The cheapest home warranty can offer you an affordable option for protecting important systems and appliances within your home. When any of these covered appliances or systems fail due to normal wear and tear, a home warranty plan can cover expensive repair and replacement costs, eliminating the need for you to unexpectedly pay for a fix out of pocket.
Because there are a variety of home warranty companies on the market, it can be challenging to determine which one is the most affordable. To help you in your search, the This Old House Reviews Team did the research for you and compared some of the cheapest home warranties available, providing you details on plans, pricing, and customer service. Keep reading to find the cheapest home warranty for you and your home.
Top 3 Cheapest Home Warranties
Below are some of the most affordable home warranty companies available, all with relatively cheap monthly premiums and flexible deductibles.
1. Choice Home Warranty
Choice Home Warranty (CHW) is one of the top-rated home warranty companies in the industry and is our number one pick for affordable plans and pricing. It offers comprehensive and flexible plans for customers, offering coverage for important home items like your air conditioning and refrigerator.
Plans range between $36–$44 a month, add-ons range between $46–$180 per year (depending on the items you choose), and service call fees range between $60–$85.
Not only does Choice Home Warranty provide extensive coverage and affordable pricing, it offers 24/7 customer service, optional coverage for items like your pool or septic system, access to a local network of pre-screened technicians, and a 90-day repair guarantee. Not to mention, customers get their first month free when they sign up for a home warranty plan.
2. Select Home Warranty
Select Home Warranty is another affordable home warranty company with flexible payment options. Select offers plans between $36–$38 per month and service fees of $60–$75 per claim, some of the lowest prices in the industry. Another benefit of Select Home Warranty is that they offer free roof leak coverage, which is a rarity in the home warranty industry.
Select has three plans to choose from: Bronze Care, Gold Care, and Platinum Care. Gold Care covers home systems and Bronze Care covers home appliances; both cost $35.83 per month. Platinum Care is a combo plan that protects systems and appliances and costs $37.50 per month—one of the lowest costs we’ve seen for comprehensive home coverage.
Customers also get two months free when they sign up for coverage.
3. First American Home Warranty
First American Home Warranty (FAHW) has been a leader in the home warranty industry for over 35 years and provides some of the cheapest home warranty coverage on the market. Its plans cost between $28–$43 a month and its service fees are $75, which is in line with the industry average.
What makes First American stand out against its competitors is its First Class Upgrade, which covers systems and appliances if they’ve been improperly installed, modified, or maintained. Other benefits of FAHW include no coverage caps on heating, cooling, or ductwork, replacements on items that are too damaged to repair, and a risk-free, 30-day money-back guarantee.
Basics of a Home Warranty
Before buying a home warranty, it’s helpful to understand what a home warranty is, what it covers, and exactly how much it costs.
What Is a Home Warranty?
A home warranty is an annual home service contract that provides protection for major systems and appliances when they break down due to normal wear and tear. It also saves homeowners from paying expensive, out-of-pocket costs on necessary repairs and replacements.
How Much Does a Home Warranty Cost?
In general, a home warranty costs between $25–$50 per month, or $300–$600 per year. Basic plans will fall on the lower end of the spectrum, while more comprehensive coverage will cost upwards of $50.
In addition to monthly premiums, home warranty companies will also charge a service call fee, or deductible, every time a claim is made. These service fees typically range between $75–$125, with some companies like American Home Shield allowing you to choose your service fee. For example, a lower service fee of $75 will likely result in a higher monthly premium and vice versa.
What Does a Home Warranty Cover?
A home warranty covers major home systems and appliances, including items like your refrigerator, electrical system, plumbing, water heater, and dishwasher. Here’s an overview of commonly covered items:
Commonly Covered Items
|Instant water dispenser||Clothes washer|
|Central vacuum||Clothes dryer|
|Ceiling fans||Trash compactor|
Home warranty companies may also provide optional coverage for the following items:
- Septic system
- Well pump
- Roof leaks
- Guest house
What Are the Benefits of a Home Warranty?
In addition to protecting important items when they break down, a home warranty offers the following benefits:
- Saves you time looking for a contractor
- Offers potential cash savings on expensive repairs and replacements
- Some companies, like America’s First Choice Home Club, offer unique benefits like free credit monitoring and discounts on maintenance-related supplies
- Can help a home sell faster and may be an enticing factor for potential buyers
- Protects your budget and prevents customers from paying unexpected expenses
How to Choose the Best Home Warranty
Though you might be looking for an affordable home warranty, the cheapest isn’t always the best. While the companies all listed above offer affordable pricing and comprehensive plans, there are some home warranty companies out there that offer extremely limited coverage for a low price.
Before you sign up for a home warranty, consider the following factors to ensure you get the cheapest home warranty and best coverage:
- Cost—If you’re on a budget but still want comprehensive coverage, we recommend going with a company like Choice Home Warranty. Choice offers two combination plans at affordable rates and allows customers to choose their own service fee. Consider getting quotes from a few different providers to compare pricing and choose a plan that best fits within your budget.
- Coverage—Most home warranty companies will offer a variety of plans that range from systems- and appliances-only to combination plans. Consider the items you want coverage for in your home and select a plan based on those needs.
- Add-ons—In addition to your most important home items, think about other items that you may want coverage for, such as your pool, spa, guest unit, or septic system. Not all companies provide the same add-ons, so choose a company that protects your most important items.
- Exclusions—Companies will often include coverage caps and exclusions on certain items listed in your contract. Be sure to review your contract terms before investing in a plan so you can understand what exactly is and isn’t covered.
- Customer service—Though most providers have 24/7 claims centers, there are a few that have limited hours. The home warranty companies in this article all have 24/7 customer service centers that are open to receiving claims around the clock.
- Promotions—To truly find the cheapest home warranty, compare current promotions and offerings from each provider to see how much money you could save on your contract. Companies like Select Home Warranty and Choice Home Warranty provide a few months of coverage for free when customers sign up for a plan.
Cheapest Home Warranty Company Comparison
To help you narrow down your choices, here’s a quick comparison of the top three companies we recommended earlier.
Compare Cheapest Home Warranty Companies
|Providers||Choice Home Warranty||Select Home Warranty||First American Home Warranty|
|Providers||Choice Home Warranty||Select Home Warranty||First American Home Warranty|
|Get a free quote||Visit site||Visit site||Visit site|
|Service call fees||$60–$85||$60–75||$75|
|Plan options||2 + optional add-ons||3 + optional add-ons||2 + optional add-ons|
|Current promotions||First month free when you sign up for a plan||Two extra months of coverage for free when signing up for a plan||Risk-free, 30-day, money-back guarantee|
For information about other home warranty companies, read our in-depth company reviews:
Choice Home Warranty, Select Home Warranty, and First American Home Warranty are three of the cheapest home warranty services available. Not only do they provide affordable plans and flexible payment options, they offer comprehensive coverage on major home systems and appliances and excellent customer service.
Because plan pricing will depend on where you live, the square footage of your home, the type of plan you choose, and any add-ons you include in your coverage, we recommend getting a quote from all three providers. This way, you can compare quotes and try to price match with your preferred provider.
Frequently Asked Questions About Home Warranties
Who pays for a home warranty?
Home buyers, sellers, realtors, and rental property owners can all buy a home warranty. Home buyers will pay for coverage if they purchase a plan at any point during homeownership or after the closing process. Sellers might pay for coverage if they offer it as part of the home sale.
Real estate agents or realtors may pay for a home warranty to cover potential repairs that could happen while the home is listed or offer a home warranty to buyers as a closing gift. Rental property owners could pay for a home warranty and include part of the cost in their tenants’ rent.
When can I buy a home warranty?
You can buy a home warranty at any point during homeownership. However, we recommend buying a home warranty when you first purchase your home so coverage can kick in as soon as possible.
Is buying a home warranty cost-effective?
A home warranty can save homeowners hundreds of dollars on repairs and replacements when home systems and appliances break down. For a low cost every month, this type of home protection plan can give people the peace of mind that if an item were to break, they would be protected.
Even if you don’t have an issue with a system or appliance, it’s always a good idea to have protection in place in case something unexpected happens and leaves you to pay expensive repair or replacement costs.
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