We recommend American Home Shield, Choice Home Warranty, and First American Home Warranty as the best home warranties for rental properties. As a rental property owner, you know how long it takes to handle multiple repairs or replacements in your rentals. A reputable home warranty with reliable, comprehensive coverage can make the repair process easier by connecting you with vetted contractors and helping you better manage your rental expenses
What You Need To Know
- American Home Shield is our top home warranty pick for rental properties because of its generous coverage limits for major appliances and systems.
- The average home warranty cost in the U.S. is $56 per month.
- According to our latest home warranty survey, the most popular coverage people needed was heating and furnace protection, followed by air conditioning systems.
Top Home Warranty Companies for Rental Properties
Of the 13 home warranty companies we reviewed, the following five providers offer the best coverage suited for rental property owners:
- American Home Shield: Best for Comprehensive Coverage
- Choice Home Warranty: Best Basic Plan Coverage
- First American Home Warranty: Best for High-End Items
- Elite Home Warranty: Best for Customized Coverage
- AFC Home Warranty: Best Technician Flexibility
Comparing the Top Home Warranty Companies for Rental Properties
To determine our top five for rental properties, we evaluated over a dozen top home warranty companies and ranked them based on key factors like cost, coverage, and customer support. We calculated each provider’s monthly costs by analyzing the responses of 2,000 homeowners who owned and filed a home warranty claim within the last five years.
| Provider | Rental Property Coverage Score* | Average Monthly Cost | Service Fee Cost | Response Time |
|---|---|---|---|---|
$36–$100 | $100–$125 | Up to 48 hours | ||
$60–$68 | $100 | 24–48 hours | ||
$77–$130 | $100–$125 | 4–48 hours | ||
$45–$60 | $70 ($150 for after hours and weekends) | Up to 48 hours | ||
$44–$82 | $75–$125 | 24-48 hours |
*Scoring is based on key rental property coverage, including coverage caps, item inclusion, and additional add-on services offered.
Our Reviews of the Best Rental Property Home Warranty Companies
When reviewing home warranties best suited for rental properties, we considered the amount a provider would pay to repair common home systems such as HVAC, plumbing, and electrical. We also examined the coverage providers offered for major appliances, including refrigerators, dishwashers, and stoves. If you want more comprehensive information, we’ve linked our full reviews for each provider.
American Home Shield
Coverage Overview
- Covers most built-in systems for up to $5,000 per repair
- Covers items with preexisting issues or problems
- Offers complete coverage, with very few items excluded
Keep in Mind
- Charges higher premiums than other brands, especially for its higher-tier plans
- Doesn’t start coverage until 30 days after you sign your contract
Rental Property Coverage Caps
- Shield Gold: Systems–$5,000, Appliances–$2,000
- Shield Platinum: Systems–$5,000, Appliances–$4,000
Our Review and Insights
American Home Shield is a good choice for older rental homes because it offers comprehensive coverage for most appliances and systems. Its $5,000 limit for most major systems is higher than that of most brands on this list. Unlike other companies, if your rental has older items with preexisting issues, AHS won’t exclude them.
AHS’s downside is its higher premiums. In our 2025 home warranty survey analysis, we found that respondents paid an average of over $100 per month for its highest-tier plan.
Customer Experiences
American Home Shield has over 9,300 reviews and an average rating of 1.96 out of 5 stars on BBB. On Trustpilot, it has over 9,400 reviews and an average customer rating of 3.9 out of 5 stars. Many positive reviews emphasized the smooth process for filing and resolving claims. Negative reviews highlighted yearly increasing premiums, difficulty canceling service, and the length of time it takes to get some claims fixed. Here are a few sample reviews we found from AHS’s actual customers:
“Quick and easy scheduling through the website. When the job needed a little bit of extra attention, I followed up on the existing claim, and AHS handled it without an issue. Thank you for your help!” —Frank P. via Trustpilot, November 2024
“Washer not working and needed repair. “Pro” informed us that the appliance required a replacement part. After two weeks I attempted to contact the “Pro” with no response. Contacted AHS and they attempted to make contact and were unable to do so. I was then informed that the part was on “Back order.” Contacted AHS again and they provided me with many excuses and informed me that they were still attempting to contact the “Pro” to resolve the issue. Almost a month and I requested to contact a local appliance repair company and AHS refused saying that they were very sorry about my bad experience, but they would continue to attempt to contact the “Pro.” The customer service representatives were very nice but were not able to provide solutions, just excuses.” —Eric via Trustpilot, February 2025
Choice Home Warranty
Coverage Overview
- Doesn’t cover duplexes, triplexes, or quadruplexes
- Has a comprehensive coverage plan that is on the more affordable side
- Provides generous coverage for covered items, with few exclusions for most appliances and systems
Keep in Mind
- Has mixed reviews on third-party review websites
- Our tester had multiple negative experiences with claims for her rental homes
Rental Property Coverage Caps
- Appliances and Systems: $3,000 (except add-ons)
Our Review and Insights
If you’re looking for comprehensive coverage at an affordable price, Choice Home Warranty is worth considering. While its coverage limits of up to $3,000 are lower than American Home Shield’s, Choice covers most appliance and system parts, including icemakers and dishwasher racks. The provider has 10 add-ons, such as roof leak repair, which cost between $3 and $15 per month, depending on the item you choose.
However, this company has some negative aspects. A member of our team tested Choice and was highly dissatisfied with its coverage for her rental homes. In addition, Choice has had legal issues in New Jersey and Georgia. Our research shows an ongoing lawsuit between Choice and the state of Arizona over alleged consumer fraud.
Customer Experiences
Choice has over 4,400 reviews and an average rating of 1 out of 5 stars with the BBB. It has an average rating of 3.9 out of 5 stars on Trustpilot, with a much larger sample size of more than 46,000 reviews. Many positive reviews mention helpful contractors and salespeople. Negative reviews share the low payouts the company offers and unprofessional contractors. Here are a few sample reviews we found from Choice customers:
“The repairmen showed up when promised. Very knowledgeable on the heating system. Diagnosed the problem quickly and started immediately on getting the parts ordered.” —Larry E. via Trustpilot, December 2024
“Their customer service and service people response is horrible and not recommended as a service warranty company. I have tried to have them come out and service different appliances in my house, and I’ve had to wait three days or longer for them to tell me there is no one in my area who will come in service my appliances for me. I would not recommend Choice Home Warranty to anyone. I am thoroughly discussed with them, their actions, their ability or inability to service me.” —Beth K via BBB, January 2025
First American Home Warranty
Coverage Overview
- Covers your water heater even with rust and corrosion, which is something competitors don’t offer
- Has an unlimited coverage limit for most systems ($1,000 for water heaters) and $3,500 for appliances, which doubles to $7,000 with its top-tier plan
- Offers an optional upgrade for preexisting condition coverage
Keep in Mind
- Doesn’t cover clothes washers, dryers, or air conditioning in its basic plan
- Has more generous coverage limits than AHS and Choice but may cost more
Rental Property Coverage Caps
- Starter and Essential
- Systems–Unlimited
- Appliances–$3,500
- Water heater–$1,000
- Premium
- Appliances–$7,000
Our Review and Insights
First American Home Warranty is a good choice if you own rental units with high-end appliances. Its top plan offers payouts of up to $7,000. The Premium Plan also covers roof leak protection and appliance haul-away costs.
We don’t recommend First American’s most basic plan, though, because it doesn’t cover appliances such as washers, dryers, or air conditioners. In addition, it has pricier plan premiums than other companies on this list at $102 per month, according to our survey.
Customer Experiences
First American has an average of 1.8 out of 5 stars with BBB and over 15,900 reviews and an average of 4.1 out of 5 stars on Trustpilot. Many positive reviews for First American were happy with professional contractors and quick fixes for multiple issues. Negative reviews shared frustration with slow repair times and communication issues between contractors and the company. Here are a few sample reviews we found from First American customers:
“The contractor communicated well, showed up as scheduled, made the repair, and was polite to our tenant. It worked out extremely well.” —Frank H. via Trustpilot, July 2024
“First American is awful. I placed a claim to have my oven/microwave fixed on 12/02/24; it is now 01/06/25, and it is still not fixed. First American keeps giving me the runaround, telling me the control board is being repaired and it takes 6-8 weeks. I was told the oven would be ready by Christmas. The contractors do not pick up their phones, nor do they return calls. First American is even having trouble getting updates from them. First American refuses to do anything for their customers, they just keep telling me we have to wait. I will be canceling my warranty once this is all over.” —Andrea A. via BBB, January 2025
Elite Home Warranty
Coverage Overview
- Features coverage limits that range widely depending on the item
- Has a 90-day workmanship guarantee on completed repairs
- Offers a low service call fee of $70 during normal business hours
Keep in Mind
- Excludes its workmanship guarantee on repairs done by your own technician
- Requires a phone call to obtain pricing
Rental Property Coverage Caps
- Appliances: $250–$6,000
- Systems: $250–$10,000
Our Review and Insights
We recommend Elite Home Warranty if you need a highly customized plan for an investment property. In addition to its three standard plans, Elite offers a customizable plan and 33 add-ons. It backs its coverage with a 90-day repair guarantee, which is three times that of the industry standard. You’ll also get a dedicated account representative to assist you throughout the life of your contract.
Note that some of Elite’s coverage limits may not cover the cost of a replacement. For example, the company will only cover up to $1,000 for a washer or dryer per year. However, its add-on coverage is much more comprehensive than other brands. Choice Home Warranty limits add-on coverage to $500 per item, whereas Elite has limits of $1,000 and $1,500 for items like pools, sump pumps, and septic systems.
Customer Experiences
Elite Home Warranty has over 590 reviews and an average rating of 4.8 out of 5 stars with the BBB and 4 out of 5 stars on Trustpilot. Many positive reviews praised helpful sales representatives, with a few mentioning a smooth repair process. Negative reviews mentioned denied claims, difficulty canceling their policies, and delayed repairs. Here are a few sample reviews we found from Elite customers:
“They sent some great guys to work on my air conditioning unit. They had to replace a motor. The work was approved right away, and the company that did the work got paid before the workers left my house. I’ve had other home warranties, but nothing ever went smoothly! The air conditioning guys even mentioned that this is the easiest company they’ve ever worked with!” —Monica B. via Trustpilot, July 2024
“Their cancellation department is AWFUL. They give you the runaround by saying their account specialists are occupied and they will take a message to escalate. I’ve been trying to cancel for two weeks. I’m now filing a dispute with my credit card company. They make it difficult to cancel so they can take your money.” —Lisa L. via BBB, December 2024
AFC Home Warranty
Coverage Overview
- Has various coverage limits depending on the item
- Includes roof leak protection for no additional cost at all plan levels
- Offers up to four coverage plans
Keep in Mind
- Charges a $75 cancellation fee, which is more than other providers
- Has lower payouts for certain home systems, such as ductwork
Rental Property Coverage Caps:
- Appliances: $150–$3,000
- Systems: $150–$1,000 (unlimited for most HVAC)
Our Review and Insights
If your rental is brand new, AFC Home Warranty is a solid choice. While it offers generous repair payouts, the amount it pays per repair decreases if your appliance or system is older than five years. Similar to Elite Home Warranty, the company allows you to hire your own contractor for repairs. In addition, AFC provides a workmanship warranty that lasts the life of your plan.
While AFC has lots of perks, there are some cons we found while reviewing the provider. For example, AFC states in its sample contract that all covered items are subject to a depreciated payout if the item is five years or older. This makes AFC a better pick if you own newer appliances or systems.
Customer Experiences
AFC Home Warranty has more than 260 reviews and an average of 3.6 out of 5 stars with BBB. On Trustpilot, it holds an average rating of 1.8 out of 5 stars. We found several reviews highlighting the helpful sales representatives and prompt handling of claims. Some negative reviews reported difficulty in getting claims covered and lower-than-expected payouts. Here are a few sample reviews we found from AFC customers:
“AFC has always covered a good portion, if not all, of any work that I have ever had done. I have used AFC on all of my rentals and my own residence for several years. They have always come through. I would highly recommend AFC to any homeowner, whether owning one or several homes.” —Bob via Trustpilot, June 2023
“I submitted three claims, none of which it addressed. The first was a pool heater claim that they did not address because they said they couldn’t find a contractor to come out. I find this reason absurd. I live in the DC area, and there are plenty of contractors. I had one out in 2 days after handling this myself. The other two were for a faucet and a refrigerator. In both cases, they found a reason to deny the claims and never even bothered to send anyone out. I have a rental property and was with American Home Shield for 13 years, so I know what should be covered.” —Nuno C. via Trustpilot, July 2023
Our Experience Filing Rental Property-Related Claims
In order to bring you a firsthand look at filing claims for a rental property, we purchased policies for several of our tester homeowners or interviewed those who already had policies. Below are two experiences we had with Choice and American Home Shield.
Our first tester, Julia F., purchased a Choice Home Warranty for several rental properties. “The properties are all over the country and there would be no way of me negotiating with people I have never met for a fair price,” she said. She purchased five years of coverage in 2022 and chose Choice for its price point and the simplicity of its plans and contract.
She has used Choice for multiple rental claims. While the online portal is easy to use, over-the-phone claims take longer, according to her experience. If she calls, she usually waits half an hour for a representative.
“I have put in a claim for my fridge, freezer, air conditioner, dishwasher, and tub. Choice fixed the fridge, freezer and air conditioner. The dishwasher was a temporary solution—we still have to continue to replace the affected part once a month.”
Julia explained that while Choice sent multiple contractors out to try to fix the tub, no one would take on the job because Choice doesn’t pay them enough for a job that large. Based on her experience, we suggest confirming whether Choice makes sense for your rental property. While it is more affordable, you may experience inconsistent repair services.
Our second tester, Scott P., filed a claim with American Home Shield for a leak in his bathroom. He filled out the claim on his mobile phone using AHS’s online portal. The next morning, he made an appointment with the contractor, who showed up on time and repaired the leak quickly. AHS also reimbursed him for the drywall contractor who repaired his drywall.
Scott only paid one fee for the repair. While the process went smoothly, Scott is on the fence about renewing his policy, as his premiums have increased several times in the six years he’s had his policy.
Which Parts of Your Rental Property Does a Home Warranty Cover?
When researching which home warranty plan would best fit your rental property, pay special attention to the coverage a provider offers. Some home warranties cover all of an appliance or system’s parts, while others exclude cosmetics. For example, companies with the best coverage will include all parts of an appliance, but these providers typically charge more per month. Take a look below to see how comprehensive each company’s coverage really is.
| Rental Property Coverage | American Home Shield | Choice Home Warranty | First American Home Warranty | Elite Home Warranty | AFC Home Warranty |
|---|---|---|---|---|---|
| Range exhaust hood | ✔ | ✔ | ✔ | ✘ | ✔ |
| Dishwasher baskets or trays | ✔ | ✔ | ✔ | ✘ | ✘ |
| Refrigerator water lines | ✔ | ✔ | ✔ | ✘ | ✘ |
| Ceiling fan | ✔ | ✔ | ✔ | ✔ | ✔ |
| Tankless water heater | ✔ | ✔ | ✔ | ✔ | ✔ |
Cost of Rental Property Coverage
As an investment property owner, you know that repairs and maintenance costs are ongoing with rental properties. Below, we’ve listed the costs of common repairs. A rental property home warranty costs an average of $56 per month or $672 per year plus service fees, potentially saving you these high out-of-pocket repair expenses.
| Rental Property Issue | Average Cost for Repair or Replacement* |
|---|---|
| Air conditioner repair | $100–$2,300 |
| Air conditioner replacement | $3,900–$8,000+ |
| Appliance repair | $50–$650 |
| Appliance replacement | $250–$2,000 |
| Installing a new electrical outlet | $200–$300 |
| Simple plumbing leak | $250–$500 |
Reading the Fine Print of Your Rental Property Coverage Plan
While only some companies—such as Choice—have clauses in their residential service contracts for investment properties, it’s important to understand your plan’s exclusions and limitations. On several third-party review sites, landlords complain that their providers excluded shared systems between rental units from coverage, preventing them from resolving plumbing or electrical issues.
Common exclusions include the following:
- Air conditioner refrigerant (companies usually have $10–$25 limits per pound)
- Cosmetic parts of an appliance, including rollers, switches, or sensors
- Coverage for duplexes or triplexes
- Plumbing stoppages caused by foreign objects (such as hair or soap scum)
- Shared systems in apartments, such as plumbing or electrical
How To Choose the Right Home Warranty Company
Although a provider’s coverage and exclusions are crucial elements to consider, there are other factors to keep in mind when shopping for a home warranty. Consider the following when choosing a home warranty company:
- Coverage and exclusions: Review each company’s sample contract to ensure coverage for your property’s most critical systems and any major appliances provided for your tenants. We recommend carefully reviewing the exclusions section of the agreement to avoid surprises.
- Premiums and service fees: Home warranties have two major costs: your plan premium and the service fee you pay each time you make a claim. Compare premiums and service fees so you’ll get an idea of how much a home warranty costs. Additionally, make sure you understand how to cancel your contract if you need to. Several homeowners on third-party review sites expressed frustration with how difficult it was to cancel a home warranty contract.
- Claims and response time: Our top-rated providers can match you with a contractor within 48 hours. As a landlord, you want to ensure that your home warranty addresses your tenants’ issues quickly, so a provider’s reliability and speed are important.
Advice From Real Homeowners
Our home warranty tester Julia F. shared her mixed experience with Choice Home Warranty. She purchased a five-year coverage plan for several rental homes across the country, plus her own home. We outline the positives and negatives she had with the provider below:
What Made You Decide To Get a Home Warranty?
“I own a couple of properties that I rent out, and it was easy to get a package deal to cover all the homes.” Another motivator for Julia to purchase a home warranty was the distance between all of her rental properties. “The properties are all over the country, and there would be no way of me negotiating with people I have never met for a fair price [on appliance/system repairs or replacements].”
Have You Spoken to Choice Home Warranty’s Customer Service Team Before?
“[When I call Choice], I am always on hold for over a half hour, and then they can’t even guarantee that someone will come to the house. The first two weeks I was in my new home (in Charlotte during the summer), we did not have air conditioning or a working fridge or freezer. I would call Choice Home Warranty every day to see when someone would come. The representatives were not helpful.”
How Many Visits Did It Take To Complete the Repair?
“The contractor is supposed to come and do a diagnostic. They provide you with a solution and can set up an alternative time to fix the problem. The way they tell you they are coming is by giving a 5-hour window. Some contractors fixed [issues] right away, others have told us the problem got paid and exited before giving a solution or fixing it, and some have had to come back two to three times before fixing.”
FAQs About Home Warranties for Rental Properties
Do home warranties cover other types of rental properties, such as condos or mobile homes?
Home warranties cover the majority of home items in other types of properties, such as condos, townhomes, and mobile homes. Most providers cover clothes washers and dryers, cooktops and stoves, refrigerators, dishwashers, plumbing systems, HVAC systems, central vacuum, electrical systems, and air conditioning. The specific type of property and items covered depend on which provider and coverage options you choose.
Is a home warranty worth it for my rental property?
A home warranty is worth considering for your rental property if you want to reduce your out-of-pocket repair expenses. Your home’s systems may break down due to normal wear and tear, and the manufacturer’s warranty may already have expired when a failure occurs. If you don’t have enough money set aside for large, unexpected repairs or replacements for major appliances and built-in systems in your property, a home warranty may be right for you.
Do home warranties cover broken home items?
All home warranty providers require your home items to be in working condition before providing coverage. If a covered item breaks after your initial waiting period, you can file a claim.
Do I need a home warranty when buying or selling my rental property?
A home warranty can provide peace of mind to a new home buyer by covering the system and appliances for the length of the policy, typically the first year of ownership. For home sellers, it adds an extra incentive for buyers to consider their home over others. It also raises the value of the house and could lead to a quicker sale.
How We Evaluated Home Warranty Providers on Rental Property Coverage
To find the best rental property coverage, we spoke with industry professionals to identify common repairs and replacements for rental properties.
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 to arrive at a final score on a 5-point rating scale:
- Coverage: As a landlord, you want a provider with high coverage caps and full coverage. The best providers cover a range of appliances and systems, begin coverage in 30 days or less, and allow coverage on items with preexisting conditions.
- Cost: We rank providers on monthly premiums, service fees, and extra fees. Our highest-ranked providers have an average monthly cost of less than $60 and an average service fee of less than $70, with no extra fees charged.
- Trustworthiness: Providers that have high BBB ratings, no current government lawsuits, and membership in the National Home Service Contract Association rank highest in this category.
- Plan Transparency: When comparing home warranty companies, it helps if information is clearly spelled out on a provider’s website. Our highest-ranked companies offer transparent online pricing along with sample contracts that clearly spell out coverage limits and specifics for your rental’s state.
- Customer Support: Since it’s likely you’ll be filing multiple claims, you’ll want a fast, easy-to-use claims portal and helpful customer support options if you have a problem. Our top-ranked companies offer coverage in all 50 states, as well as quick response times and multiple customer service contact options.
- Flexibility: Providers who offer three or more tiers of plans, the ability to choose your own technician, and plenty of add-on options take our top rankings in this category.
- Firsthand experience submitting claims: We’ve purchased plans for all of our top-ranked providers, and we’ve brought you two firsthand experiences with submitting claims.
