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Best Home Warranty Companies (June 2024)
Key Takeaways:
Liberty Home Guard and American Home Shield are the best home warranty companies, based on research the MarketWatch Guides team conducted into each provider’s coverage plans, customer service reviews, costs and more.
Our 2023 home warranty survey, which focused on customer experience, found that over 80% of respondents are likely to renew their home warranty.
Internal research and secret shopping efforts conducted by our team found the average monthly cost of a home warranty is between $43 to $56, and the average service call fee is $65 to $150.
Alex Carver is a writer and researcher based in Charlotte, N.C. A contributor to major news websites such as Automoblog and USA Today, she’s written content in sectors such as insurance, warranties, shipping, real estate and more.
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
We at the MarketWatch Guides team have spent hours analyzing the most recent cost data from the top home warranty companies of 2024. Throughout our collective years of researching and writing about warranty coverage, one thing has remained consistent — repairs are expensive and a financial burden for many. American homeowners spent an average of $13,667 on home improvement, maintenance and emergency repairs in 2023, according to a recent spending report.
Home warranty coverage can help mitigate some of these costs by offering financial protection for your appliances and home systems – but it’s not right for everyone. Based on our research, which includes rating companies based on our comprehensive home warranty methodology, we’ve created this guide to help you find the right home warranty for your needs.
Some of the other home warranty companies we considered include Choice Home Warranty, Old Republic, Landmark and Home Warranty of America. Although all legitimate home warranty providers, the companies did not rate as highly under our home warranty methodology as our top picks.
How We Chose the Best Home Warranties
We employed our comprehensive home warranty methodology when rating, ranking and reviewing service providers. Focusing on seven key rating categories, we considered factors such as plan options, coverage details, customer service, plan pricing and more. We added more weight to categories that are most important to homeowners like you, such as cost and coverage, which over half of our 2024 survey respondents found the most important when shopping for a plan.
Our process involved collecting sample quotes, secret shopping to better understand the customer experience, surveying homeowners with home warranty plans, and interviewing industry experts. We also read through customer reviews on third-party review sites such as Trustpilot and the Better Business Bureau (BBB) to further understand a provider’s strengths and pain points. This comprehensive approach ensures you have the information you need to make an informed decision on a home warranty that suits your needs.
The MarketWatch Guides editorial team developed our home warranty methodology to assess a provider’s plan options, coverage details, customer service, plan pricing, trustworthiness, additional benefits and state availability. Read more about the team’s editorial guidelines.
Our expertise is backed by:
3,000 homeowners surveyed nationwide
40 home warranty companies rated using our methodology
350 quotes collected through secret shopping
Compare Top Home Warranty Companies
While we chose Liberty Home Guard as our top pick and the most customer-friendly provider, we still encourage you to compare the cost and ratings of our other recommendations. We have compiled the costs, BBB ratings, monthly prices and more for our top providers in the table below to assist you in your comparisons.
NRThe BBB does not provide a company rating (indicated by "NR" or no rating) if it lacks insufficient information about a business or is conducting an ongoing review of its practices.
NRThe BBB does not provide a company rating (indicated by "NR" or no rating) if it lacks insufficient information about a business or is conducting an ongoing review of its practices.
*As of April 2024 Liberty Home Guard is under review by the BBB for complaints related to its claims process, customer service and sales tactics. As of the time of this writing, the company does not hold a rating with the BBB.
Our Review of the Top 7 Best Home Warranty Companies
Liberty Home Guard
Most Customer-Friendly
4.5
Plan options: 5/5
Coverage details: 2.7/7
Pricing: 5/5
Trustworthiness: 4.9/5
Customer service: 5/5
Additional benefits: 5/5
State availability: 5/5
Customer-friendly: Liberty Home Guard has taken strides to broaden communication channels with homeowners. The company hasintroduced a customer survey tool, offers a live-chat customer support feature on its website and now offers unique coverage add-ons like window and carpet cleaning to accommodate customers’ feedback.
Slightly longer response times: While we applaud Liberty Home Guard for its customer service, its claim response time is typically 48 hours, which is slightly longer than some competitors.
Pros and Cons
ProsOffers unique coverage add-ons, such as pro-series appliances, pest control, window washing and roof leak protectionIncludes a 60-day workmanship guarantee, which is longer than some other home warranty providers giveFeatures a live chat tool on its website so you can message with a customer service representative in real-timeConsAssigns service fees to customers rather than allowing homeowners to chooseHas a lower-than-average coverage cap of $2,000 per item
Coverage and Cost
A home warranty with Liberty Home Guard costs between $50.19 and $60.19 per month. Unlike some other companies, Liberty does not let you choose your service fee. Instead, the company assigns you a service fee between $65 and $125 depending on your home’s size and your location.
Liberty Home Guard has three plans and dozens of coverage add-on options:
Appliance Guard ($50.19 per month): Covers most home appliances, including refrigerators, washers, dryers, built-in microwaves, dishwashers and more
Systems Guard ($55.19 per month): Covers built-in systems like air conditioning and heating units, ductwork, plumbing, electrical and water heaters
Total Home Guard ($60.19 per month): Covers both your home systems and appliances
Coverage add-ons: Electronics protection, pest control, gutter cleaning, professional-grade appliance coverage, fixtures coverage, trash compactor coverage and more (you can see a full list of add-ons on Liberty Home Guard’s website)
Liberty Home Guard is available in all 50 states.
We secured a quote from Liberty Home Guard’s website in about a minute, and the quote landing page was clean and intuitive. Liberty Home Guard offers a sample warranty contract online, but you won’t be able to view a full contract until after purchasing a plan.
After requesting a quote from Liberty Home Guard, the company left us two voicemails and sent 11 automated text messages over a period of about two weeks. These promotional messages and calls were less frequent compared to other home warranty companies.
Consumer Insights and Experience
To better understand customer experiences, we polled 1,000 homeowners nationwide with warranties from our top providers in August 2023. Of the 108 respondents who purchased a warranty from Liberty Home Guard, low cost and a positive customer reputation were the most important considerations when shopping for coverage.
Out of the 29% of participants who filed a claim with Liberty Home Guard, 87% were satisfied with the resolution of their claim, noting an easy or quick claims process. Poor customer service and bad experiences with technicians or contractors were among the top reasons for those who weren’t satisfied.
Our team reached out to Liberty Home Guard for comment on its claim and repair processes but did not receive a response.
American Home Shield
Most Experienced
4.6
Plan options: 5/5
Coverage details: 3.5/5
Pricing: 4.4/5
Trustworthiness: 4.8/5
Customer service: 5/5
Additional benefits: 5/5
State availability: 5/5
Most experienced provider: American Home Shield (AHS) has been in business for over 50 years and is available in 48 states (excluding Alaska and Hawaii).
Comprehensive coverage: American Home Shield covers heating, cooling, electrical and plumbing systems in its most basic plan, which starts at just $29.99 per month. It also has higher-than-average coverage caps of $3,000 to $6,000 for systems and appliances.
Above-average service fee: AHS only offers two service call fee options: $100 or $125. These rates are slightly higher than some competitors.
For all these reasons, plus its tenure in the industry and high coverage caps, American Home Shield earned 4.58 out of 5 stars in our rating system, which solidified its position as our top choice for home warranty companies.
Pros and Cons
ProsOne of the largest home warranty providers in the country with 50+ years of industry experienceOffers higher-than-average coverage limits of $3,000–$6,000 for systems and appliancesCovers damage due to unknown pre-existing conditions, rust and corrosion, and improper installations and modificationsConsOffers limited options for add-on coverageMay take up to 48 hours to respond to a claim, which is slower than some competitors
Coverage and Cost
You can expect to pay between $42.31 and $93.37 per month for an American Home Shield home warranty, depending on the policy you choose. You can also choose a service call fee of $100 or $125 to adjust your monthly cost. American Home Shield may also offer a discounted $75 service fee for certain customers in select states.
American Home Shield’s home warranty plans are as follows:
ShieldSilver™ ($42.31 per month): Covers heating, cooling, electrical and plumbing systems
ShieldGold™ ($65.63 per month): Covers heating, cooling, electrical, and plumbing systems, plus kitchen and laundry appliances
ShieldPlatinum™ ($93.37 per month): Covers everything under the ShieldGold™ plan, plus roof leak repairs, code upgrades and discounted HVAC tune-ups
Coverage add-ons: Protection for electronics, guest units, pools, septic pumps, spa and well pumps, and roof leak repairs (if not already included in your plan)
American Home Shield is available in every state except for Alaska and Hawaii.
American Home Shield’s quote form was easy to fill out and it took us less than two minutes to get a personalized quote through the company’s website.
Unlike other home warranty companies, you can click into more detailed coverage explanations under each American Home Shield plan once you receive your quote. We like how AHS makes accessing information about exclusions and coverage caps easier than other service providers.
American Home Shield texted us several times within the first day of requesting a quote, and the messages stopped after around three weeks.
Consumer Insights and Experience
American Home Shield was the most popular provider in our home warranty survey conducted in August 2023. Of the 357 out of 1,000 respondents who purchased a warranty from American Home Shield, low cost, a recommendation from a friend and a positive customer reputation were the most common reasons homeowners chose the company.
Out of the 31% of participants who filed a claim with American Home Shield, 84% were satisfied with the resolution of their claim, noting a positive customer service experience as the most chosen reason. Paying more than expected for repairs and a confusing or lengthy claims process were the top reasons for dissatisfaction with the company.
Our team reached out to American Home Shield for comment on its claim and repair processes but did not receive a response.
Elite Home Warranty
Most unique add-ons
4.8
Plan options: 5/5
Coverage details: 4.2/5
Pricing: 5/5
Trustworthiness: 4.9/5
Customer service: 5/5
Additional benefits: 3.1/5
State availability: 5/5
Elite Home Warranty is another option for homeowners looking for a provider with more extensive coverage, however, the company uses aggregate coverage limits. Elite includes up to $7,000 in aggregate coverage for appliances and up to $8,000 in combined protection for systems — although many items include a lower individual limit. For example, washers and dryers have a coverage limit of $1,000, which counts toward the overall $7,000 limit for appliances.
Elite also offers coverage on 25 specific items, a potential benefit for homeowners who desire customization. We rated Elite Home Warranty 4.8 out of 5 stars.
Pros and Cons
ProsOffers emergency and weekend service Larger selection of add-ons than some competitorsHigh aggregate coverage limits ConsCharges $150 service fees for elite appliances and weekend visitsDoes not allow you to use your own technician
Coverage and Cost
Elite Home Warranty has three plans for homeowners, each of which includes a $100 service fee:
Elite Appliances ($50): Covers a built-in microwave, ceiling fans, washer, dryer, dishwasher, garbage disposal, oven, range, cooktop and refrigerator
Elite Systems ($60): Covers your air conditioning system, heating system, electrical system, garage door opener, water heater and plumbing system, including stoppages
Elite Complete ($80): Covers all items on the appliances and systems plans
You can also upgrade your coverage with any of the following add-ons:
Annual maintenance
Central vacuum
Drainage and sewer lines
Effluent pump
Ejector pump
Freestanding freezer
Freestanding ice makers
Freestanding spa equipment
Generator
Geothermal heating and cooling systems
Grinder pump
Guest house
Jetted and hot tubs
Lawn sprinkler system
Lift pump
Limited roof-leak repair
Pool and spa equipment
Pool equipment
Premium appliances
Premium benefits
Premium systems (with the option to add extended coverage)
Septic system
Sump pumps
Water softener
Well pump
Wine coolers
Consumer Insights and Experience
Our 2023 home warranty survey found that none of the participants had a policy with Elite Home Warranty. Because of this, we gathered insight into the company’s service by reading and analyzing reviews on Trustpilot.
Several reviewers mentioned the polite and professional behavior of the company’s claims representatives. Some policyholders also shared positive experiences of technicians arriving at their homes the day after requesting a service. There was only one negative review on Trustpilot, in which the reviewer expressed dissatisfaction with the company’s treatment of the technician sent for the repair.
Our team reached out to Elite Home Warranty for comment on its negative customer feedback but the company did not provide a response.
Select Home Warranty
Most Budget-Friendly
4.5
Plan options: 5/5
Coverage details: 2.7/5
Pricing: 5/5
Trustworthiness: 4.9/5
Customer service: 5/5
Additional benefits: 5/5
State availability: 5/5
Budget-friendly: All three of Select Home Warranty’s coverage plans cost under $50 a month, making it among the cheapest options on our list. Each plan also includes a lower-than-average $75 service fee, and the company offers an impressive 90-day workmanship guarantee on all repairs.
Roof leak protection: Select also includes roof leak protection with all of its plans.
Some limitations: Select does not allow you to choose your own service technician, and its appliance coverage limits are below average.
Pros and Cons
ProsIncludes roof-leak coverage with every planOffers affordable pricing with plans that cost less than $50 per monthAllows customers to file a claim within two days, whereas most companies require you to report issues immediatelyConsHas lower-than-average coverage caps with a $500 limit for appliancesMay charge multiple service call fees if you file more than one claim
Coverage and Cost
Select Home Warranty offers three plans, priced between $44.45 and $47.80 per month. It has a $75 service fee regardless of the policy you choose.
Bronze Care ($44.45 per month): Covers appliances like your clothes washer, dryer, refrigerator, oven, stove, dishwasher and built-in microwave
Gold Care ($44.45 per month): Covers systems including air conditioning, heating, plumbing, electrical, water heaters and ductwork
Platinum Care ($47.80 per month): Comprehensive coverage that includes both systems and appliances, as well as plumbing stoppages, garage door openers, ceiling fans and exhaust fans
Coverage add-ons: Central vacuum, lawn sprinkler system, pool, spa, roof leaks, well pump and sump pump
Select Home Warranty is not available in Nevada, Washington or Wisconsin.
We requested a sample quote from Select Home Warranty in February 2023 and over the course of about two months, Select sent us 47 promotional text messages. Although Select does automatically opt you into automated text messages when you request a quote, you can unsubscribe at any time. However, we felt like these messages were excessive.
“When I was sold the policy, I was told Select Home Warranty would completely cover the cost of repair of appliances around the house when they break. In the [service contract] fine print, it says [Select Home Warranty] does not cover the cost of labor, which is usually the bulk of any repair or replacement. Furthermore, the contract states [Select] will cover the cost to replace broken items … but the end of the contract says only for the depreciated value of the item.”
Consumer Insights and Experience
A total of 43 of the 1,000 respondents in our 2023 home warranty survey had a plan with Select Home Warranty. Out of these participants, low cost, an easy claims process and a recommendation from a friend were the most common reasons homeowners chose the company.
Out of the 27% of participants who filed a claim with Select Home Warranty, 58% were satisfied with the resolution. They were most pleased with the company’s customer service experience and only having to pay for a service call fee. Among those who were dissatisfied, the primary reason was a confusing or lengthy claims process.
Our team reached out to Select Home Warranty for comment on its claims process but did not receive a response.
AFC Home Warranty
Most Coverage Options
4.5
Plan options: 5/5
Coverage details: 3.5/5
Pricing: 4.4/5
Trustworthiness: 4.8/5
Customer service: 5/5
Additional benefits: 3.1/5
State availability: 5/5
Variety of coverage options: With four plans, multiple add-ons and three service fee options, America’s First Choice (AFC) Home Warranty has the most coverage options of the companies on our list.
Plan-length workmanship warranty: Unlike other providers, AFC Home Warranty offers a plan-length workmanship warranty that covers company-approved repairs and replacements. So if the company sends a technician to fix a system or appliance in your home, and that item breaks again during your policy period, you can request another service without paying more fees.
Must file claims within 24 hours: AFC Home Warranty requires you to file a claim within 24 hours of noticing an issue. If you don’t, the company may deny your claim.
Pros and Cons
ProsExtends a workmanship guarantee that runs the length of your planOffers unique security benefits, including free credit monitoring, family emergency services and discounts on home security systemsAllows you to choose your own service technicianConsCharges premiums that are on the higher end of the industry averageMay deny your claim if it is not filed within 24 hours of noticing an issue
Coverage and Cost
AFC Home Warranty offers four plans ranging from $35 to $54.48 per month. You can also customize your monthly premium by selecting a service call fee of $75, $100 or $125.
Diamond Plan: Covers your major home systems and kitchen and laundry appliances
Silver Plan ($35.18 per month): Covers nine of the most common household appliances, including kitchen and laundry appliances and garage door openers
Gold Plan ($49.66 per month): Covers 15 appliances and systems, including heating, cooling, electrical, plumbing, kitchen appliances and laundry appliances
Platinum Plan ($54.48 per month): Includes 18 appliances and systems, adding coverage for plumbing stoppages, faucets, ice makers and built-in microwaves
Coverage add-ons (if not included with your selected plan): In-ground pool and spa, pumps, ice maker, double oven, built-in microwave, electronics, roof leaks, central vacuum, stand-alone freezer and hot water dispenser
AFC Home Warranty is available in all 50 states.
We were able to quickly secure a quote on AFC’s website, and it’s easy to compare plans. However, like most home warranty providers, you’ll have to do some digging on the company’s website to find asample contract. The quote and checkout page does not provide detailed policy information like coverage limits and exclusions.
“I use this company and it is great. You can use your own techs and get stuff fixed ASAP, no waiting around. It has reimbursed me to fix two A/C units ($855 total) in four months — and one component was weak, but not at total failure yet. As always, it’s [a home warranty] a gamble and may not be worth it for newer appliances, but if [your appliances] are getting older it’s something to consider.”
Consumer Insights and Experience
None of the participants in our 2023 home warranty survey reported having a policy with AFC Home Warranty. To learn more about the provider’s strengths and weaknesses, we gathered insight by reading and analyzing reviews on Trustpilot.
Some reviewers expressed appreciation for the company allowing them to choose their repair technician. Others noted how promptly AFC Home Warranty handled their claims without delay or hassle. A common theme among policyholders who left negative reviews was their frustration with claim denials.
Our team reached out to AFC Home Warranty for comment on its claims process but did not receive a response.
First American Home Warranty
Our pick for appliance coverage
4.5
Plan options: 5/5
Coverage details: 3.7/5
Pricing: 4.4/5
Trustworthiness: 4.8/5
Customer service: 5/5
Additional benefits: 5/5
State availability: 1.3/5
Appliance coverage: First American covers kitchen appliances under all three of its plans and offers additional refrigeration protection as a policy add-on.
High coverage limits: First American extends a coverage cap of $3,500 per appliance under its Starter and Essential plans and $7,000 per appliance under its more comprehensive Premium Plan. Plus, there is no limit for coverage on heating and cooling systems or ductwork.
Excludes some important systems: The Starter Plan does not cover plumbing, electrical or air conditioning systems.
Pros and Cons
ProsIncludes generous coverage caps for appliances and systems ($3,500 to $7,000)Offers the First Class Upgrade for certain plans to cover improper installation, building code modifications, broken appliance disposal and moreFeatures basic and comprehensive home warranty coverage for an affordable priceConsBasic home warranty plan does not cover plumbing or electrical systemsOnly offers air conditioning as a coverage add-on option for certain plans
Coverage and Cost
First American Home Warranty’s plans cost between $47.00 and $73.00 per month, and you have the option of a $75, $100 or $125 service fee.
Starter Plan ($47.88 per month): Covers your dishwasher, refrigerator, oven, cooktop, electrical system, heating system and plumbing
Essential Plan ($57.88 per month): Covers everything in the Starter Plan, plus your clothes washer, dryer, water heater, air conditioning and garage door opener
Premium Plan ($72.88 per month): Includes everything in the Starter and Essential plans, plus luxury appliances, your garbage disposal, garage door system, faucets, hot water dispenser and more
Coverage add-ons (if not included with your selected plan): Additional refrigeration, air conditioning, HVAC tune-up, limited roof-leak protection, pool and spa equipment, septic tank systems and pumping, and more
Note: If you pay for your plan monthly, you will be charged a $2 handling fee for each payment.
First American Home Warranty is available in 35 states. It is not currently available in Alaska, Connecticut, Delaware, Hawaii, Idaho, Indiana, Iowa, Kansas, Maine, Massachusetts, Minnesota, New Hampshire, Rhode Island, Vermont or Wisconsin.
Requesting a quote on the First American Home Warranty website was quick and easy, and we like how you can easily view plan details after receiving a quote. First American has anonline sample contract you can review, but it is not on the quote landing page, so you will have to search for it separately.
First American did require inputting a phone number when we requested a quote. First American called and left 10 voicemail messages over six days, which we felt was excessive.
Consumer Insights and Experience
Of the 1,000 people who responded to our 2023 home warranty survey, 118 reported having a plan with First American Home Warranty. Low costs, a positive customer service reputation and an easy claims process convinced the majority of these homeowners to choose this provider.
A total of 85% of participants who filed a claim with First American Home Warranty were satisfied with the resolution. They were most pleased with the customer service experience and knowledgeable technicians working on their homes. Among those who were dissatisfied, the primary reasons were paying more than expected, a confusing or lengthy claims process, and claims denials.
Our team reached out to First American Home Warranty for comment on its claims process but did not receive a response.
First Premier Home Warranty
Our Pick for Discounts
3.7
Plan options: 3.8/5
Coverage details: 2.7/5
Pricing: 5/5
Trustworthiness: 3.8/5
Customer service: 3.4/5
Additional benefits: 3.1/5
State availability: 5/5
Senior discount: First Premier offers a $50 annual discount for seniors.
High coverage limits: First Premier offers a $15,000 annual coverage limit, the highest among providers on this list. Other providers with annual coverage caps include Cinch Home Services and ARW Home, which cap coverage at $10,000 and $5,000, respectively.
Mixed customer reviews: We read more than 80 consumer reviews, many of which noted First Premier’s quick claims resolution and personable customer service representatives. Others lament First Premier’s delay in issuing a refund for policy cancellations.
Pros and Cons
ProsMaintains all customer service representatives in-house to minimize phone wait timesProvides a generous annual coverage cap of $15,000 for all covered itemsOffers a $200 discount on your service contract when an annual plan is purchasedConsDoesn’t allow customers to select their own service technicianProvides service contract details only after signing up for a planExcludes common systems and appliances, such as air conditioning and clothes washers, from its base plan
Coverage and Cost
First Premier Home Warranty offers two plans: the Premier Plan and the Platinum Plan. Both plans include its standard $75 service call fee. First Premier can lower your service call fee to $60 per claim if you sign up over the phone. Based on our quote, expect to pay between $40 and $48 per month for First Premier coverage.
Premier Plan ($419.99): This plan covers built-in microwaves, ceiling and exhaust fans, cooktops, dishwashers, ductwork, electrical systems, garage-door openers, garbage disposals, ovens, ranges, stoves, plumbing stoppages and systems, permanently installed sump pumps, trash compactors, water heaters and whirlpool bathtubs.
Platinum Plan ($499.99): The Platinum Plan covers all items in the Premier Plan, plus air conditioning and heating systems, clothes washers and dryers, and refrigerators.
First Premier Home Warranty is available in 44 states. It does not cover California, Hawaii, Iowa, Nevada, New Mexico or Vermont.
First Premier’s online quote process is smooth and efficient. It took us approximately two and a half minutes to obtain a quote. We experienced a minimal wait time when we called — the representative picked up the phone in fewer than four rings.
One user on Redditreported difficulty securing a copy of their First Premier contract and felt that a company representative was misleading about cancellation fees:
“I received a quote of $1,900 for six years. I asked if I could have a copy of the contract and [First Premier] said I would get a copy if I agreed to give my credit card info. I asked if I could cancel and [the rep] stated I had 30 days to cancel, implying it was a free cancellation … Two days later I received the contract and noticed a charge on my credit card for the full amount. I called to cancel and get my refund and [First Premier] informed me that the contract I was sent spelled out a cancellation fee of $300, or $50 for each year of the contract. I was flabbergasted.”
Consumer Insights and Experience
Of the 57 respondents who purchased a warranty from First Premier Home Warranty, the majority chose the company due to a recommendation from a friend, low costs and a positive customer service reputation.
A total of 29% of survey participants with a First Premier Home Warranty plan have filed a claim with their provider. Out of those who filed a claim, 73% were satisfied with the resolution, noting good customer service and an easy or quick claims process. Paying more than expected and a confusing or lengthy claims process were among the top reasons for dissatisfaction.
Our team reached out to First Premier Home Warranty for comment on its claims process and received the following response:
“First Premier Home Warranty has introduced a new state-of-the-art claims portal to enhance customer satisfaction,” said Vince Walker, a company spokesperson. “This streamlined platform ensures a seamless and quick claims process, addressing previous issues of lengthy and confusing procedures. By simplifying claims submissions and expediting turnaround times, policyholders can now experience a more efficient and user-friendly service, reducing frustration and unexpected costs. This initiative demonstrates our commitment to improving customer experience and reliability.”
How To Choose a Home Warranty
Home warranties can offer homeowners both financial protection and peace of mind in the event of unexpected system and appliance breakdowns. Whether you already own a home, are buying or selling, or own a rental property, there are important factors to consider while shopping for warranty coverage based on your unique circumstances.
“When I’m looking for a home warranty, I am always looking to make sure everything I need is covered. Some warranties only cover specific scenarios or systems, while others provide comprehensive coverage. Shop different companies, as pricing can vary, and you can often negotiate if [a company] knows you’re shopping around. As with any major purchase, I also recommend checking reviews on reputable sites to ensure you’re not going to receive poor customer service if something goes wrong.“
What Kind of Homeowner Are You?
A home is one of the most significant purchases people can make in their lifetime. As a homeowner, having peace of mind in case something goes wrong with your newest acquisition is likely on your list as you close on a property. Purchasing a home warranty — especially if you purchase a home with older systems and appliances — can help protect you from costly out-of-pocket repairs if your dishwasher, refrigerator, HVAC unit or something else breaks down.
“If you’ve recently purchased a home, your savings might be depleted, and a warranty can help defray expensive costs that you might not be able to afford on your own,” Mollo added.
If you’re a home buyer on a budget, we recommend Select Home Warranty. Our pick for most budget-friendly company — all three of this provider’s plans are under $50 a month with a lower-than-average service fee of $75. Select Home Warranty also includes roof leak protection with all plans, which is ideal for home buyers purchasing a home with an older roof.
If you’re selling your home, a home warranty can reassure you and the buyer by extending coverage for any systems or appliances that need unexpected repairs between the purchase and closing date. In addition, most home warranties are fully transferable, meaning some buyers could see a warranty as a potential incentive if included in the sale contract.
Based on our research and review, we recommend American Home Shield for home sellers. Its most basic plan covers heating, cooling, electrical and plumbing systems. It also offers higher-than-average coverage caps for systems and appliances, which can prove beneficial if your home suffers a major system or appliance failure during your sale.
As a landlord, you’ve likely budgeted for operating expenses, general maintenance, building upkeep and more. Although rental owners are not legally required to have warranties on their properties, these plans could further provide protection and peace of mind by saving you from paying fully out-of-pocket for system and appliance repairs your tenant might need.
We recommend AFC Home Warranty for rental property owners looking for comprehensive coverage. This provider offers a standout workmanship guarantee lasting the length of your contract and four plans to choose from — the most of any provider featured in this review.
According to our home warranty survey, 15% of respondents bought a home warranty because they have an older home with older appliances and built-in systems. Median annual spending on maintenance alone for older homes is $540 per year, according to the U.S. Census Bureau.
While home warranties extend protection to older homes, keep in mind that most providers will not cover pre-existing conditions or issues that existed before your purchased coverage. Many home warranty companies require regular maintenance records to verify an appliance or system has not broken down due to neglect.
MARKETWATCH GUIDES TIP
One red flag our team has noticed across online home warranty customer reviews is frequent complaints of claim denial. For this reason, we recommend researching companies beforehand, especially if you have an older home, to ensure you won’t have difficulty using your home warranty when the time comes.
What Matters to You?
Part of buying the best home warranty for you is knowing what you want covered. This way, you can choose the best-fit plan for your needs and avoid overpaying for additional coverages you won’t necessarily use.
If you live in a state with intense climates such as Arizona or Texas, where the temperatures can reach over 110 F in the summer, more strain is put on the home’s HVAC system. Or, if you live in colder areas such as New York or Minnesota, you may have an increased risk of septic pipe freezing.
Home warranties are typically split into three plan types — appliance-only, systems-only or a comprehensive plan that covers both.
Appliance-only plans: These typically include all of your kitchen and laundry appliances, such as a refrigerator, washer, dryer, built-in microwave, dishwasher, cooktop and stove. If you have multiple of these items, such as two fridges, for example, companies including Liberty Home Guard offer add-ons that extend coverage to more than one of the same appliances. System-only plans: A systems-only plan usually covers air conditioning, heating, ductwork, plumbing, electrical and water heaters. Most companies offer septic systems coverage as an optional add-on. Also note that a few companies, such as First American, do not include air conditioning as standard and offer it only as an add-on.
Combination plans: A comprehensive home warranty plan covers both appliances and systems. Some companies offer perks for choosing a premium plan, such as free roof leak coverage, HVAC tune-ups or appliance discounts.
MARKETWATCH GUIDES TIP
Keep in mind that not every system or appliance, nor every component, is covered under a home warranty. For example, if you want full coverage for your HVAC system, thoroughly read a sample contract before purchasing to make sure you understand the listed part exclusions.
Where Do You Live?
The kind of home warranty plan you want and the company you choose will depend on where you live. Many home warranty companies do not operate in all 50 U.S. states. Use the dropdown menu below to find out what the top home warranties in your state are:
We recommend that homeowners go into the home warranty buying process with a loose budget in mind.
According to our survey, 35% of respondents spent $30 to $60 per month on coverage. This lands in line with our quotes collection, which suggested the average cost of a home warranty is $52 per month.
However, keep in mind the correlation between coverage and the cost of a policy. For example, if you have a lower budget of $30 and want comprehensive coverage of all your systems and appliances, you may have trouble finding a plan. Moreover, if you do find a cheaper policy, make sure to look for individual item coverage limits. Lower policy prices usually indicate a per-item limit of less than $2,000, which may not offer the value you need.
“Many home warranties have caps on how much they will pay per repair or year. Ensure these limits are reasonable and won’t leave you with large out-of-pocket expenses. Be aware of the deductibles and service fees associated with each claim. Some companies have high deductibles that can make smaller repairs more expensive out-of-pocket than paying for them directly.”
For homeowners with a budget between $30 and $40, you can expect to get a plan that either covers just appliances or just systems and has a high service trade call fee. If your budget is closer to $70, you can likely find a more comprehensive coverage plan that fits all your needs.
What Does a Home Warranty Cover?
A home warranty covers repairs or replacements of major home appliances and systems. Some home warranties offer additional services, such as HVAC tune-ups and re-keying services. Home warranty policies typically cover the following:
Common Appliances:
Built-in microwave
Cooktop and range
Dishwasher
Dryer
Garbage disposal
Garage door opener
Oven
Refrigerator
Trash compactor
Washer
Common Systems:
Air conditioning
Attic and whole house fans
Ceiling fans
Doorbells
Ductwork
Electrical
Heating
Plumbing
Water heaters
Home warranty providers also offer a series of add-on options, which extend additional coverage for an extra cost each month. When our team reviews providers, 8% of each company’s rating is based on these additional benefits. Some providers, such as Cinch Home Warranty, only offer five add-on options. Other providers, such as Liberty Home Guard, offer over 40 add-ons.
DID YOU KNOW?
Our survey of 1,000 home warranty policyholders nationwide revealed that 94% of respondents also purchase an add-on. The most popular add-ons included air conditioning (when not included in a base plan), roof leak protection and electronics coverage.
Add-ons range in price from an additional $2.08 to $35 per month. Here are the most common options:
Additional appliances (such as a second refrigerator)
Central vacuum
Electronics protection
Guest unit
Pool and spa
Roof leak
Septic pump
Sprinkler system
Stand-alone freezer
Sump pump
Water softener
Well pump
Wine cooler/fridge
What Is Excluded From Home Warranties?
Home warranties are designed to cover normal wear and tear and usually exclude the following:
Pre-existing conditions
Maintenance
Cosmetic damage
Modifications, changes or alterations to structures
Solar panels
In addition, a home warranty company will not cover damage caused by neglect, improper installation, pests, misuse or acts of nature.
“Scrutinize the contract for exclusions, caps and conditions. Many warranties have exclusions based on the age of appliances, pre-existing conditions or specific causes of issues. Know what’s covered and, more importantly — what isn’t.”
How Much Does a Home Warranty Cost?
The average cost of a home warranty is $52 per month, but costs can range from $29 to $105, depending on home location and size, provider, plan and coverage.
DID YOU KNOW?
According to our nationwide survey of 1,000 home warranty customers, the majority of policyholders pay between $70 and $80 a month for home warranty coverage and $75 in service call fees when they file a claim.
In addition to the monthly premium, policyholders also must pay a service fee when they file a claim. Customers can typically choose their service fee when signing up, which typically ranges from $65 to $150. In other instances, companies may assign you a service call fee rate during the enrollment process.
The chart below outlines the difference between the two major types of payments you can expect with a home warranty plan.
Payment Type
Description
Frequency
Premium
The premium is the cost of the home warranty, which you pay in exchange for the overall service agreement.
Monthly or Annual lump-sum
Service call fee
A service call fee is what you pay each time you file a claim under warranty coverage. Service fees cover visits from the technician sent to diagnose why an item is broken and provide a recommendation to your warranty provider on how to proceed. You may owe multiple service fees if a technician has to schedule multiple appointments to repair an item.
Once per appointment
The average cost of a home warranty provider can vary widely based on available coverages, plan options and maximum payout limits. The following charts show the average costs of our top home warranties compared to the national average:
Use the calculator below to estimate the annual cost of a home warranty. Keep in mind that these are estimates, and your actual quotes may vary.
Home Warranty Cost Calculator
Type of Home Warranty PlanComprehensive plans cover both appliances and systems.
Claims Per YearAccording to our survey, 1 of every 3 policyholders file at least one claim per year.
What Service Fee Are You Comfortable With?Service Fees typically range from $75-$150. Choosing a lower service fee will result in high monthly costs.
Your Annual Cost Estimate Estimates are based on the average cost of a home warranty. This is an estimate, NOT an official quote.
What Impacts the Cost of a Home Warranty?
Home warranty pricing is impacted by several factors, such as home location, home size, the plan chosen and more.
Home size: Most home warranty companies charge more when a home exceeds 4,000 square feet to 5,000 square feet. This is due to larger heating and cooling, plumbing and electrical systems, which your provider will likely cover if you have a plan with systems coverage.
Home location: Location impacts home warranty pricing due to varying costs of local contractor labor and materials across the U.S.
Policy selection: Appliance-only or systems-only plans typically cost less than comprehensive policies since they include fewer coverage items.
Provider selection: Home warranty costs can vary between companies due to differences in operating costs, coverage options, technician and contractor connections, and more.
Service call fee: Lower service call fees typically result in higher monthly premiums, but higher service fees result in lower monthly costs.
How Does a Home Warranty Work?
If you are new to home warranties, you may wonder how you can file a claim after enrollment. The following steps can help explain how home warranties work:
Step 1: Enroll in a plan — having peace of mind that your home warranty provider can help cover the cost is half the battle!
Step 2: If the worst (or inevitable happens), you can typically file your first claim after a 30-day waiting period after enrollment.
You’ll pay the service call fee that essentially acts as your plan’s deductible — this price varies based on the provider you pick.
Cinch Home Services is a good option if you need home warranty coverage with no waiting period before filing a claim. It also offers little to no rejections for maintenance issues or pre-existing issues.
Step 3: Next, you’ll schedule a service visit for a technician to come to your home and determine if they can fix or replace the issue. The technician can also tell you If your plan covers the full price of the work or if you will owe out-of-pocket costs before repair work can proceed.
Step 4: If your service contract covers the home appliance or system breakdown, and the repair does not exceed your policy limits, you should not owe anything except the service call fee.
Is a Home Warranty Worth It?
A home warranty policy can offer a worthwhile investment because it can make home repairs and maintenance costs more predictable. You pay a monthly fee to your provider, and when a system or appliance in your home stops working, you can schedule a repair at a reduced cost.
While home warranties can help cover the upfront costs of home system and appliance repairs, whether a home warranty is worth it for you depends on your specific coverage needs.
ASK THE EXPERTS: Is a Home Warranty Worth It?
“The pros of home warranties include…
potential financial savings on expenses due to the repair or replacement of systems and appliances in your home, as well as peace of mind, knowing that your systems and appliances are covered in the event of an unexpected problem. The cons of home warranties include the cost, which can be significant depending on the plan and size of the home. It’s important to read warranty details carefully to understand any exclusions or limitations.”
if a buyer does not have an emergency fund for things like big household expenses, they may want to consider getting a warranty. A good warranty protects you from having to pay huge repair bills.”
on individual circumstances. For some homeowners, the potential cost savings and convenience of having repairs covered outweigh the upfront cost of the warranty. However, others may prefer to set aside funds for potential repairs instead of paying for a warranty.“
What’s the Return on Investment for a Home Warranty?
Home warranties can provide a safety net for homeowners if a major appliance or system needs repair or replacement. Based on our research, homeowners can secure coverage for their property for a monthly cost ranging from $40 to $100.
To help you estimate potential savings with a home warranty policy, we’ve provided examples of common appliance and system issues below.
Most Water Heaters Need to Be Replaced After 8-12 Years
According to Carter’s My Plumber, new water heaters range from $1,600 to $5,500.
Cost Without a Home Warranty
Repair Costs
Cost
Parts
$3,550
Labor
$200
Total
$3,750
Cost With a Home Warranty
Home Warranty
Cost
Avg. annual home warranty
$627
Service Fee
$75
Total
$702
Cost average based on 1,300 sample quotes
Savings = $3,048!
A Major Washing Machine Repair Could Cost up to $1,000
According to American Home Shield, refrigerator repair costs range from $200 to $1,000, depending on the fridge.
Cost Without a Home Warranty
Repair Costs
Cost
Parts
$700
Labor
$150
Total
$850
Cost With a Home Warranty
Home Warranty
Cost
Avg. annual home warranty
$627
Service Fee
$75
Total
$702
Cost average based on 1,300 sample quotes
Savings = $149!
Refrigerant Leaks Within an AC’s Evaporator Coil are Cause for a Replacement
According to Architectural Digest, evaporator coil replacements range from $600 to $2,000.
Cost Without a Home Warranty
Repair Costs
Cost
Parts
$1,400
Labor
$400
Total
$1,800
Cost With a Home Warranty
Home Warranty
Cost
Avg. annual home warranty
$627
Service Fee
$75
Total
$702
Cost average based on 1,300 sample quotes
Savings = $1,098!
State of the Home Warranty Industry
According to a report published by Allied Market Research, the home warranty service industry hit $7.3 billion globally in 2020 and is expected to reach $13.6 billion by 2030 — a compound annual growth rate of 6.3% in 10 years.
IBISWorld, a comprehensive industry-market research database, states that home warranty industry revenue in the U.S. has increased by 3.4% over the past five years and is estimated to reach $3.9 billion in 2024.
5% of all households in the U.S. currently have a home warranty. However, IBISWorld predicts this could change with the rising complexity of home systems and appliances.
Frequently Asked Questions About Home Warranties
Yes, home warranties are ideal for older homes. Appliances and other systems used in older homes are prone to breaking down — it’s a good idea to get a home warranty to enhance your home’s value.
No, they are not. Home warranties are different from home insurance and are offered on a contractual basis. Home insurance policies may be necessary if you are financing your home purchase with a bank, however home warranty cover the appliances within your home and thus are optional in the United States.
The main difference between a home warranty and a home insurance policy is the situation in which events happen. Home insurance covers unpredictable events. For example, if a fire starts in your home. But a home warranty plan covers situations that are somewhat predictable like a home appliance not working.
The top-most benefit of a home warranty is that it helps homeowners avoid expensive repairs. Most home warranties cover all expenses associated with systems or appliances breaking down in the home.
Home warranties typically do not cover solar panels, as they are not considered a structural add-on. However, solar panel coverage is often included in homeowners insurance policies. Additionally, solar panel manufacturers usually offer extended warranty coverage for the equipment.
Methodology: Our System for Ranking the Best Home Warranty Companies
Our team created a comprehensive rating system to rank providers based on objective factors. We researched each company by speaking with company representatives, reading sample contracts, and analyzing and comparing consumer reviews. We deepened our research by gaining homeowner insights through surveys and focus groups.
After collecting data, we scored each provider based on what matters most to homeowners: plan options, cost, trustworthiness, customer service, state availability, additional benefits and coverage specifics.
Here’s the breakdown of how we scored each home warranty company on our list:
Plan options (20%): Companies that offered at least three plan options and various add-on coverage scored the highest in this category.
Coverage details (20%): We rated companies both on their total number of home appliances and systems covered in their plans, putting more emphasis on the most essential systems like plumbing and air conditioning units.
Plan pricing (18%): Home warranty providers that had a service fee of $75 or less and offered combination plans for less than $50 a month earned the most points in this category.
Trustworthiness (14%): We evaluated the Better Business Bureau (BBB) rating, sample contract availability, workmanship guarantee and years in the industry to determine the trustworthiness of each company.
Customer service (16%): Home warranty companies that are available 24/7, 365 days a year, provide emergency services and offer customers at least two claim filing options earned the highest points in the customer service category.
Additional benefits (8%): Companies that offer a 30-day free cancellation period earned points in this category, and any additional coverage perks and exclusive benefits a provider offered earned it extra points.
State availability (4%): Providers that are available in all 50 states earned full credit for this category.
Our review methodology for home warranty companies is intended to provide a thorough overview of the best providers nationwide. To learn more, you can read our full home warranty methodology.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
Alex Carver is a writer and researcher based in Charlotte, N.C. A contributor to major news websites such as Automoblog and USA Today, she’s written content in sectors such as insurance, warranties, shipping, real estate and more.
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
