- Cost to repair—$546
- Cost to replace—$1,065
- Potential savings—$471–$1,037
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 for the best value.
BBB Rating: B-
Availability: 48 states
Plans: 2 plans + optional add-ons
Premiums: $29–$42 per month
Service fee: $60–$75
BBB rating: B+
Availability: 35 states
Plans: 2 plans + optional add-ons
Premiums: $28–$50 per month
Service fee: $75
BBB Rating: B
Availability: 49 states
Plans: 4 plans + optional add-ons
Premiums: $20–$65 per month
Service fee: $75–$125
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.
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.
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.
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.
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.
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.
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.
|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|
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.
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.
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.
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.
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.
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.
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.
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.
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