In today’s volatile housing market, ensuring your home is protected against unexpected repairs and replacements is more crucial than ever. As homeowners seek peace of mind amidst the unpredictability of homeownership, home warranty companies have stepped up to offer a buffer against unforeseen expenses.
5 Best Home Warranty Companies
With so many options available, pinpointing the most reliable and value-packed home warranty company can be daunting. To help you choose, we’ve curated a list of the best home warranty companies to ensure your home’s systems and appliances receive the top-tier coverage they deserve. Take the time to discover which provider aligns best with your needs.
1. Choice Home Warranty
There are plenty of reasons to go with Choice Home Warranty. First, they are a top-rated business according to ConsumerAffairs.com and have an average rating of 4.8 out of 5.
2. Advanced Home Warranty
Advanced Home Warranty offers comprehensive coverage and a 24/7 claims hotline, making it a strong choice for anyone considering a home warranty.
3. Liberty Home Guard
Liberty Home Guard offers a high degree of personalization for your home warranty coverage. For example, you can pick the plan and also how often you want to be billed.
4. Complete Protection
Complete Protection is another excellent home warranty company. Servicing all but nine states, this A+ Accredited Business is open 24/7.
5. American Home Shield
The accolades American Home Shield has received are many. In addition to being a Better Business Bureau Accredited Business, they also received the Women’s Choice Award from 2014 to 2016.
Methodology: How We Chose The Best Home Warranty Companies
When researching the best home warranty companies, we analyzed over 20 of the most popular home warranty companies. Our team spent hours reviewing each home warranty company. We examined many factors, but mainly focused on the following:
- Home warranty plans and options
- Pricing
- Reputation and trustworthiness
- Customer reviews
Pros & Cons of Home Warranties
Home warranties come with real benefits, but they’re not perfect for everyone. Here’s a straightforward look at both sides to help you decide if one makes sense for your situation.
Pros
There’s a reason millions of homeowners carry a home warranty. The right plan can save you money, stress, and time when something goes wrong.
- Peace of mind: A home warranty gives you a financial cushion against unexpected repair costs. Instead of dreading the next breakdown, you know you’re covered.
- Convenience: Your provider connects you with a pre-screened, licensed technician from their network. You don’t have to scramble to find someone reliable on your own.
- Potential savings: Repairs covered under warranty are almost always cheaper than paying out of pocket. A single HVAC or plumbing repair can easily exceed what you’d pay in an entire year of coverage.
- Transferability: Many home warranties transfer to a new owner if you sell your home, which can also be a selling point when you list.
Cons
A home warranty isn’t a perfect solution. There are a few drawbacks worth knowing before you commit.
Cost: Between your monthly premium and per-visit service fees, costs can add up. If your appliances are newer and unlikely to break down soon, the math may not work in your favor right away.
Wait times: You may have to wait one to two business days for a technician, sometimes longer. If you need an urgent repair, that timeline can be frustrating. Choosing a provider with an online claims process can help speed things up.
Coverage exclusions: Home warranties don’t cover everything. Pre-existing conditions, improper installations, and certain components are often excluded. Read the contract carefully before signing.
Other Home Warranty Companies to Consider
Here are a few other home warranty companies that didn’t make our top 5 that you may still want to look into.
- The Home Service Club
- First American Home Warranty
- AFC Home Club (America’s 1st Choice)
Like so many things in our lives, a home warranty is something that we don’t often think about until we absolutely need it. Sure, you have home insurance, maybe even flood insurance, but that only covers certain situations.
Homeowners Insurance
Homeowners or renters insurance can cover damage to your home from things like fire, theft, storms, and some natural disasters. In addition to your homeowners insurance plan, you should choose to purchase a home warranty to protect your belongings in a way that insurance lacks.
If you’ve ever purchased a large appliance, a computer, or even a television from a retailer, then you’re probably familiar with the concept of a warranty.
However, those are warranties sold at the time of purchase and cover only one product. The benefit of home warranty protection is that it can cover every product in your home and more.
Choosing a Home Warranty Plan
What a home warranty plan covers will depend on the plan you choose, and there are many to choose from. A home warranty can cover anything from your microwave oven to your plumbing and your electrical systems.
Deciding which plan is right for you will determine what items and systems it covers and how much it will cost. Typically, home warranties charge either a small monthly or annual fee that can save you a lot of money in the long run.
How to Choose the Right Home Warranty
Choosing the right home warranty is key. Let’s run through all the details you need to consider before making your decision.
Determine Your Coverage Needs
At the very least, it’s important to get at least an idea of what sort of coverage you need. Take the time to decide which items in your home you want to protect before comparing offers. You’ll find plans that cover appliances, home systems, and plans that cover both.
Compare Quotes
It’s worthwhile to shop around. Try to acquire at least three different quotes from plans that you’re genuinely interested in. And use this time to also prioritize clearing up any questions you have about the policies you’ve been offered.
Don’t forget to pay close attention to the various prices you’ll see for service call fees. Some companies are much more competitive than others, and some even offer a service fees range which you can choose from depending on your needs and budget.
Review Sample Contracts & Liabilities
The next step is to review any sample contracts carefully. You’ll want to identify the limitations and exclusions in the contract, especially.
Furthermore, be sure to double-check cancellation policy just in case you decide your warranty isn’t working for you later on.
Check Reviews
Finding the best home warranty company for you will require some further research. You can read customer reviews online to find a company that provides great customer service as well as competitive plans.
Be sure to look out for any record of previous legal action taken against the company, too.
Final Thoughts
A home warranty isn’t something you want to think about after your AC dies in July or your water heater gives out on a Sunday night. The time to get covered is before something breaks, not after. If your home is more than a few years old or your appliances are getting up there in age, the cost of a single major repair can easily outweigh an entire year of coverage.
The right plan comes down to knowing what you need. If you own your home, a combined systems and appliances plan gives you the most protection. If you’re renting, an appliance-only plan is probably enough. Either way, compare at least two or three providers, read the service contract closely, and pay attention to what’s excluded. A home warranty is only as good as what it actually covers.
The companies on this list are a strong starting point. Each one has been vetted for coverage, pricing, and customer service. Pick the plan that fits your home, your budget, and your risk tolerance, and you’ll be in a much better position the next time something goes wrong.
Frequently Asked Questions
What is a home warranty?
A home warranty is a service contract that covers the repair or replacement of home systems and appliances when they break down from normal wear and tear. You pay a monthly or annual fee, and when something goes wrong, you file a claim, a licensed technician comes out, and you cover a small service fee instead of the full repair bill.
It’s not the same as homeowners insurance, which covers damage from fires, storms, and theft. A home warranty covers the stuff that just wears out over time.
What does a home warranty cover?
Coverage depends on the plan you choose, but most companies offer three tiers: appliances only, systems only, or a combo of both. Appliance plans typically cover things like your refrigerator, washer, dryer, dishwasher, and microwave.
System plans cover the big infrastructure stuff like HVAC, plumbing, and electrical. Combo plans cover both and usually offer the best overall value, often saving you 20% to 30% compared to buying separate plans. Items like pools, septic systems, and well pumps are usually available as add-ons.
What is not covered by a home warranty?
A home warranty is not a blank check. Most plans exclude structural issues, flooring, paint, pre-existing conditions, and problems caused by improper installation or maintenance.
Rust, corrosion, mold, and code violations are also typically excluded. Always read the contract carefully so you know exactly what’s in and what’s out before you need to file a claim.
How much does a home warranty cost?
Pricing varies by provider, plan, and location, but here are rough ballpark figures to work from:
- Appliances only: Around $30 per month
- Systems only: Around $35 per month
- Combined coverage: Around $45 per month
On top of your plan fee, you’ll also pay a service fee each time a technician comes out. Service fees typically range from $50 to $125 per visit, depending on the provider and plan. Some companies let you choose your service fee tier, which can help you balance your monthly cost against out-of-pocket repair expenses.
What can you expect to pay without a home warranty?
The average repair cost of a refrigerator is $275 to $325. The igniter on an oven or range may only cost $110 to $200 to repair, but a control board could cost you more than $260.
Replacing a rubber gasket on your washer will set you back between $200 to $300. These expenses can quickly add up compared to the fee home warranty companies charge for a visit.
What should I expect when I file a claim?
Contact your home warranty company as soon as something breaks. They’ll assign a licensed contractor to assess the problem and handle the repair. Depending on the issue, the contractor may need to order parts or schedule a follow-up visit.
You’ll pay your service fee, and the warranty covers the rest for approved repairs. Most reputable companies also back their work with a workmanship guarantee, typically 90 to 180 days after the repair is completed.
Are there any waiting periods?
Yes. Most home warranty companies require a 15 to 30 day waiting period before your coverage kicks in. This is standard across the industry. If you’re switching from one plan to another, some providers will waive the waiting period so there’s no gap in coverage.
Is a home warranty worth it?
The answer to this question will depend largely on your unique circumstances. If your home is older or your appliances have a lot of miles on them, a home warranty can save you significant money. The average refrigerator repair runs $275 to $325, and HVAC or plumbing issues can cost far more.
If you’re not particularly handy and prefer not to deal with finding contractors on your own, a home warranty also adds real convenience. For newer homes with newer appliances, the math may be less clear, but the peace of mind alone is worth something to a lot of homeowners.
How do I cancel my home warranty?
Start by reviewing your contract to understand the cancellation terms. Most companies charge a cancellation fee of 5% to 10% of the remaining contract value.
Contact the company directly and request cancellation in writing if required. Make sure to cancel any automatic payments tied to the plan and keep a written confirmation of the cancellation for your records.
Full Reviews of Home Warranty Companies
Looking for more options? Check out our other home warranty reviews below.
