Cheapest Home Warranty Companies (2023)

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 pay for unexpected breakdowns.

Because there are various 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 researched for you. We compared the best home warranty companies available, providing you with details on plans, pricing, and customer service. Keep reading to find the cheapest home warranty for you and your home.

Top 4 Cheapest Home Warranties

• Liberty Home Guard: Best Customer Ratings
• Select Home Warranty: Best Value
• America’s First Choice Home Club: Best for Customization
• First American Home Warranty: Best Appliance Coverage

Below are some of the most affordable home warranty companies available, all with relatively cheap monthly premiums and flexible deductibles.

Liberty Home Guard

Liberty Home Guard (LHG) offers customizable coverage at a competitively priced rate. It offers plans between $49–$60 per month. Although it charges a higher monthly premium, LHG provides a generous $2,000 coverage cap per covered item and a 60-day workmanship guarantee. Additionally, it provides over 30 additional coverage options, such as wine coolers and pest control.

Pros and Cons

Here is a list of pros and cons for Liberty Home Guard coverage:

✔ Offers 24/7 live chat feature on its website
✔ Provides coverage for 38 unique add-ons
✔ Extends a 60-day workmanship guarantee per completed repair

✘ Lacks transparency with service call fee pricing options
✘ Doesn’t lower monthly premium with a higher service call fee

Plan Coverage and Costs

Liberty Home Guard provides three coverage plans: the Appliance Guard, Systems Guard, and Total Home Guard. The Appliance Guard costs $49.99 per month, and it covers major appliances. The Systems Guard covers major systems, and it costs $54.99. The Total Home Guard costs $59.99 and bundles all items listed in the Appliance and Systems Guard.

Here is an overview of Liberty Home Guard’s coverage options:

Learn more: Liberty Home Guard Review

Select Home Warranty

Select Home Warranty is another affordable home warranty company with flexible payment options. Select offers plans between $44–$48 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 the inclusion of roof-leak coverage in each plan, which is a rarity in the home warranty industry.

Pros and Cons

Here is a list of pros and cons for Select Home Warranty coverage:

✔ Prices plans under $50 per month
✔ Provides generous coverage limits for HVAC systems
✔ Offers two months of free coverage when you choose an annual plan

✘ Excludes coverage for preexisting conditions
✘ Limits appliances and select home systems to a $500 coverage cap

Plan Coverage and Costs

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 $44.42 per month. Platinum Care is a combo plan that provides appliance and systems coverage. It costs $47.75 per month—one of the lowest costs we’ve seen for comprehensive home coverage.

Here is a coverage overview of Select Home Warranty’s plans:

Learn more: Select Home Warranty Review

America’s First Choice Home Club

America’s First Choice Home Club (AFC Home Club) is a reputable provider that offers plan flexibility at an affordable price.

AFC Home Club offers a workmanship guarantee for all repairs done within the life of the plan, which can save you from paying additional service call fees in case your repair fails. Additionally, AFC Home Club allows you to select your own service technician and offers security perks, such as free credit monitoring and identity protection.

Pros and Cons

Here is a list of pros and cons for AFC Home Club coverage:

✔ Extends an unlimited workmanship guarantee per covered repair
✔ Provides a $3,000 coverage cap per covered appliance
✔ Allows you to choose your own service provider

✘ Requires you to report an issue as soon as it’s discovered
✘ Includes plumbing stoppage coverage only in its most expensive plan (Platinum Plan)

Plan Coverage and Costs

Here is a coverage overview of AFC Home Club’s coverage options:

To request your free quote, fill out AFC Home Club’s quote form or call 877-755-1115.

Learn more: AFC Home Club Review

First American Home Warranty

First American Home Warranty (FAHW) has been a leader in the home warranty industry since 1984 and provides competitively priced home warranty coverage plans.

First American stands out compared to other providers via its appliance coverage caps. It offers a $3,500 limit per covered appliance in its Starter and Essential plans. Its Premium plan doubles the appliance limit to $7,000. 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.

Pros and Cons

Here is a list of pros and cons for First American Home Warranty coverage:

✔ Offers flexible service call fee options
✔ Provides generous appliance limits
✔ Covers working home systems/appliances regardless of age

✘ Excludes air conditioning coverage in its Starter Plan
✘ Charges the highest monthly premium of the providers on this list

Plan Coverage and Costs

Its plans range from $42–$87 per month. Although First American charges its plans on the higher side, you receive comprehensive home protection, even within its base plan. In addition, First American provides limited roof-leak repair as an add-on.

Here is an overview of First American’s coverage options:

Learn more: First American Home Warranty Review

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 protects 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?

A home warranty generally costs between $38–$70 per month, or $456–$840 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 charge a service call fee, or deductible, every time you file a claim. 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:

Home warranty companies may also provide optional coverage for the following items:

• Guest house
• Pool
• Roof leaks
• Septic system
• Spa
• Sump pumps
• Well pump

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 listed above offer affordable pricing and comprehensive plans, some home warranty companies 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 Select Home Warranty. Select offers free roof-leak repair coverage in each plan, plus all plans cost under $40 per month. Consider getting quotes from a few different providers to compare pricing and choose a plan that best fits your budget.
• Coverage—Most home warranty companies offer various plans ranging 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, consider other items 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. 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,  a few 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 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 provide a few months of coverage for free when customers sign up for a plan.

Cheapest Home Warranty Company Comparison

To help you narrow your choices, here’s a quick comparison of the top four companies we recommended earlier.

For information about other home warranty companies, read our in-depth company reviews:

• Cinch Home Services Review
• American Home Shield Review
• Liberty Home Guard Review
• 2-10 Home Buyers Warranty Review

Each state regulates home warranties independently. For example, the Department of Financial Services oversees home warranty companies in New York. New Jersey’s Division of Consumer Affairs, however, regulates service contracts. 

Many states follow the Service Contract Model Act, which establishes rules and requirements providers must follow to do business within a state. Governmental regulation assures that your home warranty provider is financially sound and can pay out claims. These regulations also ensure various consumer protections, such as the following:

• Customer cancellation within a set timeframe (30–45 days) to receive a full refund
• Fine print that is clear to read and understand
• Full disclosures of covered items and exclusions

Before signing up with a provider, check your state’s regulatory body to confirm the home warranty company is licensed to operate in your state. In addition, read through its sample contract. Many providers have state-specific clauses that outline the coverage and exclusions most applicable to you.

Our Conclusion

Liberty Home Guard, Select Home Warranty, First American Home Warranty, and AFC Home Club are four of the cheapest home warranty services available. They provide affordable plans, flexible payment options, comprehensive coverage of major home systems and appliances, and solid customer service.

Because plan pricing will depend on where you live, the square footage of your home, and the type of plan you choose, we recommend getting a quote from all three providers. You can compare quotes and prices between providers.

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 out of 100. 

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.