Cheapest Home Warranty Companies (2023)
Opting for a cheap home warranty gives you budget-friendly protection for your home’s major systems and appliances. If these covered items break down from regular use, your plan handles the costly repairs or replacements instead of you paying out-of-pocket. This protection saves you from expensive surprise breakdowns, offering financial assurance.
Our team compared top home warranty providers’ coverage, monthly costs, service fees, and add-on expenses. Keep reading to discover the most affordable home warranty options for your home.
Top 5 Cheapest Home Warranties
Based on our research, we’ve chosen the following five companies as our top picks for cheap home warranty providers:
- 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
- American Home Shield: Best for Comprehensive Coverage
Pricing information throughout the article are based on sample quotes we pulled for a 2,563-square-foot, single-family home in Charlotte, North Carolina. Your pricing may vary depending on your home’s location, size, type, and plan selections.
Liberty Home Guard
Liberty Home Guard
Best Customer RatingsIntroduction
Liberty Home Guard (LHG) offers monthly plans for $49–$59 and includes system-only, appliance-only, and combined coverage options. The company provides over 30 additional coverage options starting at as low as $3.99 per month. Along with affordable plans, LHG stands out for its excellent customer service ratings based on online reviews.
Pros and Cons
- Extends a $2,000 coverage cap per covered item
- Offers specialized coverage plans starting at $49
- Provides 38 unique add-ons
- Doesn’t lower monthly premium with a higher service call fee
- Includes add-on options as high as $35.99 per month
- Varies service call fee based on location, plan, and add-on choices
Plans and Coverage
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 covers major appliances. The Systems Guard protects major systems for $54.99 per month. The Total Home Guard costs $59.99 and bundles all items listed in the Appliance and Systems Guard. You can choose an annual premium for $499–$599 and get two months of free service.
Liberty Home Guard doesn’t offer service fee flexibility. When we spoke with an LHG representative, she explained that the company assigns fees based on location, plan choice, and add-on options. Depending on the coverage, additional add-ons can increase costs by $3.99–$35.99.
Liberty Home Guard offers the following coverage options:
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Select Home Warranty
Select Home Warranty
Best ValueIntroduction
Select Home Warranty offers plans between $44–$48 per month and service fees of $60–$75 per claim, some of the industry’s lowest prices. Another benefit of Select Home Warranty is the free inclusion of roof-leak coverage in each plan, which is a rarity in the home warranty industry.
Pros and Cons
- Includes free roof-leak coverage with every plan
- Offers two months of free coverage when you choose an annual plan
- Provides plans under $50 per month
- Limits appliances and select home systems to a $500 coverage cap
- Charges multiple service fees even if claims are filed simultaneously
- Excludes coverage for preexisting conditions
Plans and Coverage
Select offers three plans: Bronze Care, Gold Care, and Platinum Care. Bronze Care covers home appliances, and Gold Care protects home systems. Both plans cost $44.42 per month. Platinum Care offers combined appliance and systems coverage for $47.75 per month. This is one of the lowest costs we’ve seen for comprehensive home coverage.
Choosing an annual plan costs less overall, with prices ranging from $479–$524. Annual options also include two free months of service. However, the trade-off for lower premiums is reduced coverage caps. When we received the sample contract, we learned that Select offers lower coverage caps than other providers. You receive only $500 for appliances and certain home systems.
Select Home Warranty provides the following plan options and coverage:
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AFC Home Club
AFC Home Club
Best for CustomizationIntroduction
America’s First Choice Home Club (AFC Home Club) offers the best plan flexibility at an affordable price. The company has four plans, three service fees, and 10 add-on options. However, AFC Home Club add-on pricing starts at $25, higher than some of its competitors. The company includes free membership perks like free credit monitoring and an unlimited workmanship guarantee.
Pros and Cons
- Extends an unlimited workmanship guarantee per covered repair
- Offers the best pricing customization with four plans and three service fees
- Provides a $3,000 coverage cap per covered appliance
- Charges the highest for add-on features compared to other providers
- May reduce coverage cap based on its depreciated value
- Offers plumbing stoppage coverage only in its most expensive plan
Plans and Coverage
AFC Home Club offers four home protection plans: Silver, Systems, Gold, and Platinum. The Silver Plan covers home appliances priced between $35 and $40 monthly. The Systems Plan protects home systems and includes monthly charges between $42 and $47. The Gold Plan bundle costs $49–$54 and includes the Silver and Systems plan coverage. For $54–$59 per month, you can get the Platinum Plan, which includes Gold Plan coverage plus built-in microwaves, faucets, and plumbing stoppages.
You can choose a $75, $100, or $125 service call fee. Based on our quotes, the higher the service fee, the lower the premium. Annual plans range between $356–$646 and include bonus discounts for a one-year or three-year commitment. Although AFC Home Club offers affordable plan pricing, its add-on options are higher than other providers. Pricing ranges from $25–$150 per month for supplementary protections. We recommend only picking add-on coverage as needed to keep costs low.
Here are AFC Home Club’s coverage options below:
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First American Home Warranty
First American Home Warranty
Best Appliance CoverageIntroduction
First American Home Warranty (FAHW) has some of the highest appliance coverage caps at an affordable plan rate. Monthly plans start at $47 per month, with coverage caps ranging from $3,500–$7,000. Other benefits of FAHW include three flexible service fees and add-ons starting as low as $8.
Pros and Cons
- Doesn’t have coverage caps for HVAC, electrical, and ductwork
- Offers flexible service call fee options
- Provides generous appliance limits
- Has the second highest premiums on this list
- Doesn’t offer discounts or bonus months of service with its annual plans
- Excludes air conditioning coverage in its Starter Plan
Plans and Coverage
FAHW plans range from $42–$87 per month. Although First American premium costs are higher, you receive comprehensive home protection, even within its base plan. You can customize your premium cost with a $75, $100, or $125 service fee.
Its Starter Plan includes mostly appliances plus a few essential systems, such as electrical and heating. You must add the $8.33 per month add-on for air conditioning coverage. The Essentials Plan includes all major appliances and adds more systems, such as air conditioning and water heaters. The Starter and Essentials Plans include a $3,500 appliance limit. The Premium Plan offers the most comprehensive coverage, adding luxury appliances and the $7,000 appliance cap.
We’ll outline First American’s coverage options below:
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American Home Shield
American Home Shield
Best for Comprehensive CoverageIntroduction
American Home Shield (AHS) offers the most comprehensive coverage of any provider. The company includes more system and appliance protection under its standard plans, eliminating the need for additional add-on options. Because of its extensive coverage, its plans have the highest costs, with premiums ranging between $49–$119.
Pros and Cons
- Covers physical damage, improper modifications, and preexisting conditions
- Includes two service call fees for pricing customization
- Offers a $5,000 coverage cap and up to $4,000 for appliances
- Charges the highest monthly premium of the providers on this list
- Doesn’t offer an appliance-only plan
- Excludes annual pricing for its plans
Plans and Coverage
AHS provides three plan choices: ShieldSilver, ShieldGold, and ShieldPlatinum. ShieldSilver offers home system protections for $49–$59 per month, including a $5,000 coverage cap. With ShieldGold, you receive major home and appliance protections for $79–$89 per month. You receive the same system cap, plus an added $2,000 limit for appliances. ShieldPlatinum provides the same coverage levels but adds bonus benefits such as $1,500 roof-leak protection. Your appliance cap also increases to $4,000. The company does not offer annual premiums.
You can adjust your premiums with a $100 or $125 service call fee. The ShieldGold plan costs close to other reviewed system-only plans with the $125 service. However, its comprehensive coverage plans are priced higher than other providers. Due to its comprehensive protections, AHS offers only six add-on options. Additional coverage costs $5 monthly for sump pumps and runs as high as $24 for pool and spa coverage.
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 you 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 and $80 per month, or $456–$840 per year. Basic plans fall on the lower end of the spectrum, while more comprehensive coverage costs $60 or more.
In addition to monthly premiums, home warranty companies charge a service call fee, or deductible, whenever you file a claim. These service fees typically range between $60 and $125, with some companies allowing you to choose your service fee. While secret shopping, we learned that a lower service fee results in a higher monthly premium and vice versa.
What Does a Home Warranty Cover?
Home warranty coverage typically includes major home systems and appliances, such as refrigerators, electrical systems, plumbing, water heaters, and dishwashers. Here’s an overview of commonly covered items:
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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 Cheap Home Warranty?
In addition to protecting important items when they break down, a cheap home warranty offers the following benefits:
- Eliminates the hassle of finding your own qualified contractor
- Helps lower major system and appliance repairs or replacement costs
- May be an enticing feature for potential homebuyers
- May include unique benefits such as discounts on maintenance-related supplies or other services
- Protects your budget by covering the cost of unexpected events
How To Shop for a Cheap Home Warranty
When looking for an affordable home warranty, cheapest isn’t always best. While the above companies offer affordable pricing and comprehensive plans, some home warranty companies offer extremely limited coverage for a low price.
Before signing up for a home warranty, consider the following factors to ensure you find a cheap home warranty with excellent protection:
- Add-ons: You may want to use add-ons to protect other items, such as your pool, spa, guest unit, or septic system. Remember that each add-on increases your monthly and annual costs. We recommend limiting add-ons to essential items.
- Coverage: Most home warranty companies offer various plans, including systems or appliances-only and combination options. Match your selected plan to your current needs. Opt for a lower-priced plan that provides the coverage you need, rather than overspending on comprehensive coverage you won’t use.
- Exclusions: Companies often include coverage caps and exclusions on certain items in your contract. Review your contract terms before investing in a plan to understand your exact coverage. Avoid plans with too many exclusions, as you may end up paying more out-of-pocket for unprotected items than you save on covered repairs.
- Premium costs: You’ll pay more for comprehensive plans compared to system- or appliance-focused coverage. Consider getting quotes from several providers to compare pricing and choose a plan that best fits your budget.
- Promotions: Compare current promotions and offerings from each provider to see how much money you could save on your contract. Many companies provide a few months of free coverage and discounts for choosing an annual plan.
- Service fees: Choosing a higher service fee can lower your premium costs. Many companies offer two or more options for better pricing customization with their plans. Remember that you will pay this service fee every time you need a repair or replacement, so select the options that you’re comfortable paying.
Annual Home Warranty Cost Calculator
Our team created a calculator to break down the estimated annual cost of owning a home warranty. Enter your monthly premium, service call fee, and estimated number of claims to see your projected annual cost. It’s best to request a quote directly from one of our recommended providers, as annual costs and service fees vary between them.
| Appliance | Average Repair Cost | Average Replacement Cost |
|---|---|---|
|
Dehumidifier |
$50–$200 |
$1,300–$2,800 |
|
Microwave |
$50–$400 |
$60–$2,000 |
|
Dishwasher |
$50–$500 |
$400–$3,000 |
|
Exhaust Fans |
$16–$300 |
$250–$950 |
|
Electric Range |
$100–$500 |
$230–$3,000 |
|
Gas Range |
$100–$500 |
$230–$3,000 |
|
Dryer |
$100–$400 |
$450–$2,300 |
|
Oven |
$100–$430 |
$400–$3,000 |
|
Washer |
$50–$450 |
$400–$2,300 |
|
Freezer |
$90–$500 |
$160–$2,900 |
|
Refrigerator |
$40–$350 |
$200–$5,000 |
Note: The annual cost figure generated by our home warranty calculator is not an indication of a company’s actual plan cost, as annual costs and service fees vary based on your plan selections and your home’s size, type, and location.
Commonly Covered Items
| Systems | Appliances |
|---|---|
|
Air conditioning |
Refrigerator |
|
Heating |
Dishwasher |
|
Electrical |
Built-in microwave |
|
Ductwork |
Oven |
|
Water heater |
Stove |
|
Garbage disposal |
Range |
|
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:
- Guest house
- Pool
- Roof leaks
- Septic system
- Spa
- Sump pumps
- Well pump
Cheapest Home Warranty Company Comparison
To help you narrow your choices, here’s a quick comparison of our top recommendations for cheap home warranty companies.
Providers | Liberty Home Guard | Select Home Warranty | AFC Home Club | AFC Home Club | American Home Shield |
|---|---|---|---|---|---|
|
Our Rating |
4.5 out of 5 |
4.3 out of 5 |
4.6 out of 5 |
4.6 out of 5 |
4.4 out of 5 |
|
Monthly Premiums |
$49–$59 |
$44–$47 |
$35–$59 |
$47–$87 |
$49–$119 |
|
Service call fees |
$65–$125 |
$60–$75 |
$75–$125 |
$75–$125 |
$100–$125 |
|
Availability |
50 states |
47 states |
49 states |
35 states |
48 states |
|
Get a Quote |
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
How Are Home Warranties Regulated?
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
We chose Liberty Home Guard as our top company for a cheap home warranty. Although the provider doesn’t have the lowest premiums, it provides the best specialized plans and the largest selection of low-cost add-on options. If you prefer low premiums and baseline coverage, consider Select Home Warranty as your provider. Choose AFC Home Club if you want more plan customization options.
Plan pricing depends on your location, your home’s square footage, and your chosen plan, so we recommend getting a quote from at least three providers. Compare quotes, prices, and coverage before making a final decision.
FAQ About Cheap Home Warranty
Who pays for a home warranty?
Homebuyers, sellers, realtors, and rental property owners can all pay for a home warranty. Homebuyers will pay for coverage if they purchase a plan at any point during homeownership or after the closing process. Sellers, real estate agents, or realtors might pay for coverage as part of the home sale. Rental property owners could pay for a home warranty and include part of the cost in their tenants’ rent.
Is there a difference between a cheap home warranty and a higher-cost home warranty?
Overall, a cheap home warranty offers coverage for the same systems and appliances as a more expensive home warranty. However, a cheaper policy usually has lower coverage limits per covered system and appliance. Consider your needs and budget before choosing a home warranty plan.
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 begin sooner.
What does a home warranty not cover?
Home warranties generally don’t cover appliance removal and disposal fees, commercial property coverage, cosmetic damage, hazardous waste handling fees, routine maintenance and more. Before signing up, we recommend reading your provider’s sample contract to determine what is and isn’t covered by your policy.
Is buying a home warranty cost-effective?
Yes, buying a home warranty can be cost-effective because it can save you hundreds of dollars on repairs and replacements when home systems and appliances break down. Even if you don’t have an issue with a system or appliance, it’s always a good idea to have protection in case something unexpected happens, leaving you to pay expensive repair or replacement costs.
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.
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.
