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.

Best Home Warranty Companies of 2022

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 For Immediate Coverage: ServicePlus Home Warranty

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, 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 come with a standard service fee of $85 per service call.

Here’s a more detailed look at CHW’s protection plans:

• Basic Plan ($45 per month): Covers ceiling/exhaust fans, dishwasher, disposal, ductwork, microwave, oven, plumbing, heating, garage door opener, water heater, etc. This is the most basic coverage for a home warranty plan.
• Total Plan ($53.33 per month): Covers air conditioning, heating, electrical, plumbing/plumbing stoppages, water heater, whirlpool bathtub, refrigerator, oven/range/stove, cooktop, dishwasher, built-in microwave, garbage disposal, washer and dryer, ductwork, garage door opener, ceiling/exhaust fans. The service fee associated with the plan is $85, which is about average for a home warranty plan.
• Add-on Options: CHW has a wide range of optional coverages such as central vacuum, limited roof leak, septic system, tank pumping, sump pump, well pump, pool, spa, stand-alone freezer, and second refrigerator.

To read more on Choice Home Warranty, read our review.

To get a free quote from Choice Home Warranty, fill out this online form or call 929-400-6164.  

2. Select Home Warranty

• Most Cost-effective Plans
• Service Fee: $60
• Annual Cost: $630-$699

Why We Chose It

Select Home Warranty is one of the most well-known home warranty policies for those looking to save money. Everything about the Select Home Warranty helps to provide homeowners with value and to understand the benefit of the plan. Select Home Warranty has been on the market for nine years, and they have established a strong group of repair technicians to fix any of your home issues. With the Select Home Warranty, you will get free roof leak coverage for your home, and there are options for additional septic coverage. 

Pros and Cons

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 industry average, making these plans extremely affordable.

Take a closer look at Select Home Warranty’s plans:

• Bronze Care ($57 per month): Covers clothes washer and dryer, refrigerator, stove/oven, built-in microwave, cooktop, dishwasher, and garbage disposal. The service fee associated with this plan is $60. 
• Gold Care ($57 per month): Covers AC, cooling, heating, plumbing, electrical, water heater, and ductwork. The service fee associated with the Select Home Warranty Gold Care is $60; if you want to move the service fee to a higher price, you will be able to lower the monthly payment. 
• Platinum Care ($63 per month): Covers air conditioning, cooling, heating, plumbing, electrical, water heater, ductwork, plumbing stoppages, clothes washer and dryer, garbage disposal, refrigerator, built-in microwave oven, stove/oven, cooktop, dishwasher, garage door opener, and ceiling fan. The platinum care plan is just a few dollars more per month, yet it includes double the coverages found in the other plan. 
• Optional Add-ons: 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.

To read more about Select Home Warranty, read our review.

Select Home Warranty will give you a free quote after filling out this form or calling 888-370-3953.

3. American Home Shield

• Best Customizable Plans
• Service Fee: $75-$100
• Annual Cost: $347-$891

Why We Chose It

American Home Shield is a home warranty company with over 50 years of experience. With the American Home Shield plan, you will have the ability to customize your plan with the coverages that work specifically for your home. With AHS, you will only pay for what you need. The American Home Shield Plan has a BBB rating of B, and they are known for a remarkably low claim denial rate. American Home Shield has some very superior coverage, and it is considered one of the top companies in the industry. 

Pros and Cons

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.

Here’s a closer look at AHS’s plan options:

• ShieldSilver (starting at $34.99 per month): Covers air conditioner, alarm, attic fans, bath exhaust fans, ceiling fans, cooktop exhaust, disposal, doorbell, ductwork, electrical, garage door, heating system, locksmith, plumbing, plumbing stoppages, toilet, water dispenser, water heater, whole house fan. The service fee will range in price from around $75 to $125.
• ShieldGold (starting at $44.99 per month): Covers air conditioning, alarm, attic fans, bath exhaust fans, ceiling fans, cooktop exhaust, dishwasher, doorbell, dryer, ductwork, electrical, garage door, heating system, microwave, oven, plumbing, plumbing stoppages, refrigerator, toilet, trash compactor, washer, water heater, whole house fan. The coverage caps on American Home Shield’s policies will be anywhere from $500 to $3000, depending on the individual coverage choices. 
• ShieldPlatinum (starting at $59.99 per month): Covers, air conditioner, alarm, attic fans, bath exhaust fans, ceiling fans, cooktop exhaust, dishwasher, disposal, doorbell, dryer, ductwork, electrical, garage door, heating system, locksmith, microwave, oven, plumbing, plumbing stoppages, refrigerator, roof leaks, toilet, trash compactor, washer, water dispenser, water heater. The Shield Platinum is the most expensive plan, yet it will have the most comprehensive coverage on the market. 
• Add-on Options: AHS offers a wide range of home warranty add-on coverages, including pool, spa, PC, TV, septic, and well pump coverage.

To read more about American Home Shield, read our review.

To get a free quote from American Home Shield, you can fill out this form or call 888-365-2839. 

4. The Home Service Club

• Best For Quickest Service
• Service Fee: $60-$95
• Annual Cost: $650-$800

Why We Chose It

The Home Service Club (HSC) is the best home warranty provider for the quickest service. HSC coverage begins only a short ten days after filing a contract, and you can get help in your home immediately with HSC customer service representatives available 24/7. With nearly 14 years of experience in the home warranty industry, HSC has established a robust network of 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

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 coverage on home appliances and systems, 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.

Here’s a more detailed look at HSC’s plan options:

• The Standard Plan ($50.40 per month): This plan offers primary coverage on 18 home systems and appliances such as washer and dryer, electrical system, A/C, food center, oven, built-in microwave, heating, and more. 

• The Comprehensive Plan ($62.90 per month): This plan features comprehensive coverage on all items in the Standard plan, plus alarm wiring, attic fans, ductwork, doorbell, pest control, phone, plumbing stoppages, sump pump, toilet, water dispenser, and whole house fan. There are also generous coverage caps on essential home systems such as air conditioning and heating.
• Optional Add-ons: There are several additional coverages such as pool, spa, septic, roof leaks, and more. Notably, HSC offers a Utility & Home Service Line Coverage Package, including a gas line, water line, sewer line, and sprinkler system. 

To learn more, read our Home Service Club Review.

To get a free quote from HSC, you can fill out this form online or call 800-842-9334.

5. Liberty Home Guard

• Most Trustworthy Home Warranty Provider
• Service Fee: $65-125
• Annual Cost: $700-$800

Why We Chose It

 Liberty Home Guard Home Warranty has only been on the market for a few years, but they have a solid reputation in the industry. Liberty Home Guard is available in 48 states, even after a few years in the industry. We are impressed with the number of add-on coverage options that Liberty Home Guard offers its customers. With these plans, you will be getting 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

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 a little higher priced than the industry average but have excellent coverage.

Here’s a detailed look at Liberty Home Guard’s plan options:

• Appliance Guard Plan ($69.99 per month): Covers the ceiling fans, cooktop exhaust fan, disposal, dishwasher, dryer, garage door, microwave, oven, refrigerator, refrigerator ice maker, washer.  
• Systems Guard Plan ($74.99 per month): Covers the air conditioner, bath exhaust fan, ductwork, electrical, heating system, plumbing, plumbing stoppages, toilet, and water heater. 
• Total Home Guard ($79.99 per month): Covers the ceiling fans, cooktop exhaust fan, disposal, dishwasher, dryer, garage door, microwave, oven, refrigerator, refrigerator ice maker, washer, air conditioner, bath exhaust fan, ductwork, electrical, heating system, plumbing, plumbing stoppages, toilet, water heater. The Total Home Guard plan is the most popular choice and offers the most coverage for your home. All three plans come with the flexible service fee of $65-$125.
• Add-on options: Liberty Home Guard offers 20+ add-on coverage options, including pool, saltwater pool, spa, TV, PC, pump, generator, free-standing ice maker, septic pumping, roof leaks, pest control, water softener, well pump, wine refrigerator, septic, sprinkler, locksmith, trash compactor, sump pump, central vacuum, stand-alone freezer, and water dispenser.

To read more about Liberty Home Guard, read our review.

To get a free quote from Liberty Home Guard, fill out this online form or call 866-451-2281. 

6. Cinch Home Services

• Best Workmanship Guarantee
• Service Fee: $100-$150
• Annual Cost: $420-$816

Why We Chose It

Cinch Home Services is a home warranty with more than 40 years in the industry. During those 40 years, Cinch has established itself as the company with the best workmanship guarantee. With a 180-day workmanship guarantee, you won’t have to worry about the quality or longevity of any of the repairs in your home. Cinch Home Services has a broad range of coverage options that will leave homeowners with tremendous peace of mind regarding the plan’s effectiveness.

Pros and Cons

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. The Complete home plan is $49.99 with the $150 service fee and $67.99 with the $100 service fee.

Take a more detailed look at Cinch Home Service’s plans:

• Appliances Plan (Starting at $27.99 per month): Covers clothes dryers, clothes washers, cooktops, dishwashers, food centers (built-in), freestanding ice makers, microwaves (built-in), ranges, range exhaust hoods, refrigerators, trash compactors (built-in), and wall ovens. 
• Built-in Systems Plan (Starting at $32.99 per month): Covers air conditioning, attic fans, ceiling fans, central vacuums, doorbells, plumbing system, electrical systems, garage door openers, garbage disposals, heating system, instant hot/cold water dispensers, smoke detectors, sump pumps, toilets, water heaters, and whirlpool/jetted tub (built-in). The systems plan has a customizable service fee of $100, $125, or $150. 
• Complete Home Plan (starting at $39.99 per month): Covers clothes dryers, clothes washers, cooktops, dishwashers, food centers (built-in), freestanding ice makers, microwaves (built-in), ranges, range exhaust hoods, refrigerators, trash compactors (built-in), wall ovens, air conditioning, attic fans, ceiling fans, central vacuums, doorbells, electrical systems, garage door openers, garbage disposals, heating system, instant hot/cold water dispensers, plumbing system, smoke detectors, sump pumps, toilets, water heaters, whirlpool/jetted tub (built-in), and $500 homeowners insurance deductible reimbursement. This is the most comprehensive plan from Cinch and one of the best on the market. All plans will come at a cheaper cost when paid annually.
• Add-on Options: 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.

To read more about Cinch Home Services, you can read our review.

To get a free quote from Cinch Home Services, you can fill out this online form or call 833-743-1056

7. ServicePlus Home Warranty

• Best for Immediate Service
• Service Fee: $75
• Annual Cost: $619-699

Why We Chose It

ServicePlus Home Warranty is the best home warranty for emergency service. When you need a quick repair, you will want to have this plan on your side. ServicePlus has been in the industry for about five years, and they have started to offer coverage in more and more areas across the country. One of the things that customers of ServicePlus tend to enjoy is that both plan options have a mix of appliances and systems. For families that know a few days without a plumbing system would be a significant problem, ServicePlus is an excellent decision. 

Pros and Cons

Plans and Pricing

ServicePlus offers two plan options: the Gold Plan and the Platinum Plan. The Gold plan covers 13 home systems and appliances for under $54 per month. For more comprehensive cover, the Platinum Plan is the best option. The Platinum Plan covers all 13 items in the Gold Plan plus five more: air conditioning, heating system, washer, dryer, and refrigerator, to cover 18 items. Each plan comes with a service fee of $75, which is very average for the home warranty industry.

Take a closer look at ServicePlus’s protection plans:

• Gold Plan ($53.67 per month): Covers the ceiling fan, cooktop exhaust, dishwasher, disposal, ductwork, electrical, garage door opener, microwave, oven, plumbing system, spa, trash compactor, water heater. The Gold Plan is a good mix of appliance and system coverage with a service fee of $75. 
• Platinum Plan ($60.33 per month): Covers the air conditioning, ceiling fan, cooktop exhaust, dishwasher, disposal, dryer, ductwork, electrical, garage door opener, heating system, microwave, oven, plumbing system, refrigerator, spa, trash compactor, washer, water heater. The Platinum Plan is more comprehensive, but the available coverage options help ensure that the overall value is quite good. The service fee on the Platinum Plan is $75. 
• Add-on Options: ServicePlus offers an extensive list of add-ons, including pool, septic, well pump, septic tank, roof leaking, free-standing ice maker, stand-alone freezer, water softener, refrigerator ice maker, central vacuum, and sump pump.

To get a free quote from ServicePlus Home Warranty, you can fill out this online form or call 478-210-5091. 

Final Verdict

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 having a home warranty in place is well worth the money that you will pay.

Best Home Warranty Companies in Every State

Read side-by-side comparisons of the top home warranty providers:

• Choice Home Warranty vs. American Home Shield
• American Home Shield vs. First American Home Warranty
• American Home Shield vs. TotalProtect

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, Florida, New 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?

A home warranty policy will protect against the high costs of home appliance and system repairs and replacements. Home warranty policies will cover the areas of your home that a home insurance plan will not. For instance, when your dishwasher breaks and the part to fix it is $250, a home warranty plan will step in and cover the costs. 

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 have a home inspection before the contract start, but some require a 10 to a 30-day waiting period. Whether your home, appliances, or 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 in place to help homeowners afford the fees associated with unexpected repairs and replacements. For example, your refrigerator stops working, and you want to use your home warranty policy to determine your options. 

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. This process will leave a homeowner responsible for the service fee associated with the plan. Typically this fee is between $60-and $150. 

If a technician can repair the fridge within the policy’s limits, a homeowner will incur no additional costs. If the refrigerator needs to be replaced, the home warranty provider will give homeowners a fair market value for their current refrigerator and provide that money towards a new refrigerator. Home warranty companies can deny a claim if the repair is due to something that a homeowner did. All home warranty companies protect against everyday wear and tear. 

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. 

Who Needs a Home Warranty?

Home warranties are great investments for anyone who owns a property. Landlords with any number of rental properties can ensure their properties are well-maintained. First-time home buyers or new construction homeowners can ensure their new home is covered from top to bottom. Real estate agents can find the best home warranties for buyers and sellers to ensure everyone is covered.

Policy plans can be purchased and used by anyone buying or selling a home, apartment, or condo. Everyone can buy a home warranty, from young new homeowners to seniors. You can often look around and find veterans or senior discounts. Covering your home appliances and systems can save you thousands in the long run and keep your new or old home running in tip-top shape.

What do Home Warranties Cover?

Home warranties cover the most used systems and appliances in the home. The reason these coverages are the ones that are focused on most closely is that they are the most expensive to repair and are most important to the daily functionality of the home. 

Typically what’s covered:

Every home warranty company on the market will have exceptions and exclusions to the covered items. Sometimes a plan will not have HVAC coverage or will cover roof leaks for free. Each home warranty plan is unique, and you must look for things that you know you need in your coverage. 

Most home warranty plans will also have add-on coverages. The add-on coverages can cost anywhere from $2 a month to more than $20 per month. These coverages are for features that not all homes will have. 

Typical add-ons are:

• Pool/Spa
• Central Vacuum
• Second Refrigerator
• Limited Roof Leak
• Well Pump 
• Sump Pump
• Septic System 
• Septic Tank Pumping
• Stand Alone Freezer

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. It’s important to know what your home warranty company will not cover, so you don’t think something is covered and have to pay out-of-pocket for unexpected repairs. Some of the things that are not covered by a home warranty include:

• Home appliances or systems that are broken intentionally
• Some unknown pre-existing conditions and all known pre-existing conditions
• Natural disaster damage 
• Appliances or systems that break because of lack of maintenance 
• Rust and corrosion on improperly maintained appliances and systems
• Cosmetic defects
• Mold or mildew and any related problems 

How Much Do Home Warranties Cost?

The cost for a home warranty is very fair, and because of that, you can save anywhere from hundreds to thousands of dollars per year when you have a great home warranty plan in place. 

Here’s a look at repair and replacement costs and potential savings:

Note: The above repair and replacement costs are based on national averages. We calculated the average amount that customers can save by compiling sample contracts from the top providers we’ve reviewed.

Biggest Complaints with Home Warranties

The biggest complaint among online customer reviews is the refusal of a home warranty company to pay for repairs or replacements. The payment refusal is often reasonable because the exclusion is outlined in the fine print of the home warranty service contract. However, some nefarious companies suffer from lawsuits due to groundless claim refusals.

Before signing, read through your service contract thoroughly, so you know what isn’t covered by your provider and don’t get stuck with a repair cost you didn’t anticipate.

Are Home Warranties Worth It?

Home warranties are well worth the price you pay. When you start breaking down the costs of a repair or replacement, you will notice that a home warranty can help to save quite a bit of money. Let’s say, for instance, that your home warranty costs you about $600 per year. In the first month of having an active home warranty, your HVAC goes down and requires an $800 fix from a qualified service technician. This entire repair may only cost you a $75 service fee with a home warranty in place. 

As homeowners, you know that you will have good and bad years regarding home-related expenses. There are times that you can go months on end without needing a repair, and then times when one repair follows another. 

Home warranty plans help provide that peace of mind that regardless of what comes up in your home this month, you will be able to afford to fix it financially. A home warranty plan is a brilliant option for a new homeowner on a budget. New homeowners don’t yet fully understand the fees and expenses of owning a home.

More Home Warranty Guides

• American’s 1st Choice Home Club Review
• First American Home Warranty Review
• American Residential Warranty Review
• 2-10 Home Buyers Review
• Home Warranty Inc. Review
• Old Republic Home Warranty Reviews

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.

The Average Cost of a Home Warranty in Each 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.

Average Home Warranty Premiums By State

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.

Factors That Affect Home Warranty Premiums

• Plan type – Your premium may be higher or lower depending on the plan and coverage level you select. For example, if you select add-on coverage for a well pump or swimming pool, you’ll pay more monthly.
• Service call fee – You’ll pay a service call fee each time a technician visits your home for a repair. These fees typically range from $60-$95 or more per service visit. Some home warranty companies like American Home Shield allow plan customization in which customers can select a higher service fee for lower monthly premiums. You can pay $24.99 per month and $125 per service, or $39.99 per month and $75 per service.
• Home square footage – Home size generally doesn’t affect home warranty premiums unless the home exceeds 5,000 square feet. Thoroughly read your policy’s fine print before purchasing to ensure your home size is eligible for coverage. Look for phrasing like this from American Home Shield’s sample policy: “This contract covers single-family homes (including manufactured housing), new construction homes, and condominiums/townhomes/mobile homes under 5,000 square feet unless an alternative dwelling type (i.e., 5,000 square feet up to 10,000 square feet, guest unit, or multiple units) is applied for, and the appropriate fee is paid. Coverage is for owned or rented residential property, not commercial property or premises converted into a business.”
• Location – Your location affects your home warranty premiums because of varying inflation rates and service providers’ availability. According to Futurist Architecture, homes in severe weather climates and metropolitan areas are likely to have higher home warranty rates.