The 6 Best Home Warranty Companies of July 2024
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Many homeowners are not prepared to pay for repairing or replacing their major home systems. Coverage from one of the best home warranty companies can help.
The best homeowners insurance companies can help cover the cost of repairing damage to a home caused by certain weather events, accidents, fires, or vandalism, but they won’t offset the financial hit caused by the failure of a major home system or appliance. A home warranty can, though.
“Maintenance and repairs are an inevitable part of homeownership and yet according to a recent survey, one in four homeowners do not have a budget set aside for this purpose,” explains Jessica Fields, vice president and chief sales officer with American Home Shield. “One of the best ways to avoid a situation where you have to choose between repairs is to plan ahead with a home service plan that covers your home systems and appliances when breakdowns or damage occurs due to normal wear and tear.”
But what is a home warranty, and how does it work exactly? It’s a type of service contract designed to meet the needs of a wide range of homeowners. Home warranty companies often cover the cost of maintenance, repair, and sometimes replacement of whole-home systems and certain appliances during the period the policy covers.
The best home warranty companies offer a wide range of coverage options and high coverage limits, along with clear, easy-to-understand conditions. They work with reputable technicians or, in some cases, allow customers to select the technician of their choice. This guide features a curated selection of the best home warranty companies for homeowners to consider.
- BEST OVERALL: American Home Shield
- RUNNER-UP: AFC Home Club
- BEST FOR LOW RATES: Choice Home Warranty
- BEST CLAIMS PROCESS: Cinch Home Services
- BEST ADD-ONS: Liberty Home Guard
- ALSO CONSIDER: American Residential Warranty
How does a home warranty work?
A home warranty policy begins with the payment of a premium. When the policyholder needs a repair or service for a covered system or appliance, they will contact the warranty company to file a claim. The policyholder will pay an agreed-upon service fee, and a qualified technician will come to their home and perform the repair or replacement at no additional cost, up to the coverage limit.
Home warranty policies may have coverage limits per service call, event, appliance, and year, but these will be specified in the agreement so there will be no surprises for homeowners along the way. The cost of the premium and service charges can be significantly less than one or two service calls without a warranty, especially in older homes or those with aging appliances and systems, so many homeowners find the cost of a home warranty to be worth it.
What to Consider When Choosing One of the Best Home Warranty Companies
To make sure they choose the best warranty company for their needs (and avoid home warranty scams), homeowners will want to assess their coverage needs, consider their budget, and compare how each company handles various aspects of coverage. Checking with the Better Business Bureau and the National Home Service Contract Association (which offers accreditation for home warranty companies), consulting friends and neighbors, reading home warranty reviews, and collecting policy quotes from several companies can also make choosing a provider more manageable.
“When it comes to a home warranty company, consider the agreement,” advises Elizabeth Dodson, co-founder of HomeZada, an online resource to help users manage all aspects of homeownership. “Any analysis should take into account the annual cost of the warranty, the scope of coverage and age of your equipment and appliances. Shop home warranties from companies in your area that can promise access to local, contractors with business licenses, bonding and insurance. If they can’t provide this information, they don’t deserve your business.”
Service Area
A provider’s operational footprint is an important consideration for homeowners when searching for the best home warranty company. Some companies offer national coverage, while others are regional; but even then, a homeowner will want to look at the home warranty company’s coverage network.
The service area is an important consideration, especially if the company uses preapproved contractors. But just offering policies in a homeowner’s area doesn’t mean the company has a great network of qualified technicians. And if a home is outside a technician’s regular area, the homeowner may find themselves waiting an extended period for service. With companies that allow the policyholder to select the contractor or technician, this is less of a concern, but still something to think about in case their preferred contractor is unavailable.
Appliances and Systems in Need of Coverage
Home warranty coverage can be very extensive. It can protect home systems such as electrical, plumbing, and HVAC, and sometimes water heaters, garbage disposals, and garage door openers. In addition, a home protection plan can cover kitchen appliances, including refrigerators, ovens, stovetops, and ranges; wall-mounted microwaves and hoods; and dishwashers. Home warranties do not usually cover second refrigerators (such as those kept in a garage), countertop microwaves, and other small appliances. Some may exclude the main refrigerator’s ice maker. Before investigating warranty companies, the homeowner can perform a quick appraisal of the systems and appliances they want to cover so they can make sure the home warranty companies on their shortlist offer the coverage they need.
Sometimes, a homeowner may have appliances or systems in their home that are not traditionally covered in a home warranty policy, such as a swimming pool or a hot tub. In that case, they’ll want to look for one of the best home warranty companies for pool coverage that offers add-ons to its standard policies. However, the homeowner will also want to check to see how much those add-ons will cost to make sure their premium doesn’t skyrocket by adding them.
Plans
Rather than settling on the first home warranty company they come across after doing an online search, homeowners will want to compare each company’s specific offerings. They can contrast each company’s policy terms, plan options, and costs, keeping their specific needs in mind, to determine which will best fit their needs.
Most companies will generally offer whole-home system plans, in addition to appliance, combination, and add-on plans for items not covered in the basic plans. In addition, warranty companies will typically offer tiers of service, including a range from basic, less-expensive packages to premium plans that are costly but include more coverage.
Maximum Coverage Limit
Most home warranty plans will come with set coverage limits that cap the amount of money a customer will receive to pay for covered repairs or replacements. Often, coverage limits are applied to different types of home systems, appliances, and services.
For instance, HVAC repairs may be covered for a much higher amount than limited roof-leak repairs. The exact coverage amounts will vary from one company to another, and some home warranty providers may offer much more generous coverage amounts than others. It may also be worth looking at any sample contracts or user agreements that companies have available, as specific coverage limits are often listed in those documents. This way, homeowners can know exactly what their home warranty will cover—and for how much—when the time comes to submit a repair request.
Average Monthly Rate
A great benefit of a home warranty service is the ability for the homeowner to budget for repair and maintenance services. While the average cost of the home warranty plan will stay the same once a homeowner has signed a contract, that cost will vary significantly based on the type of coverage selected, the coverage limits, and the technician fees.
It’s a good idea for homeowners to understand their budget as they begin to compare companies and products. A lower budget doesn’t necessarily mean less coverage; the total cost of a home warranty balances the premium, service fees, and coverage limits. For example, customers whose budget necessitates a lower initial cost can choose a higher service fee to keep their premium lower; they’ll only need to pay the service fee if they actually file a claim. Each company will offer different packages to allow flexibility in the average monthly cost, which means homeowners can tailor their coverage to their needs and budget.
Discounts
Home warranty discounts can be a great way to lower the total cost of a policy, but not all companies will offer opportunities to reduce the price of a service plan. Other home warranty companies may offer generous discounts to new customers who sign up for a new policy or switch providers. Customers may also be able to lower the total cost of their home warranty by paying in full or purchasing multiyear plans, as some companies will extend the length of their home warranty term for free in those situations. In other cases, customers may be eligible for exclusive discounts on new appliances and other purchases, which can save them money overall, even if those discounts don’t affect the price of their home warranty directly.
Quote Process
Most home warranty companies offer free quotes, which makes comparing the offerings easier, but the process of actually getting those quotes differs from company to company. While some companies offer online quotes, others prefer that shoppers call and speak directly with an agent who can help them customize their coverage and hunt for the right combination of options. In the end, there’s a good chance that a homeowner will speak with an agent regardless, as the default quote-generating system won’t ask all the questions necessary to customize the coverage. Without speaking to a representative, this could result in a more generic quote that may or may not accurately reflect the homeowner’s actual costs if they decide to take out a policy.
Homeowners will need to provide some basic information in order to get an accurate quote. Most reputable companies won’t give a generic quote without specific information because that could lead to an inaccurate estimate. But this can be frustrating for homeowners trying to get a basic idea of costs. Shoppers will likely need to provide the home’s address, their ownership status, and information about the home’s age when getting a quote.
Alternatively, homeowners can call the customer service line and speak to an agent instead. Representatives from the best home warranty companies are often eager to help shoppers find the right coverage level. Because of their deep knowledge of the plans and policies the company offers, representatives may be able to help shoppers find a better deal on the coverage they need than they would find on their own.
Claim Process
Each company will have a slightly different claims procedure, so it’s a good idea for the homeowner to ask specifically how this works with each company they are vetting. Nearly all home warranty companies have call centers or hotlines for customers to call when they have a claim to file, but many companies also have online or app-based claim-filing options. Customers will want to consider their preferred method of filing a claim and make sure their chosen company has this option available.
The best home warranty companies will often have a call center or online portal that is open 24/7. When a customer needs service badly enough to submit a claim in the middle of the night, they need service promptly—not after the office opens in the morning.
Companies will also vary regarding payment methods. Some companies expect a homeowner to pay for the technician up front and then get reimbursed, while others will have a homeowner submit a bill, and the company will pay the technician directly. Homeowners will want to compare the process at each company and be sure it’s one they’re comfortable with before they sign up for coverage.
Service Fee
Each time a claim is filed, the policyholder will pay a flat service fee, which will be agreed upon signing the contract and listed in the policy for reference. Policyholders may be able to choose from a range of service fee options, depending on the company and warranty plan. Policies may also stipulate what that fee covers; most often, the fee is per event. If a washing machine needs to be repaired, for instance, but the technician needs to order the part and return on another day to install it, the service fee will cover both visits and the cost of the part. Some companies limit how many technician visits can be covered by one service charge, after which another service charge is applied. Homeowners can ask their chosen home warranty companies how their service fees work to make sure they fully understand what they may need to pay when filing a claim.
Approval Parameters
Few things are as frustrating for homeowners as researching and choosing a home warranty policy only to have the company reject their claim. Policyholders can avoid this frustration by reading through their policy terms, as reputable home warranty companies will include the requirements for claim approval clearly in their contract. For instance, many home warranty companies have a minimum 30-day waiting period after the policy purchase before a claim can be filed. However, some companies do waive their waiting period under certain conditions, so homeowners will want to ask for the specifics when getting a quote from each company.
Home warranties will often not cover appliances or systems that failed before the contract’s execution date, those in disrepair, or those that have not been properly maintained. For example, if the furnace fails and the technician determines that the filter has not been changed for years, the company is likely to reject the claim. One of the best ways for homeowners to protect against this type of claim denial is to schedule a home inspection before purchasing a policy. A home inspector will assess the health and maintenance level of the systems to be covered and attest that they’re in working order, making it more likely that home warranty claims will be approved. If there are any issues, the homeowner can repair them before taking out the home warranty.
Those who have recently purchased a home can find it frustrating to discover that the previous owners did not maintain the house in a way that would allow for warranty claims to be approved. Some warranty companies offer “fresh start” or “clean slate” options for new home buyers, in which they’ll honor claims as long as the new owners practice appropriate maintenance after they’ve taken ownership. If this situation applies to a homeowner, they will want to seek out companies that provide this option.
Choice of Technician
When choosing a technician, contractor, or repair person for a home project, many homeowners like to carefully vet the individuals or companies they choose. After all, the workers will be in their home, potentially digging around in the attic or basement, and homeowners want to make sure they’ve chosen someone qualified and trustworthy. Some home warranty companies will allow customers to select their preferred contractor, as long as they meet the specifications the home warranty company provides and don’t charge more than the warranty company permits. Other home warranty companies will choose the technicians and contractors themselves, both to make sure the workers are qualified and so that the company can minimize costs.
If a homeowner has found a warranty company with many service professionals in their area and doesn’t already have established relationships with other technicians, this may not be a concern. Others may not be comfortable using a technician they haven’t personally vetted; in that case, it would likely be preferable for them to select a home warranty company that enables them to select their own technicians.
Workmanship Guarantee
Home warranty companies typically guarantee the quality of the workmanship provided by their contractors and technicians for a certain period of time. These workmanship guarantees can run for as little as 30 days or as long as a few years, depending on the company and the coverage terms selected by the customer. If a customer notices an issue with the quality of the work provided by the technician within that time frame, then they can request additional repairs without needing to pay another service fee. However, once the time has elapsed, customers may be required to pay a second fee to schedule another appointment. As such, a longer workmanship guarantee can offer more peace of mind to homeowners and could save them money in the long run.
Our Top Picks
Choosing between home warranty companies can feel overwhelming, especially if a homeowner is considering this type of coverage for the first time. We evaluated a number of factors such as plans, pricing, claims process, and more to choose the best home warranty companies.
Best Overall
American Home Shield
Photo: ahs.com
Why It Made the Cut: American Home Shield is an established home warranty company that offers generous protection with all of its policies, including a high HVAC repair cost limit and standard coverage for rust, corrosion, and sediment.
American Home Shield lists more than 23 home appliances and various services as options for covered systems, including several items that aren’t even available in the add-on packages from other companies. In addition to the expected systems and appliances, American Home Shield offers coverage for pools and spas, roof leak repairs, and code violations and the associated repairs.
Along with a wide range of covered appliances and systems, American Home Shield offers its clients several perks that encourage regular maintenance to make system failures less likely. The company’s highest-cost ShieldPlatinum plan offsets the up-front cost by offering free HVAC tune-ups and unlimited air-conditioning refrigerant, so clients can save money on other services that could otherwise be quite costly to pay for out of pocket. Depending on the plan chosen, customers will also get unlimited or discounted AC refrigerant refills to keep their system in good working order. Policyholders will notice that the workmanship guarantee offered by American Home Shield is limited to 30 days, which is relatively short; however, with an emphasis on preventive care, it’s less likely a homeowner will have issues with a system or appliance after a repair.
The company’s standard coverage terms can be fairly extensive. For instance, every policy covers malfunctions stemming from rust, corrosion, and sediment buildup, which is not always the case with a home warranty. American Home Shield also covers the repair and reinstallation or replacement of incorrectly installed appliances as long as the installation was initially done by a qualified professional. While the average monthly costs may be somewhat high compared to similar competitors, the limits on coverage are quite generous (with a $5,000 limit for HVAC repairs), so policyholders can get more coverage to pay for more expensive repairs on certain home systems.
- Read our Bob Vila American Home Shield review.
Specs
- Service area: 49 states and Washington, D.C. (not available in Alaska)
- Plans: ShieldSilver, ShieldGold, ShieldPlatinum
- Maximum coverage limit: $5,000 (for HVAC repairs)
- Average monthly rate: Varies
- Claim process: Online, phone
- Service fee: $100 or $125
- Workmanship guarantee: 30 days
Pros
- Relatively high $5,000 coverage limit on HVAC repairs
- Rust, corrosion, and sediment coverage included
- Coverage for improper installations and repairs
- Free or discounted HVAC tune-ups
- Unlimited or discounted AC refrigerant refills
Cons
- Relatively short 30-day workmanship guarantee
Runner-Up
AFC Home Club
Photo: afchomeclub.com
Why It Made the Cut: AFC Home Club’s phenomenal guarantee on work performed and 5-year rate lock are among its most notable benefits, and the company also offers home security and credit monitoring perks for customers.
Around-the-clock customer service via phone, email, or online portal is the first sign that AFC Home Club takes serving its customers seriously. The easy-to-navigate website breaks down exactly what is covered and what is not, providing sample contracts for each plan so customers can read the fine print at their leisure before signing an agreement. Homeowners will want to note that AFC Home Club does require the home’s HVAC system to be maintained annually in order to be covered for repair, but this is something homeowners will want to keep up on whether they have a home warranty or not.
Offering warranties in the contiguous 49 states and Washington, D.C., AFC Home Club provides an exceptionally flexible stable of packages based on how many appliances and services are included or expressly excluded. In addition, the options for add-on coverage are significant, so policyholders can easily customize their warranty plan. AFC Home Club offers members additional benefits, including free credit monitoring and discounts on home security devices, home appliances, and home systems. And while AFC Home Club has a 30-day waiting period for new customers, the company will waive it if the homeowner can provide proof of a home inspection.
Most impressive are the guarantees: AFC provides a 5-year guarantee on the policyholder’s monthly rate from the time of signing, so customers can accurately budget for their warranty coverage. AFC also offers either a 1-year or a 3-year guarantee on work. This eclipses the standard 30- to 60-day guarantees provided by most companies. AFC also allows customers to choose their own technicians, so customers know the work done in their homes will be held to a high standard since they can go with a local contractor or handyman who they have used in the past and trust to do quality work.
Specs
- Service area: 49 states and Washington, D.C. (not available in Hawaii)
- Plans: Platinum, Gold, Silver, systems
- Maximum coverage limit: $3,000
- Average monthly rate: Varies
- Claim process: Online, phone
- Service fee: $75 to $125
- Workmanship guarantee: 1 or 3 years
Pros
- Customer-selected technician option
- 5-year guarantee on monthly rate
- Extremely long 1- or 3-year workmanship guarantee
- Free credit monitoring and identity protection services
- Waiting period waived with home inspection
Cons
- Annual HVAC maintenance required