Home > Top 7 Best Home Warranty Companies (2023)

Top 7 Best Home Warranty Companies (2023)

Hannah Smith

Reviewed by Hannah Smith

Updated Jan 25, 2023

Hannah Smith

Reviewed by Hannah Smith

Updated Jan 25, 2023

Home > Top 7 Best Home Warranty Companies (2023)

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A home warranty policy is a service contract that covers the expensive costs to repair or replace major home appliances and systems. When something in the home has a breakdown due to normal wear and tear, policyholders can submit a claim to their home warranty company, pay a small service fee, and get a contractor to fix it in as little as 24 hours. An excellent home warranty plan with adequate coverage and reasonable pricing can bring peace of mind to all homeowners, landlords, and real estate agents alike.

The best home warranty companies have high annual payouts, affordable monthly deductibles and service fees, high-quality customer service, and comprehensive coverage. Keep reading to find out which home warranty plan will suit the needs of your home and budget. 

Here are the top picks to cover your home.

A home warranty plan is a unique coverage option for your home. With a home warranty, you will pay a monthly fee to get financial assistance and coverage should any of your home systems or appliances need repair or replacement. If your heating system needs a $1000 repair, the home warranty plan will cover the repair; you will pay out of pocket for the service fee. Home warranty plans protect a homeowner’s budget and allow them to enjoy their home with the peace of mind that all homeowners hope for. 

Best Home Warranty Companies of 2023

  1. Best Overall: Choice Home Warranty
  2. Most Cost-effective Plans: Select Home Warranty
  3. Best Customizable Plans: American Home Shield
  4. Quickest Service: The Home Service Club
  5. Most Trustworthy: Liberty Home Guard
  6. Best Workmanship Guarantee: Cinch Home Services
  7. Best Appliance Coverage: First American Home Warranty
Star Rating
Monthly Cost
Service Fee
Response Time
Payout Limit (per item)
States Not Covered
Best Overall
24-48 hrs.
Most Cost-Effective
24-48 hrs.
Most Customizable
24-72 hrs.
Quickest Service
12-48 hrs.
Most Trustworthy
12-48 hrs.

Why Trust House Method

  • 63 companies reviewed
  • 41 key factors analyzed
  • 2,583 data points parsed
  • 885 homeowners surveyed
  • 57 service contracts scrutinized

House Method’s Experts collected and analyzed 2000+ critical data points to identify what makes a great home warranty company in the eye of the consumer. Our reviews team used this data to assess over 60 home warranty providers for coverage extent, annual cost, and national availability to provide unbiased reviews so homeowners can confidently navigate key decisions about their homes.

1. Choice Home Warranty: Best Overall Home Warranty Company

Best Overall
Choice Home Warranty
  • 2 plans available + optional add-ons
  • Has over 11 years of industry experience
  • 90-day repair guarantee
  • $46–$55 per month with $85 service fee
  • Best Overall Home Warranty Company
  • Service Fee: $85
  • Annual Cost: $560-$660

Our team of in-house home warranty experts elected Choice Home Warranty as the “best overall” home warranty provider, specifically for how it excels as a provider when it comes to its cost-to-coverage ratio. For less than the industry average monthly cost, homeowners can secure solid coverage for over 14 home systems and appliances. Choice also boasts ample coverage allowances of up to $3,000 per item. We gave Choice Home Warranty 4.9 out of 5 stars based on how well its policy framework aligned with the needs expressed by homeowners in our anonymous homeowners’ experience survey. Choice hits the nail on the head for quick claim response times, solutions-oriented customer support, and a straightforward claims filing process.

With over 13 years of industry experience, Choice Home Warranty remains a leading service provider pick across homeowners nationwide. It splits its coverage between two easy-to-understand plan levels, both of which offer robust coverage for appliances and systems, regardless of your budget. Claim filing is available 24/7/365 through a mobile app as well as via a designated service request call line and online customer portal.

Pros and Cons


  • Service fee is waived for re-visits occurring within 30 days of the originally scheduled repair or replacement
  • Annual coverage limit of up to $3,000 for each covered item for access, diagnosis, and repair
  • Three simple and convenient ways to file a claim: on the smartphone app, over the phone, or through the online portal


  • Average monthly plan cost of $51 is only slightly under the industry average of $51.61
  • Cash or cash equivalents may be offered in lieu of repair or replacement

Plans and Pricing

Choice Home Warranty offers two plans to its policyholders: the Basic Plan and the Total Plan. With the Basic Plan, you will get coverage on all your essential home systems and appliances for an exceptionally low $45 per month. However, the Total Plan is the better option if you’re looking for more comprehensive coverage, the Total Plan is the better option. It covers all of the items in the Basic Plan plus four more (A/C, washer, dryer, and refrigerator) for less than $9 more per month. Both plans have a standard service fee of $85 per service call.

  • Basic Plan ($45 per month): Includes most kitchen appliances as well as systems coverage for plumbing, heating, electrical, hot water heaters, and more.
  • Total Plan ($53.33 per month): Includes everything covered in the Basic Plan plus air conditioning, kitchen refrigerators, and laundry appliances.
  • Add-on options ($40-$180 per month each): inground pools and spas, well pumps, sump pumps, central vacuum, limited roof leak, septic systems, septic tank pumping, second refrigerators, and standalone freezers.

Read our full Choice Home Warranty review for more information on this provider.

Fill out this online form or call 929-400-6164 to get a free quote from Choice Home Warranty.

2. Select Home Warranty: Most Cost-Effective Home Warranty Plans

Most Cost-Effective
Select Home Warranty
  • 3 plans ranging from $52-$58 per month + optional add-ons
  • Provides free roof leak coverage
  • Covers rental properties, mobile homes, manufactured homes, single-family homes, and condos
  • Affordable service fee of $60
  • Most Cost-Effective
  • Service Fee: $60
  • Annual Cost: $630-$699

As our runner-up, we recognized Select Home Warranty as the “most cost-effective” option on the market, largely for its lower-than-average service fee and stacked discounts for new joiners. According to our homeowners’ experience survey, 30% of respondents marked overall cost as the most important factor to them when choosing a home warranty. With cost as the second largest category in our rating methodology, we scored Select with 4.8 out of 5 stars. Homeowners who choose Select Home Warranty will benefit from one of the most generous bundles of savings opportunities on the market, including free roof leak coverage (a $99 value), $150 for any plan, and two months of complimentary coverage.

Every aspect of Select Home Warranty’s coverage is designed to help homeowners maximize their savings. Across its nine years in business, Select has accrued an internal network of over 25,000 pre-vetted service technicians in 47 states. After signing up, you’ll be required to wait 30 days before filing your first claim, which aligns with the standard industry waiting period. After that first month, you’ll be able to file a claim 24/7 through Select’s online or over-the-phone customer service center.

Pros and Cons


  • Service fee is only $60 per claim compared to the industry average of $76.55
  • Should an item fail again within the first three months following the initial service visit, Select will address the issue at no additional cost
  • All home warranty plans through Select automatically include free coverage for roof leak repairs


  • Select requires all claims to be made within three days upon discovering the item failure
  • Average annual coverage allowance is only $2,000 compared to the industry average maximum of $3,072 per year

Plans and Pricing

Select Home Warranty offers three generous plans: the Bronze Care plan for appliances, the Gold Care Plan for systems, and the comprehensive combo Platinum Care Plan, which covers both. You’ll notice that the Bronze Care Plan and Gold Care Plan are offered at the same price of $57 per month; this is due to them only offering either systems or appliance protection, not both. The best and most popular option for homeowners is the Platinum Plan because it covers all 16 major systems and appliances in your home for under $66 per month. Select’s service fee of $60 is low compared to the $75 industry average, making these plans extremely affordable.

  • Bronze Care ($57 per month): Only covers appliances including several kitchen appliances like refrigerators, stoves/ovens, built-in microwaves, and more, plus clothes washers and dryers.
  • Gold Care ($57 per month): Only covers systems including cooling, heating, plumbing, electrical, water heater, and ductwork.
  • Platinum Care ($63 per month): Covers all systems and appliances featured in the Bronze and Gold Care plans plus garage door openers and plumbing stoppages.
  • Add-on options ($39.99-$99.95 per month each): Select’s plans come with free roof leak coverage, and it offers a slew of add-ons such as pool, spa, septic, sprinkler, stand-alone freezer, central vacuum, well pump, and sump pump.

Read our full Select Home Warranty review for more information on this provider.

Fill out this online form or call 888-370-3953 to get a free quote from Select Home Warranty.

3. American Home Shield: Best Customizable Home Warranty Plans

Most Customizable
American Home Shield
  • 3 plans + add-ons and the option to build your own plan
  • Customers can choose the service fee they want to pay
  • Provides generous coverage caps
  • $35–$75 per month
  • Best Customizable Plans
  • Service Fee: $75-$125
  • Annual Cost: $347-$891

American Home Shield occupies third place across the 63 home warranty companies reviewed on our site, holding the title for the “most customizable” plans in the industry. Given that 21% of our survey respondents marked the ability to personalize their plan as a priority when considering a home warranty, we rewarded American Home Shield with 4.7 out of 5 stars for its commitment to versatile policy options. Not only do AHS policyholders have three hardy home protection plans to choose from, but they can also choose from service fee options of $75, $100, or $125.

On top of its customizability, American Home Shield also brings over 50 years of experience to the table. Often dubbed the torch bearer of the home warranty industry, AHS currently serves over two million members across the United States and 17,000 insured technicians within its private contractor network. American Home Shield also holds a B rating with the Better Business Bureau (BBB) and has been accredited by the organization since 1997.

Pros and Cons


  • All three available plan levels include an unlimited annual allowance for covered built-in home systems
  • Coverage is available for undetectable pre-existing conditions, items without maintenance records, improper installations, and damage caused by sediment, rust, or corrosion
  • The highest plan level, ShieldPlatinum, includes a $6,000 per-item coverage limit, double the industry average of $3,072 per year


  • Only offers six optional coverage add-ons compared to the industry average of 9.6
  • Repairs and replacements are only backed for 30 days. In contrast, many competing providers offer re-visits for failures within 90 days of the first service appointment

Plans and Pricing

American Home Shield offers three plans: ShieldSilver, ShieldGold, and ShieldPlatinum. For basic systems coverage, go with ShieldSilver. For coverage on only the essential home systems and appliances, ShieldGold is an excellent option. However, the best plan is ShieldPlatinum, which covers 27 systems and appliances for as low as $59.27 per month. AHS allows customers to choose their service fees of $75, $100, or $125. When you choose a lower service fee, the monthly premium is higher, and vice versa.

  • ShieldSilver (starting at $34.99 per month): Only covers systems including central air conditioning, heating, plumbing, ductwork, main break and fuse panel boxes, and more.
  • ShieldGold (starting at $44.99 per month): Covers all systems in ShieldSilver plus most major kitchen and laundry appliances, from refrigerators and dishwashers to clothes washers and dryers.
  • ShieldPlatinum (starting at $59.99 per month): Wraps all inclusions in ShieldSilver and ShieldPlatinum into one comprehensive package.
  • Add-on options ($4.17-$21.25 per month for each): AHS offers a wide range of home warranty add-on coverages, including pool, spa, PC, TV, septic, and well pump coverage.

Read our full American Home Shield review for more information on this provider.

Fill out this online form or call 888-365-2839 to get a free quote from American Home Shield.

4. The Home Service Club: Quickest Home Warranty Service

Quickest Service
The Home Service Club
  • Offers 2 plans + optional add-ons for over 10 items
  • Covers items regardless of their age, make, or model
  • Provides high coverage caps on essential systems and appliances
  • Has real estate home warranty plans
  • Best For Quickest Service
  • Service Fee: $60-$95
  • Annual Cost: $650-$800

We named The Home Service Club as the “best for quickest service” because of its record-short 10-day waiting period and a guaranteed 24-hour turnaround time on any claim. In its sample policy, HSC even mentions expedited service for emergency appliance and system failures. Given the 42.7-hour industry average for claim decisions, the Home Service Club takes full advantage of nearly instantaneous service. We rated the Home Service Club with 4.6 out of 5 stars for its prompt customer service, customizable service fee, and because it doesn’t require a home inspection to sign up.

With nearly 14 years of experience in the home warranty industry, HSC has established a robust network of 10,000  professional technicians, ready to assist in your home repairs ASAP and provide a 30-day labor guarantee and a 90-day parts guarantee. Considering the available comprehensive plan options and affordable pricing, HSC is a top competitor for the best home warranty service.

Pros and Cons


  • Has a waiting period of only ten days, which is a little more than two weeks less than the industry average of 30 days
  • Customers have the freedom to choose between a $65, $75, or $125 service call fee
  • Has a straightforward claims process available over the phone or through its online customer portal


  • Some of HSC’S annual coverage limits go up to $500 per item, which pales in comparison to other leading providers offering $3,000 for each covered item
  • Most basic plan level only covers eight items, whereas the standard home warranty plan industry-wide covers at least 14

Plans and Pricing

HSC offers two combo plan options to its policyholders: The Standard Coverage Plan and the Comprehensive Coverage Plan. If you want more basic home appliances and systems coverage, go with the Standard Plan for just over $50 per month. However, the most popular option among homeowners is the Comprehensive Coverage Plan, which covers 27 major home appliances and systems for just under $63 per month. HSC’s service fees range from $60-$95, allowing you to customize and budget for your home warranty plan.

  • The Standard Plan ($50.40 per month)Covers a mix of 18 home systems and appliances including heating, cooling, electrical, built-in food centers, built-in microwaves, clothes washers and dryers, and more.
  • The Comprehensive Plan ($62.90 per month): Covers all items in the Standard Plan, plus phone and alarm wiring, attic fans, ductwork, doorbells, pest control, plumbing stoppages, and more.
  • Add-on options ($3.33-$16.66 per month for each): Includes coverage for septic systems, in-ground pools, spas, well pumps, sump pumps, stand-alone freezers, roof leaks, exterior gas lines, water lines, sewer lines, and sprinkler systems.

Read our Home Service Club review to learn more about this provider.

Fill out this online form or call 800-842-9334 to get a free quote from The Home Service Club.

5. Liberty Home Guard: Most Trustworthy Home Warranty Company

Most Trustworthy
Liberty Home Guard
  • 3 plans ranging $65-$125 with 25+ optional add-ons
  • Has a 60-day workmanship guarantee on all repairs
  • Customer service available 24 hours a day, seven days a week
  • BBB’s only A+ accredited home warranty provider
  • Most Trustworthy 
  • Service Fee: $65-125
  • Annual Cost: $700-$800

Our research team named Liberty Home Guard as the most trustworthy home warranty provider option across those in the top industry bracket. Inspired by its A- rating with the Better Business Bureau, we also commend LHG’s high percentage of positive customer reviews and brief history of complaints.  Liberty Home Guard stands out from the competition for its imaginative list of optional coverage riders, offering over 41 coverage opportunities beyond the standard realm of home warranty inclusions. We scored LHG with 4.5 out of 5 stars for the leeway it grants policyholders to build a plan as comprehensive or minimal as they please. Ahead of all of its elective coverage options,  LHG also offers appliance-only and systems-only coverage options across its three base plans.

Liberty Home Guard has only been on the market for about five years, but it’s established a solid reputation in the industry. Liberty Home Guard has expanded across 48 states during its brief time in business. We are impressed with the number of add-on coverage options that Liberty Home Guard offers its customers. With these plans, you will get a 60-day workmanship guarantee and some of the best customer service in the industry. Keep these things in mind to ensure your plan remains active and reliable year after year.

Pros and Cons


  • Offers an exhaustive list of 41+ optional coverage add-ons, which is significantly more than the industry average of 9.6
  • Most covered appliances and systems are protected by up to $2,000 in eligible repairs and replacements per year
  • Has an A- rating with the Better Business Bureau, a rare accolade across top home warranty providers
  • Even unknown pre-existing conditions are eligible for coverage through LHG


  • Average monthly plan cost is $75, which is $24 more expensive than the industry average

Plans and Pricing

Liberty Home Guard offers three plan options: Appliance Guard, Systems Guard, and Total Home Guard. The latter two cover only systems or appliances, except Systems Guard, which will run you about $5 more per month and covers both. The Total Home Guard Plan is the most popular policy option because it offers comprehensive coverage on 20 major systems and appliances, with coverage caps reaching $2,500 for essential systems like heating and A/C. Although the monthly premiums may seem high, Liberty offers a lower-to-average service fee of $75 per service call. These plans are slightly higher than the industry average but have excellent coverage.

  • Appliance Guard Plan ($69.99 per month): Only covers 11 select appliances such as garbage disposals, built-in microwaves, ovens/stoves, and clothes washers.
  • Systems Guard Plan ($74.99 per month): Only covers 9 select built-in systems including plumbing, toilets, air conditioning, ductwork, electrical, heating, and more.
  • Total Home Guard ($79.99 per month): Covers all items included in Appliance Guard and Systems Guard.
  • Add-on options ($49.99-$299.99 per month for each): Liberty Home Guard offers 20+ add-on coverage options, including but not limited to pools, saltwater pools, spas, pool pumps, generators, free-standing ice makers, septic pumping, roof leaks, pest control, water softener, well pumps, wine refrigerators, septic systems, lawn sprinklers, locksmithing, trash compactors, sump pumps, central vacuum, stand-alone freezers, and instant hot/cold water dispensers.

Read our Liberty Home Guard review for more information on this provider.

Fill out this online form or call  866-451-2281 to get a free quote from Liberty Home Guard.

6. Cinch Home Services: Best Home Warranty Workmanship Guarantee

Best Workmanship Guarantee
Cinch Home Services
  • Offers 3 plans under $62 per month
  • Allows customers to choose between a $100, $125, or $150 service call fee
  • Covers repairs with a 180-day workmanship guarantee
  • Lets customers cancel for free within 30 days of their contract start day
  • Best Workmanship Guarantee
  • Service Fee: $100-$150
  • Annual Cost: $420-$816

We reserved the title of “best workmanship guarantee” for Cinch Home Services simply for the 180-day grace period it offers to policyholders after an initial repair or replacement by one of its technicians. It’s worth noting that the industry-average workmanship warranty sits around 30 days, so Cinch makes a concerted effort to go above and beyond by backing the craft of its contractors by six months. We rated Cinch Home Services with a 4.4 out of 5 stars not only for its strong workmanship guarantee but because it extends its coverage to damage caused by unknown pre-existing conditions, rust, and corrosion. Given that 53.9% of our survey respondents marked coverage as the most important feature of a home warranty policy, we aimed to award Cinch accordingly.

Cinch Home Services creeps closely behind American Home Shield in terms of industry tenure. Founded in 1978, Cinch has built up a customer base of around one million homeowners across its 40 years in business with more than 40,000 qualified technicians in its network. While Cinch only offers an app for its technician to manage requests, customers can file claims quickly and effectively through their online portal or over the phone.

Pros and Cons


  • Offer a 180-day workmanship warranty on all covered repairs and replacements, one of the longest guarantees available industry-wide
  • Includes member-exclusive discounts on retail prices for new appliances when you require a replacement
  • All policyholders who sign up for Cinch’s Complete Home plan will receive up to a $500 reimbursement for home insurance deductibles


  • Charges service call fees between $100-$150, which is significantly higher than the $76 industry average
  • Add-ons are fairly limited, largely on applying to pools and spas as well as wastewater management

Plans and Pricing

Cinch Home Services offers three plans to customers: the Appliances Plan, the Built-in Systems Plan, and the Complete Home Plan. The  Appliance plan covers 11 items, and the Built-in systems plan covers 21 systems. The Complete Home Plan is the best option for the best and most comprehensive coverage. It covers 32 major systems and appliances and includes generous coverage limits of $1,000-$2,000. Cinch Home Services features three options for service fees: $100, $125, or $150. A lower service fee results in a higher monthly premium and vice versa. For example, the Complete Home Plan costs $49.99 with the $150 service fee, but $67.99 with the $100 service fee.

  • Appliances Plan (Starting at $27.99 per month): Only covers appliances such as dishwashers, wall ovens, built-in trash compactors, freestanding ice makers, and more.
  • Built-in Systems Plan (Starting at $32.99 per month): Only covers built-in home systems such as air conditioning, attic fans, ceiling fans, central vacuums, doorbells, plumbing, electrical, heating, and more.
  • Complete Home Plan (starting at $39.99 per month): Covers all items in the Appliance and Built-in Systems Plans and also includes a $500 homeowners insurance deductible reimbursement.
  • Add-on options ($2.50-$13.33 per month for each): Cinch only offers a few add-ons, including pool and spa (including heater), septic, and well pump coverage. Cinch also offers a Premier Upgrade Package which covers code upgrades and permits up to $1,000.

Read our full Cinch Home Service review for more information on this provider.

Fill out this online form or call 833-743-1056 to get a free quote from Cinch Home Services.

7. First American Home Warranty: Best Home Warranty Appliance Coverage

Best Appliance Coverage
First American Home Warranty
  • 2 plans + optional add-ons
  • Covers improperly installed or maintained items
  • No cap on coverage for HVAC
  • $38–$48.50 per month
  • Best Appliance Coverage
  • Service Fee: $75
  • Annual Cost: $420-$546

We nominated First American Home Warranty for having the “best appliance coverage” out of all other competing home warranty companies. Offering a no-frill appliance-only plan as one of its two base policy options, homeowners only looking to cover standard household appliances can find peace of mind starting at $38 per month for up to $3,500 in annual protection per item. Based on our survey results, 150 homeowners noted the number of inclusion per plan as a particularly important factor. We scored First American Home Warranty with 4.2 out of 5 stars for the 12 appliances included in its tier-one plan level, which only slightly fall short of the 13.8 industry-average item count across basic plans.

First American Home Warranty is among the oldest and largest home warranty providers. With 38 years of industry experience and more than 8.9 million contracts signed, FAHW is an especially good fit for homeowners seeking robust appliance protection. Unlike many competing providers, First American includes coverage for undetected pre-existing conditions and offers its own series of add-ons for haul-away services, code violations, pipe excavation, and more.

Pros and Cons


  • Promises to never deny coverage based on the age, make, or model of any appliance, which can be valuable to homeowners in an older home
  • Coverage includes pest control for spiders, roaches, ants, pillbugs, mice, and more, as well as subterranean termite treatment
  • No dollar limit on HVAC refrigerant replacement plus coverage for ductless mini-splits and SEER 14 units


  • Charges a higher-than-average service call fee of $85. The industry average is around $76
  • Central air conditioning is only available as an add-on option for an additional fee

Plans and Pricing

First American Home Warranty has two base plan options: the Basic Plan and the Premier Plan. Whereas the Basic Plan is an appliance-only option, the Premier Plan covers all 12 appliances featured in the previous plan plus eight major home systems. Each appliance included in FAHW’s standard plans is covered by an annual coverage limit of $3,500 per item. Annual coverage for most systems is capped at $1,500 per item. All FAHW policyholders will be charged a flat $75 service call fee for each new claim filed.

  • Basic Plan ($38 per month): Only covers appliances like cooktop exhaust fans, dishwashers, garbage disposals, built-in microwaves, ovens, laundry appliances, and more.
  • Premier Plan ($48.50 per month): Covers all appliances featured in the Basic Plan plus systems coverage for heating, ductwork, plumbing, plumbing stoppages, hot water heaters, electrical, central vacuum, and garage door openers.
  • Add-on Options ($84-$204 per month for each): First American Home Warranty offers six optional plan add-ons including coverage for pools/spas, air conditioning, septic tanks, septic pumping, and well pumps.
    • FAHW also offers its own First Class Upgrade add-on for $100 more, which covers unknown pre-existing conditions, improper installations/modifications, haul-away services, refrigerant recapture, and up to $250 for local building permits

Read our full First American Home Warranty review for more information on this provider.

Fill out this online form or call 833-204-7164 to get a free quote from First American Home Warranty.

So, Which Home Warranty Company is the Best for You?

We hope that you now better understand what a home warranty is and how it can help you as a homeowner. Homeowners often overlook home warranty plans, but they can help save hundreds or thousands of dollars in just one year. Although many home warranty companies are on the market, Choice Home Warranty stands out as the best overall option.

Choice Home Warranty has impressive coverage, solid history in the industry, and overall fair pricing. If you are serious about maintaining your home, Choice Home Warranty can help. In addition, plans like American Home Shield also offer customization and premium coverage. Select Home Warranty provides excellent value for all homeowners. You will find that a home warranty is well worth the money you will pay.

Interested in how our top provider recommendations compare side-by-side? Check out some of our company comparisons below:

Find the Best Home Warranty in Your State

How to Choose The Best Home Warranty Company

When choosing a home warranty plan for your home, there are several crucial features that you need to consider. Most homeowners will focus on the overall monthly pricing and service fees, but you should consider several other factors when selecting the best plan for your needs. Looking at customer service reviews, the complexity of the service contract, workmanship guarantees, and contractor professionalism are all quite important. 

  • Consider What Coverage You Need: Most home warranty plans will offer appliance coverage, system coverage, or a plan covering both appliances and systems. The first step in this process is to walk around your home and look at the systems and appliances you want to be covered under a home warranty plan. When choosing your plan, look for something that closely matches this list of coverages. 
  • Choose a Monthly Premium You’re Comfortable With: Home warranty monthly premiums will vary in price based on the coverages you choose, the coverage caps associated with the plans, the type of home, and your location. The most important reason to have a home warranty plan is to ensure that you are saving money. Make sure that you can afford your monthly premium and that it will make sense long term for the value that you receive.  
  • National Availability: Not all home warranty companies offer their plans across the United States. When choosing a home warranty plan, you must first look at state availability to see which options are available in your area. Whether you’re in Texas, FloridaNew York, California, or any other state, there is undoubtedly a home warranty for your needs.
  • Read The Fine Print: In addition to the monthly costs and service fees, there are other details about a policy that you should be aware of. When reading the fine print, you must consider coverage caps and limits. This will help ensure that the coverage you think you are paying for is the actual coverage that you are getting. 
  • Customer Reviews: One of the best ways to determine if a home warranty will work for your home is to read what other customers say about it. You can check customer reviews across a wide range of sources and even look at the BBB ratings for each company on our list of the best home warranties. 

What is a Home Warranty and is it Worth it?

A home warranty is a renewable service contract used by homeowners to protect themselves from the costs of unexpected appliance and system breakdowns around the home. One key stipulation, however, is that home warranties only cover issues caused by natural wear and tear that occur within the active coverage term.

To gain an evidence-based understanding of the value of home warranty coverage to our readers located nationwide, House Method fielded an anonymous survey that garnered approximately 1,004 responses from real homeowners. According to our survey results, 882 participants were familiar with the purpose of a home warranty. From there, 337 respondents have or have previously had home warranty coverage.

Home warranty plans typically have a one-year contract term, and they have both monthly pricing and service fee pricing. Monthly fees tend to range in price from around $35 to $75 per month. Service fees are paid each time that a claim is filed. The home warranty plan intends to give homeowners peace of mind about their budget and home.

With a home warranty in place, providers guarantee you quick service for a repair and the help of knowledgeable and professional service technicians. Some home warranty companies will even guarantee their repair for 90-180 days.

Home Warranty vs. Homeowners Insurance

Homeowners insurance is a policy that most people are familiar with; it covers the financial burden caused by theft, natural disasters, fires, and storms. A home warranty policy is different because it offers protection on specific systems and appliances in your home that break down due to normal wear and tear.

For a monthly deductible and a service fee for appointments, your home warranty provider will send a contractor to your home to repair or replace covered appliances and systems.

Most home warranty providers don’t require you to have a home inspection before the contract starts, but some require a 10 to 30-day waiting period. Whether your major home appliances and systems are new or 20 years old, there is a home warranty provider that will give you protection.

How Do Home Warranties Work?

A home warranty is designed to help homeowners offset costs associated with unexpected repairs and replacements for household items as they break down due to normal wear and tear. For example, if your refrigerator suddenly stops working, you’ll want to use your home warranty policy to determine your options in order to avoid paying for maintenance out-of-pocket.

The first step is to file a claim with the home warranty provider. Once you file, a contractor comes out to the house to inspect the refrigerator and determine the best course of action. At this time, the homeowner is responsible for the service fee as disclosed in their contract. Most service fees can range anywhere from $60 to $150.

If a technician can repair the fridge within the policy’s limits, the homeowner won’t need to pay anything beyond their annual or monthly premium, which would’ve already been fulfilled at this point. If the refrigerator needs to be replaced, the home warranty provider will offer the homeowner cash-in-lieu for the fair market value to cover the cost of a new refrigerator, comparable to the current model.

For smaller repairs, most of the time, the contractor that a home warranty company sends out to do the work on your home will be decided on by the provider. If you have certain contractors that you would instead work with, choose a home warranty policy that allows for this.

The way a home warranty works is relatively simple, and it is much more accessible to use your plan than it is to use a home insurance policy. In addition, when you have repairs or replacements that happen in a year, it won’t cause your policy to increase in price in the future.

how the best home warranties can save you money

Are Home Warranties Regulated?

Home warranties are regulated, but the extent of what is overseen and who monitors the activity of providers ultimately varies on a state-by-state basis. For instance, in California, the Department of Insurance is responsible for ensuring home warranty company licensure. In New Jersey, on the other hand, regulation is administered by the State of New Jersey’s Department of Community Affairs.

Regulation of home warranties doesn’t comply with one unanimous protocol nationwide. Still, most statutory laws surrounding home protection service contracts ensure consumers are protected from fraudulent behavior by looking for:

  • Up-to-date license to operate within the state
  • Fair and in-good faith advertising and selling practices
  • Honest representation of the services being provided
  • Explicit disclosure of inclusions, exclusions, and other coverages
  • Trends in customer feedback concerning fulfillment of contract representations

What Do Home Warranties Cover?

Generally, standard home warranty coverage includes most of the major built-in systems and appliances throughout the home. The exact parts and components covered per item tend to vary between providers, though the vast majority include features necessary for the appliance or system to properly function. You’ll still want to read through any company’s inclusions and exclusions carefully before committing to a contract.

Here’s what is most commonly covered by a home warranty, and how that can vary across standard plan options:

ItemBasic Home Warranty Plan LevelsPremium/Comprehensive Home Warranty Plan Levels
Built-in microwave
Trash compactor
Freestanding ice maker
Built-in food center
Clothes washer
Clothes dryer
Garage door opener
Air conditioning system
Heating system
Central vacuum
Ceiling and attic fans
Electrical system
Plumbing system
Plumbing stoppages
Garbage disposal
Hot water heater
Instant hot/cold water dispenser

What is Not Covered by a Home Warranty?

Understanding what is covered by a home warranty is as important as understanding what is not covered. Many homeowners get frustrated when they file a claim, and the claim gets denied. Although this is unfortunate, it usually comes from a lack of understanding of the policy.

While item-specific exclusions vary widely from provider to provider, here are some general issues that are almost always ineligible for coverage through a home warranty:

Scenarios That Don’t Qualify for Home Warranty Coverage

  • Pre-existing conditions
  • Improper installations
  • Poor routine maintenance
  • Misuse of a covered appliance or system
  • Cosmetic damages (dents, scratches, dings, etc.)
  • Damage caused by pests, vermin, or household pets
  • Secondary damage (wood rot due to a pipe leak, burn marks due to a failed electrical outlet, etc.)
  • Damage caused by natural disasters (hurricanes, fires, lightning, etc.) or any other coverages that overlap with standard home insurance
  • Remediation of mold, mildew, rust, corrosion, or other bio-organic growth

How Much Should You Expect to Pay for a Home Warranty?

Based on a House Method survey that fielded 885 homeowners nationwide, a home warranty costs an average of $51.61 per month or $601.86 per year. Homeowners will also need to factor an out-of-pocket payment, called a service call fee, into the total cost of their policy when shopping for a home warranty. This fee will be due each time a claim is filed for a new issue in the home. Across quotes we pulled from 63+ leading providers, the average service fee in the U.S. is around $76.55 per claim.

Average Cost By State

The United States’ inflation rate has nearly quadrupled since 2020. This increase means that consumer goods and housing cost more, and consumers are getting less for their money.

Skyrocketing inflation rates have pushed some homeowners to put off home repairs for fear of breaking their budgets. Unfortunately, delaying repairs almost always worsens the problem, leading to further damage and more costly repairs down the road. The House Method team retrieved over 1,000 online quotes for different home types nationwide. We’ve compiled a list of average home warranty costs by state, based on annual premiums for single-family homes.

Map of the average cost of a home warranty across the US
StateAverage Yearly Premium
New Hampshire$690
New Jersey$670
New Mexico$650
New York$800
North Carolina$660
North Dakota$670
Rhode Island $700
South Carolina $640
South Dakota$650
West Virginia$690

How a Home Warranty Can Help You Afford Repairs

If you’re worried about how inflation rates affect your ability to afford home repairs, consider purchasing a home warranty plan. A home warranty contract covers pricey home systems and appliance repairs for a monthly premium. You pay a set monthly rate and a per-service fee for discounted repairs from a certified repair technician. The best way to understand how much home warranty coverage costs is to find quotes from reputable providers for your specific location and needs. Some home repairs and replacements cost thousands of dollars. In this sense, a $600-$700 yearly plan is well worth the savings you’ll reap on enormous, unforeseen expenses.

Do You Need a Home Warranty? Biggest Complaints About Home Warranties

According to feedback trends across reputable online review platforms like the Better Business Bureau (BBB), the biggest complaint among past and current policyholders are claim denials from their providers. Oftentimes, a provider’s refusal to pay for a repair or replacement is due to an overlooked exclusion outlined in the fine print of the contract. Instances like these are fair and justified. However, some prominent companies do unfortunately have histories of baseless claim denials and were dealt class action lawsuits for warranty fraud and advertising with the intention to deceive.

Before enrolling, read through your service contract thoroughly, so you’re clear on what isn’t covered by your provider before you pay for protection only to get stuck with a repair cost you didn’t anticipate. We also recommend only considering providers with established customer bases and extensive reviews to avoid signing up for a scam.

Frequently Asked Questions

What's the cancellation policy for home warranties?

The cancellation for a home warranty typically comes with a fee associated with it. Most of the cancellations will cost between $75 and $150. If you are simply choosing not to renew, you will typically have a period where you can announce this and cancel free of charge. Most policies offer free cancellation within the first 30 days of the plan.

What's the difference between a home warranty and homeowners insurance?

Home warranty policies will cover issues related to systems and appliances that need repair or replacement due to normal wear. The homeowner’s insurance policy is a larger plan that will protect the entire home from things like natural disasters and fires. If your microwave breaks, your homeowner’s insurance policy will not get involved.

Do I need to get a home warranty if I already have a manufacturer's warranty?

Most manufacturers’ warranties are going to have minimal coverage. In addition, these warranties are costly and will typically expire after a short period of time. Most homeowners find that it is necessary to have a home warranty even if they have a manufacturer’s warranty on their appliances or systems.

Why is a home warranty necessary?

When a system or appliance breaks down, it is never planned. This leaves homeowners unexpectedly having to come up with the money to fix this system or appliance. With a home warranty in place, you will not have any large hits to your savings account just to keep your home up and running.

What is the best home warranty company?

The best home warranty company is Choice Home Warranty. Choice has 13 years of industry experience and offers customers fair pricing and impressive customer service. As a Choice Home Warranty policyholder, you can expect fair value and remarkable service.

House Method Home Warranty Ranking Methodology

At House Method, transparency and trust are our most important values for the reader. 

To create this rating system, our team spent hours researching over 60 companies, analyzing 2500+ key data points, getting the thoughts and opinions of 1000+ homeowners, and speaking to home warranty company representatives directly. We also dug into the fine print on each company’s service agreement to ensure no detail was left out.

We developed an objective home warranty review and rating methodology to score each home warranty company based on several criteria. We used a five-point scale with a point index ranging from 0.00 to 1.00. The minimum awardable value is 0.0, whereas 1.00 is the maximum. These numeric points are translated into star ratings, using whole star increments between one and five. 

Here is a quick breakdown of our five core scoring categories: 

  • Coverage (0.4): This category evaluates the scope of protection offered by a home warranty provider. We clearly distinguished between limited or broad coverage to help homeowners identify their own home protection needs. We also factor in claim turnaround times, average waiting period lengths, plan types, annual coverage limits, policy exclusions, etc.
  • Cost (0.3): This category considers what home warranty companies charge homeowners monthly, annual, and out-of-pocket. We urge homeowners also to consider the cost-to-value ratio of a home warranty plan.
  • Transparency and Trustworthiness (0.15): This category evaluates home warranty providers based on pending or past legal action, hidden fees, lack of information readily available on the website, exclusions, and more. We consider how upfront a company is to its potential policyholders, which says a lot about its products and services.
  • Customer Support and Satisfaction (.09): This category evaluates the efficacy of a home warranty company’s effort to provide supportive guidance to inquiring customers and how policyholders are satisfied with the assistance they receive.
  • Customization (.06): This category evaluates the ability of homeowners to adjust and choose their policy details, such as pricing variation, optional add-ons, and the number of plans available.

More Home Warranty Resources

Home Warranty Providers