9 Best Home Warranty Companies & Reviews (March 2024 Guide)
Taking time to read through home warranty contracts and compare coverage options can be a major hassle. We’ve made the process easier by doing some of the legwork. Based on our research, we recommend Liberty Home Guard (LHG) as the best home warranty company for its extensive add-on selection and excellent customer satisfaction ratings. We also like American Home Shield (AHS) as our second choice for its comprehensive coverage and generous limits.
To determine our recommendations, we rated nearly 60 home warranty companies based on consumer research, industry insights, and our own secret shopping. We compared each home warranty provider on more than 30 key scoring factors, then narrowed down our list to the top nine.
The best home warranty company for you depends on your specific circumstances. Keep reading to find the home warranty best suited to protect your home.
The 9 Best Home Warranty Companies
Our top pick for the best home warranty company is Liberty Home Guard. Because Liberty has more add-ons than any company we reviewed, and offers item-specific and comprehensive coverage, we recommend it for homeowners with specific needs. We used a detailed scorecard to evaluate 57 nationwide home warranty providers on 31 factors, then narrowed our list to the top nine companies shown below.
Compare Home Warranty Companies
We surveyed 2,000 homeowners and found that pricing was the leading consideration for most homeowners when choosing a home warranty plan, followed closely by the provider’s reputation. The average cost of a home warranty is $57 per month, and the table below compares pricing and other key attributes of our top nine recommended home warranty providers. It also shows how these top companies measure up against other providers that werenโt selected for our list.
Company | BBB Rating | Monthly Cost | Service Fee | Visit Site |
---|---|---|---|---|
A | $49โ$59 | $65โ$125 | VISIT SITE | |
B | $29โ$89 | $100โ$125 | VISIT SITE | |
B | $44โ$47 | $60โ$75 | VISIT SITE | |
B | $38โ$64 | $75โ$125 | VISIT SITE | |
B | $42โ$82 | $75โ$125 | VISIT SITE | |
A+ | $44โ$58 | $70 | VISIT SITE | |
B | $30โ$56 | $100โ$150 | VISIT SITE | |
A- | $27โ$70 | $65โ$100 | VISIT SITE |
Note: BBB ratings are accurate as of March 2024.
Note: We based the pricing information in this table and throughout the article on sample quotes we obtained for a 2,115-square-foot, single-family home in Tempe, Arizona. Your pricing may vary depending on your home’s location, size, type, and plan selections.
How a Home Warranty Plan Could Save You $1,200 Annually
A home warranty plan costs an average of $600 annually. However, repair and replacement costs can quickly add up without oneโespecially if you need multiple home repairs. Below, see what youโd pay to repair or replace common items in your home without home warranty protection.
On average, a home warranty plan can save you over $1,200 in repair/replacement costs a year for any of the appliances above.
Our Home Warranty Research Process
To choose the best home warranty companies, our team reviewed 57 home warranty providers and compared 31 coverage plans, including service call fees, exclusions, and other key contract details. We read 57,000 customer reviews, surveyed 2,000 homeowners, and held focus groups to determine common pain points and home warranty experiences. We spoke with 15 home warranty experts to learn more about the industry. Finally, we conducted firsthand testing through secret shopping and by testing the claim process of several home warranty providers.
Based on our research, we developed a detailed methodology to score each company. We scored based on four categories: coverage, value, trust and transparency, and availability and service. We awarded points for each category and converted scores to a final 5-star rating scale.
Our Home Warranty Experts
Do You Need a Home Warranty?
Home warranties provide financial relief in case of unexpected repairs or replacements. They benefit homeowners with little do-it-yourself experience or limited repair savings. They also help protect residents with expensive appliances or older homes requiring more frequent repairs.
While home warranties can benefit most homeowners, in some situations, theyโre unnecessary.
Buskuhl says, โFor those who have newer appliances and systems that are still under manufacturer’s warranty, a home warranty may not provide much added value.โ He also said that a home warranty may not be worth it if you have significant savings put aside for home repairs.
How Much Does a Home Warranty Cost?
Based on our research, a home warranty typically costs $644โ$737 per year, or $53โ$62 per month for a standard coverage plan. You should also factor in service fees, which typically range from $65โ$125 per visit. Several factors can impact your total costs, including your chosen plan, home size, location, and add-on coverage.
What Are the Basics of a Home Warranty?
Still unsure about the benefits of a home warranty? Weโll get into its purpose, plans, and average costs below.
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, appliances, and combination plans.
The systems and appliances most commonly covered by home warranties include the following items:
- Air conditioning
- Built-in microwaves
- Clothes dryers
- Clothes washers
- Dishwashers
- Ductwork
- Electrical
- Garbage disposals
- Heating systems
- Ovens
- Plumbing
- Refrigerators
- Water heaters
Home warranties donโt typically cover built-in systems and appliances incorrectly installed, modified, or malfunctioning due to neglect, misuse, accidental damage, or an โact of God.โ Many companies exclude your homeโs structural elements, such as the drywall or windowpanes. Additional exclusions include any items protected by a manufacturerโs warranty and miscellaneous items such as dials, knobs, or other nonessential components.
Home warranties protect home systems and appliances when faced with unexpected failures. Hereโs an overview of the entire process:
- Step 1: Enroll in a plan: Choose a reputable home warranty company and sign up for service. Plans typically last one year and require a 30 to 90-day waiting period before coverage begins.
- Step 2: File a claim: File a claim with your home warranty company online, over the phone, or through the mobile app. Your company may ask for maintenance documentation or photos of the broken item.
- Step 3: Schedule a repair: The home warranty company arranges for a service technician to complete the repairs. Depending on the company, you may be allowed to choose your preferred technician.
- Step 4: Pay the service call fee: Once the claim is approved, the technician will visit your home to complete the repairs. Youโll be charged the preapproved service call fee for your visit.
Reviews of the 9 Best Home Warranty Companies
Hereโs a closer look at our top picks for home warranty providers.
Which Home Warranty Companies Didnโt Make the List?
When we narrowed down our list of top home warranty providers, we eliminated some companies based on their limited plan selection, coverage, and availability, as well as their reputations.
We donโt recommend questionable home warranty companies, such as Choice Home Warranty, for homeowners. Below are some reputable home warranty providers that didnโt make our list but are still viable options for homeowners with specific coverage needs.
The Home Service Club (HSC)
The Home Service Club only offers two coverage plans, with coverage caps as low as $500 and assigned service call fees. The company currently holds a C rating with BBB and offers limited hours for its claims line. However, you might consider HSC if you need affordable premiums under $65 backed by an extended 90-day workmanship guarantee.
HomeServe
HomeServe has 17 coverage plans with system-only protection and no add-ons. Plan availability and exclusion vary by area and offer differing coverage caps per system. However, the company doesnโt charge service call fees for most of its plans and includes a year-long workmanship guarantee. HomeServe works best for homeowners seeking specific coverage for one or two essential systems.
Americaโs Preferred Home Warranty (APHW)
Americaโs Preferred Home Warranty provides limited plan options, offering two plans made for single and multifamily homes only. The company has few service fee options, and its lowest plan includes a $125 service call fee. In addition, the company offers a 30-day workmanship guarantee for home-systems only. APHW may be a good option for budget-conscious homeowners needing system-only coverage for under $60.
How To Choose a Home Warranty
Does a Home Warranty Cover Existing Problems?
Typically, home warranties do not cover existing conditions. However, American Home Shield is an exception, as it’s home warranty plans do cover items with pre-existing conditions. You can read our American Home Shield review to learn more.
What Is the Best Home Warranty Company With No Waiting Period?
AFC Home Warranty is the best home warranty company with no waiting period for plans bought as part of the sale of a house. Most home warranty companies like Liberty Home Guard and American Home Shield have a 30-day waiting period. You can read our AFC Home Warranty review to learn more!
How Can You Avoid Home Warranty Scams?
As you shop for home warranty companies, you may come across fraudulent or untrustworthy providers. If you notice one or more of the following warning signs, the potential home warranty provider might be a scam.
- Aggressive sales tactics: Be wary of any providers using high-pressure sales tactics, making unsolicited calls, or pitching door-to-door. These pushy salespeople try to force you into making a quick decision.
- Negative reviews and complaints: We recommend researching each company and checking third-party online reviews. Be cautious of any company with many negative reviews, complaints, or legal issues.
- Poor communication: Untrustworthy companies will limit communication by offering one or two contact methods and maintaining limited office hours. Delayed or unanswered calls and emails could also indicate a poor home warranty company.
- Unclear contract terms: Check for any ambiguous or vague contract terms, such as coverage caps, exclusions, and other crucial details. Reputable home warranty companies provide contracts with transparent policies and terms.
- Unusual payment requests: Be mindful of any company asking for large up-front payments or unusual payment methods. Respectable providers will offer monthly and annual premiums instead.
How Are Home Warranties Regulated?
Each state independently regulates home warranties and service contract licensure. For example, the Department of Licensing and Regulation handles service contracts in Texas. Arizonaโs Consumer Protection Division of the Department of Insurance regulates home warranties in that state.
Many states have rules based on the Service Contract Model Act that the SCIC and National Association of Insurance Commissioners (NAIC) promoted to state legislatures. Since 1988, the SCIC has worked to promote industry regulation nationwide. Regulation ensures your home warranty company is financially sound and can fulfill 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 30โ45 days)
How To Read Home Warranty Service Contracts
Although home warranty contracts vary, providers use similar policy terminology and provisions. As you review home warranty contacts, check for sections covering items, exclusions, and coverage limits. The tips below outline how to read and understand your home warranty companyโs policy terms.
- Check plan coverage: Look through the fine print to see if the provider includes all the home items youโd like protected. Most companies cover systems and appliances, but itโs important to confirm that your choice covers what you need.
- Review exclusions: Your company will have certain instances or components that it wonโt cover even on a covered item. Your home warranty company may exclude appliances and systems with preexisting conditions from coverage. Be aware of your companyโs specific coverage exclusions and limitations to reduce denied claims and unwelcome surprises.
- Understand the claims process: Find out what steps your home warranty provider takes to process claims. Confirm how soon it 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.
- Verify technician availability: Find out if the service providers it enlists are local to your area. Doing so can eliminate the headache of waiting for your warranty company to find an in-network technician. Chartrand recommends asking your company where it sources its service technicians.
- When in doubt, ask questions: Call your provider and ask a representative to clarify sections you donโt understand in the service contract. We recommend verifying plan length, renewal policies, and cancelation fees.
Home Warranty Cost Calculator
Our team created a calculator to break down a home warrantyโs estimated annual cost. Enter your monthly premium, service call fee, and estimated number of claims to see your projected annual cost. Itโs best to request a quote directly from one of our recommended providers, as annual costs and service fees vary between them.
Use the table below to compare your calculated cost to repair and replacement costs for common appliances.
Appliance | Average Repair Cost | Average Replacement Cost |
---|---|---|
Dehumidifier |
$50โ$200 |
$1,300โ$2,800 |
Microwave |
$50โ$400 |
$60โ$2,000 |
Dishwasher |
$50โ$500 |
$400โ$3,000 |
Exhaust Fans |
$16โ$300 |
$250โ$950 |
Electric Range |
$100โ$500 |
$230โ$3,000 |
Gas Range |
$100โ$500 |
$230โ$3,000 |
Dryer |
$100โ$400 |
$450โ$2,300 |
Oven |
$100โ$430 |
$400โ$3,000 |
Washer |
$50โ$450 |
$400โ$2,300 |
Freezer |
$90โ$500 |
$160โ$2,900 |
Refrigerator |
$40โ$350 |
$200โ$5,000 |
Life span and repair cost data sourced from InterNACHI and Home Depot
FAQ About Home Warranties
What is a home warranty?
A home warranty is a service contract between you and a home warranty provider that covers repair and replacement costs for major appliances and systems. These plans help lower the costs of unexpected appliance or system breakdowns.
Whatโs the difference between home warranties vs. homeowners insurance?
Home warranties and homeowners insurance differ in their offered protections. Home warranties cover appliance and system breakdowns that result from normal wear and tear. Homeowners insurance covers structural damage to your home due to covered perils, such as theft, natural disasters, and fire.
What are common home warranty complaints?
The most common home warranty complaints include the following issues:
- Inexperienced technicians
- Long wait times for appliance or part replacements
- 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. Before buying, we recommend asking questions about claim policies, wait times, and coverage limits to ensure you understand your home warranty companyโs terms.
What is a service call fee?
A service call fee (or trade service call fee) is an out-of-pocket expense you pay to a home warranty company for a service call. Home warranty companies outline these fees in your home warranty plan and may offer a choice between two or more fee options. Service fees vary between home warranty providers, but typically range between $65 and $125 per service call.
Is a home warranty required to buy a new home?
A home warranty isnโt required to buy a new home, but we recommend getting coverage as an extra layer of financial protection on your important home systems and appliances. Many sellers offer a home warranty as an added perk for potential buyers.
How important is a longer workmanship guarantee?
A longer workmanship guarantee means a warranty will cover a previously repaired system or appliance past the 30-day industry standard. Typically, you are responsible for paying another service call fee if a repaired item breaks again after the workmanship guarantee window ends. Having an extended workmanship guarantee provides extra peace of mind and value for those with older systems and appliances.
What is usually included in a home warranty?
Home warranties include coverage for systems and appliances that break down due to normal wear and tear. Coverage will depend on your plan, but examples of covered appliances include your laundry machine, refrigerator, oven, and more.ย
How Can You Find the Best Home Warranty Company in Your Area?
Find in-depth reviews on the best home warranty companies for each state and major U.S. city below.
Related Resources
Weโve compiled several easy-to-digest guides based on our extensive home warranty coverage research. Learn more below.
More on Home Warranties
- What Is a Home Warranty?
- Home Warranty vs. Homeowners Insurance
- Residential Service Contract
- Cheapest Home Warranty Companies
- Best Home Warranty Companies Near Me
Related to Home Systems
- Best Home Warranty for HVAC
- Best Water Heater Home Warranty
- Best Sewer Line Home Warranty
- Best Plumbing Home Warranty
Related to Home Appliances
- Home Appliance Insurance
- Appliance Extended Warranties
- Best Refrigerator Warranty
- Home Depot Extended Warranty
- Sears Appliance Warranty
- Best Home Warranty for High-End Appliances
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.