
• Built-in appliances (e.g., refrigerators, ovens and dishwashers)
• Washers and dryers
• Smaller items (e.g., garbage disposals and ceiling fans)

Note that home warranty providers may have different eligibility rules and add-on requirements for long-term and short-term rentals. If you operate a vacation rental or need guest unit coverage for an ADU or secondary unit on your main property, confirm that you can get coverage before signing a contract.

What home warranty plans won’t cover

Most warranties exclude the following from coverage:

• Preexisting problems known before coverage started
• Damage from poor maintenance or improper installation
• Cosmetic issues such as dents and scratches
• Items still under manufacturer warranty
• Specialty features (e.g., pools, well pumps and septic systems) unless you buy add-on coverage

If the warranty company can’t repair an item, it’ll typically offer replacement up to the plan’s limit or give a cash settlement toward buying a new unit. The replacement value often takes into account depreciation, so you may need to cover part of the cost for high-end appliances.

Don’t get confused

Landlord insurance and home warranties cover different risks. Insurance covers property damage, liability and lost rent, while a warranty covers system and appliance breakdowns from normal wear and tear. Having both offers broader protection.

Pros and cons of home warranties for a rental property

Home warranties help manage repair costs, but like anything else, they aren’t right for every landlord or property.

How much is a home warranty for a rental property?

On average, rental home warranties cost between $350 and $900 per year. Your total expense depends on the plan you choose, how many service calls you make and whether you add optional coverage for specialty items.

Breaking down the costs

Monthly premiums typically range from $30 to $90. Comprehensive plans covering both systems and appliances may land around $60 per month.

Service call fees run $75 to $150 per visit. You’ll pay this each time a technician comes out, regardless of whether the repair is covered.

Add-ons for pools, septic systems or extra appliances cost $5 to $25 monthly per item.

The real cost difference for rentals comes from the frequency of use. Properties with tenants may generate more service calls than owner-occupied homes due to heavier wear on appliances and systems.

For instance, if you file six claims in a year at $100 per visit, that’s $600 in service fees alone on top of your annual premium.

Cost factors to consider

Several factors determine how much you’ll pay for coverage:

• Property size: Bigger homes may have more systems and appliances to protect, pushing premiums higher than smaller properties.
• Coverage level: Basic plans covering only systems cost less than comprehensive packages that include appliances and optional add-ons.
• Location: Regional labor costs and contractor availability affect premiums and service fees.
• Equipment age: Older properties often benefit most from warranties. But they may hit coverage caps that don’t fully pay for necessary replacements.
• Multiproperty discount: If you want to cover multiple homes, you may be eligible for portfolio pricing. Consider any annual premium discount alongside coverage limits and service fee pricing when estimating your total home warranty cost.

FAQ