The Best Home Warranty Companies Of 2022

April 20, 2022

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    If you’ve recently bought a house or are thinking of purchasing one soon, the phrase “home warranty” has probably crossed your mind. You’ve likely wondered about the basics of what a home warranty is, and which home warranty company you should choose.

    What Is A Home Warranty?

    A home warranty is a service contract that covers the cost of repairing or replacing any major systems or appliances in your home. It can cover systems such as your plumbing or electrical, as well as major appliances like your dishwasher or air conditioner. You can also buy add-on coverage for other appliances and home fixtures like your washer and dryer or swimming pool.

    It’s important to note that a home warranty is different from homeowners insurance, which covers the cost of property damage, theft of personal property or lawsuits against your property.

    Because a home warranty and homeowners insurance are separate policies, you’ll need to factor the price of the warranty into your total home buying cost estimate.

    Here’s a list of top-ranked home warranty companies:

    Top Home Warranty Company Reviews

    Best For Customization

    American Home Shield

    American Home Shield has been in business for almost 50 years and is known for offering low-cost options, with an annual cost ranging from $480 – $1,000+ per year. In addition, the company offers a wide variety of coverage add-ons and has service fees ranging from $75 – $125, depending on your plan. American Home Shield also has earned a B rating from the Better Business Bureau (BBB) in customer satisfaction.

    3.5/5

    Rating

    $480 - $1,000+

    Annual Cost

    $75 - $125

    Service Fee

    Best For Customer Service

    Liberty Home Guard

    Liberty Home Guard is a service-oriented, technology-driven home warranty company that's been in business for 4 years. It has established strong relationships with homeowners and excelled in customer service, earning an A rating from the BBB.

    4.5/5

    Rating

    $480 - $720

    Annual Cost

    $60

    Service Fee

    Best for Reliability

    First American Home Warranty Logo

    First American Home Warranty

    First American Home Warranty is known as the company with the best reliability, offering customers 24/7 ability to submit a claim. Being in business for 25 years, First American Home Warranty covers systems and appliances that were improperly installed or maintained and has a BBB rating of B+.

    4/5

    Rating

    $432 - $456

    Annual Cost

    $75

    Service Fee

    Best Overall

    America's First Choice Home Club

    America's First Choice Home Club has a lot to offer homeowners. AFC Home Club has 24/7 customer service, allows homeowners to hire their own contractor or use one in its technician network, and guarantees parts and labor for the life of their membership.

    4/5

    Rating

    $518 - $709

    Annual Cost

    $75 - $125

    Service Fee

    Best For Pricing

    American Residential Warranty logo

    American Residential Warranty

    American Residential Warranty offers exceptional customer service, offering support and emergency services 24/7, 365 days a year. In addition, American Residential Warranty guarantees service repairs for 30 days. What makes American Residential Warranty’s service even better is their industry-low service fee of only $55.

    5/5

    Rating

    $300 - $1,500

    Annual Cost

    $55

    Service Fee

    Best For Additional Services

    Cinch Home Services logo

    Cinch Home Services

    With Cinch Home Services, you’ll get a 180-day workmanship guarantee, which lasts longer than many other home warranty company guarantees. Coverage includes protection for unknown, preexisting conditions and rust and corrosion coverage. The company also provides its customers a $25 A/C or water filter credit, a complimentary water sensor to help detect leaks and, depending on your plan, may reimburse up to $500 of your deductible on a covered insurance claim.

    3/5

    Rating

    $336 – $480

    Annual Cost

    $100 – $150

    Service Fee

    How We Chose The Best Home Warranty Companies

    When researching and comparing each home warranty company, we followed specific criteria, which considered the best companies for customization, customer service, reliability, pricing and the best for overall coverage and service. Here’s what we found:

    Home Warranty Product Comparison

    American Home Shield Liberty Home Guard First American Home Warranty America's First Choice Home Club American Residential Warranty Cinch Home Services
    Best For Customization Customer Service Reliability Overall Pricing Additional Benefits
    Pricing $480 - $1,000+ $480 - $720 $432 - $456 $518 - $709 $300 - $1,500 $336 – $480
    Service Fee $75 - $125 $60 $75 $75 - $125 $55 $100 – $150

    *Note: The pricing of premiums tends to vary based on plan, location and service fee selected.

    American Home Shield: Best For Customization

    BBB Rating: B

    As one of the largest and most frequently chosen home warranty companies in the country, it’s no surprise that we rated American Home Shield as best for customization.

    What most people know American Home Shield for is their “Build Your Own Plan” option, which gives homeowners the ability to pick and choose what appliances they want to include in their home warranty.

    Though American Home Shield has a lot to offer homeowners, some drawbacks to their warranties are that they have low annual limits on some applications and systems, and they also require prior authorization if homeowners choose to use their own technicians.

    Plans Offered

    American Home Shield offers four home warranty plans:

    1. The Appliances Plan: Covers home appliances, including the refrigerator, range/oven/cooktop, washer and dryer, dishwasher, built-in microwave, trash compactor, freestanding ice maker, garage door opener and built-in food center
    2. The Systems Plan: Covers home systems, including the air conditioning (including ductwork), heating (including ductwork), electrical, doorbells, smoke detectors, ceiling fans, plumbing (including stoppages), water heater, garbage disposal, instant hot/cold water dispenser and central vacuum
    3. The Combo Plan ($59.99 per month): Covers everything offered by both the Appliances Plan and the Systems Plans
    4. The Build Your Own Plan: As previously mentioned, this plan only covers the appliances and systems you choose. You can also add extra coverage for electronics, pools and spas, a well pump, septic system and guesthouse.

    The prices of American Home Shield’s plans vary by region and plan. Specific pricing can be found on American Home Shield’s website.

    Liberty Home Guard: Best For Customer Service

    BBB Rating: A

    Liberty Home Guard is a highly trusted home warranty company with the best customer service. Its plans feature a 60-day workmanship guarantee for repairs, and the company has a survey module that lets customers and technicians send direct feedback to the Liberty Home Guard’s Executive team.

    In addition, Liberty Home Guard has less expensive service fees than its competitors, totaling only $60. The annual cost of a home warranty plan with Liberty Home Guard ranges from $480 – $720 per year.

    While many customers are highly satisfied with Liberty Home Guard, the company doesn’t allow customers to choose their own service technician without authorization, just like American Home Shield. Unfortunately, Liberty Home Guard is not available in California, Hawaii, Illinois, Indiana, Iowa, Oregon, Washington, Wisconsin or Wyoming.

    Plans Offered

    Liberty Home Guard offers three home warranty plans:

    1. The Appliance Guard Plan ($49.99 per month): Covers important appliances, including the washer and dryer, refrigerator, built-in microwave oven, dishwasher, garbage disposal, range/oven/cooktop, ceiling and exhaust fans, and garage door opener
    2. The System Guard Plan ($54.99 per month): Covers essential home systems, including air conditioning, heating, ductwork, plumbing, electrical and water heater
    3. The Total Home Guard Plan ($59.99 per month): Covers everything offered by both the Appliance Guard Plan and the System Guard Plans

    Liberty Home Guard also offers optional coverage for these 20 items that you can include with any plan:

    • Pool and spa
    • Additional spas
    • Gutter cleaning
    • Floor and carpet cleaning
    • Sump pump
    • Septic system plumbing
    • Limited roof leak
    • Pest control
    • Central vacuum
    • Standalone freezer
    • Rekey
    • Second refrigerator
    • Well pump
    • Fixtures (lighting and plumbing)
    • Water softener
    • Lawn sprinkler system
    • Electronics protection
    • Swamp cooler
    • Ejector pump
    • Grinder pump

     

    Prices of Liberty Home Guard's plans vary depending on where you live, the plan you choose and the optional coverage you select. More accurate prices can be found on Liberty Home Guard’s website.

    First American Home Warranty: Best For Reliability

    BBB Rating: B+

    First American Home Warranty offers affordable monthly premiums, with a service fee of $75 and annual costs ranging from $432 – $456 After 25 years in the business, they're known for their reliability, offering customers 24/7 access to submit a claim.

    Unfortunately, First American Home Warranty is not available in Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Rhode Island, Vermont or Wisconsin.

    In addition, First American Home Warranty doesn’t provide coverage for roof leaks, and air conditioning is only covered through an optional add-on policy.

    Plans Offered

    First American Home Warranty offers two home warranty plans:

    1. The Basic Plan ($25 per month): Covers essential appliances, including washer and dryer, refrigerator, dishwasher, oven/range/cooktop, microwave, garbage disposal and trash compactor
    2. The Premier Plan ($39.50 per month): Covers major home systems and appliances, including everything in the Basic Plan plus plumbing, plumbing stoppages, heating system, water heaters, electrical systems, garage door opener, ductwork and central vacuum system

    Optional add-ons offered by First American Home Warranty for additional costs include central air conditioning system, secondary refrigeration, pool and spa equipment and well pump.

    First American Home Warranty also offers an additional first-class upgrade, which covers cosmetic damage on home systems or appliances, along with other benefits. More information about First American Home Warranty’s first-class upgrade and coverage exclusions can be found on the company website.

    Prices of First American Home Warranty’s plans vary depending on where you live, the plan you choose and the optional coverage you select. More accurate prices can be found on First American Home Warranty's website.

    America’s First Choice Home Club: Best For Overall Coverage And Service

    BBB Rating: B

    As the top-rated home warranty company for overall coverage and service, America’s First Choice Home Club has a lot to offer homeowners.

    AFC Home Club has 24/7 customer service, allows homeowners to hire their own contractor or use one in its technician network, and guarantees parts and labor for the life of their membership.

    Affirming their excellent customer service, AFC Home Club offers member discounts on consumer goods, restaurants, and entertainment, along with other benefits like free credit monitoring, identity protection alerts, and Emergency Alert Network services.

    The annual cost of AFC Home Club’s home warranty plans range from $518 – $709, with a service fee ranging from $75 – $125.

    As a downside, AFC Home Club charges a $75 cancellation fee. The company also requires homeowners to submit a claim within 1 day after noticing an issue with a system or appliance and does not offer rekey or HVAC service coverage or optional roof leak coverage.

    Plans Offered

    AFC Home Club offers four home warranty plans:

    1. The Platinum Plan ($59.09 per month): Covers air conditioning, heating, water heater, electrical, plumbing/plumbing stoppages, ductwork, washer and dryer, refrigerator, built-in microwave, ice maker, oven/range/stove, dishwasher, garbage disposal, and garage door opener
    2. The Gold Plan ($52.27 per month): Covers air conditioning, heating, water heater, electrical, plumbing/plumbing stoppages, ductwork, washer and dryer, refrigerator, oven/range/stove, dishwasher, garbage disposal, and garage door opener
    3. The Silver Plan ($43.18 per month): Covers clothes washer and dryer, refrigerator, oven/range/stove, dishwasher, garbage disposal and garage door opener
    4. The Systems Plan ($43.18 per month): Covers air conditioning, heating, water heater, electrical, plumbing/plumbing stoppages and ductwork

    AFC Home Club also offers optional coverage for items such as a sump pump, well pump, pool and spa, septic system, hot water dispenser, standalone freezer, central vacuum, and tankless water heater.

    Prices of AFC Home Club’s plans vary depending on where you live, the plan you choose and the optional coverage you select. More accurate prices can be found on AFC Home Club’s website.

    American Residential Warranty: Best For Pricing

    BBB Rating: A+

    Although American Residential Warranty is known for having the best pricing, they also excel in many other areas.

    For example, American Residential Warranty offers exceptional customer service, giving customer support and emergency services 24 hours a day, 7 days a week, 365 days a year.

    In addition, American Residential Warranty guarantees service repairs for 30 days. What makes their service even better is their industry-low service fee of only $55.

    American Residential Warranty’s annual cost ranges from $300 – $1,500.

    The drawbacks of American Residential Warranty’s services are that they don’t allow claims to be filed online, they have low coverage caps on many appliances and systems, and they only allow cancellation through written notice, which might not be convenient for technology-driven homeowners.

    Plans Offered

    American Residential Warranty offers seven home warranty plans:

    1. The Heating & Cooling Plan ($39.99 per month): Covers central air conditioning, central home heating, a humidifier and interior electrical system
    2. The Kitchen Plus Plan ($34.99 per month): Covers the interior electrical system, refrigerator, range/oven/cooktop, dishwasher, built-in microwave, garbage disposal, kitchen exhaust fan and water heater
    3. The Platinum Plan ($49.99 per month): Covers central air conditioning, central home heating, humidifier, interior electrical system, refrigerator, range/oven/cooktop, dishwasher, built-in microwave, garbage disposal, kitchen exhaust fan and water heater
    4. The Platinum Premier Plan ($59.99 per month): Covers central air conditioning, central home heating, humidifier, interior electrical system, refrigerator, range/oven/cooktop, dishwasher, built-in microwave, garbage disposal, kitchen exhaust fan, water heater, plumbing system, plumbing stoppages, ductwork, garage door opener, refrigerator ice maker and ceiling fans
    5. The 3-in-1 Bundle ($109.99 per month): Covers central air conditioning, central home heating, humidifier, interior electrical system, refrigerator, range/oven/cooktop, dishwasher, built-in microwave, garbage disposal, kitchen exhaust fan, water heater, plumbing system, plumbing stoppages, ductwork, garage door opener, refrigerator ice maker, ceiling fans, washer and dryer, deluxe advantage, and ultimate electronics protection
    6. The 4-in-1 Bundle ($124.99 per month): Covers central air conditioning, central home heating, humidifier, interior electrical system, refrigerator, range/oven/cooktop, dishwasher, built-in microwave, garbage disposal, kitchen exhaust fan, water heater, plumbing system, plumbing stoppages, ductwork, garage door opener, refrigerator ice maker, ceiling fans, washer and dryer, deluxe advantage, ultimate electronics protection, and water and sewer lines
    7. The Ultimate Electronics Protection Plan ($24.99 per month): Covers all of your new and used electronics

    The prices of American Residential Warranty’s plans vary depending on where you live, the plan you choose and the optional coverage you select.

    For more information about prices and what is covered by the Deluxe Advantage Plan, Ultimate Electronics Protection Plan and other optional add-on items for coverage, visit American Residential Warranty’s website.

    Cinch Home Services: Best For Additional Benefit

    BBB Rating: B

    Not only does Cinch Home Services provide an industry-leading, 180-day workmanship guarantee, but it also spoils its customers with additional protections, like rust and corrosion and unknown preexisting condition coverage. When you need to request service, you don’t have to worry about making a call. Cinch’s easy-to-use digital platform allows you to schedule service online from anywhere at any time of the day – and it only takes a few minutes.

    Other benefits include a $25 credit for air conditioning or water filters and a free water filter to help you detect leaks. In certain areas, even people without a protection plan can access Cinch’s pool of prescreened service professionals and schedule a repair through the company.

    Plans Offered

    Cinch Home Services offers three home warranty plans:

    1. The Appliances Plan: Covers 12 home appliances, including washers and dryers, dishwashers, microwaves, refrigerators, ranges, and trash compactors
    2. The Built-In Systems Plan: Covers 16 major and minor systems in the home, including plumbing and toilets, electrical systems, air conditioning, heating and ductwork, sump pumps, and garbage disposals
    3. The Complete Home Plan: Covers the 28 different appliances and systems covered in the other plans and includes a homeowners insurance deductible reimbursement of up to $500 on a covered homeowners insurance claim

    For many of the covered appliances and systems, all parts and components are covered up to a certain dollar amount per term. Some exclusions apply and plan costs vary per location.

    Red Flags: What To Avoid When Choosing A Home Warranty Company

    When choosing between multiple home warranty companies, it’s important that you’re aware of both obvious and hidden red flags.

    For example, if you’re reading company reviews and it mentions that claims are frequently rejected, that’s a major red flag. Do your due diligence and research each company you’re considering.

    If companies aren’t able to provide you with a sample contract by sending it to you or posting it on their website, you may want to keep looking. If your contract doesn’t list a specific service fee, or your contract doesn’t outline payout limits or the repairs that are or are not covered, you’ll want to choose a different home warranty company.

    How Much Should You Spend On Your Home Warranty?

    The best home warranty companies help you save money on maintenance and repairs each year, but you’ll have to pay for the coverage as long as you hold the warranty. While the amount you spend and the types of coverage you’ll need will depend on your unique situation, you’ll want to budget for your warranty as part of your ongoing maintenance budget. Here are a few ways to create a budget that works for your wallet:

    The 1% Rule

    The 1% Rule is used to figure out a reasonable amount you should spend on your home warranty. By following this rule, you’ll need 1% of your home’s value per year to put toward maintenance costs, including the home warranty.

    The Square Foot Rule

    The Square Foot Rule is similar to the 1% Rule, in that it helps a homeowner decide how much money is reasonable to spend on a home warranty. However, unlike the 1% Rule, the Square Foot Rule focuses more on the size of your home than its estimated value.

    You’ll need $1 per square foot of your home set aside for maintenance, including the cost of the home warranty.

    What Home Warranties Typically Don’t Cover

    Home warranties are designed to provide you with coverage for the most common appliances and fixtures in your home. Though they’re extensive and can be made truly comprehensive with add-on policies, they won’t cover everything. Here are a few of things your home warranty won’t protect:

    • Appliances that are already under warranty (this means that people with a house full of new appliances may not need a warranty)
    • Preexisting conditions (this means that homeowners shouldn’t count on a home warranty to fix anything identified in their home inspection)
    • Problems that occur as a result of improper maintenance

    FAQs When Choosing A Home Warranty Company

    When choosing the right home warranty company, it’s important to have all the answers to your questions. To help you, we’ve answered a few of the most frequently asked questions regarding home warranty companies.

    Should I get a home warranty?

    Although a home warranty plan is not necessary, it can be useful to have. Home warranty plans offer you security in knowing that you won’t have to stress about finding the money to make significant repairs on your home’s systems and appliances.

    These plans can be particularly beneficial when purchasing an older home that could be at a higher risk of needing expensive repairs.

    How long do home warranties last?

    Most home warranty plans last for a year. Some home warranty companies do have an option for customers to enroll in 3- or 5-year plans at a discounted rate.

    How can I cancel my home warranty?

    Each home warranty plan will have a different cancellation policy, but most will allow you to cancel within the first 30 days for a full refund. You may still be able to cancel after 30 days, but you’re likely to receive only a prorated refund. It’s important to review your contract to understand your company’s policy.

    The Bottom Line

    When choosing the right home warranty company for you, don’t hesitate to research and ask as many questions as necessary. The right home warranty can save you hundreds to thousands of dollars on maintaining your home.

    Consider asking your mortgage lender or real estate agent for recommendations on the best home warranty companies when you start looking at homes. This way, you’ll know which company to work with and can get preapproved for your mortgage without the added stress of looking for a home warranty.

     

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