A home warranty is a service contract between you and a provider that covers repair costs on selected major appliances and home systems (such as air conditioning). Home warranties typically cover breakdowns due to routine wear and tear.
We researched dozens of home warranty companies on various factors, including coverage plans and pricing, to help you find the best home warranty for your home.
Best Home Warranty Companies of 2023
The home warranty companies with the best ratings include the following:
- Liberty Home Guard: Best Customer Ratings
- American Home Shield: Best for Comprehensive Coverage
- Select Home Warranty: Best Value
- America’s First Choice Home Club: Best for Customization
- First American Home Warranty: Best Appliance Coverage
- Cinch Home Services: Best Additional Perks
- 2-10 Home Buyers Warranty: Cheapest Appliance Plan
- ARW Home: Affordable Service Call Fees
Before choosing one of our top providers, consider your coverage needs and budget. Also, read their sample contracts to understand their coverage terms, exclusions, and limitations.
Summary of the Best Home Warranty Companies
The table below summarizes how our top providers compare. We highlighted each provider’s monthly cost plus appliance and system coverage caps to help you decide which is best for you. Consider a provider with higher coverage caps if you own older home systems or appliances. If you need basic and affordable coverage, a provider with a lower monthly premium may be the right choice.
Note: We pulled the table’s monthly cost figures based on the national average our team calculated for six of our top picks. Your monthly premium may differ based on your home’s size and type, your location, and your plan and add-on selections. We recommend pulling a quote directly with the providers you’re considering.
We pulled quotes for a 2,000-square-foot, single-family home in Raleigh, North Carolina, to determine the provider prices referenced in this article.
Home Warranty Buyer’s Guide
Knowing which home warranty is right for your needs can be challenging. We developed this buyer’s guide to walk you through how a home warranty works, what it costs, and other important information.
How Do Home Warranties Work?
When a home system or major appliance breaks down due to normal wear and tear, you can call your home warranty company to file a claim or submit a service request online. Your company will respond to your service request within a specified timeframe, typically less than 48 hours. If it can’t locate a contractor within this time frame, the company may allow you to choose an approved contractor. We called every provider listed in our article to confirm this. The providers allow you to choose your service technician, but you first must contact them to obtain authorization.
After the company responds to your request, it will forward your claim to an approved contractor to schedule with you directly. At this initial visit, the technician will assess and diagnose the malfunction and determine whether it resulted from a covered issue. Minor repairs will typically be completed during this initial visit if the claim is approved, while other repairs or replacements may require an additional visit after ordering and receiving the necessary parts.
It’s typical for home warranty companies to offer at least a 30-day workmanship guarantee after they’ve completed a covered repair. This guarantee means your contractor will assess the issue and provide service without an additional service charge if the item breaks down again after the initial repair.
What Do Home Warranties Cover?
A home warranty plan covers the repair, service, or replacement of major home systems and appliances when they break down due to wear and tear. Many companies split coverage options into systems, appliance, and combination plans.
The most common systems and appliances covered under home warranty plans include the following:
- Air conditioning
- Built-in microwaves
- Clothes dryers
- Clothes washers
- Dishwashers
- Ductwork
- Electrical
- Garbage disposals
- Heating systems
- Ovens
- Plumbing
- Refrigerators
- Water heaters
What Do Home Warranties Typically Not Cover?
Home warranties typically do not cover incorrectly modified or installed built-in systems and appliances or ones that suffered malfunctions due to neglect, misuse, accidental damage, or an “act of God.” It’s important to read service contracts carefully because the terms vary.
As a general rule, home warranties do not cover structural elements. Home warranties also don’t cover any item protected by a manufacturer’s warranty, such as a Samsung warranty.
Home warranties typically exclude miscellaneous item coverage. For example, although your stovetop may be considered a covered item, your provider likely won’t cover the dials, grills, or other non-essential components of the stovetop.
What Are Common Home Warranty Complaints?
After reading thousands of third-party customer reviews, we determined the most common home warranty complaints include the following:
- Inexperienced technicians
- Long wait times for replacements on appliances or parts
- Slow or refused claims payouts
- Slow responses to complaints
- Unclear coverage limits
These traits are the hallmarks of poor home warranty service and are not typical of every provider on the market. We recommend asking questions about policies on claims, wait times, and coverage limits before buying to ensure you understand your home warranty company’s terms.
How Are Home Warranties Regulated?
Each state regulates home warranties and service contract licensure independently. For example, the Department of Licensing and Regulation handles service contracts in Texas. Arizona’s Consumer Protection Division of the Department of Insurance regulates home warranty. Some states including Pennsylvania take a more hands-off approach, according to Timothy Meenan, JD, who serves as executive director and general counsel for the Service Contract Industry Council (SCIC). In contrast, it can be more difficult for new providers to get licensed in states such as Florida and California.
Many states have rules based on the Service Contract Model Act that the SCIC and the National Association of Insurance Commissioners (NAIC) promoted to state legislatures. Since 1988, the SCIC has worked to promote industry regulation nationwide. Regulation ensures you can trust that your home warranty provider is financially sound and can follow through on its promises. State regulations also ensure various consumer protections, such as the following measures:
- Contracts that are clear and use easy-to-read print
- Extensive disclosures of what is covered and excluded
- The ability to cancel and receive a full refund within a certain period (typically 30–45 days)
While you’re shopping for a home warranty policy, it’s a good idea to check with your state’s regulatory body to confirm the provider is licensed to operate in your state. You can also read through a sample contract. Many sample contracts have state-specific clauses that clarify the protections and exclusions you are subject to.
How Much Does a Home Warranty Cost?
According to our national average, a home warranty typically costs $644 to $737 per year. To find our national average, we pulled over 120 quotes for a 2,000-square-foot, single-family home and calculated the average cost.
It’s important to factor in service fees when determining the price of your home warranty. Each time your home needs repairs and replacements, service fees are an added cost. Service call fees typically fall between $65 to $125.
Based on our research on over 57 home warranty companies, only 12 home warranty companies allow you to choose your service call fee. Lower service call fees can make your monthly fees more expensive, which is an important consideration if you plan on making several service requests throughout your home warranty term. However, your monthly cost will likely be lower if you choose a higher service fee. When you choose a high service fee, you’ll pay more for a technician’s visit.
Are Home Warranties Worth It?
Home warranties could be worth it if you aren’t financially prepared for unpredictable repairs and replacements for your frequently used appliances and home systems. When we surveyed 1,000 homeowners in 2021, we found that more than 74% of respondents had spent at least $400 on a home repair, and 27% of these homeowners spent more than $1,000 on a repair.
We surveyed 1,000 homeowners again in 2022 and found that 63% purchased a home warranty due to fear of an expensive breakdown. Arthur Chartrand, of counsel to the National Home Service Contract Association, states home warranties can help establish a “level budget” by minimizing these expenses.
Let’s say you own a home with an old HVAC system. According to InterNACHI’s report on the life expectancy of home items, HVAC components last an average of 10 to 15 years. If you estimate your HVAC system is within that age range, it’s likely only a matter of time before a breakdown occurs. If you replace your HVAC system, you could pay upwards of $4,000 for the unit plus installation costs.
Since a home warranty plan, on average, costs $600 to $800 no matter where you live, you will likely come out ahead with a home warranty if you need to repair or replace a major system or appliance.
However, a home warranty may not work if you have a significant financial nest egg set aside for home repairs or your systems have manufacturers’ or installation warranties. Home warranty contracts stipulate that any item currently covered by another warranty is not covered.
What To Look For When Buying a Home Warranty
While shopping for a home warranty, there are several factors to consider before you sign up with a provider:
- Available service providers in your area: If your home is located in a rural, mountainous, or off-the-grid area, confirm with your provider that there is a service technician near you. Confirm whether you can use your technician if your provider doesn’t have an established network in your area. Most home warranty providers have a vast network of service providers nationwide. However, there are locations where providers won’t have established networks.
- Claims processing timeframe: Find out what steps your provider takes to process a claim. Confirm how soon they will send a service technician to your home after processing your claim. In addition, ask how long emergency claims or claims outside normal business hours take to process. Claim timeframes can help you differentiate providers to select the best one for your needs.
Chartand also recommends asking your provider where it sources its service technicians. Find out if the service providers it uses are local to where you live. Doing so can eliminate the headache of waiting for your provider to find an in-network technician.
Reputability: Check consumer review sites such as Trustpilot and Google Reviews to read how customers feel a provider resolves claims, customer inquiries, and issues. National trade organizations, such as the National Home Service Contract Association and the Service Contract Industry Council, list member providers compliant with specified business practices. Checking these lists can confirm that a provider is reputable.
How To Choose the Best Home Warranty
Use the following tips to find the best home warranty for your coverage needs:
- Determine your coverage needs: Carefully consider whether you need home appliance or systems coverage before deciding on a plan. Many providers offer systems and appliance-only plans or combination plans.
- Request multiple quotes: Request quotes from at least three providers to compare costs and coverage limits before deciding. Meenan recommends that homeowners shop around because there may be another provider with similar coverage at a lower price.
- Read sample contracts: Comparing contract details for several home warranty providers helps you determine which home warranty is best based on coverage limits, exclusions, and claims process. Meenan also suggests choosing home warranty providers who provide easily accessible sample contracts that clearly label excluded items.
How To Read Home Warranty Service Contracts
The tips below outline how to read and understand your home warranty provider’s policy terms.
- Find what’s covered: Look through the fine print to see if the provider includes all the home items you’d like protected. Most providers cover systems and appliances, but it’s important to confirm that your provider covers what you need.
- Understand exclusions: Your provider will have certain instances or components that it won’t cover even on a covered item. For example, while your provider may cover your air conditioner, the filters likely won’t be covered. Similarly, your provider may exclude appliances and systems with preexisting conditions from coverage.
- Ask questions: Call your provider and ask a representative to clarify sections you don’t understand in the service contract.
Reading a home warranty service contract is important before signing up with a provider. Be aware of your provider’s specific coverage exclusions and limitations to reduce denied claims and unwelcome surprises.
Our Conclusion
The best home warranty company for you depends on your unique coverage needs and budget. It’s important to choose a home warranty that fits your situation. We recommend Liberty Home Guard due to its $2,000 coverage cap per covered item, extensive add-on selections, and quality customer reputation. If you own older appliances, First American Home Warranty is a top pick. American Home Shield is another top recommendation for its generous coverage, flexible plans, and customizable service fee.
Before signing up, we suggest carefully reading service contracts to understand each provider’s exact terms and exclusions.
Frequently Asked Questions About Home Warranties
How Do I Find the Best Home Warranty Company in My Area?
Find in-depth reviews on the best home warranty companies for each state and major US city below.
Related Resources
We’ve done extensive research on the best home warranty companies across the country and have compiled easy-to-digest guides and comparisons:
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Our Rating Methodology
The This Old House Reviews Team backs up our home warranty ratings and recommendations with a detailed rating methodology to objectively score each provider. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts from each company, and conducting focus groups and consumer surveys. We then score each provider against our review standards for coverage, value, trustworthiness and transparency, availability, and customer service to arrive at a final score on a 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.