7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Many home warranty companies can make homeownership more affordable. But the ideal home warranty company for you depends on your budget, preferred coverage level, and unique needs.
This article aims to make your search a bit easier by providing you with an insider’s look at the best home warranty companies on the market today.
Quick Facts
A home warranty acts as a contract to help you cover common repair costs at a discount.
Home warranties cover appliances and HVAC systems, among other machines, rather than your home.
Home warranties can be worth it if you have a lot of appliances or older systems in your home.
The best home warranty companies
When choosing the right home warranty company for your new home or older home, it’s helpful to start with some of the top options in the industry. Below, you’ll find a closer look at the top-rated home warranty companies and best options on the market.
Liberty Home Guard
Liberty Home Guard earned top marks on various customer rating platforms:
The company offers three plans at different price points. Below are some of the most popular plans:
Appliance Guard: The Appliance Guard total plan includes coverage for most of the appliances in your home, including the washer, dryer, refrigerator, built-in microwave, dishwasher, garbage disposal, range, ceiling fan, and garage door openers.
Systems Guard: The Systems Guard offers protection for major home systems, like your HVAC, ductwork, plumbing, water heaters, and electrical equipment.
Total Home Guard: The Total Home Guard plan includes the coverage provided by both the Appliance Guard and Systems Guard plans.
These plans are available everywhere except Washington and Wisconsin. After you sign up, you need to wait 30 to 60 days before filing your first claim. Liberty Home Guard offers straightforward home warranties with reasonably good reviews. But you’ll need to enter your own home details to nail down a quote.
Here are some Liberty Home Guard pros and cons to consider:
Pros
Easy-to-understand plans
Prices start at less than $1 per day
Cons
Not available in every state
Must wait 30 to 60 days to file a claim
American Residential Warranty
American Residential Warranty earned relatively high marks on various customer rating platforms:
The company offers various plans at different price points. Below are some of the most popular plans:
Ultimate Electronics Protection: At $24.99 per month, this plan covers many of your household electronics. A few include laptops, gaming consoles, printers, tablets, and more.
Kitchen Plus: At $39.99 per month, this plan covers many kitchen appliances. A few include the refrigerator, range, oven, cooktop, dishwasher, built-in microwave, exhaust fans, garbage disposal, and water heater.
Platinum Premier: At $64.99 per month, you’ll get coverage for the Kitchen Plus package and HVAC, plumbing systems, garage door opener, humidifier, ductwork, ceiling fans, and refrigerator ice maker.
American Residential Warranty offers relatively affordable coverage compared to some competitors. The simple coverage might be just what you’re looking for, especially if you’re concerned about household electronics. When you request a repair, you pay a trade service fee. These plans are available in all 50 states. The advantages and disadvantages of American Residential Warranty include:
Even with the relatively low Trustpilot score, the company earned more than 380 five-star reviews on the site. The company offers two main plan choices:
Standard coverage: Standard coverage includes refrigerators, ovens, cooktops, dishwashers, washing machines, dryers, freestanding ice makers, built-in microwaves, trash compactors, food centers, HVAC systems, water heaters, ceiling fans, and more.
Comprehensive coverage: Comprehensive coverage includes everything in the standard plan, plus coverage for plumbing stoppages, ductwork, gas leaks, pest control, whirlpool tub, alarm wiring, telephone wiring, smoke detectors, exhaust fans, sump pumps, doorbells, and more.
The Home Service Club doesn’t offer too many add-ons. But you might find the coverage you’re looking for in the comprehensive plan. The price point for its plans varies based on the size and location of your home. When you make a claim, you pay a trade service call fee, which ranges from $65 to $125. Of course, there are some pros and cons to consider, including:
Pros
Available across the country
Coverage not denied based on the age of items
24/7 customer service
Cons
High trade service fees compared to the competition
Mediocre Trustpilot reviews
Cinch Home Services
Cinch Home Services earned above-average ratings on two out of three customer rating platforms:
The company offers three plans at different price points. Below are some of the most popular plans:
Home Appliances Warranty: The Home Appliances Warranty starts at $27.99 per month. As the name suggests, it covers household appliances like washers, dryers, cooktops, dishwashers, and more.
Built-In Systems Warranty: The Built-In System Warranty starts at $32.99 per month. It covers home systems like your HVAC, attic fans, ceiling fans, doorbells, electrical systems, plumbing systems, and more.
Complete Home Warranty: The Complete Home Warranty includes both home appliances and home systems. The more comprehensive plan starts at $39.99 per month.
The exact cost will vary based on your home and location. Here are some pros and cons of Cinch Home Services:
Pros
Lower starting price points than competitors
Robust coverage options
Cons
Relatively high service fee of at least $79
Low Better Business Bureau customer ratings
America’s First Choice Home Club
America’s First Choice Home Club earned above-average marks on various customer rating platforms:
The company offers four plans at different price points:
Systems plan: The Systems plan includes protection for your air conditioner, heating system, water heater, electrical system, plumbing system, and ductwork.
Silver plan: The Silver plan includes your washer, dryer, kitchen refrigerator, oven, range, dishwasher, garbage disposal, and garage door opener.
Gold plan: The Gold plan includes everything covered by the Systems and Silver plans.
Platinum plan: The Platinum plan includes everything in the Gold plan. Plus, it covers plumbing stoppages, fans, ice makers, and more.
These plans are available everywhere except Hawaii. If you want to add on more coverage, you can. Add-ons are available for electronics, sump pumps, septic systems, central vacuums, pools, and more. While the reviews are somewhat average, the ability to choose your own technician for an in-home visit can give you a bit more control over the process.
When you make a service call, you’ll pay between $75 and $125 per call. Here are the advantages and disadvantages of America’s First Choice Home Club:
Pros
Choose your own service call fee
24/7 access to service team
Option to choose your own technician
Cons
Not available in Hawaii
$75 cancellation fee
Are home warranties worth it?
Whether a home warranty is worth it for you depends on your particular circumstances. A home warranty can save you from high out-of-pocket costs and give you the peace of mind that your appliances and systems will have coverage if they break down. In addition, a home warranty may give you access to a network of technicians and experienced service providers so you don’t have to search for professional contractors for your repairs.
If you do invest in a home warranty, however, you’ll likely pay more in the long run. There’s also the potential that your claim will get denied.
In addition, home warranty providers usually have exclusions in the fine print, meaning the company will only cover some appliances and systems, so you’re not guaranteed coverage for everything. Lastly, you may be required to choose an in-network service provider rather than a local plumbing technician you know.
What is a home warranty?
A home warranty is a service agreement between a homeowner and a company that helps cover the repair or replacement costs of specified appliances and home systems.[16]
The specifics of home warranty service contracts can vary. However, many home warranties include coverage for a home’s HVAC system, water heater, plumbing, electrical system, kitchen appliances, garbage disposal, and garage door opener.
If something goes wrong with a covered system, you can contact the home warranty company, usually on the company’s website or via phone, to file a claim. This will generally need to happen during business hours, and you’ll have to provide your personal information and home address.
As long as your claim is approved, the home warranty company will send an approved service provider to your home. Typically, you just need to pay an up-front fee, similar to a deductible, for the service or repair.
What do home warranties cover?
Every home warranty is slightly different. In general, home warranties cover the following systems and appliances:
When shopping for a home warranty, confirm that the service contract covers everything you want included. Many companies offer add-on coverage for specific systems at an additional cost.
What don’t home warranties cover?
Many home repairs are excluded from coverage. Many home warranties exclude the following issues from coverage:
Before signing up for a home warranty, it’s critical to check out what’s not covered. In many cases, a home warranty won’t cover as much as you expect. If you’re unsure of exclusions, look at the contract terms in a sample contract or reach out to customer support.
Why you might need a home warranty
A home warranty isn’t the right fit for all homeowners. But it’s often a good option for homeowners who want an extra layer of protection for their appliances or want help coordinating service contractors for their homes. It can make sense for people with newer homes or older homes.
Here are a few instances when a home warranty might come in handy for your current home:
Broken HVAC: If your HVAC breaks, the replacement costs could run between $5,000 and $12,500.[3] With a home warranty, you might only have to cover a portion of the replacement costs.
Broken water heater: A broken water heater can put a stop to comfortable showers. The replacement cost averages $839 to $1,631.[4] Your budget might appreciate when a home warranty helps cover those replacement costs.
Broken washing machine: You likely rely on your washing machine to do laundry. If it malfunctions, you’ll have to pay anywhere from $700 to $1,300 to replace it. A home warranty can kick in and make these replacement costs more affordable.
Broken dishwasher: Your dishwasher can save you a lot of time and hassle. If it breaks, a new dishwasher will run you anywhere from $400 to $1,200. With a home warranty, you may save money on the cost of replacing it.
If you’re concerned about your ability to cover a necessary repair or replacement, a home warranty might provide the peace of mind you’re looking for.
How to choose the right home warranty company
If you plan to buy a home warranty, choosing the right company can make a world of difference.
People with home warranties often complain of inadequate customer service and a limited number of covered repairs. Shoppers who do their research ahead of time can avoid working with companies with bad reputations.
Take the time to read customer reviews online and compare warranty options and different plans to lock in the best value. “Check the company’s customer service record to ensure [it] provides good customer service — this is often forgotten but can make or break your experience,” says Luke Babich, CEO of Clever Real Estate.
As you look at different companies and narrow down your options, Babich says, “Don’t be afraid to ask the company about coverage and services in detail. You don’t want to skip over anything that may be important down the line, and it’s better to have too much information than not enough.”
You’ll also need to evaluate the price point of any home warranty plan before buying. At the very least, make sure that the value of the contract is comparable to what you pay monthly.
Home warranty companies FAQs
Here are answers to some frequently asked questions about home warranty companies and contracts.
Which company offers the best home warranty?
The best home warranty varies based on your situation. But American Residential Warranty, The Home Service Club, and Liberty Home Guard each offer worthwhile options.
How many years is a home warranty valid?
The length of the home warranty varies based on the specific contract. Many home warranties only offer coverage for one year.[16]
How do home warranty companies evaluate pre-existing conditions?
Some home warranty companies evaluate pre-existing conditions based on a visual home inspection. For some appliances, a mechanical test is required to rule out any pre-existing conditions.
How are home warranties regulated?
Typically, a state agency regulates home warranty companies. If you run into issues, you might need to involve a neutral third party to resolve the issue.[17]
What are the worst home warranty companies?
The home warranty companies with the worst customer reviews include Secure Home Warranty, Service American Home Warranty, and American Home Guard.
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
Sarah has been a contributor at Insurify since September 2022.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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