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8 Best Home Warranties for Buyers in 2023
By Victor Rosario MONEY RESEARCH COLLECTIVE
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- Covers Major Home Systems, HVAC & Appliances
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24/7 support whenever your appliances fail
- Large network of independent prescreened contractors and qualified technicians
- In business for over 30 years
- Good coverage on home systems
- Does not cover pre-existing issues
- They will replace items that fail if they can't be fixed regardless of age, make or model
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- Industry leader since 1971
- More than $2 Billion in claims paid in last 5 years
- More than 2 Million customers served
- No inspection or maintenance records required
- 30-day workmanship guarantee
A home warranty is an optional insurance policy that provides coverage for various home systems and appliances in case of breakdowns or malfunctions. It’s worth considering when buying a home to also buy a home warranty, as it can offer peace of mind to new home buyers, especially those who may not have experience with home repairs. With a home warranty, those seeking homeownership can have a reliable solution for unexpected expenses and protect their investment. In this article, we will be discussing the 8 best home warranties for buyers in 2023.
Best Home Warranties for Buyers Company Reviews
Best Overall: Liberty Home Guard
- Customize your plan with a very wide range of add-on coverages
- Offers systems-only, appliances-only and combination plans
- Some customers have reported slow response times for service requests
- More than 500 complaints made to the Better Business Bureau
Liberty Home Guard is a great choice for home buyers looking for a home warranty plan. With three simple and transparent plans to choose from, you can easily find the coverage that suits your needs. The Appliance Guard Plan, available for $49.99 per month, covers nine common home appliances, including garbage disposals, ceiling and exhaust fans, and garage door openers. The Systems Guard plan, available for $54.99 per month, covers heating, air conditioning, plumbing, electrical systems and hot water heaters, including ductwork. The Total Home Guard plan, available for $59.99 per month, includes coverage for all items in the other two plans. All plans come with a service call fee of $125, but you can opt for a lower fee starting at $65.
One of the standout features of Liberty Home Guard is its wide range of optional coverages, with over thirty options available. This includes popular add-ons such as second refrigerators, well pumps and septic pumping, as well as coverage for pro-series appliances, electronic devices, and even maintenance services such as carpet cleaning and exterior power washing.
Best Low-Cost Combo Plan: Select Home Warranty
- Offers individual plans for systems or appliances
- Low-cost combo plan
- Discounts for multiple-year plans
- Limited roof leak coverage available
- Fewer add-on coverage options than competitive plans
- Low coverage limits for appliances, electrical systems and plumbing systems ($500)
- More exclusions than other plans
Select Home Warranty offers homebuyers a choice of three different warranty plans to protect their appliances and built-in systems. The Bronze Care plan provides coverage for everyday appliances such as washing machines, dryers, refrigerators, stoves, microwaves and garbage disposals. The Gold Care plan, on the other hand, covers essential home systems like HVAC, plumbing, electrical systems, water heaters and ductwork.
The Platinum Care plan offers a combination of both and is one of the most affordable options in the market. It also includes limited roof leak coverage. However, it is important to keep in mind that the coverage limits for appliances and systems may be lower compared to other warranty companies. For instance, the coverage limit for appliances is only $500. With today’s rising costs, it may be difficult to replace appliances for that amount, especially after undertaking the costs of buying a home.
Best for Long Workmanship Guarantee: Cinch Home Services
- Exceptional 180-day workmanship guarantee
- Three competitively priced plans to choose from
- Choice of service fees
- Service fees are on the high side
If you’re a homeowner looking for a home warranty, Cinch Home Services offers three options to choose from. Choose from a plan for your systems only, a plan for your appliances only, or a combination plan with competitive pricing.
One of the standout features of Cinch’s home warranty is their long workmanship guarantee of 180 days, which is significantly longer than the industry standard of 30 days. This means you won’t have to pay multiple service fees for the same repair. However, the service fee starts at a high $100, but you have the flexibility to adjust your deductible.
Cinch also offers limited options for additional coverage, like pool and spa protection, septic tank coverage, well pump protection, and code violation repairs. Additionally, they offer a unique feature of reimbursing up to $500 of your homeowner’s insurance deductible for related home system damage when making a claim through your insurance policy.
Best Comprehensive Coverage: ServicePlus Home Warranty
- Offers coverage for multiple systems
- Flat service call fee of $75
- 24/7 customer service
- Some limits may apply to pre-existing conditions
If you’re a homeowner looking for a comprehensive home warranty solution, ServicePlus is a great choice to consider. With two pre-packaged plans that cover a mix of appliances and systems, as well as optional coverage for a range of home features, ServicePlus offers a unique home warranty option. The Platinum plan is particularly noteworthy, as it provides coverage for two heating and air conditioning systems, making it ideal for homeowners with multiple heating systems.
ServicePlus is competitively priced with a flat rate service fee of $75 per service call, and customers can file claims 24/7 through the telephone or the company’s online portal. Before making a decision, be sure to review ServicePlus’ sample contract and coverage details to understand the limits, policies on pre-existing problems and other important considerations.
Best Reputation: Old Republic Home Protection
- Offers coverage for a variety of systems and appliances
- Accredited by the Better Business Bureau, with an A+ rating
- Does not offer online quotes
- Components coverage may vary by state
Old Republic Home Protection is a well-established home warranty company with a proven track record of 45+ years in the industry, serving 32 states including Hawaii. As a potential home buyer, you can trust them to provide coverage for various systems and appliances, which may vary depending on the state you reside in. Additionally, they offer extra coverage options, such as electronics and smart home equipment in certain cases, and even pest control treatments in select locations.
Old Republic Home Protection has earned a reputation of trust and reliability, as demonstrated by their A+ rating from the Better Business Bureau. When it comes to home warranty services, Old Republic Home Protection is a top choice for home buyers to consider. However, it’s important to note that they don’t offer an online quote or application process. To learn more, you’ll need to reach out to their customer service team.
Other companies we considered
AFC Home Club
If you’re a homebuyer looking for peace of mind, AFC Home Club offers home warranty coverage for appliances and systems. With coverage limits ranging from $1,500 to $2,000 per item, their policies start at just $395 per year. You can choose to work with your own contractors or those in the AFC Home Club network. There’s also a 30-day waiting period, with claims filed before that time having a limited payout of $150.
One of the standout features of AFC Home Club is their competitive service fees, starting at just $75. And, HVAC tune-ups are exempt from coverage caps. The company has a B rating from the Better Business Bureau, where it has been accredited since 2009, and is a member of the National Home Service Contract Association (NHSCA). Plus, their website provides a free quote calculator, sample contract, and detailed coverage information for each item, making it easy to understand your coverage options.
Landmark Home Warranty
Landmark offers two plans — Home Systems and Total Protection — that cover AC and heating, electrical systems, plumbing and appliances. With two service fee options ranging from a minimum of $60 to $70 to a maximum of $100, you can choose the option that works best for you. Landmark’s plans cover services like AC and heating, electrical systems, plumbing and appliances. It also offers two service fee options with a minimum fee of $60 to $70 and a maximum fee of $100.
First American Home Warranty
First American Home Warranty offers home buyers peace of mind with their two plans: Basic and Premier. The Premier coverage plan covers comprehensive protection for all major home systems and appliances, while the Basic coverage plan primarily covers kitchen appliances. With coverage limits that are higher than many other home warranty companies — up to $3,000 for kitchen refrigerators, $1,500 for heating systems and $500 for ductwork — First American is a reliable choice.
The annual premiums for First American Home Warranty are competitive within the industry, starting at $300 and going up to $500, depending on the plan and options selected. Enrolling and getting a quote is easy with their online process, and they offer a standard 12-month contract term. However, customers should note that cancellation policies vary based on location and are advised to carefully read the warranty agreement.
Guide to the Best Home Warranties for Buyers
Main things to know before purchasing a home warranty for buyers
- Knowing the difference between home warranty vs home insurance
- Home warranty covers systems and appliances, not structural elements of the home
- Home warranties are offered by home warranty companies, not insurance companies
- The warranty is in addition to any existing manufacturer’s warranties
- Not all home systems and appliances are covered by a home warranty
- The process of how to file a home warranty claim
What does a home warranty company cover?
Home warranty companies typically cover appliances such as refrigerators, washing machines and ovens, as well as major systems such as heating and air conditioning, plumbing and electrical systems. Home warranty coverage varies between providers, but most coverage options offer comprehensive plans, covering normal wear and tear.
An example of some major appliances and systems that might be covered by a company’s basic plan options and optional add-ons are:
- Septic systems
- Washers
- Air conditioners
- Built-in microwaves
- Cooktops
- Ice makers
- HVAC systems
- Ceiling fans
- Sump pump
How much does a home warranty cost?
The cost of a home warranty varies based on factors such as the type of coverage, the plan chosen and the location of the home. On average, home warranty plans cost between $300 to $600 per year, with some more comprehensive plans running higher. Additionally, there may be a service fee for each time a repair is needed.
How does a home warranty for buyers work?
A home warranty is a service contract between the homeowner and the home warranty company. When a covered item breaks down, the homeowner contacts the home warranty company and requests service. The home warranty company will then assign a service provider to repair or replace the item. The homeowner pays a service fee for each request, but the cost of the repair or replacement is covered by the home warranty company.
How to buy a home warranty for buyers?
Buyers can purchase a home warranty by contacting a home warranty company directly or through a real estate agent. It is important to compare coverage options and costs between different home warranty providers and to carefully review the terms and conditions of the warranty before making a decision.
Home Warranty FAQs
Who pays for the home warranty, the buyer or the seller?
Which is better: a general warranty deed or a special warranty deed?
How soon should I place the order for a home warranty?
How long does a home warranty last?
Can a home buyer purchase a home warranty before closing on a home?
How We chose the Best Home Warranties for Buyers
When choosing the best home warranties for buyers, we took into consideration several factors. Firstly, the coverage options offered by each home warranty company were analyzed. We made sure that each company provided comprehensive coverage for both appliances and systems that are typically found in homes. Additionally, we looked for companies that offer customizable plans, so that buyers can choose the coverage options that best fit their needs and budget.
Another factor that was taken into consideration was the reputation of the best home warranty companies. We checked each company’s ratings and reviews on websites such as the Better Business Bureau (BBB) to make sure that they have a good track record for providing high-quality service to their customers. We also looked for companies that have a responsive customer service team and quick response times for repair requests. Additionally, we made sure that each company has a wide network of service providers and that they have a workmanship guarantee in place to ensure that any repairs made are done to a high standard.
