As a homeowner, you have to deal with the occasional unexpected expense. But for a monthly or annual premium, the best home warranty can offset the financial burden of repairing or replacing your most-used systems and appliances, such as your AC or refrigerator. When we surveyed 1,000 homeowners in October 2023, 40% of them said they signed up for a home warranty after dealing with an expensive breakdown.
Whether a home warranty makes sense for your home depends on your situation. If you, for instance, have limited savings for repairs, want to avoid the hassle of hiring a contractor, or have expensive appliances, it may be a worthy investment, said Angela Conlin, chief insurance and compliance officer at Kin Insurance.
We at Homefront researched and ranked the best homeowner warranty companies in the industry, and the two that stood out were 2-10 Home Buyers Warranty and Liberty Home Guard. 2-10 Home Buyers Warranty offers unique perks, such as appliance color matching if you need a replacement, and Liberty Home Guard lists more than 30 additional coverage options for completely customizable plans.
Our top choices for home warranty companies
Before purchasing a home warranty, it’s helpful to understand its benefits, costs and coverage limitations.
A home warranty can significantly reduce the out-of-pocket cost of repairing or replacing a major appliance or home system when it breaks down from regular use. If you own older home items or have limited savings, a home warranty can act as a support plan. Older appliances and systems break down more frequently and fixing them can become expensive, especially if you need to repair more than one within a short time frame.
Home warranties charge a monthly or annual plan premium plus a service call fee each time you file a claim. Budget for the plan premium and consider how often you’ll file a claim during your policy term. Choose a company with a service call fee that fits your budget based on your estimated number of claims.
Home warranties, like homeowners insurance, limit the amount they’ll pay to repair or replace a covered item. Before purchasing a home warranty, read the provider’s sample contract to understand how much it covers per appliance or system.
We scored the most popular home warranty companies using our proprietary rating methodology. We reviewed each company’s customer service, plan and add-on coverage options, pricing, reputation, sample contract and state availability.
| Provider | Our Rating | Appliance Coverage Caps | System Coverage Caps | Monthly Premium | Service Call Fee | Get Started |
|---|---|---|---|---|---|---|
| $2,000–$5,000 | $2,000–$5,000 | $22–$74 | $65–$100 | Start quote | ||
| $2,000 | $500–$2,000 | $49–$60 | $65–$125 | Start quote | ||
| $500–$3,000 | $750–$3,000 | $55–$75 | $70 | Start quote |
We gathered monthly premium averages for each provider by requesting quotes for 2,000-square-foot, single-family homes in three ZIP codes in each state serviced by the provider. We then calculated a national average.
For this article’s examples, I pulled fresh quotes from each provider using a 2,460-square-foot, single-family home located in Raleigh, North Carolina. Your plan’s exact cost will depend on your home’s size, your location and your coverage needs.
Our best home warranty recommendations
The following home warranty providers scored the highest in our review standards.
2-10 Home Buyers Warranty
Liberty Home Guard
Elite Home Warranty
American Home Shield
First American Home Warranty
Cinch Home Services
Best of the rest
Below are two home warranty companies that provide decent coverage but fell short of top scores in our rating system. We recommend these only for specific coverage needs.
ARW Home
Select Home Warranty
Homeowners guide: How do you choose a home warranty?
The best home warranty for you depends on your home and your budget. For example, a homeowner with expensive major appliances will need different coverage than a home seller attempting to add resale value to their home. Below is a guide highlighting the most important considerations when purchasing a home warranty.
Assess your coverage needs
Consider the items you’d like protected before requesting quotes from home warranty companies. Say you own pro-series appliances. Ensure you choose a home warranty company that covers high-end appliances and provides suitable coverage limits for repairing or replacing them.
Once you’ve determined which items you’d like to protect, research coverage plans from multiple providers. “When purchasing a home warranty, you should review what each plan offers to make certain that your areas of concern are covered,” advised Conlin.
Plan your budget
Once you’ve determined your coverage needs, it’s time to set a budget. Home warranties charge a monthly or annual plan premium. In addition to a plan premium, companies charge a service call fee that you must pay each time you request service. We suggest confirming the provider’s service fee before signing up to ensure you don’t exceed your budget.
Based on our national average calculation, the typical home warranty costs from $41.64 per month for a basic plan to $69.76 per month for a comprehensive plan. If you prefer to pay annually, expect to pay between $500 and $838 per year.
We requested 150 quotes across all 50 states for each company we reviewed to obtain the average home warranty cost range. We used three ZIP codes per state to capture price fluctuations based on geographic location.
Verify the company’s claims process
One of the more crucial factors to consider is a home warranty company’s claims process. Most home warranty providers allow you to request service in two ways: calling a dedicated claims phone number and filling out an online claims form.
When researching a home warranty company, ask about its response time after you submit a claim. Generally, providers will process your request and send an in-network technician to your home within 48 hours of receiving it.
Keep in mind that home warranty companies respond quickly during normal business hours. If you submit a claim after hours, during the weekend or on a major holiday, expect a delay in receiving service.
Another factor you should confirm with a home warranty provider is its technician network. I spoke to Pierce Haley, Esq., executive director of the National Home Service Contract Association, and he suggested verifying which service providers the home warranty company uses in your area. “If you live in the Sierra Nevada mountains in California, the ability to get a technician up to you is a lot different than if you live in Los Angeles,” he said.
Consider workmanship guarantees
Companies provide a workmanship guarantee for additional protection of your covered repair. Once your provider completes a system or appliance repair, it will cover an additional breakdown for free if it occurs within an established time period. The industry standard for workmanship guarantees is 30 days. Some home warranty companies provide workmanship guarantees that are longer than 30 days.
The condition of your major appliances and systems dictates the workmanship guarantee length you’d benefit from. For example, consider a company with a lengthy workmanship guarantee if you own older items. Older, worn items are more likely to malfunction. A lengthier workmanship guarantee can save you from paying multiple service fees if your previously repaired item breaks down again.
Look for red flags
While most home warranty companies aim to provide satisfactory service, there are some bad players in the industry. However, spotting a negligent company is easy if you know what to look out for. Below is a list of common red flags to be aware of when researching home warranty companies:
- Low BBB score: You should avoid companies with a C- rating or lower on the BBB. Also, pay attention to any Pattern of Complaint messages on the provider’s BBB profile. Unresolved Pattern of Complaint messages may indicate the home warranty company doesn’t provide proper service.
- Negative customer reviews: Type in the name of the home warranty company you’re considering in your search engine. Include any of the following options at the end of your search query: “BBB”, “Best Company”, “Trustpilot” or “ConsumerAffairs”. The search results will display the company’s customer reviews on each website. Avoid companies with 1-star customer ratings or lower across all third-party review sites you check.
Tip: Filter the customer reviews listed in the third-party review site to “most recent.” This allows you to see if the company has recent negative reviews.
- No business license within your state: Verify that the home warranty holds a license to operate within your state. You can find this information by checking the license database at your state’s consumer protection office. Additionally, verify that the company is incorporated within the state under which it lists its address.
- No workmanship guarantee: Avoid companies that don’t disclose their workmanship guarantee in their sample contract, on their website or when you call to inquire.
- Slow, unresponsive customer service: Test on three different occasions how long it takes to reach the company’s customer service department. I suggest calling a claims representative since sales representatives are more readily available. You should look elsewhere if it takes longer than 5 minutes to reach a claims representative on all three occasions.
Read your service contract
We highly recommend reading a home warranty company’s sample service contract as part of your research process. This document lists all of the provider’s coverage terms and exclusions. Every home warranty provider names their sample contract sections differently, but they all feature the same main categories.
After reading hundreds of customer reviews, I reasoned that many customers who left negative feedback likely didn’t read their company’s sample contract. By understanding a company’s terms and conditions, you can avoid claim denials — or the company itself — if its coverage doesn’t suit your needs. Below is an overview of the contract sections you should review.
- Coverage overview: This section highlights the general coverage terms for the company’s various protection plans. It lists provisions such as your plan’s waiting period, the types of homes covered, instructions for requesting service and more.
- Covered items: This section lists all the appliances and systems the home warranty provider covers in each plan. It also lists the components it covers and excludes per covered item.
- Limitations and exclusions: This section is arguably the most important one to understand since it lists all the potential reasons why the company may deny your claim. This section also highlights applicable limitations per covered item, such as coverage caps.
- Policy cancellation: The policy cancellation section provides information on how the home warranty company handles cancellations. It mentions the company’s free cancellation period and additional provisions if you cancel after the free period ends. Pay special attention to the cancellation fee (if any) listed in this section. Typically, companies refund a prorated portion of your plan premium minus the cancellation fee if you cancel after the free cancellation period.
- State-specific clauses: Familiarize yourself with this section if the home warranty company lists your state within it. You may need to follow the clauses in this section if you wish to cancel your plan or modify your coverage.
Know the difference between home warranties and homeowners insurance
Home warranties and homeowners insurance sound similar in name. However, they differ significantly in the type of coverage they offer. Home warranties cover home appliances and systems when they fail from normal wear and tear. They do not cover damage caused by incidents outside of regular use, such as storm damage, theft or vandalism.
Homeowners insurance policies, however, cover home items affected by unforeseen incidents. Homeowners insurance companies label these incidents as covered perils before granting reimbursement.
Request multiple quotes
Once you have an idea of which home warranty companies may suit your needs, request quotes from three providers. Getting multiple provider quotes allows you to compare plan costs and coverage options.
Final take: Home warranties add a layer of financial protection for appliance or system breakdowns
Home warranties can be a smart investment. For a monthly or annual cost, they cover unexpected appliance or system breakdowns. A home warranty can reduce the time you spend sourcing a technician and the amount you pay repairing or replacing an item. That said, home warranties come with strict exclusions. To fully maximize your coverage plan, we highly recommend understanding these exclusions before signing up with a provider.
Below, we list three of our top home warranty companies. Request a free quote from each to compare plan costs and coverage options.
Our rating methodology for home warranty companies
We research and rate home warranty providers to help you choose the one that’s right for your budget and your home. The best home warranty companies offer many coverage choices, high coverage limits, competitive pricing, good reviews, solid service and extra features.
We rate companies based on our in-depth methodology. We score companies out of 100 on factors related to their coverage options, coverage limits, pricing, reputation, customer service and extra features. We then divide their final score by 20 to obtain the 5-star rating we feature in our reviews.
BBB ratings are accurate as of December 2023.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
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