Best Home Warranty Companies of 2020

The best home warranties help cover the payment for repairs on systems and appliances so you can avoid unexpected and costly bills. With so many home warranty providers to choose from, it’s difficult to know which one is ideal for you. In this comprehensive guide, we compare the best home warranty companies of 2020 to help you find the right plan at a cost you’re comfortable with.

7 best home warranty companies of 2020

Choice Home Warranty

Editor's Choice

  • 2 plans available + optional add-ons
  • Has over 10 years of industry experience
  • 90-day repair guarantee
  • $36–$44 per month

Why we chose it
Choice Home Warranty is one of the top home warranty providers in the industry, providing comprehensive plans at competitive pricing. It does not deny coverage based on the age of your home or covered items as long as you’ve taken good care of them, making the company a great choice for older homes.

Plans and Pricing:

  • Basic Plan ($36.17 per month): Covers heating, electrical, plumbing/plumbing stoppages, water heater, whirlpool bathtub, oven/range/stove, cooktop, built-in microwave, dishwasher, garbage disposal, ductwork, garage door opener, and ceiling/exhaust fans.
  • Total Plan ($43.85 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
  • Service fee: $85

American Home Shield

Best customizable plans

  • 4 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
  • $50–$55 per month

Why we chose it

American Home Shield founded the home warranty industry and has been in business for almost 50 years. We found it to be the best for customizable plans, with four plan options and extra coverage for items like a pool, spa, or guest house up to 750 square feet. AHS has an extremely efficient claims process and prides itself on responding to claims within the first 24 hours 98% of the time—this is faster than any other home warranty provider in the industry.

Plans and pricing:

  • Appliance Plan ($49.99 per month): Covers a refrigerator, range/oven/cooktop, washer and dryer, dishwasher, built-in microwave oven, trash compactor, freestanding ice maker, garage door opener, and built-in food center.
  • Systems Plan ($49.99 per month): Covers air conditioning and ductwork, heating and ductwork, electrical, plumbing (with stoppages), doorbells, smoke detectors, ceiling fans, garbage disposals, water heater, instant hot/cold water dispensers, central vacuum, and re-key.
  • Combo Plan ($59.99 per month): Covers air conditioning and ductwork, heating and ductwork, electrical, plumbing (with stoppages), doorbells, smoke detectors, ceiling fans, garbage disposals, water heater, instant hot/cold water dispensers, central vacuum, re-key, refrigerator, range/oven/cooktop, clothes washer and dryer, dishwasher, built-in microwave oven, trash compactor, freestanding ice maker, garage door opener, and built-in food center.
  • Build Your Own Plan ($54.99 per month): This covers up to 10 items you choose to be covered in your plan. For every item over 10, you’ll pay $2.00 extra per item.
  • Service fee: $75–$125

Select Home Warranty

Most cost-effective plans

  • 3 plans + optional add-ons
  • Offers free roof leak coverage
  • Low service fees compared to other home warranty companies
  • $36–$38 per month

Why we chose it

Select Home Warranty offers coverage for items most companies don’t, including roof leak protection and septic system coverage. It also has some of the lowest monthly premiums and service fees in the industry, on top of frequent promotions like getting 2 months free. This is why we named Select the best for cost-effective plans.

Plans and pricing:

  • Bronze Care ($35.83 per month): Covers AC, cooling, heating, plumbing, electrical, water heater, and ductwork.
  • Gold Care ($35.83 per month): Covers clothes washer and dryer, refrigerator, stove/oven, built-in microwave, cooktop, dishwasher, and garbage disposal.
  • Platinum Care ($37.50 per month): Covers AC, 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.
  • Service fee: $75

First American Home Warranty

Best HVAC coverage

  • 2 plans + optional add-ons
  • Covers improperly installed or maintained items
  • No cap on coverage for HVAC
  • $28–$43 per month

 

Why we chose it

First American’s coverage of improperly installed or maintained appliances and systems is a unique perk that most home warranty companies don’t offer. We named First American the best for HVAC coverage because there is no cap on coverage for HVAC, one of the most expensive systems to replace or repair.

Plans and pricing:

  • Basic Plan ($28.00 per month): Covers clothes washer and dryer, refrigerator, dishwasher, oven range, cooktop, microwave, garbage disposal, and trash compactor.
  • Premier Plan ($42.50 per month): Covers clothes washer and dryer, refrigerator, dishwasher, oven range, cooktop, microwave, garbage disposal, trash compactor, plumbing, plumbing stoppages, heating, water heater, electrical system, garage door opener, ductwork, and central vacuum system.
  • Service fee: $75

America’s 1st Choice Home Club

Best workmanship guarantee

  • 4 plans + optional add-ons
  • Allows customers to choose their own pre-approved service contractor
  • Has the longest work guarantee in the industry, guaranteeing parts and labor for the life of your membership
  • $38–$50 per month

Why we chose it

America’s 1st Choice Home Club is one of the top home warranty companies in the industry for comprehensive coverage and personalized service. Customers can choose their own service provider, so if you already know a plumber who does an excellent job, you can get reimbursed for hiring them to fix a covered item.

Plans and pricing:

  • System Plan ($43.18 per month): Covers AC/cooler, heating, water heater, electrical, plumbing, and ductwork.
  • Silver Plan ($43.18 per month): Covers clothes washer and dryer, kitchen refrigerator, oven, range, stove/cooktop, dishwasher, garbage disposal, and garage door opener.
  • Gold Plan ($52.27 per month): Covers AC/cooler, heating, water heater, electrical, plumbing, ductwork, clothes washer and dryer, kitchen refrigerator, oven, range, stove/cooktop, dishwasher, garbage disposal, and garage door opener.
  • Platinum Plan ($59.09 per month): Covers AC/cooler, heating, water heater, electrical system, plumbing, plumbing stoppages, ductwork, clothes washer and dryer, kitchen refrigerator, ice maker, oven, range, stove/cooktop, dishwasher, garbage disposal, garage door opener, and built-in microwave.
  • Service fee: $75–$125

Amazon Home Warranty

Best for add-ons

  • 3 plans + optional add-ons
  • Offers protection for unique items like a jetted bathtub and attic fan
  • Provides customers with one month free of coverage
  • $29–$46 per month

Why we chose it

Amazon Home Warranty has one of the most robust networks of licensed contractors in the home warranty industry, partnering with over 40,000 technicians, and provides comprehensive coverage for major systems and appliances. Amazon Home Warranty also offers an extensive list of optional add-ons and protects items like a wine refrigerator, lawn sprinkler system, and second refrigerator.

Plans and pricing:

  • Essential Appliances Plan ($29 per month): Covers the dishwasher, refrigerator and ice maker, freezer, clothes washer, clothes dryer, trash compactor, oven, range, stove, cooktop, and microwave oven.
  • Major Systems Plan ($36 per month): Covers the central air conditioning, central heating, plumbing, plumbing stoppages, electrical, hot water heater, ductwork, jetted bathtub, and garage door opener.
  • Combo Plan ($48 per month): Covers the dishwasher, refrigerator and ice maker, clothes dryer, clothes washer, freezer, trash compactor, oven, range, stove, cooktop, microwave oven, instant hot water dispenser, garbage disposal, attic fan, ceiling fan, bathroom exhaust fan, doorbell, kitchen fan and exhaust hood, central air conditioning, central heating, plumbing and stoppages, electrical, hot water heater, ductwork, jetted bathtub, and garage door opener.
  • Service fee: $75

Liberty Home Guard

Most trustworthy

  • 3 plans + 20 optional add-ons
  • Offers a 60-day workmanship guarantee
  • Has an A rating with the BBB
  • $40–$60 per month

Why we chose it

With an A rating from the BBB, Liberty Home Guard is one of the most trusted companies in the home warranty industry. It offers 20 optional add-ons for customers to include in their coverage and has a 60-day workmanship guarantee for repairs. Not to mention, Liberty Home Guard offers a $60 service call fee, which is lower than the industry average of $75–$125.

Plans and pricing:

  • Appliance Guard ($40 per month): Covers the clothes washer, clothes dryer, kitchen refrigerator, built-in microwave oven, dishwasher, garbage disposal, range, oven, cooktop, ceiling fans, exhaust fans, and garage door openers.
  • System Guard ($50 per month): Covers the air conditioning, heating, ductwork, plumbing, electrical, and water heater.
  • Total Home Guard ($60 per month): Covers the clothes washer, clothes dryer, kitchen refrigerator, built-in microwave oven, dishwasher, garbage disposal, range, oven, cooktop, ceiling fans, exhaust fans, garage door openers, air conditioning, heating, ductwork, plumbing, electrical, and water heater.
  • Service fee: $60

Compare home warranty companies

CompanyWhy we chose itNumber of covered itemsService feeWaiting periodBBB rating
Choice Home WarrantyEditor's Choice26$8530 daysB-
American Home ShieldBest Customizable Plans27$75–$12530 daysB
Select Home WarrantyMost Cost-Effective Plans24$7530 daysB
First American Home WarrantyBest HVAC Coverage27$75–$10030 daysB+
America's 1st Choice Home ClubBest Workmanship Guarantee24$75–$12530 daysB
Amazon Home WarrantyBest for Add-ons47$7530 daysA+
Liberty Home GuardMost Trustworthy38$8530 daysA

Check the best home warranties in your state

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What is a home warranty?

A home warranty—also known as home appliance insurance or home repair insurance—is a service agreement that homeowners can purchase from a home warranty company to help cover the unexpected cost of repairing or replacing faulty systems and appliances.

The home warranty plan chosen by the homeowner determines the monthly cost, service fee, which systems and appliances are covered, and how much the company will pay for repairs and replacements. Most plans last for 12 months. At the end of the contract term, customers can renew their plan.

How does a home warranty work?

If one of your covered household items breaks unexpectedly, file a claim with your home warranty company either online or over the phone. Note: Most companies require customers to submit a claim within three days of the system or appliance breaking. The best home warranties are open 24/7/365 and approve claims within 24 to 48 hours, but other companies will make customers wait up to four days on weekends and holidays.

Once your claim is approved by the home warranty company, they’ll either send one of their approved technicians to your house to diagnose the issue or allow you to choose your own contractor for repairs. The contractor will recommend a repair or replacement for your broken system or appliance.

During this service visit, you’ll pay the contractor a service fee of $75–$100 and the warranty company will cover the rest of the repair or replacement costs.

How to choose a home warranty

When shopping around for a home warranty plan, you’ll want to consider the items you want covered and your budget.

  1. Consider what coverage you need. Think about which items in your home you want coverage for. Are there certain systems or appliances that you couldn’t afford to replace? Make sure that those are included when choosing a plan.
  2. Choose a monthly price you’re comfortable with. If you pay monthly for a home warranty instead of paying an annual premium, you’ll likely be paying anywhere from $25–$67 for each month of coverage. You’ll also want to check the service fees, usually costing from $75–$125, and is paid to the technician who comes to your home when a claim is approved. Choose a price point that makes sense for you to narrow down your options.

Are home warranties worth it?

A home warranty makes sense for many homeowners. Not only do they protect you in the event of an unexpected system or appliance breakdown, they save you hundreds of dollars on repair and replacement costs and provide peace of mind.

A home warranty may be worth the cost to homeowners on a budget, first-time homeowners, owners of older homes or mobile homes, home sellers, real estate agents, or rental property owners.

On the other hand, you may not benefit from a home warranty if you’re a homeowner with a newly built home that’s already covered by a builder’s warranty or if you have appliances and systems are protected under a manufacturer’s warranty.

One way to think about whether or not a home warranty is worth the cost is to look at how much you can save.

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

Cost to repair Cost to replace Potential savings
HVAC $284–$347 $4,249–$5,413 $544–$1,500
Plumbing & toilets $216–$305 $370–$1,038 $643–$656
Water heater $546 $1,065 $1,037
Refrigerator $310 $1,925 $1,306
Oven/stove $150 $1,675 $1,607
Dishwasher $150 $1,000 $1,683
Washer & dryer $250–$310 $1,075–$1,250 $1,466–$2,932
Well/sump pump $486–$818 $1,138–$1,543 $625–$925

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.

In 2018, 40% of American adults reported they don’t have enough savings to cover a $400 emergency bill. To most of us, $30 a month for a home protection plan sounds much more manageable than a $1,000 dishwasher replacement.

Frequently asked questions about home warranties

What's the cancellation policy for home warranties?

You can usually cancel at any time and receive a refund of the amount you don’t use. Ask the company about cancellation policies and fees. We’ve seen fees range from $50 to $100.

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

Homeowners insurance, also known as home insurance, is required by most mortgage lenders and has premiums that are usually bundled with your monthly mortgage payment. While home insurance covers structural damage as a result of a fire, natural disaster, or other situations outside your control, a home warranty covers core appliances and systems within your home when they malfunction due to age or normal wear and tear.

You could go a lifetime without making a homeowners insurance claim whereas the average homeowner files two home warranty claims per year.

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

Manufacturer’s warranties cover individual appliances or systems and are issued by the manufacturer of that particular product. Three common complaints of manufacturer’s warranties are that there’s coverage for only one item, the coverage is non-transferable, and they typically cost more money in the long run.

Registering for a manufacturer’s warranty for each item separately adds up fast and coverage usually only lasts one to two years, whereas a home warranty plan will cover all of your appliances and systems under one renewable plan.

Advice from industry experts

Coverage plans guard against costly repairs and lend peace of mind, which is why we at House Method think they’re worth it. Here’s what our expert advisors have to say.

A realtor's perspective

When helping my clients decide whether a home warranty would be a good idea or not, we take a look together at the items that would be covered to try and decide if this is something of value.  If there’s a concern that an HVAC system or appliance is nearing the end of life, then it’s likely that the warranty will come in handy.  I have had clients who never used the warranty, but have also had many clients benefit from having this and were thankful it was in place.

Jennifer Vaught, Realtor at Rossi & Taylor Group

Mr. Handyman's advice

Understand what your plan includes, and what it does not.  Consistent maintenance and repair of your home are important. Keeping gutters clean, windows and doors caulked, fixing minor damage before it becomes major damage, etc.  Does the warranty you are considering cover this kind of work, or only fixing things after the damage has occurred? Are there depreciation schedules, exclusions, or things (lack of maintenance) that void the warranty?  Don’t just assume what’s covered—know what’s covered.

Mike McCalley, Owner of Mr. Handyman

How we chose the best home warranty companies

At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each home warranty provider according to our methodology.

Our team spends hours on the phone speaking to sales agents and doing a deep analysis of the sample contracts from each of the brands we review to break down industry jargon, identify red flags, and understand what is and is not covered.

To make the most of our research, we developed a formula to objectively determine the best home warranty companies based on the following criteria:

  • Plans: Do they provide a variety of plan options? We looked at the number of plans each company offered and the flexibility adjusting the plan.
  • Prices: How reasonable are the monthly fees and service fees in comparison to the industry average? We compared the costs of each company to competitors.
  • Coverage: How many items are covered in each plan? We looked at the number of items each company covers.
  • Customer service: How is the customer experience when calling the providers? Based on our phone calls, we were able to judge each company’s customer service.
  • Trust: What do customers rate the company? We looked into what customers are saying about their experience with the company.
  • Nationwide availability: How many states does the company cover? We found the number of states covered by each company.
  • Unique perks: Does the company offer discounts or cover special items? We looked for perks offered by each company that sets them apart from the competition.

Final thoughts

Our team at House Method stands by our ratings and reviews of the home warranty companies listed in this article. If you’re still on the fence about which home warranty company to go with, read our individual provider reviews to get a more in-depth look at each of the companies. Make sure to do your own research to determine which home warranty is right for you.

Additional Home Warranty Resources

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Home Warranty Cost – 2020 Plans and Coverage

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Home Warranty Coverage – 2020 Plans and Pricing

Home warranty coverage varies depending on where you live, the type of coverage you opt into, and the home warranty company you buy from. Learn what a home warranty covers and how to choose the best policy.

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Cheapest Home Warranty [2020 Update]

We found the cheapest home warranty to save House Method readers time and money. Compare the premiums, service fees, and discounts of the top three home warranty plans available today.

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