8 Best Home Warranty Companies of 2023

The best home warranty companies can help owners pay for the repair or replacement of common systems and appliances in the event of a failure or breakdown, including those caused by normal wear and tear. This gives peace of mind to homeowners who would rather pay a fixed, monthly fee rather than get hit with expensive home repair bills.

The home warranty industry has a checkered reputation. There are numerous reports of home warranty providers that don’t live up to expectations and leave homeowners high with repair bills that appear to be covered by the contract.

So how can you separate the good home warranty companies from the not-so-great ones? We pored over dozens of service contracts and features in an effort to identify the top home warranty companies that offer the best possible value to homeowners.

Our Top Picks for Best Home Warranty Companies

• Best Plans: American Home Shield
• Best for Low Service Fees: American Residential Warranty
• Best for Customization: Liberty Home Guard
• Best for Customer-Chosen Contractors: AFC Home Club
• Best Roof Coverage: Select Home Warranty
• Best for Customer Service: Old Republic Home Protection
• Best for Appliance Replacement: First American Home Warranty
• Best for Benefits: Cinch Home Services

Best Home Warranty Reviews

Why we chose them: American Home Shield offers three comprehensive plans and a range of optional add-ons to suit any home (and homeowner). Their plans also include coverages that other companies don’t, such as protection against code and permit violations, home electronics coverage, and free HVAC tuneups for the life of the plan.

American Home Shield, or AHS, is the oldest home warranty company in the US, with over 50 years of experience behind them. They currently offer home warranty coverage in 49 states (excluding Alaska) to more than 2 million customers.

Repairs are guaranteed for 30 days, and service fees range from $75 to $125 per technician type. While AHS automatically assigns a technician from their network to your claim, they will allow you to choose your own contractor in certain instances. There are a few extra hoops to jump through for these outside authorizations, but they may be worth the hassle if you have a contractor you really trust.

There are three primary AHS plans to choose from: ShieldSilver, ShieldGold and ShieldPlatinum. Their basic plan starts at $39.99 per month. Additional coverages and features — including roof leak coverage, home electronics protection, and coverage for code violations or improperly installed systems — can be added to create a personalized warranty just for you and your home.

Why we chose them: American Residential Warranty has a trade service call fee that’s flat across the board and is lower than that charged by their competitors. Service is also available in all 50 states, and consumers consistently give this company top marks.

There are many reasons that American Residential Warranty (ARW) made our list. For example, the company offers service in all states, charges a flat trade service fee that’s less than what’s charged by the other companies on this list, and has an A+ rating with the Better Business Bureau.

If homeowners want to use their own contractors, ARW will allow them to do so. The contractor simply needs to call in for authorization prior to completing any necessary repairs. ARW also has a robust network of technicians to pull from, if needed.

ARW has three coverage plans, which can include protection against code violations, improper installations, permit issues, and previous home modifications. Claims must be filed over the phone, however, and can not be submitted online.

Why we chose them: Liberty Home Guard makes it easier for consumers to build a policy that perfectly suits their home, budget and needs. With over 35 add-on options — such as gutter cleaning, pest control, lawn sprinkler and reverse osmosis system coverage — Liberty Home Guard offers more customization features than any other home warranty provider.

Liberty Home Guard offers three different protection plans to choose from, as well as a wide assortment of optional add-ons (from a re-keying service to wine fridge protection). Service is provided by Liberty’s network of technicians, who will typically be dispatched within 24 to 48 hours of a filed claim.

Service fees range from $65 to $125, and repairs are backed by a 60-day workmanship guarantee. Coverage typically begins after a waiting period of 30 to 60 days, depending on the plan, though new homebuyers may be able to start their coverage on the day of closing.

Why we chose them: Unlike most other home warranty companies, AFC Home Club lets property owners select their own technicians as long as they are licensed, bonded and insured. AFC Home Club also stands behind completed repairs for longer than their competitors: up to three years, compared to the typical 30- to 60-day guarantee offered by other companies.

AFC Home Club offers four home warranty plans to choose from, with service available in all states except Hawaii. Buyers, sellers and current homeowners can get a quote online in just seconds, with plans covering anywhere from six to 18 household systems.

While AFC Home Club does have a nationwide network of service providers to choose from, they also allow homeowners to select their own technicians for repairs, as long as they are licensed and insured. Service fees range from $75 to $125, though any repairs are covered as long as the policy remains valid (up to three years).

Along with appliance and home system coverage, a home warranty with AFC Home Club also comes with free credit monitoring, as well as access to various discounts on home internet, kitchen appliances, home security services, and more.

Why we chose them: Select includes roof leak coverage standard on all three of their home warranty plan – an option that will cost you extra with most other companies.

Select Home Warranty is available to homeowners in 47 states and offers three service plan options. Each of these plans includes roof coverage, and homeowners can start a claim 24/7 via an online claim form or over the phone. Trade service fees range from $75 to $100, and covered repairs are guaranteed for 90 days.

Certain household systems have relatively low coverage caps or maximums. For instance, HVAC systems may be limited to $2,000 in coverage, while appliance repair or replacement could be limited to just $500. In Select’s terms and conditions, the company also reserves the right to request up to three years of maintenance records on any system; without that, the limit for covered services could be just $150.

Why we chose them: Old Republic Home Protection provides responsive, knowledgeable and friendly customer service.

HIGHLIGHTS

Old Republic Home Protection (ORHP) provides excellent customer service. They’re available 24/7/365 and agents are friendly and helpful. While many companies only offer pricing when you provide them with your personally identifiable information, ORHP is transparent with their pricing information. They have brochures with detailed plan descriptions available for download on their website.

ORHP offers five plans that range from $450 to $820 for a single family home. All plans are highly-customizable, with add-ons such as HVAC tune up for $25, swimming pool for $180 and solar water systems for $250. They also offer one or two-year plans, and you can use a contractor in their network or an authorized outside contractor upon approval.

One downside to ORHP is that their plans are only available for 28 states and Washington D.C. Additionally, you’re responsible for paying a lump sum for your first contract. However, at the time of your first renewal, you can choose to pay in three-month installments, 12-month installments, or in-full. Add-ons must be added in the first 60 days, after which time you’ll be locked in.

Why we chose them: Cinch Home Services offers a variety of unique benefits and discounts.

HIGHLIGHTS

Cinch offers three plans –Appliances, Built-in Systems and Complete Home. Monthly premiums range from $35 to $62 depending on the deductible you choose: $100, $125 or $150.

Cinch stands out for their wide variety of benefits such as coverage for pre-existing conditions and rust and corrosion. They also offer discounts on new appliances, and if you enroll with an agent on the phone, you’ll get the first month free (discounts apply to all plans). With the Complete Home plan, you’ll receive a $25 credit for A/C filters.

There are some areas where Cinch falls short. You can only use contractors in their network to perform maintenance services, and while their plans are quite comprehensive, they don’t offer any roof leak protection. Similarly, they offer minimal add-ons compared to the competition. That being said, the add-ons they offer are reasonably priced and range in cost from $5 to $22.

Why we chose them: We chose First American Home Warranty because they offer extensive appliance coverage including high spending caps and optimal appliance replacement coverage.

HIGHLIGHTS

First American Home Warranty offers two plans. The Basic plan covers appliances regardless of age if they’re in good condition. The Premier plan is an appliance and systems plan which covers electrical, plumbing, heating and ductwork. They offer additional coverage options with add-ons for central A/C, pool and spa, well pump, septic tank pumping system and HVAC tune-up. The cost of add-ons ranges between $2 and $17.

First American Home Warranty stands out because they offer great appliance coverage. They have a spending limit of $3,500 in repair or replacement costs. Washer/dryers, hot water heaters, furnaces and air conditioners don’t have spending limits. For covered items, First American will replace appliances with comparable, newer models if they can’t fix them, and plans include delivery and installation.

Our research revealed that First American had very affordable plan prices for many areas of the U.S. such as California; however, midwestern states such as Ohio and Missouri had higher plan prices in comparison. Moreover, coverage is only available in 34 states and Washington D.C.

You can find out more about First American Home Warranty in our First American review.

Home Warranty Guide

How is a home warranty different from homeowners insurance?

Home warranties are optional service contracts between the homeowner and the home warranty company. These service contracts cover a portion of the repair and/or replacement of an appliance or home system if it breaks or malfunctions, and don’t cover total home protection.

Homeowners insurance, on the other hand, is designed to financially protect the homeowner against certain types of damage or loss. What does homeowners insurance cover? It may cover perils such as theft, burglary, fire, storms and other acts of nature, just to name a few. And significantly, it insures homeowners against liabilities to third parties who are injured while on the property. Homeowners insurance policies are often required by mortgage lenders, rather than being purely optional coverage like home warranties are.

For more information, check out our article on home warranty vs. home insurance. To learn more about home insurance options, check out our article about the best homeowners insurance companies.

What does a home warranty cover?

Each home warranty plan covers systems and major appliances, either separately or in combination. You can typically customize your plan with add-ons. Many companies offer add-ons for built-in systems (such as central vacuum systems), stand-alone items (such as freezers) and amenities (such as spas and pools). Coverage varies greatly depending on the company, plan and add-ons you choose:

What is the average cost of a home warranty?

The home warranty cost depends on the carrier, plan and features chosen, as well as specifics about your home (such as its size and even location). The monthly cost can vary from $25 to $85 on average. In addition to the cost of your plan, you’ll also be responsible for a service fee, which can run you between $65 to $125 for each maintenance visit.

How to request service through a home warranty company

You can submit a service request by phone with customer service or through the company’s online service portal. You first answer questions about the issue, then the warranty company either assigns you a service provider or lets you choose from eligible contractors in their network. Some companies allow you to use your own contractor. A technician looks at the issue and makes the repair if the item is covered. Policyholders are on the hook for the service fee while the warranty company covers the rest minus the deductible.

When is a home warranty a good idea?

Here are a few things to consider when determining whether a home warranty is the right choice for you:

• How comfortable are you with household repairs? If you’re handy around the house and don’t mind fixing things, a home warranty might not be as valuable for you. However, if you’re a new homeowner or aren’t comfortable with repairs, buying a home warranty may be more beneficial.

• How old is the home and how old are the appliances and systems within the home? New homes often come with builder warranties, and a manufacturer’s warranty generally covers appliances for at least a year or more. If you’re buying a new home or a property with new appliances and systems, a home warranty may be unnecessary. Conversely, buying a home warranty could be a smart idea if you’re buying a home with old appliances, HVAC systems, air conditioners, original electrical and plumbing systems, and missing maintenance records.

• Do you have an existing network of trusted technicians? Most home warranty companies will require that repairs be done by technicians from their own network. This means that if you already have a trusted electrician, plumber, or general contractor, you may not be able to work with them on warranty-related repairs.

For more information, check out our article on whether home warranties are worth it.

Home Warranty FAQs

Is a home inspection required?

Home warranty companies don’t usually require home inspections. However, you should still consider getting one. The inspection report provides important insight into how well the systems and appliances in your house function. Having this information will help you choose the plan that best fits your needs. You should be aware that most home warranty companies don’t typically cover service or replacement for a system or appliance if there are pre-existing conditions present. In the event that you are denied a service claim, a home inspection report may also provide you with necessary proof that there were no pre-existing conditions in the item needing repair.

How long does a home warranty last?

A home warranty contract typically lasts one year, but some companies may offer contracts for a year and a half or two years. Contracts are typically renewed annually.

Why do home warranty companies have coverage limits?

Coverage limits vary greatly depending on the home warranty company, your plan and any add-on coverage you choose. Limits can be placed on appliances, major systems, parts, components or per-item repair. Be sure to take note whether your plan has an aggregate limit, which is the maximum amount a company will pay within a specific period of time. Knowing your coverage limits allows you to better customize your plan to fit your needs.

When can you start using your home warranty plan?

You typically have to wait 30 days after purchase to use your home warranty, though some companies may have a 60-day wait period. If you receive your home warranty from a seller or agent through a real estate transaction, you can possibly begin using your plan when you close on your new home. Be sure to check with the home warranty company about possible exemptions from the waiting period.

How We Chose the Best Home Warranties

To compile this list of the best home warranty companies, we considered and compared more than two dozen different providers.

Our methodology looked at important factors such as availability by state, the company’s history, and its reputation among previous customers. We analyzed consumer reviews and ratings through the Better Business Bureau, as well as each company’s history of public complaints.

This process also involved looking at the various plans and sample contracts from each company. We looked at how many plans each company offers, what coverage is included, and how customizable that plan could be. We also looked at pricing, and what sort of coverage limits (caps) are placed on each primary system’s repair or replacement. Additionally, we considered how difficult each company makes it to cancel their warranty service.

Lastly, we looked at how easy it is for consumers to get a quote, purchase coverage, and/or file a claim. We also evaluated how quickly these companies process claims and how long they guarantee their repairs to ensure peace of mind for homeowners.

Summary of the Best Home Warranties

• Best Plans: American Home Shield
• Best for Low Service Fees: American Residential Warranty
• Best for Customization: Liberty Home Guard
• Best for Customer-Chosen Contractors: AFC Home Club
• Best Roof Coverage: Select Home Warranty
• Best for Customer Service: Old Republic Home Protection
• Best for Appliance Replacement: First American Home Warranty
• Best for Benefits: Cinch Home Services

Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.

This story was originally published July 15, 2022 at 1:22 PM.