American Home Shield is our pick for the best home warranty company because of its high coverage limits and protection for older systems and appliances. The company offers higher payout caps than many competitors and doesn’t set coverage limits for plumbing or electrical systems, which can help reduce out-of-pocket costs for expensive covered repairs.
To identify the best home warranty companies, we compared leading providers based on plan options, cost, coverage limits, workmanship guarantees, and customer support. We also surveyed 2,000 home warranty policyholders nationwide and gathered firsthand insights from our in-house testers, who enrolled in plans and filed claims to evaluate the customer experience.
Key Takeaways
- American Home Shield is our pick for the best home warranty company because of its high coverage limits and protection for older systems and appliances.
- Home warranties cost $47 to $82 per month, with a $56 national average based on quotes we collected from top-rated providers.
- In our 2026 survey of 2,000 homeowners, 90% said their most recent claim was approved, and 52% prioritized coverage over price when choosing a plan.
Compare Top-Rated Home Warranty Companies
The table below compares our top home warranty companies based on our scores, Better Business Bureau (BBB) ratings, national average monthly costs, and service call fee rates.
| Company | Star Rating | BBB Rating | Monthly Cost | Service Fee |
|---|---|---|---|---|
B | $36–$100 | $100–$125 | ||
B | $60–$68 | $100 | ||
NR | $57–$68 | $65–$125 | ||
A- | $77–$130 | $100–$125 | ||
B | $44–$82 | $75–$125 | ||
B+ | $51–$68 | $100–$150 |
Our Reviews of the Best Home Warranty Companies
When reviewing the best home warranty companies, we looked at what’s most likely to impact a homeowner’s buying decision, including available coverage options for essential systems and appliances, customer satisfaction ratings, pricing, and add-on options.
American Home Shield
American Home Shield Overview
American Home Shield stands out for its coverage of unknown preexisting conditions, including rust, corrosion, and sediment damage—issues rarely covered by other providers. The company also offers generous coverage limits of up to $4,000 for home appliances, $5,000 for most systems, and no caps on plumbing or electrical repairs. The ShieldGold and ShieldPlatinum plans also include free access to a video chat feature, which connects you with a repair expert to help troubleshoot issues remotely. This feature, offered through the company’s mobile app, can help you resolve minor problems faster and save on service call fees.
Best for: Homeowners with older homes or aging systems who want coverage for wear-and-tear issues and unknown preexisting conditions.
Pros and Cons
Pros
- Covers preexisting conditions and damage, a common exclusion in the home warranty industry
- Includes unlimited coverage for most electrical and plumbing system components
- Offers video chat with experts to troubleshoot issues before requesting service repairs
Cons
- Charges slightly higher for its top comprehensive plan than some other providers
- Only has six add-on options, offering limited plan customization
Plan Details and Cost
American Home Shield offers the following three plans:
- ShieldSilver ($36 per month): The ShieldSilver plan covers 14 systems, including HVAC, electrical, and plumbing.
- ShieldGold ($50 per month): The ShieldGold plan covers 14 systems and nine home appliances, including dishwashers, laundry appliances, and refrigerators.
- ShieldPlatinum ($100 per month): The ShieldPlatinum plan includes the ShieldGold coverage and adds roof-leak coverage, HVAC tuneups, and other benefits.
American Home Shield also offers six add-on options, including:
- Guest units
- Pool and built-in spa
- Roof-leak repair
- Septic pump
- Well pump
American Home Shield Maximum Payout
Here’s an overview of American Home Shield’s individual coverage limits and aggregate coverage limit, which is the maximum amount the company will pay for all repairs in a given contract term.
- Systems: Up to $5,000 per covered item
- Appliances: Up to $2,000 per covered item with ShieldGold and up to $4,000 with ShieldPlatinum
- Plumbing and electrical: None listed
- Add-ons: Coverage limits range from $500–$3,000 per item, depending on the add-on
- Aggregate limit: Up to $50,000 for all covered repairs per contract term
American Home Shield Home Warranty Reviews
In our survey, American Home Shield customers were most concentrated in the Southeast, particularly in Virginia, Georgia, and South Carolina. Respondents frequently mentioned that their coverage helped them manage unexpected repair costs and reduce financial stress. Nearly 93% of survey respondents reported their most recent claim was approved, and claims were more likely to result in a repair than a replacement. One homeowner said the “peace of mind knowing unexpected repairs are covered without huge out-of-pocket costs” was a key benefit of having American Home Shield.
Choice Home Warranty
Choice Home Warranty Overview
Choice Home Warranty offers affordable, bundled coverage for both systems and appliances, making it a strong option for homeowners who want broad protection in a single, straightforward plan. Choice’s comprehensive plans cost less than $70 per month, making it more affordable than most other providers in our review. The company provides a 90-day workmanship guarantee on parts and a 60-day labor guarantee, which is slightly longer than the standard 30 days many providers offer.
Best for: Budget-conscious homeowners who want straightforward, combined coverage at a lower monthly price.
Pros and Cons
Pros
- Backs its repairs with a 90-day guarantee for parts and a 60-day guarantee for labor
- Charges under $70 per month for comprehensive plans
- Includes a $3,000 cap for most covered repairs
Cons
- Charges a $2.50 fee with its monthly payment option
- Excludes AC, refrigerator, and laundry appliance coverage from its lowest-tier plan
Plan Details and Cost
Choice Home Warranty provides two coverage plans:
- Basic Plan ($60 per month): The Basic Plan covers seven systems and seven appliances, including heating, ovens, and plumbing.
- Total Plan ($68 per month): The Total Plan covers eight systems and 10 appliances, including air conditioning, clothes washers and dryers, and refrigerators.
Choice Home Warranty also offers 11 add-on options, including:
- Limited roof leak
- Pool and spa
- Second refrigerator
- Stand-alone freezer
- Sprinkler system
Choice Home Warranty Maximum Payout
Here’s an overview of Choice Home Warranty’s coverage limits and aggregate coverage limit.
- Systems: Up to $3,000 per covered item
- Appliances: Up to $3,000 per covered item
- Add-ons: Up to $500 per covered item, with $250 specifically for septic tank pumping
- Aggregate coverage limit: None listed
Choice Home Warranty Reviews
Based on our survey responses, Choice Home Warranty customers often described their coverage as a way to offset the cost of major system or appliance failures. Respondents were most concentrated in the Midwest and parts of the South, particularly in Illinois, Ohio, and Texas. Nearly 90% of surveyed customers said their most recent claim was approved, with outcomes split between repairs and replacements. One respondent added, “Our home warranty saved us several thousand dollars,” highlighting the financial impact of having a plan.
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First American Home Warranty
First American Home Warranty Overview
First American Home Warranty offers some of the best appliance protection in our review, with coverage of up to $7,000 on its Premium Plan. These high coverage limits make it a good choice for homeowners with high-end appliances. By comparison, American Home Shield’s highest plan provides up to $4,000 in appliance coverage. First American also offers uncapped coverage for most home systems and lets you expand protection with the First American Advantage upgrade, which covers issues such as improper installation, code violations, and permit costs.
Best for: Homeowners with high-value appliances or major systems who want more coverage and fewer payout limits.
Pros and Cons
Pros
- Covers improper installations and modifications under the First American Advantage upgrade
- Includes up to a $7,000 appliance cap, the highest in this review
- No coverage caps on most home systems
Cons
- Doesn’t offer appliance-only or system-only plans, so you may pay for coverage you don’t need
- Excludes some key systems and appliances from its basic plan
Plan Details and Cost
First American Home Warranty offers three combination plans:
- Starter Plan ($77 per month): The lowest-tier plan offers appliance and system coverage for some major items, like built-in microwaves, heating systems, and refrigerators.
- Essential Plan ($100 per month): The next plan tier includes Starter Plan items, plus air conditioning, clothes washers and dryers, and ceiling, attic, and exhaust fans.
- Premium Plan ($130 per month): The highest-tier plan covers all items in the Essential Plan, plus luxury appliances, roof leaks, and window air conditioning units.
First American Home Warranty also offer 12 add-on options, including:
- Additional refrigeration
- HVAC tune-up
- Pool and spa equipment
- Septic system
- Water softener
First American Home Warranty Maximum Payout
Here’s an overview of First American Home Warranty’s coverage limits and aggregate coverage limit.
- Systems: No coverage caps listed for most systems
- Appliances: Up to $3,500 per covered item with the Starter and Essential plans and up to $7,000 with the Premium Plan
- Add-ons: Coverage limits range from $500–$2,500 per item, depending on the add-on
- Aggregate coverage limit: None listed
First American Home Warranty Reviews
First American Home Warranty customers in our survey frequently described their experiences with the company as straightforward and predictable, especially with service fees and claim handling. One homeowner said that knowing “exactly what’s covered and how much I’m going to pay” reduced the stress of unexpected repairs. Close to 90% of respondents said their most recent claim was approved, with outcomes split between repairs and replacements, and some received cash payouts. The First American customers who participated in our survey were most commonly located in the South, especially in Florida, Georgia, and Texas.
AFC Home Warranty
AFC Home Warranty Overview
AFC Home Warranty offers strong pricing flexibility, with four plan options and three service call fees that let you adjust monthly costs based on your budget. Its standout feature is a workmanship guarantee that lasts the life of your policy, helping you avoid additional service fees for repeat issues. AFC Home Warranty also allows homeowners to request their own licensed technician with prior approval, a feature that’s less common among home warranty providers.
Best for: Homeowners who want more control over pricing and technician selection.
Pros and Cons
Pros
- Has an unlimited workmanship guarantee
- Lets you choose your own technician
- Offers four coverage plans and three service call fees for plan customization
Cons
- Applies a depreciation policy to items five years old or older
- Offers low electrical and plumbing coverage caps
Plan Details and Cost
AFC Home Warranty offers four coverage plans:
- Silver Plan (call for a quote): This plan includes nine appliances, including cooktops, garage door openers, and kitchen refrigerators.
- Gold Plan ($44 per month): This plan covers nine appliances and six home systems, including air conditioning, heating, and plumbing.
- Platinum Plan ($51 per month): This plan covers 10 appliances and nine home systems, including built-in microwaves, plumbing stoppages, and faucets.
- Diamond Plan ($82 per month): This plan includes Platinum Plan coverage, plus coverage for electronics and exterior sewer and water lines.
AFC Home Warranty also offers eight add-ons, including:
- Central vacuum
- Electronics
- In-ground pool and spa
- Roof-leak coverage
- Septic system
AFC Home Warranty Maximum Payout
Here’s an overview of AFC Home Warranty’s coverage limits and aggregate coverage limit.
- Systems: No coverage caps listed for heating, air conditioning, and standard water heaters
- Plumbing and electrical: Up to $500 coverage limit per contract term
- Appliances: Coverage limits range from $150–$3,000 per item
- Add-ons: Coverage limits range from $150–$500 per item, depending on the add-on
- Aggregate coverage limit: Up to $10,000 for all covered repairs per contract term
AFC Home Warranty Reviews
Among AFC Home Warranty customers in our survey, nearly 89% said their most recent claim was approved, with replacements occurring slightly more often than repairs. Many respondents were located in the South and Northeast, with notable concentrations in California, Georgia, New York, and Ohio. Several homeowners described the coverage as a way to ease the financial pressure of unexpected breakdowns. One respondent said the “peace of mind of not having to worry about paying more than the deductible” was an important benefit of having AFC Home Warranty coverage.
Liberty Home Guard
Liberty Home Guard Overview
Liberty Home Guard offers the largest add-on catalog of any provider in our review, with 42 optional coverage items. Homeowners can customize their plan with protection for secondary appliances, professional-grade kitchen equipment, pools, guest houses, and more. The company also includes unique home service add-ons like gutter cleaning and pest control, which can help streamline ongoing home maintenance through a single provider. For added convenience, Liberty offers a mobile app and live chat support.
Best for: Homeowners who want highly customizable coverage with the widest range of add-on options.
Pros and Cons
Pros
- Has the largest add-on catalog in this review with 42 options
- Extends a 60-day workmanship guarantee, double the industry standard
- Offers a 24/7 live-chat support option, a rare feature
Cons
- Has lower electrical and plumbing caps than other providers
- Lacks the service call fee flexibility of other providers, such as AFC Home Warranty or First American Home Warranty
Plan Details and Cost
Liberty Home Guard offers three plan options:
- Appliance Guard ($57 per month): An appliance-only plan that covers nine appliances, including built-in microwaves, dishwashers, and kitchen refrigerators.
- Systems Guard ($63 per month): A systems-only plan that covers six systems, including cooling, electrical, and plumbing.
- Total Home Guard ($68 per month): A combination plan includes comprehensive coverage for nine appliances and six systems.
Liberty Home Guard also offers 42 add-ons, including:
- Electronics
- HVAC maintenance
- Lawn sprinkler system
- Limited roof-leak repair
- Pro-series appliances
Liberty Home Guard Maximum Payout
Here’s an overview of Liberty Home Guard’s coverage limits and aggregate coverage limit.
- Systems: Up to $2,000 per covered item for HVAC, ductwork, and water heaters
- Plumbing and electrical: Up to $500 per covered item
- Appliances: Up to $2,000 per covered item
- Add-ons: Up to $500 per item for select add-ons (limits not listed for some add-ons)
- Aggregate coverage limit: None listed
Liberty Home Guard Home Warranty Reviews
Liberty Home Guard customers in our survey were most commonly located in the South and Northeast, with high numbers in New York, Michigan, and New Jersey. Many described their coverage as a way to keep repair costs predictable and avoid large, unexpected bills. One homeowner said that the “peace of mind knowing repairs are covered without surprise costs” was a top benefit of having coverage. About 90% of respondents said their most recent claim was approved, with resolutions slightly favoring replacements over repairs, and some homeowners received cash payouts.
Cinch Home Services
Cinch Home Services Overview
Cinch Home Services, like American Home Shield, covers rust, corrosion, and certain preexisting conditions, which can offer value for homeowners with aging systems or appliances. The company also offers plans at competitive pricing, along with added perks like a $25 credit toward air conditioners or water filters and an annual $500 homeowners insurance deductible reimbursement. These extras can help offset maintenance and unexpected costs beyond standard repairs.
Best for: Homeowners who want coverage for preexisting issues without paying top-tier prices.
Pros and Cons
Pros
- Covers items damaged by rust, corrosion, and preexisting conditions
- Offers a $500 annual reimbursement towards your homeowners insurance deductible
- Provides a $25 credit for air conditioners or water filters with each plan
Cons
- Excludes roof-leak coverage from its plans and add-ons
- Offers only six add-ons mostly limited to pools and spas
Plan Details and Cost
Cinch Home Services offers the following three home warranty plans:
- Appliances ($51 per month): This appliance-only plan includes 12 appliances, including built-in food centers, ranges, and wall ovens.
- Built-In Systems ($57 per month): This systems-only plan includes 16 built-in systems, including air conditioners, garbage disposals, and plumbing.
- Complete Home ($68 per month): This plan covers 12 appliances and 12 built-in systems, and offers up to a $500 homeowners insurance deductible reimbursement.
Cinch Home Services also offers six add-ons, including:
- Pool
- Pool with spa
- Septic tank and pumping
- Spa
- Well pump
Cinch Home Services Maximum Payout
Here’s an overview of Cinch Home Services’ coverage limits and aggregate coverage limit.
- Appliances: Up to $2,000 per covered item
- Systems: Coverage limits range from $500–$3,000 per item, depending on the system
- Add-ons: Coverage limits range from $500–$2,000 per item, depending on the add-on
- Aggregate coverage limit: Up to $10,000 for all covered repairs per contract year
Cinch Home Services Home Warranty Reviews
Based on our survey results, Cinch Home Services customers were most concentrated in the South and Midwest, especially in Ohio and Missouri. Many respondents said their coverage helped reduce out-of-pocket expenses when major systems failed. One respondent said that avoiding “large out-of-pocket expenses” was a primary reason they valued Cinch coverage. About 86% of survey respondents reported their most recent claim was approved, and claims were more likely to result in a replacement than a repair.
What Did Our Survey Reveal About Choosing a Home Warranty?
Homeowners prioritize coverage when choosing a home warranty, commonly use their plans for repairs, and generally report positive experiences. In 2026, we surveyed 2,000 homeowners with active plans across all 50 states to learn about their provider choices, coverage priorities, claims experiences, and overall satisfaction. Here’s what we found:
- Coverage mattered more than price: Coverage was the most important consideration when choosing a home warranty, selected by 52% of respondents, compared with 23% who prioritized price.
- American Home Shield was the most popular provider: About 41% of respondents had an American Home Shield plan, making it the most commonly used provider in our survey. First American and Choice Home Warranty were also popular choices.
- HVAC coverage was a priority: Air conditioning and heating were the systems homeowners most wanted protected, selected by 27% and 25% of respondents, respectively. Refrigerators led appliance coverage priorities at 51%.
- Most claims were approved: About 49% of respondents had filed a claim for a home system, while 40% had filed one for an appliance. Among respondents reporting on their most recent claim, 90% said it was approved.
- Most homeowners were happy with their plans: 83% were satisfied or very satisfied with their current home warranty, and 88% planned to renew their coverage.
Overall, our survey shows that homeowners tend to prioritize coverage over price when choosing a home warranty, particularly for expensive systems such as heating and air conditioning. The findings also show that homeowners frequently use their coverage, with many respondents filing claims for system or appliance breakdowns.
How Do Home Warranty Needs Vary by Region?
Home warranty priorities vary by region, particularly for heating, air conditioning, and optional coverage. Our 2026 survey found that homeowners in different parts of the country emphasized different systems and add-ons based on their needs.
Northeast homeowners showed the strongest interest in several optional protections. About 44% purchased roof-leak coverage, while 37% added sewer or water line coverage, the highest rate for that add-on among the four regions. Septic coverage was also more common in the Northeast at 26%.
Heating or furnace coverage was the top system priority for 42% of Midwest homeowners, the highest share of any region. Refrigerators were also especially important, with 57% selecting them as the appliance they most wanted covered.
Air conditioning was the leading system priority in the South, selected by 36% of respondents. Roof-leak coverage was also common, purchased by about 40% of Southern homeowners.
Air conditioning ranked as the most important home system for 37% of Western homeowners, slightly higher than in the South. The West also had the highest use of pool or spa coverage at 18%, compared with 8% in the Midwest.
How We Collected Our Survey Data
To understand real homeowner experiences with home warranties, we surveyed 2,000 home warranty policyholders across all 50 U.S. states in 2026. The survey gathered insights into why homeowners chose their warranties, their satisfaction with coverage options, and their experiences filing claims and dealing with customer service. We also examined factors such as pricing, add-on coverage choices, and plans for renewing their warranties.
How Much Does a Home Warranty Cost?
A home warranty costs $47–$82 per month nationwide, or $56 on average, based on quotes we pulled from top-rated providers nationwide. Your total cost will depend on your chosen provider, plan, and service fee. Service fees, which you owe each time you need a repair, typically range from $75–$125 per technician appointment.
Below, you’ll find a comparison of our top-rated home warranty providers based on monthly costs and service fee options.
| Provider | Monthly Cost | Service Fee |
|---|---|---|
| American Home Shield | $36–$100 | $100–$125 |
| Choice Home Warranty | $60–$68 | $100 |
| First American Home Warranty | $77–$130 | $100–$125 |
| AFC Home Warranty | $44–$82 | $75–$125 |
| Liberty Home Guard | $57–$68 | $65–$125 |
| Cinch Home Services | $51–$68 | $100–$150 |
Quick Tip
- If you plan to keep your home warranty for at least a year, compare annual and monthly pricing before enrolling. Many providers offer discounts or promotional savings for annual payments that can lower your total cost.
How Much Can You Save With a Home Warranty?
A home warranty can save you money when the cost of a covered repair or replacement exceeds what you pay for the plan and service fee. Your actual savings depend on your plan cost, coverage limits, service fees, and how much the provider pays toward an approved claim.
The table below shows potential savings for common appliance and system replacements using a sample home warranty plan that costs $672 per year and provides up to $2,000 in coverage per item. We calculated potential savings by subtracting the annual plan cost from the amount the warranty could pay toward a qualifying replacement. These estimates don’t include service call fees.
| Appliance or System | Replacement Cost | Possible Savings With a Home Warranty |
|---|---|---|
| Air conditioner | $7,400–$8,800 | Up to $1,328 |
| Dishwasher | $900–$1,700 | $228–$1,028 |
| Furnace | $3,200–$3,800 | Up to $1,328 |
| Oven | $1,700–$3,700 | $1,028–$1,328 |
| Refrigerator | $1,500–$3,100 | $828–$1,328 |
| Water heater | $1,600–$1,800 | $928–$1,128 |
What Happens When Homeowners File a Claim?
Among homeowners with approved claims, some received repairs while others had covered appliances or systems replaced. However, an approved claim doesn’t necessarily mean the warranty company will cover the full cost. Coverage limits, service fees, and other contract terms can leave you responsible for a portion of the repair or replacement expense.
Whether a home warranty saves you money depends partly on whether your claim is approved and how the provider resolves it. In our 2026 survey, 90% of respondents said their most recent home warranty claim was approved, while 4% said it was denied and 6% were still waiting for a decision.
What Do Home Warranties Cover?
Home warranties typically cover repairs and replacements for major home systems and appliances that break down from normal wear and tear. Coverage varies by provider and plan, with some policies covering only systems or appliances and others combining both. Coverage was also the most important consideration for 52% of respondents in our 2026 survey, compared with 23% who ranked price as their top priority.
Commonly covered items include:
Systems:
- Air conditioning
- Ductwork
- Electrical systems
- Heating (including furnaces and heat pumps)
- Plumbing
- Water heaters
Appliances:
- Built-in microwaves
- Clothes dryers
- Clothes washers
- Dishwashers
- Garbage disposals
- Ovens, cooktops, and ranges
- Refrigerators
Many home warranty companies also offer optional add-ons for items that aren’t included in standard plans. In our 2026 survey, roof-leak protection was the most popular add-on, purchased by 40% of respondents. Sewer or water line coverage was next at 28%, followed by additional appliance coverage at 27%. These findings can help you identify optional coverage worth considering when comparing plans.
What Do Home Warranties Not Cover?
Home warranties generally don’t cover every breakdown or repair, and exclusions vary by provider and plan. Most contracts focus on failures caused by normal wear and tear, so damage from other causes or problems that fall outside the terms of your agreement may not qualify for coverage.
Common exclusions can include:
- Preexisting conditions: Problems that existed before your coverage began may not qualify for repair or replacement.
- Improper maintenance or installation: Providers may exclude breakdowns caused by poor maintenance or improper installation, although some plans cover certain installation-related issues.
- Cosmetic damage: Scratches, dents, and other issues that don’t affect an item’s operation are typically excluded.
- Structural components: Roofs, walls, windows, foundations, and other structural elements generally aren’t covered, although some companies offer limited roof-leak coverage.
- Items outside coverage limits: You may be responsible for costs that exceed the maximum amount your plan will pay for a covered repair or replacement.
Common Reasons for Denied Claims
Only 4% of respondents in our 2026 survey said their most recent home warranty claim was denied. Among those respondents, the most common reasons were a preexisting condition or an item that wasn’t covered by the plan, each cited by 29%. Another 20% said the repair exceeded their plan’s payout limit, while 13% said their claim was denied because of improper maintenance.
Quick Tip
- You must continually maintain covered systems and appliances, even if you have a home warranty. A provider may deny your claim if it determines a breakdown resulted from neglect or improper upkeep. We also recommend keeping records of routine maintenance and repairs, since documentation can help support your claim if questions come up about an item’s condition.
What Should You Know Before Buying a Home Warranty?
Our firsthand testing found that buying and using a home warranty is generally straightforward, but coverage details and claims experiences can vary. We gathered feedback from 19 in-house testers who signed up for and filed claims with 11 different home warranty providers. If you’re shopping for or purchasing a home warranty, here are the biggest lessons we learned from our testing.
Ask About Coverage Details Before You Enroll
Sales representatives generally explained plan options, pricing, and promotions, but they didn’t always discuss coverage caps, service fees, and exclusions upfront. Several testers learned about important limitations only after reviewing their contracts. Before enrolling, ask about coverage limits, replacement policies, service fees, and when you’ll receive your service agreement.
Read the Contract Carefully
Several testers found that their written agreements contained conditions or exclusions that weren’t clear during the sales process. Review coverage limits, technician requirements, exclusions, and replacement terms before your coverage begins. If possible, request a sample contract before enrolling.
Claims Are Easy To File, but Timelines Vary
Most testers filed claims online within a few minutes and received confirmation shortly afterward. However, contractor response times varied, with some homeowners contacted within hours and others waiting several days to schedule service.
Your Technician Can Affect Your Experience
Many testers reported professional and efficient service from assigned contractors, but experiences varied. Some needed multiple visits to resolve an issue, while others encountered scheduling or communication problems.
Approved Claims Don’t Always Cover the Full Cost
Some testers with approved claims received a repair or replacement after paying their service fee. Others received partial payouts because of coverage limits or aging equipment, and some received replacement models that differed from the original product. This reinforces the importance of reviewing coverage limits and replacement terms before purchasing a plan.
Is a Home Warranty Worth the Money?
A home warranty is worth the investment if you want added protection against unexpected repair and replacement expenses for covered systems and appliances. It may be particularly useful if you own older appliances or home systems, have limited savings for major repairs, or prefer more predictable costs when something breaks down.
Our 2026 survey suggests that many current home warranty customers value their coverage. About 83% of respondents were satisfied or very satisfied with their current plan, and 88% said they planned to renew.
However, a home warranty won’t cover every repair, and you’ll still be responsible for service fees and costs that exceed your plan’s coverage limits. Before purchasing a plan, consider the age and condition of your home’s systems and appliances, then compare the plan’s cost, coverage limits, and exclusions to decide whether the added protection makes sense for your household.
FAQs About the Best Home Warranty Companies
How does a home warranty differ from homeowners insurance?
A home warranty covers certain home systems and appliances that break down from normal wear and tear, while homeowners insurance covers property damage and losses from covered events such as fires, theft, and storms. Many homeowners have both because they provide different types of protection.
What are the downsides of a home warranty?
Home warranties have coverage limits, exclusions, and service fees that can leave you with out-of-pocket costs. Providers may also deny claims for issues such as preexisting conditions, improper maintenance, or items excluded by your contract. Your service experience can also depend on the contractors available in your area.
When can you buy a home warranty?
You can buy a home warranty when purchasing or selling a home or at any point after you move in. However, many providers have a waiting period before coverage begins, so check the plan’s effective date before enrolling.
What should you look for when comparing home warranty companies?
When comparing home warranty companies, look at coverage, coverage limits, plan costs, service fees, and exclusions. Also consider workmanship guarantees, contractor availability, and customer experiences with claims and repairs.
How does the home warranty claims process work?
You typically file a home warranty claim online or by phone, after which the provider assigns a contractor to diagnose the problem. If the issue qualifies for coverage, the provider pays for the repair or replacement up to your plan’s coverage limit, and you typically pay a service call fee.
Our Rating Methodology
We used a thorough and objective rating methodology to evaluate each home warranty company. Our process included researching each company’s available plans and features, obtaining quotes, and analyzing sample contracts.
To get a hands-on feel for each company’s products, we tested online quote tools, reached out to customer support teams, and surveyed 2,000 home warranty policyholders nationwide to learn more about their experiences. We’ve also signed up for home warranty plans with 11 leading providers over a two-year span to directly experience the enrollment and claims processes ourselves.
Using this data, we scored each provider across six key comparison categories essential when selecting a home warranty. Each company received a total score of 100 points, which we converted into a 5-star rating.
Here’s a breakdown of our weighted factors:
- Coverage (35%): This category looks at how comprehensive each provider’s coverage is, including whether it covers unique items. Companies that cover the most items and have higher annual limits received the highest scores. We docked points from providers that impose long waiting periods or have depreciation policies that decrease your payouts for aging items.
- Cost (20%): We looked at average monthly prices and service call fees. We gave the most points to companies offering pricing at or below the industry average that don’t impose any surcharges or extra fees.
- Trustworthiness (15%): To gauge reputation and reliability, we reviewed customer ratings across sites such as the Better Business Bureau and Trustpilot, as well as companies’ responses to complaints. We also checked for National Home Service Contract Association (NHSCA) membership. Providers with the highest ratings and longest workmanship guarantees received higher scores. We deducted points for any ongoing legal issues.
- Plan transparency (10%): We read terms, policies, and disclosures in provided contracts and on each company’s website. Providers with transparent contract details and policies received more points.
- Customer support (10%): Companies with multiple claims filing options, fast response times, and accessible customer support scored well in this category.
- Flexibility (10%): We awarded more points to providers offering more plan options, larger add-on catalogs, the ability to choose your own technician, and customer-friendly cancellation policies.
