The 5 Best Home Warranty Companies (2021)

When a home warranty is right for you, which company should you trust?

You’re most likely to learn of a home warranty when you buy your first home. You’ll probably hear it from your real estate agent. Many sellers purchase one to entice home buyers, and usually, it’s a good deal. Still, home warranty plans are about as mysterious as they get. There is a lot of variation in the product across the industry. Unfortunately, home warranty satisfaction is a mixed bag.

Have you checked out our article about the customer suitability of home warranties? Please read that before deciding if a home warranty is right for you. If you’ve read it and you’re ready to buy, this article will help you complete that mission. Let’s go.

But if you’re looking for home insurance, hop on over to the Insurify home insurance comparison tool! Access and compare real quotes in just a few minutes. It’s totally free!

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What’s a Home Warranty Company?

The purpose of a home warranty service is to cover maintenance costs and sudden expensive repairs. It covers major appliances like your stove and home systems like central heating. A home warranty is a way some homeowners protect home systems and more.

Every home warranty service contract is unique, so read the fine print carefully. Most home warranty coverage includes:

• HVAC (heating and air conditioning)
• Water Heater
• Plumbing (with limitations)
• Electrical System
• Kitchen Appliances
• Garage Door Opener
• Garbage Disposal

When something goes wrong with a covered system, the homeowner calls their home warranty company. A representative will then dispatch an approved provider to your home. You pay a small service fee, and the approved provider fixes what’s wrong.

The hope is that annual premiums and service fees are less expensive than using a contractor.

How to Know if a Home Warranty is Right For You

A home warranty is great for people in two specific scenarios:

• People who depleted their emergency funds to purchase a home.
• People who want someone else to deal with the maintenance of the home.
• People who can see a reasonable benefit in return for carrying costs.

In the first scenario, a home warranty covers you while you rebuild your savings. A low-cost warranty policy that covers big threats is a good choice.

In the second, the homeowner may have plenty in savings. But, for whatever reason, wants someone else to deal with the behind-the-scenes stuff. In this scenario, a more comprehensive home warranty plan is likely the best fit.

The final scenario is for people willing to review five or more home warranty companies. These homeowners look for policies that offer specific protections. For example, coverage tailored for homeowners buying a fixer-upper. These extended options are definitely more expensive than usual. However, if you’re anticipating a lot of headaches, it can be a useful buffer.

We have a whole article that details how home warranties work and whom they’re most suitable for. Be sure to check that out if you’re still deciding if a home warranty is right for you.

Picking a Company

Choosing the right company may seem daunting. There are a ton of options available. They all have their own advantages and disadvantages. As you read over these options, you want to look for a company that fits your needs. That means it will cover the systems most vulnerable in your home but leaves out things you don’t have.

When it comes to home warranty costs, you’ll want to note all the ways a company may charge you:

• Annual fee
• Service fee
• Additional fees

Remember that a company with a low annual rate could be more expensive due to a higher service fee. Whichever company offers the best coverage at the best price is the right company for you. If you need a tiebreaker, check out customer reviews.

Lastly, do consider the level of coverage and service you get for the price. One company may be more expensive than another, but doesn’t exclude “improper maintenance.” More limited plans are cheaper, but you’re more likely to be denied a claim.

Home Warranty Reviews: The Best Home Warranty Companies

We compiled this list using customer reviews and complaints across the internet. Companies with great reviews and low complaints got higher rankings. We also looked at valuable perks like covering “unknown pre-existing conditions.”

1. American Residential Warranty

American Residential Warranty tops our list because of overall customer satisfaction. In it’s ten years, it’s received a relatively low number of complaints. Many customers leave glowing reviews for service. Customer service representatives can be reached over the phone and by chat online.

The company offers a wide range of options to customers, serving several price points.

Washer/dryer coverage can be added to any plan option for an additional fee. Deluxe Advantage adds these advantages to your policy:

• A/C Refrigerant and coils
• Refrigerant recapture
• Plumbing faucets and fixtures
• Permits/modifications/code violations
• Toilets and internal mechanisms
• Improper installation
• Mismatched systems
• Garage door springs and tracks

The Ultimate Electronics Protection includes:

• Flat-screen televisions
• Home theater system
• Computers
• Tablets
• Gaming consoles, including and-held
• Printers
• Routers

2. The Home Service Club

Despite the low Better Business Bureau rating, we think The Home Service Club is doing a pretty good job. Reviews are consistently glowing. There are no restrictions on the age of covered items. Plus, it’s nationwide with a 24/7 customer service line.

Prices are given by estimate, so plans are a little more tailored than the competition. However, The Home Service Club does tend to be more expensive, too. It offers three plans, one of which is designed for buying or selling a home. Here’s a rundown of all plans:

There are many add-ons available as well, including roof protection, pool, and spa equipment. All real estate coverage plans include bonus perks:

• Permit fees
• Misuse
• Rust and corrosion
• Code violation fees
• Refrigerant reclaim, recapture, and disposal
• Lack of routine care and maintenance
• Improper installation (if it causes a problem)
• Undetectable pre-existing conditions

These perks are a pretty big deal, as most of them are not part of an average plan.

3. Liberty Home Guard

Liberty Home Guard gets the okay from us for its affordability. No plan breaks the 50 dollar mark unless the homeowner chooses add-ons. There are also no limitations for the age of equipment.

Optional add-ons offered by Liberty Home Services include:

• Pool and spa
• Gutter cleaning
• Sump pump
• Limited roof leak
• Central vacuum
• Re-key
• Well pump
• Floor and carpet cleaning
• Septic system pumping
• Pest control
• Stand-alone freezer
• Second refrigerator

4. Cinch Home Services

The number of complaints on BBB’s website is pretty shocking. Yet, reviews on Trustpilot and Consumer Affairs remains strong. We’re not sure why the inconsistency. We can tell you that complaints on BBB most often cite “Advertising/Sales Issues.” We recommend carefully reading all the fine print.

All Cinch plans offer a 180-day guarantee of work done in your home. It does not exclude unknown pre-existing conditions. Here’s a rundown of the three plans offered by Cinch:

It’s important to note that pricing is the starting point. Each homeowner gets a personalized quote based on the appliances and/or systems in their homes. So, you should expect to be quoted more than the lowest price quoted on Cinch’s website.

5. America’s First Choice Home Club

America’s First Choice Home Club rounds out our best-of list with solid Bs across the board. What we like most about AFC is that homeowners can choose their technicians. Plus, repair work is covered until the end of the policy, so as much as three years.

AFC offers four plans and six optional add-ons.

The actual cost of a plan from AFC depends on the home appliances and/or systems in your home. Monthly costs are also more expensive if you choose lower service request fees or if you choose any of the add-ons:

• Sump pump
• Septic system
• Pool & spa
• Hot water dispenser
• Stand-alone freezer
• Tankless Water Heater

Home Warranty Companies: The Bottom Line

Before you decide, be sure to understand if a home warranty is right for you in the first place. A good relationship with local contractors is a great alternative to a home warranty.

Lastly, if a home warranty is right for you, do your research and read the fine print. The key to being happy with your home warranty is to know precisely what you’re getting before you buy.

And if you haven’t checked out the Insurify rate comparison tool, you’re missing out on big savings. Get free quotes, compare rates, adjust coverage options, and make sure you’re getting the best homeowners insurance for your situation. Try it today!

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J.J. Starr

J.J. Starr is a health and finance copywriter who enjoys helping readers find the information they need. In addition to her background in banking and financial advising, she is also a poet with an MFA from New York University. She lives in Amherst, Massachusetts. You can learn more at jjstarrwrites.com.