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Home Warranty

Compare and find the right home warranty company for you

The Best Home Warranty Companies

American Home Shield Home Warranty Review

BBB Rating

B

# of States Covered

49 (excludes AK)

Average Service Fee

$75 – $125

Average Cost Range

$600 – $720

What customers said:

Does everything go my way 100% of the time? Well, of course not but I’m not sure it would’ve without AHS either.

Liberty Home Guard Review

BBB Rating

A

# of States Covered

45 (excl. CA, IL, WA)

Average Service Fee

$60

Average Cost Range

$480 – $720

What customers said:

“We have four properties that are insured by them, and we’re very pleased.”

Cinch Home Services Review

BBB Rating

A-

# of States Covered

48 (excl. AK, HI)

Average Service Fee

$100 – $150

Average Cost Range

$456 – $912

What customers said:

“Submitting claims to Cinch has been really easy. I just go to their site and type in what my problem is.”

BBB Rating

B

# of States Covered

48 (excl. CA, WA)

Average Service Fee

$85

Average Cost Range

$432 – $528

What customers said:

“Very happy with the speed and quality of the service.”

First American Home Warranty Review

BBB Rating

B+

# of States Covered

34 (excl. AL, CT, DE, ME, MA, MN, NH, NJ, NY, VT, WI)

Average Service Fee

$75

Average Cost Range

$436 – $452

What customers said:

“Online claim portal is quick and easy.”

AFC Home Club Review

BBB Rating

B

# of States Covered

46 (excl. CA, HI, NV)

Average Service Fee

$75 – $125

Average Cost Range

$516 – $720

What customers said:

“Love the emails that are sent promptly after each contact, the low fee per month and deductible!”

Select Home Warranty Review

BBB Rating

B-

# of States Covered

46 (excl. NV, NY, WA, WI)

Average Service Fee

$60 – $75

Average Cost Range

$432 – $456

What customers said:

“Never charged for any services above and beyond the terms in our contract.”

Amazon Home Warranty Review

BBB Rating

N / A

# of States Covered

45 (excl. CA, IA, WA)

Average Service Fee

$75

Average Cost Range

$348 – $552

What customers said:

“Responded to my claim quickly and sent a service person the next day.”

American Home Shield: 4.5 / 5

American Home Shield Home Warranty Review

Pros

  • Leading expert in its industry
  • It covers a relatively high number of states
  • Offers greater flexibility with a customizable plan

Cons

  • Area-coverage off by one state 
  • Relatively low coverage caps on some home features

Summary & Features

Liberty Home Guard: 4.3 / 5

Liberty Home Guard Review

Pros

  • Guarantees 60-day workmanship 
  • No contract commitment
  • High BBB rating

Cons

  • Not covered in CA, IL, WA
  • Relatively high average annual costs 

Summary & Features

Among our top home warranty companies, Liberty Home Guard also takes the winning screwdriver from us. Mainly recognized for having the highest rating by Better Business Bureau, you can expect their service quality is to be highly credible. 

When signing on with Liberty Home Guard, we liked finding out about a 60-day workmanship guarantee (with, of course, highly certified contractors). Say you have a repair or replacement done on a covered item. But, it breaks down within 60 days of that initial work. Then, you will get a technician to your home to fix it again free of charge.

Well, we can’t ignore that the company has some thumbs-down, one of them being their relatively high annual price plan. Yet, to offset this, they also let you take on nearly 20 add-ons and have a home warranty coverage plan that considers a different electrical system and appliance, regardless of the item’s age. 

Definitely the home warranty best for first-time warranty buyers.

Cinch Home Services: 4.1 / 5

Cinch Home Services Review

Pros

  • Generous payout caps 
  • Employs Alexa in customer service
  • Guarantees 180-day workmanship

Cons

  • Some might pay multiple trade service fees for each broken item that gets repaired the same day.

Summary & Features

Unlike some competitors, Cinch offers three plan options rather than the typical two. Yet, their average service fees and monthly premiums may be slightly higher than what some of us are used to.

To compensate, Cinch distinctively offers a 180-day service guarantee. Their payout caps on certain home appliances is around $2000, including your air conditioning and water heater. For their home systems plan, the limit varies by the age of the system. Interestingly, the company now deploys an AI-powered tool by Amazon’s Alexa, to manage the customer claims.

Last but not least, not even the best home warranty company is perfect. Hundreds of customers complain about Cinch’s high rejection rate for their claims and unprofessional technicians at their door. However, if you can weigh that in with everything else said before, then Cinch may be right for you.

Choice Home Warranty: 4.0 / 5

Pros

  • Flexible 24/7 staffing
  • Affordable and simple plans
  • Military discounts 

Cons

  • Limited area coverage
  • Weak basic plan

Summary & Features

Choice Home Warranty started in 2008, making it a relatively new home warranty company. 

Their two primary plan options are basic and total. The basic home warranty plan outlines 14 appliances and systems, and the total home protection plan extends to four more systems, including air conditioning. Although that’s better than nothing, we’d still hope they launch a customizable plan soon. 

Choice Home Warranty offers a flat service fee rate of $85. You can also enjoy the convenience of their 24/7 support team, such as when you need an emergency repair for a covered appliance or system. 

Despite having limited staffing (roughly 350 employees), Choice Home Warranty still reached over a million households across 47 states.

First American Home Warranty: 4.1 / 5

First American Home Warranty Review

Pros

  • Flexible 24/7 staffing
  • Affordable and simple plans
  • Military discounts 

Cons

  • Limited area coverage
  • Weak basic plan

Summary & Features

First American Home Warranty has what it takes to pull the plug on our next spot as one of the best home warranty providers. Compared with the others, the company is like the founding father of its industry, for they’ve been around nearly as long as American Home Shield. Even more, they offer one of the lowest premiums per month.

First American Home Warranty offers two plan options – basic and premier. While each plan has coverage options for most major home systems and appliances, such as a dishwasher, garbage disposal, water heaters, the basic home warranty plan excludes plumbing. Their premier home warranty plan covers a bit more than the basic but excludes central air conditioning. The company tries to help by simplifying things but could still make bolder strives toward adding more plan options.

Although, with their day-and-night agents available on the other end, you do have the convenience of making unlimited service calls. Plus, there are discounts for those who actively or formerly served in the military.

AFC Home Club: 4.0 / 5

AFC Home Club Review

Pros

  • Freedom to choose a contractor 
  • Four home warranty plans with extra benefits 
  • Local contractors guarantee 3 years of service

Cons

  • Relatively high service fee options
  • Not covered in CA, HI, NV

Summary & Features

America’s 1st Choice Home Club (or AFC Home Club) is one of the few home service providers that gives customers the freedom to hire their contractors. In this way, the claims process becomes much more convenient than most. 

But, of course, America s 1st Choice already has an established network of thousands of technicians to connect you with. Their services are guaranteed up to three years for you, making it one of the longest work-guarantees in the market.

Moreover, the company provides four home warranty offers, including a combo plan and a customizable plan. Not to mention, they know how to flash their bonus sign since there are other benefits like free credit monitoring and emergency -alert services. 

However, and it goes for all home warranty companies, America’s 1st Choice is continuously under the same kinds of attacks by their customers, such as inadequate repair services and slow claim-processing. Therefore, our readers should take other reviews with a grain of salt and focus on their specific case.

Select Home Warranty: 3.8 / 5

Select Home Warranty Review

Pros

  • Free coverage of roof leaks
  • User-friendly claims submissions
  • Affordable plans

Cons

  • No mobile app for filing claims
  • Relatively low-rated customer service

Summary & Features

Select Home Warranty has climbed up on our ladder as the next best home warranty brand ready to repair any odd jobs. They’re popularly known for their low premiums and free roof leak coverage, which most competitors do not cover.

Select Home Warranty offers a Bronze plan, Gold Plan, and Platinum plan, like going from partial to halfway to total home protection. The plans’ rates are significantly lower than the average because you’re looking at paying as low as $36 per month. Other home warranty plans range between $40 and $60. 

However, like all our top home warranty companies mentioned here, the common complaints that persist with Select Home Warranty are more or less over their ‘unfair’ claim rejections.  Plus, the numerous disagreements with contractors. 

So, one way the company combats this is by making their claim-filing process more straightforward. They optimize the user experience through their desktop site by adhering to Website Accessibility Guidelines (WAG).

Amazon Home Warranty: 3.8 / 5

Amazon Home Warranty Review

Pros

  • One month free for each new sign-up 
  • Extensive options of add-ons
  • A relatively large network of quality technicians 

Cons

  • Only one service fee option 
  • Lost the accreditation by BBB

Summary & Features

Amazon Home Warranty is not to be affiliated with Amazon, the online reseller! This relatively young home warranty provider may have only started around ten years ago but now serves thousands of customers across 45 states.

However, in 2018, the Better Business Bureau (BBB) accredited Amazon Home Warranty only to revoke it in 2020 because the company failed to adhere to BBB’s standard guidelines. Despite tainting its brand reputation, Amazon Home Warranty remains one of the top home warranty companies. It also helps that they offer the first month free of charge! 

Not to mention, the company has a relatively extensive list of add-ons to give you more coverage when building your home warranty plan. So, we like to think it’s the home warranty best for residents owning a more expensive home and for which contains an unusual amount of custom-installed systems and appliances.

Finally, considering their extensive contractor network, Amazon Home Warranty can easily connect you with over 10,000 licensed and insured technicians to get that ‘screw-in’ the next day!

What Is A Home Warranty?

A home warranty is a service contract designed for all homeowners to alleviate some of their financial burdens. In other words, not all home warranties are evil. 

However, the common problem among home sellers and buyers is that there are many content or opinions out there that can be confusing. It never hurts to get more than one quote from several home warranty companies on what they can do for you.

But, who to trust and how to cut through all the crap to have the key facts on one page?

Knock, Knock! We’ve arrived to help!

We rounded up the eight best home warranty companies for you after scouring through countless reviews, including old data on warranty companies of 2020. Our top picks are all well-established providers, covering at least 33 states or more, and among other criteria. No dodgy businesses of any sort!   

In the end, maybe you’ll jot down one or two favorites. But, for sure, you’ll know enough about owning the right home warranty plan.

Uses And Benefits Of A Home Warranty

A home warranty plan is primarily used when repair or replacement costs in your home become expensive. However, did you know only about 3-4% of American homes have a warranty?

One reason is that many consumers do not try to educate themselves on the different home warranty plans fully, so they miss out on their worthwhile (and long-term) benefits. 

Here’s a quick overview of how both home sellers and buyers benefit with a home warranty.

Buyer’s Benefits:

  • You are protected through a systems plan and an appliance plan for a year or more after signing up.
  • You save money by reducing your repair/replacement costs on a covered system and appliance that broke down
  • You save time and effort in finding a contractor by having access to the thousands of technicians already available in your provider’s network

Seller’s Benefits:

  • You are protected against dealing with the hassles of repairing defects in the home, including its reduced marketability
  • You motivate the buyers to submit their best proposals  
  • You are more likely to have a less disruptive or delayed sale process if a covered system or appliance breaks down

What To Know Before Buying A Home Warranty

Age Of Your Home 

Is your new home new or used? Those moving into a home built within the past decade may not need to buy a home warranty. The main reason is that most states require construction builders to provide coverage over the new home’s structural components for ten years. This stops construction businesses from scamming homeowners with low-quality work for high sums. In other words, the builder’s warranty will cover just about everything a typical home warranty covers. Thus, adding on another warranty might not be necessary.

In contrast, if a home is more than ten years old and has not had new appliances or systems for quite some time, then a home warranty is an ideal solution. This is because older homes are not secured by any kind of warranty, excluding individual warranties for certain appliances that you may have purchased.

The Possibilities of Remodeling

You may want to consider whether you will remodel your home in the future. If a contractor does it for you, anything they add will carry a warranty, and that is when it is essential to check the fine print.

However, if you plan to remodel yourself, it is strongly advised to obtain a home warranty before starting. In doing so, you will leverage your warranty’s policies to renew or repair a particular house system or appliance that faces normal wear and tear. Simultaneously, the other home systems and appliances that are not warranty-protected can be remodeled from your budget. 

Your Ability to DIY

By now, you are more aware that home warranties cover the normal wear and tear of individual appliances and systems. However, it doesn’t mean that the warranty will cover the system or appliance when you slack off on regularly maintaining them.

For example, if you are careless about ensuring your plumbing system is clogged-free or often hold back on changing the air filters in your HVAC systems, then your home warranty company will not cover the repair or replacements of those areas. You must put in some work to get help back.

And if you’re not a do-it-yourself type?  Then, you can consider hiring a handyman to perform regular checkups in your home. In turn, you’d still be able to use your home warranty. 

Our Top 3 Best Home Warranty Companies

Within an industry worth $2.6 billion, only a handful of large home warranty companies but they surprisingly account for nearly 80% of the industry’s revenue. Even more, our eight best home warranty companies all happen to be among the major players.

While each company shines in its own way, there are certainly those that shine more than the others. We gathered our top three favorites: American Home Shield, First American Home Warranty, and Liberty Home Guard.

American Home Shield is renowned for its long-standing expertise ingrained in more than 50 decades of ‘running the show.’ Although customers can attest to their services, many more still choose them for their convenient, customizable home protection plans.

Next, First American Home Warranty would be our runner-up. They operate in relatively fewer states, but they’ve been around for nearly as long as American Home Shield. Plus, with all the familiarity and popularity around the brand, they also know what a cost-effective annual plan means.

Lastly, compared with its formers, Liberty Home Guard is one of the very few A-grade home warranty providers, proving their high commitment to following industry standards and resolving any claims. Not to mention, they’re our favorite because they can also cook a mean and satisfying coverage plan.

Pricing  

When you compare the best home warranty companies and their plan options, you should at least consider two main costs – the cost per year (or per month) and the service fee.

The annual cost grants you access to the “discounted” service calls. A typical home warranty has an average cost of around $500 to $750 per year. This particular price plan varies because it will depend on your zip code, the type of plan you choose, how many add-ons you decide to include, the service fee options, and the home warranty company.

In contrast, the service fee is a smaller cost paid towards the contractor’s service. Most home warranties charge an average service fee of around $50 to $150. Also, depending on the home warranty company you choose, you may face one or multiple service fees. For example, there are different types of technicians, and if you need to repair both the electricity and your plumbing system, you will end up paying two service fees.

Overall, the general rule is that the lower the service fee, the more costly the home protection plan.  

Key Features

Before obtaining quotes from the best home warranty companies, it is worth your time and effort to understand a bit more about each of the key features that make up a typical home warranty contract.

Standard Home Warranty Coverage

According to the National Home Service Contract Association (NHSCA), below are the most standard systems and appliances that you can expect to be covered by most home warranty companies.

Systems:

  • Interior plumbing
  • Electrical
  • Heating (incl. water heater)
  • Ductwork

Appliances:

  • Air conditioning (optional at times)
  • Refrigerator (optional at times, may leave out icemaker)
  • Oven, range, or cooktop
  • Dishwasher
  • Washer and dryer
  • Garage door opener
  • Garbage disposal
  • Pool equipment (optional)
  • Spa equipment (optional)

Optional Home Warranty Coverage

As the home warranty industry grows, it becomes more typical to see companies offering optional coverage to attract potential buyers. You gain the freedom to add on home features, such as a right pump, sump pump, or an additional water heater. Of course, this largely depends on where you live.

When looking through the fine print of your contract, find out what exactly is listed under optional coverage because a standard warranty covers some appliances you might assume may be ‘optional.’ For example, your refrigerator, air conditioning, or built-in microwave.

Additionally, duplicate appliance coverage exists with some home warranty companies. Let’s say you have more than one fridge at home. Then, likely you’ll need added coverage because the standard home warranty covers only the main fridge in the kitchen. 

Comprehensive Plans

Another standard strategy of home warranty companies to attract more customers is by offering a comprehensive plan. This key feature goes as far as to cover central air conditioning, garbage compactors, jetted bathtub pumps and motors, stand-alone ice machines, and ceiling fans. 

We’re even talking about limited coverage for your rooftop and pest control as well. Plus, rekeying service for those who want to change locks in a new home. 

Tips

To nail on finding the right home warranty company for you, we have three tips to help you.

  1. Before buying your home, it is wise to ask for a detailed review of how the previous occupants have helped to maintain that home, such as their recorded maintenance schedule, if any. Then, check with the landlord on whether the prior tenant followed up with each home maintenance issue, whatever that may be. If it does not seem enough care has been arranged, discuss your options with your home warranty company.
  2. When you are looking around for the best home warranty company, a tip is to obtain at least three quotes. Then, among the three, ask your favorite one to match the best offer you got. As a result, you could end up saving one to two months’ worth of payment. 
  3. Read the fine print! As simple as this may be, surprisingly, most customers do not do so. We recommend obtaining a sample contract from the company. It will show you their replacement policy on the covered systems and appliances, whether a home inspection will occur before the plan starts, and any coverage caps.

FAQ

Do you still have questions? If so, we may be able to address them with these FAQs.

Who should buy a home warranty?

Homebuilders, sellers, and homeowners may purchase a home warranty. A home warranty is available to all consumers and for new or old homes. A real estate agent can even buy a home warranty to homeowners as a gift in some cases.

In more specific cases, a home warranty can be beneficial for those in the following situations:

  • When you do not have any emergency savings or want to reserve them for another spending
  • When you as the buyer have just depleted your savings to buy a new home and want to avoid any significant extra expenses
  • If you have tasted for more expensive appliances and want adequate protection on all of them
Is homeowners insurance the same as a homeowner warranty?

As explained in our guide, homeowners insurance protects you from accidents in your home (e.g., a fallen tree after a storm). In contrast, home warranties will cover the normal wear and tear of your home appliances and systems. Also, home warranties are more likely to be used than homeowners insurance. So, home warranties and homeowners insurance relate but are not the same things.

Criteria For Evaluation

How did we dictate that these eight home warranty companies are the “best”? We evaluated each chosen company based on a combination of factors. They include:

  • Trustworthiness: In the home warranty market, there are only a handful of top industry players, and the rest of the landscape consists of roughly a hundred small businesses operating on a local or regional basis. Using data from the Better Business Bureau helps us gauge a company’s trustworthiness and reasonable faith efforts toward resolving customer concerns.
  • States Covered: Factoring in how many states a home warranty company covers proves to us their commitment to helping as many homeowners as possible. Plus, ensuring their products and services are easily accessible to a growing population.
  • Coverage Plan Specifications: We thoroughly reviewed each company’s plan options. We especially looked for those with basic plans that cover as many home appliances and systems as possible. 
  • Pricing: On top of rent and the usual bills, adding a home warranty is a bold option and an even more responsible move. To ensure the company carries cost-effective plans, we weighed their average service fees and average annual costs while considering the industry’s standard costs.
  • Extra Benefits: If we see a home warranty company offering relatively rare discounts (i.e., free roof leak coverage), or a relatively vast number of add-ons, we get just as excited as you! They also get a bump up to our list.
  • Customer Service: With so much data from hundreds of customer reviews for each company, we are also highly aware of taking it all with a grain of salt. To arrive at a fair, unbiased consensus, we focused more on the company’s overall rating and the general perception rather than individual cases.

Final Thoughts

We hope our review of the eight best home warranty companies will help our readers learn how to pick out the right coverage plan most suitable for them. Not to mention, among our curated list, our top three favorites are American Home Shield, First American Warranty, and Liberty Home Guard. All three market leaders share the commonalities of a credible brand reputation, affordable monthly premiums, and customer-centric coverage options.

You don’t need to choose the middleman today. Simply educating yourself on how to choose the right home warranty company is already a huge step toward becoming a responsible homeowner.

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