Cheapest Home Warranty [2021 Update]

Data and prices last updated January 2021

By Kealia Reynolds | Advertiser Disclosure

House Method shopped around to find the cheapest home warranties available today. We found the top three home warranty companies with the least expensive plans that don’t compromise coverage, so you can confidently sign up knowing that you’re getting the best home warranty available for the best value.

The top 4 cheapest home warranty plans of 2021


Choice Home Warranty


Best for: Overall coverage
Plans: 2 plans + optional add-ons
Premiums: $29–$42 per month
Service fee: $60–$75
BBB Rating: B-
Availability: 48 states

8 / 10

First American Home Warranty


Best for: Limited exclusions
Plans: 2 plans + optional add-ons
Premiums: $28–$50 per month
Service fee: $75
BBB rating: B+
Availability: 35 states

9 / 10

Amazon Home Warranty


Best for: Add-ons
Plans: 3 plans + optional add-ons
Premiums: $29–$46 per month
Service fee: $75
BBB Rating: A+
Availability: 45 states

9.4 / 10

American Home Shield


Best for: Appliance coverage
Plans: 4 plans + optional add-ons
Premiums: $20–$65 per month
Service fee: $75–$125
BBB Rating: B
Availability: 49 states

8.5 / 10

1. Choice Home Warranty

Choice Home Warranty (CHW) is our pick for the for the cheapest home warranty. It’s one of the leading providers in the industry and our number one pick if you need an affordable plan. The plans they offer are affordable and flexible, allowing you to cover the systems and appliances most important to you at a price you’re comfortable with.

Their plans range between $36–$44 a month and add-ons are $46–$180 per year. The cost of add-ons depends on the items you want to cover. Optional coverage include pool or septic system coverage. Service fees are between $60-$85.

Choice Home Warranty has 24/7 customer service so you can get the help you need whenever you need it. Choice gives customers their first month free when you sign up. Get a free quote by filling out this online form or calling 929-400-6164 and speaking to a customer service representative.

2. First American Home Warranty

First American Home Warranty (FAHW) is a leader in the home warranty industry having been around for over 35 years. They’re another one of our top picks as they provide some of the cheapest home warranty coverage on the market. Their plans cost between $28–$43 a month with a $75 service fee. The service fees is in line with the industry average.

FAHW stands out because of its First Class Upgrade. That offering covers systems and appliances if they’ve been improperly installed, modified, or maintained.

Get a free quote from First American Home Warranty by filling out this online form with your zip code or calling 833-204-7164.

3. Amazon Home Warranty

Amazon Home Warranty is another top provider with cheap home warranty coverage plans. We chose it as our best selection for add-ons as it has one of the most robust lists of optional add-ons, protecting items like a wine refrigerator, lawn sprinkler system, and second refrigerator.

Monthly premiums start at $29 per month and go up to $46 a month. Service fees are $75. Amazon Home Warranty has an A+ rating from the BBB, making it stand out from competitors. Get a free quote from Amazon Home Warranty by filling out this online form with your zip code or calling 866-605-8194.

4. American Home Shield

  • 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

Home warranty basics

A home warranty is a service agreement that offers complete appliance protection and covers the costs to repair expensive home systems and appliances.

When an item covered by your warranty breaks from normal wear and tear, the provider will dispatch a local service technician—usually a licensed contractor within the provider’s network—to assess and resolve the problem. Some companies will also offer to replace a covered item that is beyond repair.

Home warranties protect homeowners from paying for costly repairs and they also lend peace of mind, which is why we, at House Method, think they’re well worth the cost.

Even an affordable warranty isn’t cheap per se but it is a valuable investment. Premiums vary depending on where you live, the provider you pick, and the level of coverage you choose.

Fortunately, customers have a lot of choices, so we can just about guarantee that there’s a plan out there for you and your budget.

Although getting coverage as soon as possible is a good idea, a home warranty is not a requirement for those closing on a house. You have the luxury of time to really research, shop around, and compare quotes to ensure you’ve found the cheapest home warranty for your home and location.

What to look for in an affordable home warranty

  • Generous coverage with caps above $500
  • Custom coverage—we rewarded a point to providers with a build-your-own plan or optional add-ons
  • Delivers the best value to customers—premiums and coverage are well-balanced and below $600 per year
  • Monthly payments available
  • A low service fee—we deducted a point if fees were above $100
  • Flexible premiums—choose a higher service fee for a lower premium
  • Bonus points were given to providers with extra perk programs, like appliance discounts and referral bonuses

How much do home warranties usually cost?

The total price of your home warranty plan will depend on the level of coverage you chose plus fees for any optional add-ons you select. The age or size of your home will only affect the price of the plan if it’s a brand new house, which would be covered by a builder’s warranty, or a house that’s larger than 5,000 square feet.

Home warranties cost $25–$67 per month. However, you can usually get a better deal if you invest in an annual premium. We found that some providers even offer one to five months of additional coverage for free when customers enroll in one- to five-year plans.

We know that’s a good chunk of change up front, but home warranties aren’t insurance policies. You can almost always cancel at any time. If you paid in full at the time of signing, many providers will refund you the prorated amount of the warranty you haven’t used yet.

The majority of companies also charge a non-negotiable, non-refundable service fee of $75–$125 per claim. The cheapest service fee we’ve found is Pride Home Warranty’s $45 fee.

Carefully read your contract to find out whether you’ll be charged for repeat visits if the problem persists after the first appointment. Some providers, like Choice Home Warranty, will charge customers only once—the lesser of the service fee or the cost of repair or replacement.

Benefits of a home warranty

The bottom line is that the benefits of a home warranty definitely outweigh the cost of the plan. Customers will save time on research, money on repairs or replacements, and energy from worrying or anticipating if, when, and how badly an appliance or system will break. They’ll also have access to a customer service team that’s typically available 24 hours a day, seven days a week.

Service network

When a major home appliance or system breaks—take a water heater for example—it’s as stressful as it is expensive. Finding and hiring a local professional that’s qualified and highly reviewed can be a total time suck if you don’t know someone already. You’ll spend time asking neighbors for recommendations and reading customer reviews online. If you’re in a hurry, you might have to completely bypass research and merely hope the contractor is someone you can trust to get the job done.

After scheduling an appointment, you may have to wait as long as a week to get someone to evaluate the issue, all the while your family is taking cold showers. Then, if the technician can’t fix your water heater, you’ll have to order a new one. You’ll spend even more time shopping online for the best one and then hurry up to wait again until the technician can come back to install it.

With a home protection plan, you’ll gain access to a whole network of professionals in your area and the home warranty provider will do all the work for you. You simply have to submit a claim either online or over the phone, they’ll schedule the appointment within two to four days of approving your claim, and then the technician will order a new appliance for you if the water heater cannot be repaired. We recommend opting into a home warranty when buying a home so you can start protecting your investment right away.

How much can I save with a home warranty?

The potential cash savings of a home warranty is significant. Although most providers cap their coverage at a certain dollar amount, some limits are very generous.

American Home Shield, for example, will pay up to $3,000 per appliance for a repair or replacement under its Appliance Plan. 

On the other hand, Choice Home Warranty will only charge customers the lesser of the two amounts between a $60–$75 service fee and the actual cost of the repair.

Here are some commonly covered appliances and systems, how much it costs to repair and replace each one, and how much money customers save on average.

Water heater

  • Cost to repair—$546
  • Cost to replace—$1,065
  • Potential savings—$471–$1,037


  • Cost to repair—$284
  • Cost to replace—$4,249
  • Potential savings—$209–$1,500

Air conditioner

  • Cost to repair—$347
  • Cost to replace—$5,413
  • Potential savings—$272–$1,500


  • Cost to repair—$310
  • Cost to replace—$1,925
  • Potential savings—$235–$1,306

Clothes washer or dryer

  • Cost to repair—$250–$310
  • Cost to replace—$1,075–$1,250
  • Potential savings—$175–$1,466

Additional benefits and discounts

Many warranty providers offer special perks to their customers. Choice Home Warranty offers cash rewards to customers who recommend the provider to a friend or family member, American Home Shield offers discounts on new appliances and filters, and First American gives realtors free marketing materials for their businesses. Other home protection plan perks include discounts at certain retailers and restaurants.

Home warranty reviews

Customer reviews carry considerable weight with House Method Reviews. We know the only way to really evaluate a brand or product is to lean into conversations between verified customers who have experienced a product firsthand. We tapped into customer feedback and highlighted some of the most insightful home warranty reviews we read.

Natasha K. on Choice Home Warranty:

This company is completely worth every dollar! We actually have a property management company and it is much cheaper to have CHW than a handyman. Even the cheapest handyman can’t do it as affordable as CHW.

Renee C. on First American Home Warranty:

Being a cost analyst, I’m always looking at my own budget and my realtor, who’s also my friend, suggested First American because it was economical for me as well as reliable.

I noticed that there was a problem with my garbage disposal and, of course, I didn’t know what it was. I gave First American a call and somebody was out there at my house within 24 hours, they replaced the garbage disposal that day and everything was fixed within that next day.

I’m 100% satisfied with First American.

Freddie J. on AHS:

I had serious issues with my smoke detector system. I tried fixing it myself but [I] could not figure it out. One call to AHS and within a day my system was fixed. The technician was timely and professional. He knew what he was doing. A great value and money well spent on my AHS home warranty. I am a satisfied customer and have been for years.

Our conclusion

Company Best home warranty for Plan options Premiums Service fees Additional perks
Choice Home Warranty Overall 2 + add-ons Starts at $29 per month $60–$75 Freon fully covered (most companies charge $10 per pound)
First American Home Warranty Limited exclusions 2 + add-ons Starts at $28 per month $75 Covers rust, corrosion, and improper installation and modifications
American Home Shield  Appliance coverage 4 + add-ons  Starts at $20 per month  $75–$125 Cost to dispose of old appliances is covered

Frequently asked questions

What is the cheapest home warranty?

Choice Home Warranty, First American, and American Home Shield are the most affordable home warranty companies.

Choice Home Warranty has been rewarded as an affordable home warranty company with some of the most competitive pricing and promotions.

First American’s First Class Upgrade offers comprehensive coverage for a low price. Home warranty coverage is often limited to systems and appliances that break from normal wear and tear, but First American covers improper installation, modification, and insufficient maintenance. That means more of your home repairs are covered for a better price.

Although it has higher service fees, American Home Shield offers the lowest premiums, starting at $20. It also offers custom, build-your-own plans that could help offset prices.

How much is a one-year home warranty?

Most home warranties cost $25–$67 per month, but we consider premiums lower than $50 to be an affordable home warranty. We found that companies that offer custom coverage or build-your-own plans are the cheapest home warranties.

We’ve heard several complaints about providers raising their prices year after year. Unfortunately, this is common as the demand for home warranties increase. You can always ask if you can lock in a price at the time of signing.

Sometimes home warranty companies will guarantee your rate if you pay for a three- or five-year plan. This is a large sum of money upfront, but you can usually cancel any time and receive a refund for the amount you don’t use. Ask the company about cancellation policies and fees. We’ve seen fees range from $50 to $75.

Who pays for a home warranty?

Home buyers and sellers, realtors, and rental property owners can all buy a home warranty and benefit from a home protection plan.

Home buyers will pay for home warranty coverage if they purchase the plan after closing. However, it’s becoming more common for the seller to pay for a one-year home warranty if they offer it as part of the home sale.

Real estate agents sometimes pay for a home warranty for the seller in order to cover potential repairs that crop up while the home is listed. Realtors may also offer a home warranty to the buyers they’re representing as a kind of thank-you gift and a way to ease anxious buyers’ minds.

Rental property owners can bake the cost of a home warranty into the tenant’s monthly rent.

Should I offer a home warranty?

Offering a home warranty is a great marketing tool for sellers and realtors. Not only are your repairs covered while the house is on the market, but you’ll also offer buyers some peace of mind that potential problems will be handled. A home warranty can certainly expedite the closing process.

Is a home warranty part of closing costs?

Buyers have the option to purchase a home warranty when they close on a house, but—unlike homeowners insurance—a warranty is not required by mortgage lenders in order to complete a home sale. If the seller or realtor has offered a home warranty as part of the deal, they’ll typically pay the fee at closing.

Can you purchase a home warranty after closing?

Yes, homeowners can purchase a home warranty at any time after closing. If the sellers or realtor have already purchased a home warranty for the house, but you’d prefer a different provider, you could always purchase another home warranty plan separately.

How much will a plan pay out?

If the home warranty company will replace a covered item that can’t be repaired, ask if they’ll cover the total cost of the item. Home warranty providers limit how much they’ll pay out per covered appliance or system. Usually, the provider will pay between $1,500 and $2,000 for heating and cooling, up to $500 for plumbing and electrical, and anywhere from $500 to $3,000 for appliances depending on your coverage.

What’s a service fee?

Service fees usually cost $75–$125. These are non-negotiable and non-refundable and every home warranty provider charges one. However, you should always ask if you’ll be charged for repeat visits if the problem persists.

You should also inquire about the scenario in which you’re unhappy with the service the provider’s contractor provides. Ask whether they’ll send a different technician on the next visit or if you can get a second opinion.

Another perk you can ask about is if the provider will charge the lesser amount between the service fee and the actual cost of the repair or replacement.

More In Home Warranties

Costs and Coverage

Home Warranty Cost – 2021 Plans and Coverage

How much does a home warranty cost? Find out the average price of a one-year home warranty and compare prices from some of the best home warranty providers in the business.

Home Warranty

7 Best Home Warranty Companies of 2021

Looking for the best home warranty? Our team at House Method reviewed the top home warranty companies in the industry so you can choose the right plan for your home.

Home Warranty

More About Mobile Home Warranties

Learn more about mobile home warranties available and how homeowners can get the best home warranty coverage for their manufactured home’s appliances and systems.

By continuing to browse or by clicking “OK” you agree to the storing of first- and third-party cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Privacy Policy.