Top 5 Home Warranty Companies for Rental Properties (2024)
If you’re a landlord renting out your property, you want to make sure it’s protected from damage and wear and tear. Investing in a home warranty plan helps to cover costs when appliances and systems break down, as well as connects you to repair technicians to get things back up and running quickly—keeping your tenants happy.
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 5,700 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. Liberty Home Guard is our most popular provider, with 55% of buyers choosing to cover their homes with an LHG plan.
Summary of Top Home Warranty Companies for Rentals
We recommend the following home warranty companies as the best choices for rental properties:
- Best Customer Support: Liberty Home Guard
- Best for Comprehensive Coverage: American Home Shield
- Best Plan Flexibility: AFC Home Warranty
- Best for High-End Items: First American Home Warranty
- Best Budget Plan: Select Home Warranty
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:
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#1 out of 15 companies | #2 out of 15 companies | #3 out of 15 companies | #4 out of 15 companies | #5 out of 15 companies | |
NR | B | B- | B | B | |
Monthly Cost |
$49–$59 | $49–$109 | $44–$47 | $47–$87 | $34–$92 |
Service Fees |
$65–$125 | $100–$125 | $60–$75 | $75–$125 | $75–$125 |
Customer Support Options |
Email, Phone, Online Chat, Online Portal | Phone, Online Portal | Email, Phone, Online Portal | Phone, Online Portal | Phone, Online Portal |
Response Time |
Up to 48 hours | Up to 48 hours | 48-84 hours | 4–48 hours | 24-48 hours |
Pros |
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Cons |
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Summary |
We recommend Liberty Home Guard for homeowners who need coverage for multiple HVAC systems and extensive add-on customizations. |
We recommend American Home Shield for homeowners who need comprehensive coverage for older homes. |
We recommend Select Home Warranty for homeowners who need affordable HVAC-only coverage. |
We recommend First American Home Warranty for homeowners who need robust plan options for HVAC and high-end appliances. |
We recommend AFC Home Warranty for homeowners who want extensive HVAC coverage and protections for new systems. |
Promotions |
$200 Off + 2 Months Free + Roof Leak Protection | $150 off any plan | Cyber Monday: 40% Off Home Warranty Plans | $100 Off with Code “PROTECT” | Fall Sale: $250 Off + Free Roof Leak Coverage |
Rating Categories |
Liberty Home Guard | American Home Shield | Select Home Warranty | First American Home Warranty | AFC Home Warranty |
Coverage |
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Value |
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Trustworthiness |
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Plan Transparency |
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Customer Support |
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Flexibility |
*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
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 5,700 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.
Our Home Warranty Experts
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:
When Should I Buy Home a Home Warranty?
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.
How Much Do Home Warranties Cost for Rental Properties?
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.
How Do I File a Home Warranty Claim?
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.
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.
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.
Related Resources
Below, we’ve compiled several easy-to-digest guides based on our home warranty coverage.
More on Home Warranties
- Understanding Home Warranty Policies
- Overview of Home warranty vs. Homeowners Insurance
- Residential Service Contract
- Cheapest Home Warranty Companies
Related to Home Appliances
- Appliance Extended Warranties
- Best Refrigerator Warranty
- Home Depot Extended Warranty
- Sears Appliance Warranty
- Best Home Warranty for High-End Appliances
Related to Home Systems
- Best Home Warranty for HVAC
- Best Water Heater Home Warranty
- Best Sewer Line Home Warranty
- Best Plumbing Home Warranty
To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.
Our Methodology
We back 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, cost, trustworthiness, plan transparency, customer support, and flexibility 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.