5 Best Home Warranties for Sellers (2022)

When selling your home, half the battle is anticipating any potential issues within the property that might pop up before closing. Without a home warranty, things like faulty electrical wiring or HVAC system defects uncovered by the home inspection may dissuade prospective buyers, impact your home’s resale value, or both.

A home warranty equips sellers with limited-time, comprehensive coverage for breakdowns affecting built-in appliances and systems while their home is on the market. Finding the best home warranty company to protect your property will help you finance issues that might pop up while your home is on the market or under contract.

The Best Home Warranty Companies for Sellers in 2022

Our in-house research team compiled a list of 60+ leading home warranty companies with specialized coverage options for sellers and pulled five providers that we felt offered the most robust real estate-specific features. The following home warranty carriers showcased competitive product pricing, multi-month contract terms, bonus complimentary services for real estate professionals, and more.

1. Choice Home Warranty — Best overall
2. Select Home Warranty — Most cost-effective plans
3. American Home Shield — Best customizable plans
4. The Home Service Club — Quickest service
5. Liberty Home Guard — Most trustworthy

1. Choice Home Warranty

Choice Home Warranty (CHW) is the best overall home warranty for sellers. With over 14 years of market experience, CHW offers unique real estate plan options designed to help sellers protect themselves against breakdowns that may occur during the selling period. Choice has two base plan options available to sellers, each offering different levels of combined coverage for a mix of household appliances and systems. Most standard items are covered under a $3,000 per-item annual payout limit.

All home warranties issued through Choice are 100% transferable. If you decide to use your policy as an incentive during the closing process, Choice will allow the service agreement to be transferred to the new homeowners for free.

Choice Home Warranty is not available in WA.

Key Highlights

• Offers a one-of-a-kind For Sale by Owner protection plan
• Sellers will receive an additional $50 off plus one month of free coverage when they sign up (for a limited time only)
• Supports 24/7/365 claims processing and live customer service lines
• All sellers are entitled to a 30-day money-back guarantee

Plans, Cost, and Coverage

• The Basic Plan ($45 per month / $560 per year): Covers 14 home appliances and systems including dishwashers, garbage disposals, electrical systems, heating systems, ductwork, oven/range/stove, cooktops, built-in microwaves, plumbing systems, plumbing stoppages, toilets, hot water heaters, whirlpool bathtubs, garage door openers, ceiling fans, and exhaust fans.
• The Total Plan ($53.33 per month / $660 per year): Covers 18 items, including all appliances and systems in the Basic Plan, plus refrigerators, clothes washers, clothes dryers, and air conditioning systems.
• Optional Add-Ons ($40-$180 per year): Choice Home Warranty offers nine coverage riders for pool/spa, roof leaks, central vacuums, second refrigerators, septic tanks and systems, sump pumps, well pumps, and stand-alone freezers.
• Service Fee: $85

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

Read our full Choice Home Warranty review for more.

2. Select Home Warranty

With some of the most cost-effective coverage options in the industry, Select Home Warranty (SHW) is a great option for sellers on a budget. Sellers who sign up through Select will automatically receive $150 their premium plus free roof leak coverage and two months of bonus coverage. SHW will also cover appliances and systems regardless of age, making it an ideal provider for anyone in the process of selling an older home. After closing, Select will help you transfer the home warranty to the next homeowner for $0.

Select Home Warranty is not available in WA, NV, WY, or NM.

Key Highlights

• Will work with sellers to send an invoice at closing so funds can be taken from escrow
• Plans apply to single-family homes, individual condo units, townhomes, manufactured and mobiles homes, and multi-family homes
• Doesn’t require an initial home inspection or previous maintenance records for enrollment

Plans, Cost, and Coverage

• The Bronze Care Plan ($58 per month / $630 per year): Covers eight appliances, including ovens/stoves, built-in microwaves, refrigerators, garbage disposals, dishwashers, clothes washers, and clothes dryers.
• The Gold Care Plan ($57.67 per month / $630 per year): Covers six major systems, including heating, air conditioners, ductwork, plumbing, water heaters, and electrical.
• The Platinum Care Plan ($62.08 per month / $699.99 per year): Includes all Bronze Care and Gold Care items plus ceiling fans, plumbing stoppages, and garage door openers.
• Optional Add-Ons: Offers 11 add-on items for limited roof leak (already included for new joiners), pools/spas, well pumps, sump pumps, septic systems, central vacuum, second refrigerators, stand-alone freezers, plumbing and lighting fixtures, lawn sprinkler systems, and built-in ice-makers.
• Service Fee: $60

For a free quote from Select Home Warranty, fill out this online form or call 888-370-3953.

Read our full Select Home Warranty review for more details.

3. American Home Shield

American Home Shield (AHS) is our top provider recommendation for home sellers searching for customizable home warranty coverage during the sales process. AHS distributes its real estate coverage under three specialty plan types: ShieldEssential, ShieldPlus, and ShieldComplete. Sellers are free to choose from any of the base plans to purchase for the home buyer. The listed property will only be covered by the AHS Seller Coverage Option while on the market, which includes all essential home systems itemized in ShieldEssential. The Seller Coverage Option is limited to a 6-month contract term but may be renewed for up to 18 months. All repairs and replacements are capped at $2,000 during the listing period.

American Home Shield is not available in Alaska.

Key Highlights

• Covers undetected pre-existing conditions, improper installations, damage due to poor routine maintenance, and haul-away services
• No money is due for the Seller Coverage Option until the home closes
• Buyers have 60 days to upgrade or modify their coverage options after closing

Plans, Cost, and Coverage

• ShieldEssential ($45.83 per month / $550 per year): Covers three major built-in home systems, specifically electrical, HVAC, and plumbing systems. This plan also includes one re-key service for buyers.
• ShieldPlus ($58.33 per month / $700 per year): Includes all systems featured in ShieldEssential plus clothes washers/dryers, refrigerators, built-in microwaves, dishwashers, garbage disposals, and ranges/ovens/cooktops.
• ShieldComplete ($66.66 per month / $800 per year): Includes all covered items in ShieldEssential and ShieldPlus in addition to:
  • Up to $1,500 per year for roof leak repairs (for buyers only)
  • One free re-key service with no service fee required (buyers only)
  • Unlimited refrigerant
  • Up to $1,250 per year for code violations, permits, and modifications
  • Boosted $7,000 per-item annual coverage limits for appliances
• Optional Add-Ons: Offers seven policy riders including an electronics protection plan, roof leak repair, guest unit coverage, pools and spas (chlorine and saltwater), septic pumps, and well pumps.

For a free quote from American Home Shield, fill out this online form or call 888-365-2839.

To learn more about AHS, visit our American Home Shield review.

4. The Home Service Club

Offering the quickest home protection processes available across all leading providers, The Home Service Club (HSC) guarantees proactive, professional solutions for any breakdowns that occur while your home is up for sale. Above all else, HSC offers free listing coverage for sellers as part of its Re-Pro residential real estate plans. All new HSC customers can access their policy benefits in just ten days, compared to the 30-day waiting period required industry-wide. The Home Service Club also promises a claims response time of 24 hours to ensure repair needs won’t prolong your property’s time on the market.

Key Highlights

• Available to sellers in all 50 states and Washington, D.C.
• Sellers will receive $75 off their premium plus one month of free coverage
• All repairs or replacements covered by HSC are covered by a 90-day workmanship guarantee

Plans, Cost, and Coverage

• Free Listing Coverage (only available through HSC Re-Pro registered real estate agents): Covers a mix of 17 home appliances and built-in systems, including refrigerators, ovens/ranges/cooktops, dishwashers, clothes washer/dryer, freestanding ice makers, built-in microwaves, trash compactors, built-in food centers, electrical, water heaters, plumbing, garbage disposals, garage door openers, ceiling fans, and central vacuum.
• Optional Listing Coverage: Includes all items featured in the free plan plus coverage for heating systems, air conditioning, and ductwork.

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

Continue reading about HSC in our complete The Home Service Club review.

5. Liberty Home Guard

Boasting an A rating from the Better Business Bureau (BBB) and an average score of 4.7 out of five stars from current policyholders, Liberty Home Guard (LHG) is the most trustworthy home warranty provider in the category. Sellers have access to all three of Liberty Home Guard’s standard plan options: Appliance Guard, Systems Guard, and Total Home Guard. After closing, the policy can be transferred to the new owners for a small fee. LHG also offers the most exhaustive spread of add-on coverage in the industry. Some can be especially useful ahead of open houses and showings, including services like carpet cleaning, window washing, pest control, and power washing.

Liberty Home Guard is not available in WA or WI.

Key Highlights

• Sellers will receive an additional $200 off plus two months of bonus coverage and free limited roof leak protection
• Cost of standard plans starts as low as $1 per day
• Majority of service requests have a technician at the property within 24-48 hours

Plans, Cost, and Coverage

• Appliance Guard ($70 per month / $700 per year): An appliance plan covering a total of 11 items including built-in microwaves, refrigerators, dishwashers, garbage disposals, ranges/ovens/cooktops, ceiling and exhaust fans, garage door openers, clothes washers, and clothes dryers.
• Systems Guard ($74.99 per month / $750 per year): A systems plan covering a total of nine items, including heating, air conditioning, electrical, plumbing, water heaters, toilets, bath exhaust fans, ceiling fans, and ductwork.
• Total Home Guard ($79.99 per month / $799.99 per year): Combo plan of all 20 appliances and systems in Appliance and Systems Guard.
• Optional Add-Ons ($49.99 – $299.99 per year): Offers additional coverage for plumbing fixtures, septic system pumping, well pumps, sump pumps, ejector pumps, pool/spa, water softener, reverse osmosis water filter systems, and more.
• Service Fee: $75

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

Continue reading about LHG in our Liberty Home Guard review.

What is a Home Warranty for Sellers?

A seller’s home warranty is a limited-time service agreement, usually only lasting for the duration of the home’s time on the market, that works to financially protect the seller against any appliance or system failures that might occur during the home sales process.

Sellers can also secure effective property protection from standard home warranty plans and transfer that policy to the new homeowner after closing. Remember that most home warranty companies instate an initial waiting period of around 30 days before your coverage benefits go into effect. If you opt to protect the home you’re selling with a traditional home warranty plan, sign up at least one month before the property is listed.

Do All Sellers Need a Home Warranty?

Though you’re more likely to hear about the benefits of a home warranty for homeowners or buyers, coverage for sellers is just as important. The window of time between listing your home for sale and a signed deal comes with a bit of financial risk for most homeowners. Should any issues be discovered during the home inspection, sellers can either opt to make the repair out of pocket or reduce their asking price to reflect fair value relative to the home’s condition.

With a home warranty in place, however, sellers can properly budget for any potential repair costs with newfound peace of mind that their finances won’t be jeopardized by issues discovered after closing.

Is a Home Warranty for Sellers Worth it?

Here are a few other added perks that make a home warranty a worthwhile investment for sellers:

• It instills great buyer confidence in the real estate transaction by guaranteeing coverage for any potential issues down the road.
• It’s a proven-effective marketing tool — listed homes with a home warranty included sell 50% faster than those without.
• It removes you from any post-sale liability. The new owners of your property will report to the home warranty company, not you, for any future home repair needs.
• It demonstrates that the property is in good condition as all items must be in proper working order before a home warranty company even agrees to offer service.

What Does a Seller Warranty Cover?

A seller’s home warranty covers their property’s major appliances and systems during the active listing period, offering financial protection if an item breaks down due to normal wear and tear while it’s on the market.

Though inclusions and exclusions will vary depending on your plan and service provider, most home warranties for sellers will cover:

How Much Does a Home Warranty for Sellers Cost?

Most leading home warranty companies offer limited coverage to sellers for free, under the condition that you purchase a service contract on the buyer’s behalf. After closing, your home warranty provider will transfer the policy under the new homeowner’s name. A seller-specific policy typically won’t require you to pay for a set premium until after closing.

A standard home warranty costs between $45 and $60 per month or $480 to $780 per year. You’ll also be responsible for an out-of-pocket payment called a service call fee due each time you open a new service request. Some companies may charge a nominal fee when transferring the policy to the buyer’s name.

How Does a Seller’s Home Warranty Work?

Here’s a rundown of how sellers can use a home warranty to protect the property they’re selling, from pre-listing to post-sale:

1. The seller purchases a standard home warranty policy
2. After the initial waiting period, the seller can use their policy benefits for any appliance or system failures caused by natural, age-related wear. Coverage typically spans the time that the home is on the market or under contract. The seller will only be liable for the service fees mentioned in the policy’s fine print at this time.
3. Upon closing, the home warranty will be transferred to the buyer(s), and the seller will pay the required premium.

Final Thoughts

Hopefully, you now feel more confident in your abilities to choose a home warranty for your home for sale. Selling a home is a stressful and time-consuming experience. However, with a home warranty in place, you won’t have to worry about any issues that could come up with appliances or systems in the home. Choice Home Warranty is the best home warranty for sellers. With the experience in the industry, the quick response times, and the ability of this plan to quickly complete a repair, Choice Home Warranty is a very smart and reliable plan in the home warranty industry.

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.