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Top 5 Home Warranty Companies for Rental Properties (2024)

Author Image Written by Dana Getz + 1 other Reviewer Icon Reviewed by Jacquelyn Kfoury Updated 03/21/2024

We recommend Liberty Home Guard for landlords looking to protect their rental properties. Liberty offers protection plans for systems, appliances, and total home coverage alongside 42 add-ons. This impressive range of coverage choices makes Liberty the ideal home warranty provider for rental properties. Our second choice would be American Home Shield (AHS) due to its tiered coverage plans and moderately priced service fees.

We reviewed every major home warranty provider to determine the best companies for rental properties. Our team analyzed each company’s plans, combed through over 57,000 customer responses on independent review sites, obtained real quotes via secret shopping, and gathered firsthand information through customer surveys. Below, we’ll share our findings and explain which companies have the best home warranties for rental properties.

Did You Know?

In the last 30 days, more than 2,500 people bought home warranties from the above providers.


Summary of Top Home Warranty Companies for Rentals

We recommend the following home warranty companies as the best choices for rental properties:

Liberty Home Guard: Best Customer Ratings
American Home Shield: Best for Comprehensive Coverage
First American Home Warranty: Best Appliance Coverage
AFC Home Warranty: Best for Customization

Compare Top Home Warranty Companies for Rentals

The following table provides a comprehensive breakdown of the cost of a home warranty for real estate properties. The information within this table is pulled directly from our firsthand research and secret shopping:

Star Rating Monthly Cost for Rentals Service Fee for Rentals Claim Response Time for Rentals Coverage Caps for Rentals Link
Liberty Home Guard Liberty Home Guard
$49.99–$59.99 $65–$125 Up to 48 hours $2,000 per covered item VISIT SITE
American Home Shield American Home Shield
$29.99–$79.99 $100–$125 Up to 48 hours None specified for built-in systems VISIT SITE
Select Home Warranty Select Home Warranty
$44.42–$47.75 $75 Up to 48 hours $3,000 for HVAC, $500 for plumbing, electrical, and appliances VISIT SITE
First American Home Warranty First American Home Warranty
$41.25–$66.67 $75–$125 4-48 hours $3,500 per covered appliance, up to $7,000 for premium plan VISIT SITE
AFC Home Warranty AFC Home Warranty
$36.83–$91.58 $75–$125 24-48 hours $3,000 for appliances, $500 for add-ons, systems are at the provider’s discretion, plan capped at $10,000 VISIT SITE
Liberty Home Guard
Logo Liberty Home Guard
Star Rating
Monthly Cost for Rentals $49.99–$59.99
Service Fee for Rentals $65–$125
Claim Response Time for Rentals Up to 48 hours
Coverage Caps for Rentals $2,000 per covered item
VISIT SITE
American Home Shield
Logo American Home Shield
Star Rating
Monthly Cost for Rentals $29.99–$79.99
Service Fee for Rentals $100–$125
Claim Response Time for Rentals Up to 48 hours
Coverage Caps for Rentals None specified for built-in systems
VISIT SITE
Select Home Warranty
Logo Select Home Warranty
Star Rating
Monthly Cost for Rentals $44.42–$47.75
Service Fee for Rentals $75
Claim Response Time for Rentals Up to 48 hours
Coverage Caps for Rentals $3,000 for HVAC, $500 for plumbing, electrical, and appliances
VISIT SITE
First American Home Warranty
Logo First American Home Warranty
Star Rating
Monthly Cost for Rentals $41.25–$66.67
Service Fee for Rentals $75–$125
Claim Response Time for Rentals 4-48 hours
Coverage Caps for Rentals $3,500 per covered appliance, up to $7,000 for premium plan
VISIT SITE
AFC Home Warranty
Logo AFC Home Warranty
Star Rating
Monthly Cost for Rentals $36.83–$91.58
Service Fee for Rentals $75–$125
Claim Response Time for Rentals 24-48 hours
Coverage Caps for Rentals $3,000 for appliances, $500 for add-ons, systems are at the provider’s discretion, plan capped at $10,000
VISIT SITE
Company Star Rating Monthly Cost for Rentals Claim Response Time for Rentals Service Fee for Rentals Coverage Caps for Rentals Visit Site
4.5
$49.99–$59.99 Up to 48 hours $65–$125 $2,000 per covered item VISIT SITE
4.4
$29.99–$79.99 Up to 48 hours $100–$125 None specified for built-in systems VISIT SITE
4.3
$44.42–$47.75 Up to 48 hours $75 $3,000 for HVAC, $500 for plumbing, electrical, and appliances VISIT SITE
4.6
$41.25–$66.67 4-48 hours $75–$125 $3,500 per covered appliance, up to $7,000 for premium plan VISIT SITE
4.6
$36.83–$91.58 24-48 hours $75–$125 $3,000 for appliances, $500 for add-ons, systems are at the provider’s discretion, plan capped at $10,000 VISIT SITE
No results were found.

*We based the pricing information in this table and throughout the article on sample quotes we obtained for a single-family 2,000-square-foot home in Raleigh, North Carolina. Your pricing may vary depending on your home’s location, size, type, and plan selections.


How We Rated Home Warranty Companies

Why Trust Us? Our review and rating process for the best home warranty companies
57
Companies Considered We carefully considered 57 companies to find the best home warranty providers available.
2000
Homeowners Surveyed We surveyed 2,000 home owners to see what they care about most for home protection.
57000
Reviews Analyzed We went through 57,000 customer reviews of home warranty companies to see what people had to say about each provider.
31
Coverages Compared We compared 31 policies to find the best home warranty offerings on the market.

We used our ratings and review standards to determine the best home warranty companies for rental properties. Our rating criteria judges each company on key factors that homeowners find important. We analyze each provider’s coverage plans, trustworthiness, availability, transparency, and service.

We read customer reviews across independent review sites such as the Better Business Bureau (BBB), Consumer Affairs, and Trustpilot when researching and rating providers. We’ve combed through over 57,000 customer reviews in our assessment of these companies. Our team notes common problems including aggressive sales tactics, low coverage caps, restrictive policies, and poor customer experience when reading reviews. We reinforced information gained through customer feedback with firsthand data and experience from surveys, secret shopping, and focus group responses.

We consulted two home warranty experts for this review. We asked each of them to share insights on the best home warranty plans and benefits for rental properties.
Seamus Nally: Nally is the CEO of TurboTenant, a rental property management software company.
Shannon Feick: Feick is a licensed real estate investor with 14 years of experience who is the co-owner and co-founder of ASAP Properties in Cincinnati.

Understanding Home Warranties

Choosing the right home warranty plan for your rental property is essential to protecting the investment. We recommend asking yourself the following questions before purchasing a home warranty for your rental:

The best sign-up time for a home warranty depends on your property situation. You might want to sign up right away if you hope to turn your property into a rental quickly or if it’s ready for new tenants. Quick sign-ups are important because many plans have a mandatory 30-day waiting period before they take effect – your company’s agent may be able to waive this period.

You may want to wait if your property is brand-new with fresh appliances or is in a slow market. We recommend buying a home warranty for your rental if any of the following apply:

  • The home is older.
  • Its appliances or major systems are old or expensive.
  • You’re in a fast-paced market or want to turn your property quickly.
  • It’s a property that cycles through tenants quickly or sees heavier use.

The types of plans available for rental properties are the same as those sold to homeowners. The national average home warranty cost is $644 to $737 annually. Service fees can cost anywhere from $65 to $125. We gathered this data by obtaining more than 120 quotes for a 2,000-square-foot home from top home warranty companies across 20 states.

Follow these steps to file a home warranty claim for a rental property:

  • Understand and reread your policy: We recommend double-checking your home warranty’s policy coverage before filing a service request. You’ll need to act quickly when an appliance breaks or a system goes offline to get it repaired promptly for your tenants. Knowing your coverage limits, exclusions, and caps beforehand will help you when filing a claim under your warranty or insurance policy.
  • Contact a representative to begin the claim process: You’ll start the claim process by contacting a local company-approved professional. Use the provider’s client portal or call its direct line to get a list of approved contractors in your area. You can schedule the appointment via an online form or by contacting the company directly. It could take up to 48 hours for a home warranty company to approve and schedule an appointment.
  • Pay service fees and out-of-pocket expenses: Pay your service fee and any extra expenses before the technician completes the repair. The repairman will reach out to you and schedule a follow-up appointment if the system can’t be repaired and needs replacement.

Top Home Warranty Providers for Rentals

Here’s a comprehensive breakdown of our top recommended home warranty providers for rental properties.

Liberty Home Guard

Best Customer Ratings
4.5 We grade all home warranty companies on the most important factors to homeowners such as coverage, value, trust, transparency, availability, and service. We account for 15 specific data points such as coverage caps, systems and appliances covered, monthly costs, service fees, sample contract availability, response time, claims process, and workmanship guarantee length to then calculate a score, created fully by our Editorial team.

BBB rating: Not rated

We recommend Liberty Home Guard to property management companies because of its wide coverage range and numerous add-ons. Liberty’s three plans and 42 add-on choices allow you to pick and choose specific coverage for your rental property.

How We Scored Liberty Home Guard

Liberty Home Guard earned a score of 4.5 out of 5 stars against our review standards. Here’s a detailed breakdown of Liberty Home Guard’s key performance categories:

  • Coverage (4.7 out of 5): Liberty earned nearly full points in this category due to its extensive add-on selection and three comprehensive plans.
  • Value (4.25 out of 5): Liberty’s moderate price range awarded it points in this category. We docked its score due to a poorly defined service fee policy.
  • Trustworthiness and transparency (4.8 out of 5): We awarded Liberty strong points in this category due to its overall positive customer review scores.
  • Availability and service (4.3 out of 5): We lowered Liberty’s score in this category due to its restrictive contractor policy.

Pros and Cons

Pros Offers a 60-day workmanship warranty on appliances and systems Provides customers with a live-chat feature on its website Has comprehensive coverage plus more than 40 add-ons Cons Possesses service plan fees that are higher than the industry standard Uses an inflexible and restrictive policy for service call fees Has lower-than-average coverage caps for electrical and plumbing systems

Plans and Cost

Liberty Home Guard has three service plans: Appliance Guard, System Guard, and Total Home Guard. All three possess the same system and appliance coverage cap of $2,000. The sole exceptions are electrical and plumbing systems which have a cap of $500. Liberty backs up its repairs with a 60-day workmanship warranty for all systems and appliances.

  • Appliance Guard: This plan protects nine major home appliances such as clothes washers and dryers, stoves, dishwashers, garage doors, and refrigerators.
  • System Guard: This plan includes six main home systems: air conditioning, heating, plumbing, ductwork, electrical, and water heaters.
  • Total Home Guard: This is Liberty’s premium plan that combines the coverage of the previous two for complete coverage.

The monthly service fees from Liberty are higher than the industry standard. The following table summarizes Liberty Home Guard’s plans and prices.

Plan

Monthly Cost

Service Fee

Coverage Cap

  Appliance Guard

$49.99

$65–$125

$2,000

  System Guard

$54.99

$65–$125

$2,000 ($500 for plumbing and electrical systems)

  Total Home Guard

$59.99

$65–$125

  $2,000 ($500 for plumbing and electrical systems)

Liberty Home Guard has over 40 optional add-ons that allow you to customize rental home coverage. These options include items such as the sump pump, gutter cleaning, and lawn sprinkler systems. Add-ons range in price from $3 to $40 per month.

Our Experience With Liberty Home Guard

We reached out to Liberty Home Guard and were impressed with its communication and promptness. Its website’s chat feature uses an automated bot but connected us to a representative when asked. The representative was polite, courteous, and very informative. The company agent told us that Liberty lets you select your own technician if there are none in your area from its approved list.

American Home Shield

Best for Comprehensive Coverage
4.4 We grade all home warranty companies on the most important factors to homeowners such as coverage, value, trust, transparency, availability, and service. We account for 15 specific data points such as coverage caps, systems and appliances covered, monthly costs, service fees, sample contract availability, response time, claims process, and workmanship guarantee length to then calculate a score, created fully by our Editorial team.

BBB rating: B

We recommend American Home Shield (AHS) for older rental properties or those that face higher-than-average use. AHS offers strong coverage for systems and appliances with preexisting conditions. This coverage leniency is uncommon in the home warranty industry since most providers have strict restrictions on preexisting damage.

How We Scored American Home Shield

We gave American Home Shield 4.4 out of 5 stars in our review standards. Here’s how it performed in categories most important to homeowners.

  • Coverage (4.7 out of 5): AHS’s comprehensive coverage earned it plenty of points in this category.
  • Value (4 out of 5): We removed some points due to AHS’s higher-than-average monthly costs and service fees.
  • Trustworthiness and transparency (4.25 out of 5): AHS lost points because it possesses weak customer review scores across independent review sites.
  • Availability and service (4.7 out of 5): We awarded AHS many points in this category due to its efficient claims process and 24/7 customer service.

Pros and Cons

Pros Provides roof-leak coverage in its premium plan Covers appliances and systems with preexisting conditions Has higher-than-average coverage caps for built-in systems Cons Has high premiums which exceed the industry norm Doesn’t offer an appliance-focused plan Offers only six add-ons

Plans and Cost

AHS has three plans to choose from: ShieldSilver, ShieldGold, and ShieldPlatinum. Each plan’s system coverage cap is $5,000–more than double the industry standard. Furthermore, AHS’s ShieldPlatinum plan includes roof-leak coverage for free.

  • ShieldSilver: This plan covers home systems such as heating and electrical.
  • ShieldGold: This plan includes everything from ShieldSilver in addition to appliances such as garbage disposals, water heaters, and refrigerators.
  • ShieldPlatinum: AHS’s premium plan includes everything from previous plans along with coverage for roof leaks, HVAC tuneups, and unlimited AC refrigerant.

The prices for AHS’s plans exceed the industry average but it has high coverage caps and medium-cost service fees. The following table provides details on AHS’s plans and prices:

Plan

Monthly Cost

Service Fee

Coverage Cap

  ShieldSilver

$29.99

  $100–$125

$5,000

  ShieldGold

$49.99

  $100–$125

Systems: $5,000

Appliances: $2,000

  ShieldPlatinum

$79.99

  $100–$125

Systems: $5,000

Appliances: $4,000

AHS only provides its customers with six add-on options, including:

  • Roof-leak repair
  • Electronics
  • Pool and built-in spa equipment
  • Guest units
  • Septic pumps
  • Well pumps

Our Experience With American Home Shield

We contacted AHS to get a better idea of how its claims and repair processes work. AHS’s representative and the repair technician were polite, prompt, and efficient. Our team member received a confirmation email within minutes of submitting an online claim through the AHS customer portal. A technician followed up by scheduling an appointment for the following day. The technician was polite and repaired the damage in about two hours after being paid the service call fee.

Select Home Warranty

Best Value
4.3 We grade all home warranty companies on the most important factors to homeowners such as coverage, value, trust, transparency, availability, and service. We account for 15 specific data points such as coverage caps, systems and appliances covered, monthly costs, service fees, sample contract availability, response time, claims process, and workmanship guarantee length to then calculate a score, created fully by our Editorial team.

BBB rating: B

We recommend Select Home Warranty thanks to its low monthly rates and cheap service fees. Select offers some of the lowest-cost plans in the industry at $42 per month.

How We Scored Select Home Warranty

Select Home Warranty earned 4.3 out of 5 stars through our rating and review standards. Here’s how it scored in key categories.

  • Coverage (3.7 out of 5): We docked Select points due to its below-industry-standard coverage caps.
  • Value (5 out of 5): Select earned nearly full points for its low monthly premiums and service fees.
  • Trustworthiness and transparency (4.5 out of 5): Select lost some points due to its mixed customer review scores.
  • Availability and service (4.3 out of 5): Select lost points because of the long processing time on claims.

Pros and Cons

Pros Offers a $3,000 HVAC system coverage cap Has monthly rates below $50 Includes roof-leak coverage in all plans Cons Charges multiple service fees when filing various claim tickets Uses a rigid service call fee policy Possesses coverage caps below the industry standard

Plans and Cost

Select has three plans to choose from: Bronze Care, Gold Care, and Platinum Care. Each plan’s coverage cap for all appliances and home systems is only $500. Select’s HVAC coverage is the sole exception at $3,000.

  • Bronze Care: This plan covers appliances such as cooktops, refrigerators, clothes washers, and clothes dryers.
  • Gold Care: This plan covers six home systems: heating, air conditioning, plumbing, electrical, ductwork, and water heaters.
  • Platinum Care: This plan includes everything from both previous plans alongside garage door openers, ceiling fans, and plumbing stoppages.

Select has some of the industry’s least expensive premiums and service fees. The flip side of these low rates is its low coverage caps and restrictive service call fee policy. Here’s a more detailed breakdown of Select’s plans and prices:

Plan

Monthly Cost

Service Fee

Coverage Cap

  Bronze Care

$44.42

$60–$75

$500

  Gold Care

$44.42

$60–$75

$500 (HVAC: $3,000)

Platinum Care

$47.75

  $60–$75

Coverage caps remain the same

Select has nine add-ons to choose from with prices at low as $9 per month. Select’s add-ons include the following:

  • Central vacuum
  • Lawn sprinkler system
  • Pool
  • Roof leak
  • Septic system
  • Spa
  • Stand-alone freezer
  • Sump pump
  • Well pump

Our Experience With Select Home Warranty

Our team spoke with a customer service representative and learned that Select allows you to choose your own technician if none of its own are available in your area. The representative informed us that Select must approve contractors before sending them out on repairs.

First American Home Warranty

Best Appliance Coverage
4.6 We grade all home warranty companies on the most important factors to homeowners such as coverage, value, trust, transparency, availability, and service. We account for 15 specific data points such as coverage caps, systems and appliances covered, monthly costs, service fees, sample contract availability, response time, claims process, and workmanship guarantee length to then calculate a score, created fully by our Editorial team.

BBB rating: B

We recommend First American Home Warranty for newly built rentals or those with high-end appliances. First American’s high appliance coverage caps ensure that you won’t spend out-of-pocket funds during repairs.

How We Scored First American Home Warranty

We awarded First American Home Warranty 4.6 out of 5 stars in our extensive review standards. Here’s how it fared across major categories.

  • Coverage (4.7 out of 5): We awarded First American points in this category thanks to its high appliance and system coverage caps.
  • Value (4 out of 5): First American lost points here from its high service call fees.
  • Trustworthiness and transparency (4.8 out of 5): First American earned high points by having a strong reputation and above-average customer reviews.
  • Availability and service (4.3 out of 5): We docked points from First American because of its restrictive service technician policy.

Pros and Cons

Pros Provides coverage for preexisting conditions via its First American Advantage upgrade Offers a $7,000 coverage cap for appliances on its highest plan Possesses unlimited coverage caps for home systems Cons Doesn’t offer AC coverage in its basic plan Only operates in 33 states Doesn’t offer system- or appliance-focused plans

Plans and Cost

First American Home Warranty has three plans to choose from: Starter, Eagle Premier, and Max. First American’s plans cover a mix of systems and appliances. Each subsequent plan provides more coverage than the last but at a higher cost. These options have medium-range prices, high coverage caps, and a decent number of add-ons.

  • Starter: This is First American’s baseline plan. It covers essential appliances and systems such as dishwashers and ductwork.
  • Eagle Premier: This is a direct upgrade from the Starter plan. It includes everything from the Starter plan and other items such as AC, water heaters, and clothes washers.
  • Max: This is First American’s most extensive plan. It includes everything from the previous two plus luxury items such as garbage disposal, faucets, and roof leaks.

First American has higher-than-average premiums compared to the industry standard. Its service fees are also pricier but have generous coverage caps.

Plan

Monthly Cost

Service Fee

Coverage Cap

Starter Plan

$41.25

$75–$125

Systems: Unlimited

Appliances: $3,500

  Eagle Premier

$55

$75–$125

Systems: Unlimited

Appliances: $3,500

Max Plan

$66.67

$75–$125

Systems: Unlimited

Appliances: $7,000

First American has 12 add-ons to choose from, including:

  • Additional refrigeration
  • Central AC
  • HVAC tuneup
  • Limited roof-leak
  • Pool and spa equipment 
  • Septic tank pumping and system
  • Water softener
  • Well pump

Our Experience With First American Home Warranty

A member of our team needed garage door repair and reached out to First American. They contacted First American through an online form and received confirmation within 30 minutes. Next, they spoke with the technician and scheduled an appointment for repair work. The technician arrived and made the appropriate repairs after three days. The work took three hours in total and didn’t exceed the coverage cap.

AFC Home Warranty

Best for Customization
4.6 We grade all home warranty companies on the most important factors to homeowners such as coverage, value, trust, transparency, availability, and service. We account for 15 specific data points such as coverage caps, systems and appliances covered, monthly costs, service fees, sample contract availability, response time, claims process, and workmanship guarantee length to then calculate a score, created fully by our Editorial team.

BBB rating: B

We recommend AFC Home Warranty for rentals with unique appliances or systems that require a customizable coverage plan. AFC has more plan options and add-ons than most home warranty providers. The company’s system allows you to create a custom coverage plan that protects nearly everything in your rental property.

How We Scored AFC Home Warranty

We gave AFC Home Warranty a score of 4.6 out of 5 stars when scoring it against our review standards. Here’s how it measured up in each category.

  • Coverage (4.3 out of 5): We docked AFC points in this category because it reduces coverage caps for older items through its depreciating value policy.
  • Value (4.5 out of 5): AFC earned high points in this category thanks to its diverse plan variety and wide selection of add-ons.
  • Trustworthiness and transparency (4.8 out of 5): We awarded AFC many points in this category due to its workmanship guarantee and above-average customer scores.
  • Availability and service (5 out of 5): AFC earned all points in this category thanks to its generous service provider policy.

Pros and Cons

Pros Provides an unlimited workmanship guarantee on all repairs Has options for identity protection and credit monitoring Possesses more add-ons than the industry average with 13 options Cons Doesn’t provide coverage for preexisting conditions Has reduced coverage caps on older items Has a restrictive claim submissions policy

Plans and Cost

AFC has four protection options: Silver Plan, Gold Plan, Platinum Plan, and Diamond Plan. The company’s biggest downside is that it only pays up to an item’s depreciated value. One bonus of AFC is its unlimited workmanship guarantee for all plans.

  • Silver Plan: This plan covers nine major appliances including dishwashers, clothes washers and dryers, and refrigerators.
  • Gold Plan: This plan covers 15 essential home systems and appliances such as AC, plumbing, clothes washer and dryer, heating, and ductwork.
  • Platinum Plan: This plan includes everything in the previous two alongside refrigerator ice makers, plumbing stoppages, and built-in microwaves.
  • Diamond Plan: This is AFC’s premium plan. It includes everything from all other plans plus coverage for various electronics, exterior water lines, and sewer lines.

The following table breaks down AFC’s plans, fees, and coverage caps.

Plan

Monthly Cost

Service Fee

Coverage Cap

Silver Plan

$36.83

$125

  $3,000

Gold Plan

$51.92

$125

$3,000
System caps vary

Platinum Plan

$57

$125

$3,000
System caps vary

Diamond Plan

$91.58

$125

$3,000
System caps vary

AFC has 13 add-ons to choose from that range in price from $25 to $150. AFC’s add-ons include:

  • Built-in microwave
  • Electronic coverage
  • In-ground pool
  • Roof leak
  • Septic system
  • Tankless water heater

Our Experience With AFC Home Warranty

We asked for a quote on a 2,000 square-foot home using AFC’s online customer portal. We needed a home address, email account, name, and phone number to receive the quote. The portal was easy to use, quick, efficient, and user-friendly. We received up-to-date prices and plans about 30 seconds after we entered our information.


What To Consider When Buying a Home Warranty

Picking the right home warranty plan for your rental property is essential to make sure you don’t overpay on monthly premiums. Picking the wrong provider can result in coverage for appliances you don’t have or cause you to miss out on critical coverage. We recommend taking the following steps when picking a home warranty for your rental property:

  • Check coverage needs: No two rental properties are the same. Knowing which systems and appliances need coverage before choosing a plan will help you pick the best option for your property. We recommend creating a comprehensive list of all systems and appliances including their ages, conditions, and last repair dates.
  • Assess available budget: It’s important to factor in how much you’re comfortable paying each month. Remember to account for add-ons, service fees, and total coverage caps for your most at-risk items when calculating operating expenses.
  • Check your location’s available plans: Many home warranty companies offer specific plan options for each region they operate in. You can use the website’s client portal to check plan and add-on availability for your area of the U.S.
  • Read customer reviews: We recommend reading customer reviews for each provider’s local branch office through sites such as the BBB. Even reliable companies can have poorly performing or subpar branch locations.
  • Compare plans and shop around: The best way to find a reliable plan at a reasonable price is by shopping around and comparing quotes. We recommend getting at least three free quotes before making a final decision.

How Are Home Warranties Regulated?

Each state has laws that regulate home warranty companies. These laws are drafted and enforced through state bodies such as the department of licensing and regulation, the consumer protection division, or the department of insurance.

Most states use the Service Contracts Model Act published by the National Association of Insurance Commissioners (NAIC) in 1988 as the basis for home warranty regulations. The SCM Act is a legal framework for home service contracts and is designed to ensure that:

  • Contracts that are clear, easy to understand, and accurately represent the policy being offered.
  • Contracts accurately and extensively disclose prices, coverage, fees, and limitations.
  • Contracts must allow policyholders the ability to cancel and receive a full refund within a reasonable time frame.

Home Warranty Cost Calculator

Our team created a calculator to break down the estimated annual cost of owning a home warranty.

To calculate your projected annual cost, use the following steps:

  1. Enter your monthly premium
  2. Enter your service call fee
  3. Enter your estimated number of claims

It’s best to request a quote directly from one of our recommended providers since 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.

ApplianceAverage Repair CostAverage 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: Life span and repair cost data sourced from the International Association of Certified Home Inspectors (InterNACHI) and Home Depot


FAQ About Home Warranties for Rental Properties

What is a home warranty for a rental property?

There’s no difference between a standard home warranty and one designed for rental properties.

Are home warranty plans necessary?

Technically, home warranties aren’t required to operate a rental or investment property. However, they could save you money on the cost of repairs for standard wear and tear.

What are the best home warranty companies for rental properties?

We recommend Liberty Home Guard, American Home Shield, Select Home Warranty, First American Home Warranty and AFC Home Warranty as the best home warranty companies for rental properties.


How Do I Find the Best Home Warranty Company in My Area?

Find in-depth reviews on the best home warranty companies for major U.S. cities below.


Below, we’ve compiled several easy-to-digest guides based on our home warranty coverage.

More on Home Warranties

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