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8 Best Home Warranties for Sellers of 2023
By Victor Rosario MONEY RESEARCH COLLECTIVE
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- Covers Major Home Systems, HVAC & Appliances
- Free Roof Coverage, No Inspection Needed
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 covers your home systems and appliances and is essential for any homeowner. However, it can be challenging to know what type of coverage you need and which home warranty companies provide the best home protection.
In the process of a home sale, a home warranty can offer peace of mind to both you and the home buyer. By covering the cost of repairs and replacements, you can ensure that potential buyers are not deterred by unexpected expenses. In this article, we’ll explore the 8 best home warranty companies for sellers in 2023.
Our Top Picks for Best Home Warranties for Sellers:
- Best overall: Liberty Home Guard
- Best for no-inspection coverage: Choice Home Warranty
- Best systems coverage: American Home Shield
- Best low-cost combo plan: Select Home Warranty
- Best for optional add-ons: The Home Service Club
Table of Contents
- Best home warranties for sellers reviews
- Other companies we considered
- Best home warranties for sellers guide
- FAQs
- How we chose the best home warranties for sellers
Best Home Warranties for Sellers Reviews
Best Overall: Liberty Home Guard
- Does not require home inspection
- Large selection of optional add-ons
- Won multiple awards for best home warranty company
- Does not cover damage from human error
- Does not cover appliances with accessories
As a home seller, you can offer added peace of mind to potential buyers by including a home warranty from Liberty Home Guard with the purchase of their new home. With three simple and straightforward plans — Appliance Guard, Systems Guard and Total Home Guard — you can choose the level of protection that suits your needs.
The Appliance Guard Plan covers nine common kitchen and laundry room appliances, including garbage disposals and garage door openers, starting at $49.99 per month. The Systems Guard plan covers heating, air conditioning, plumbing, electrical systems and hot water heaters starting at $54.99 per month. The Total Home Guard plan provides coverage for all items included in the other two plans, starting at $59.99 per month.
Liberty Home Guard offers a wide range of optional coverages, with over thirty options available, including coverage for pro-series appliances, electronic devices, and even maintenance services such as carpet cleaning and exterior power washing. With a $125 service call fee, or the option to choose a lower fee of $65, Liberty Home Guard is our pick for best overall plan and a smart choice for home sellers looking to provide additional value to potential buyers.
Best for No-Inspection Coverage: Choice Home Warranty
- Optional coverage for a wide range of appliances
- 24/7 claim submission available via phone, app or its online portal
- $85 service fee per claim
- Lower limits may apply to some covered items
- Washers, dryers and air conditioning systems not covered in the basic plan
Choice Home Warranty’s two customizable plans offer no-inspection coverage, which can be beneficial in the hectic process of a home sale. You can choose coverage that fits the unique needs of your property.
It is important to note that Choice Home Warranty reserves the right to deny coverage for any pre-existing conditions, known or unknown. This is an important distinction for home sellers to keep in mind when looking to provide additional peace of mind to potential buyers.
Best Systems Coverage: American Home Shield
- Three plans available
- Comprehensive coverage available, including roof leak repairs and unlimited A/C refrigerant
- Registered with the Securities Exchange Commission
- Does not cover older items
- Does not cover items without maintenance records
- Coverage caps apply to roof leak repairs, among other services
American Home Shield is a home warranty provider established in 1971 and later acquired by Service Master in 1989. Service Master is a 100-year-old company with a reputation for providing quality home services. American Home Shield is known for having fewer exclusions compared to other home warranty companies and for offering unlimited coverage for home systems and appliances, including those that have been neglected.
The company offers three different plans: ShieldSilver, ShieldGold and ShieldPlatinum. The ShieldSilver plan covers heating, cooling, electrical and plumbing systems, making it our pick for best warranty for systems.
The ShieldGold plan adds coverage for kitchen and laundry room appliances. The ShieldPlatinum plan provides all the coverage included in the previous plans and adds limited roof leak coverage, HVAC tune-ups, unlimited A/C refrigerant refilling and coverage for repairs resulting from code violations.
Best Low-Cost Combo Plan: Select Home Warranty
- Offers the option of using your own contractor or one from Select's network
- Every plan includes a 90-day repair guarantee
- Includes the option of paying monthly or annually
- Some caps on repair and replacement costs for certain items
- Does not cover damage caused by neglect from human error
- Low coverage caps for some home services
If you’re selling your home and need a low-cost plan, consider Select Home Warranty for protection. With three plans to choose from, you can select coverage for appliances, systems or both. The Bronze Care plan covers essential appliances like washers and dryers, refrigerators and more. The Gold Care plan protects your HVAC, electrical and plumbing systems, as well as water heaters and ductwork.
The Platinum Care plan, which is among the most affordable combo plans available, includes limited roof leak coverage. However, it’s important to note that the coverage limit on appliances is $500, which might not be enough in today’s market where a decent refrigerator can easily cost over $1,000. Consider all factors before making a decision to ensure you have the right coverage for your needs as you sell your home.
Best for Optional Add-Ons: The Home Service Club
- Offers comprehensive coverage on over 33 items
- 24/7 claims department
- No waiting period
- Does not cover repairs due to user error or improper maintenance
- Low ratings on BBB and Trustpilot
- No membership with the NHSCA
Home Service Club offers home warranty coverage that is more comprehensive than many of its competitors. Their coverage extends to over 33 built-in systems and appliances. When it comes to ease of use, Home Service Club’s policies are customer-centric. The company requires no home inspection and has a 24/7 claims department with over 10,000 in-network contractors.
The company’s coverage is restricted by both itemized and term-level caps, which is standard in the industry, and there is no waiting or service recall period, or maintenance record requirements.
However, the company requires customers to sign up for an annual contract and does not offer month-by-month coverage. This may be a drawback for home sellers who are looking for a more flexible home warranty option. Overall, Home Service Club offers comprehensive coverage, a customer-focused approach and a solid reputation in the industry.
Other companies we considered
AFC Home Club
AFC Home Club offers hybrid policies that cover many common systems and appliances, with a user-friendly, every-item service cap of $1,500 to $2,000. HVAC systems are exempt from coverage caps. The company only covers issues that arise after they begin providing service, with exclusions listed on their website. The base-level contract has annual premiums starting at $395 and includes a 30-day refund policy and pro-rated refund policy after that period.
The company charges service fees of $75, $100 and $125, and allows customers to work with out-of-network contractors as long as they are licensed, bonded and insured. However, there is a 30-day waiting period, and if a claim is filed before this period, the maximum payout amount is limited to $150.
AFC Home Club is a member of the NHSCA and has maintained accreditation with the Better Business Bureau since 2009, with a B rating.The company has a user-friendly website with a personalized free quote calculator, sample contract, and detailed explanation of coverage for each item.
Cinch Home Services
Cinch Home Services offers homeowners a choice between three plans — systems only, appliances only and a combination plan with competitive pricing. One standout feature of Cinch’s home warranty is its extended workmanship guarantee of 180 days, compared to the industry standard of 30 days. It’s worth noting that the service fees for Cinch start at $100, although clients have the option to adjust their deductible.
While Cinch has limited options for additional coverage such as pools, spas, septic tanks, well pumps and code violation repairs, it does offer an unique benefit for homeowners: a potential reimbursement of up to $500 for their insurance deductible in the case of home system damage that requires a claim through their homeowner’s insurance policy.
ARW Home
American Residential Warranty (ARW) is a home warranty company that offers tailored plans for the repair or replacement of home appliances and systems. The goal of ARW is to assist homeowners in controlling maintenance costs by covering the expenses of fixing or replacing appliances and systems that break down. Homeowners have the option to choose from three different plans, including the Kitchen Plus Plan, Platinum Premier Plan and the 4-in-1 Bundle Plan, which offers additional coverage for items like washers and dryers, plumbing and electronics.
ARW also provides a few add-ons, including coverage for washer/dryers, pool/spa combinations and electronics. A unique aspect of ARW is its easy-to-use online quote generator, which enables homeowners to customize their plan and make a purchase with just a few clicks. A 30-day waiting period begins after purchasing the service contract, after which homeowners can start making claims. Service requests require a trade service fee, which serves as a deductible and may vary depending on the plan and equipment being serviced. Customers can initiate a home service request through their customer portal or by calling customer service.
Best Home Warranties for Sellers Guide
When you’re selling a home, the last thing you want to worry about are costly repairs and unexpected expenses. That’s why a home warranty can be a valuable addition to your real estate transaction. Here are some key things to know about home warranties for sellers.
Main Things to Know Before Purchasing a Home Warranty
Home warranty companies offer coverage for major home systems and appliances.
Home warranties can provide peace of mind and protect you against unexpected expenses.
The cost of a home warranty will vary depending on the company and the plan you choose.
Some companies offer comprehensive coverage, while others only cover specific items.
What Does a Home Warranty Company Cover?
Home warranty companies offer coverage for major home systems and major appliances. The exact items covered will vary depending on the company and the plan you choose, but some common things covered may include:
- Heating systems
- Septic systems
- Sump pumps
- Air conditioners
- Built-in microwave ovens
- Ceiling fans
- Central vacuum systems
- Cooktops
- Ice makers
- Exhaust fans
How Much Does a Home Warranty Cost for a Seller?
The cost of a home warranty for a seller will vary depending on the company and the plan you choose. Some basic plans start at around $300 per year, while more comprehensive plans can cost up to $800 per year. Keep in mind that the cost of a home warranty is generally much less than the cost of a single home repair.
How Does a Home Warranty Work for a Seller?
When you purchase a home warranty for your home, you’ll be protected against the cost of repairs for covered items. If a covered item breaks down, you’ll simply need to call the home warranty company and they’ll arrange for a service provider to make the necessary repairs. You’ll typically be responsible for paying a service call fee, which is usually around $75, and any deductibles specified in your contract.
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?
Is a home warranty necessary when selling your house?
Will offering a home warranty increase the sale price of a home?
Are home warranties mandatory for sellers in certain states?
How We Chose the Best Home Warranties for Sellers
When choosing the best home warranty companies for sellers, several factors were considered. Firstly, the range and quality of coverage options offered by each company was evaluated. This included the type of appliances and systems covered, the exclusions and the coverage limits. Secondly, the cost of the home warranty plans was considered, including the cost of the basic plan, any add-on coverage and the service call fee. Additionally, the reputation and reliability of each company was taken into account, including customer reviews and ratings from independent organizations like the Better Business Bureau (BBB).
The customer service and the process to file a home warranty claim for each company was also a crucial factor in determining the best home warranty companies for sellers. This included the availability of 24/7 customer support, the response time for service calls, and the efficiency and transparency of the claim process. Furthermore, the flexibility of the plans and the ease of making changes or canceling the warranty were also considered. Lastly, any special features or benefits offered by each company, such as energy-saving tips or home maintenance guides, were also taken into account. The combination of these factors allowed us to determine the best home warranty companies for sellers and provide them with the peace of mind they need to successfully sell their homes.
