The Best Home Warranty Companies Of 2022

August 11, 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.

    If you’re a new homeowner, you might be considering a home warranty – especially if you aren’t too confident in your ability to make home repairs.

    What Is A Home Warranty?

    A home warranty is a service contract that covers the cost of repairing or replacing any major systems and/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 you for accidents on 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.

    Are Home Warranties Worth It?

    Only you can answer that question. It depends on how handy you are whether you have a high or low tolerance for risk and repair disruptions and whether you’d prefer to pay for a warranty each month or risk a repair bill large enough to break your monthly budget if something breaks down.

    The Best Home Warranty Companies

    Our Picks For Best Home Warranty Companies

    What’s best for you depends on what you’re looking for. There’s no one-size-fits-all home warranty plan. We’ve broken down our rankings into several categories to make it easier for you to find the companies with the features most important to you.

    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

    Best For Making A Claim

    Priority Home Warranty Logo

    Priority Home Warranty

    Priority Home Warranty brings advanced technology that helps simplify the claims process and makes it more transparent. Along with the option to call in a service request, clients can also fill out a two-step claim form that is delivered from their online account within 30 seconds. After they make a claim, clients can then monitor the process from start to finish in real time using priority’s live tracker.

    4/5

    Rating

    $399 – $449

    Annual Cost

    $75 - $125

    Service Fee

    How We Chose The Best Home Warranty Companies

    When researching and comparing each home warranty company, we followed specific criteria that considered the best companies for customization, customer service, reliability, pricing and the best for overall coverage and service.

    Pricing varies depending on where you live and the cost of labor in your area. For this reason, your best bet for comparison shopping is to visit each company’s website before deciding which plan best fits into your budget.

    To give you a starting point for comparison, we’ll give you the quote we got in our zip code: 48226 in Detroit. Prices reflect monthly payment based on a 1-year warranty period for a single-family home less than 5,000 square feet.

    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 Priority Home Warranty
    Best For Customization Customer Service Reliability Overall Pricing Additional Benefits Making A Claim
    Pricing $480 - $1,000+ $480 - $720 $432 - $456 $518 - $709 $300 - $1,500 $336 – $480 $399 – $449
    Service Fee $75 - $125 $60 $75 $75 - $125 $55 $100 – $150 $60

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

    Best Home Warranty Company For Customization: American Home Shield

    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 appliances and systems, and they also require prior authorization if homeowners choose to use their own technicians.

    American Home Shield offers four home warranty plans.

    ShieldSilverTM (Starting at $34.99 Per Month)

    ShieldSilverTM offers entry-level home coverage that provides repairs to:

    • Heating and cooling systems
    • Electrical systems
    • Plumbing systems

    ShieldGoldTM (Starting at $44.99 Per Month)

    In addition to the coverage offered by ShieldSilverTM, ShieldGoldTM offers coverage that provides repairs to:

    • Kitchen appliances
    • Laundry appliances

    ShieldPlatinumTM (Starting at $74.99 Per Month)

    In addition to the coverage offered by ShieldSilverTM and ShieldGoldTM, ShieldPlatinumTM offers coverage that provides:

    • Roof leak repairs
    • Free HVAC tune-up
    • Unlimited A/C refrigerant
    • Coverage for code violations and permits

    Add-On Coverage

    • Electronics: You can choose add-on coverage to protect an unlimited number of new and used devices like TVs, laptops and more.
    • Pool and spa: This add-on covers the components of your heating, pumping and filtration systems.

    Best Home Warranty Company For Customer Service: Liberty Home Guard

    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 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.

    Liberty Home Guard offers three home warranty plans:

    The Home Appliance Guard Plan (Starting at $49.99 Per Month)

    This plan covers your:

    • Clothes washer
    • Clothes dryer
    • Kitchen refrigerator
    • Built-in microwave ovens
    • Dishwashers
    • Garbage disposals
    • Ranges/ovens/cooktops
    • Ceiling and exhaust fans
    • Garage door openers

    The System Guard Plan (Starting at $54.99 Per Month)

    This plan covers:

    • Air conditioning
    • Heating
    • Ductwork
    • Plumbing
    • Electrical
    • Water heaters

    The Total Home Guard Plan (Starting at $59.99 Per Month)

    This plan covers everything offered by both the Appliance Guard Plan and the System Guard Plans.

    Liberty Home Guard also offers optional coverage for these 19 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
    • Re-key
    • Second refrigerator
    • Well pump
    • Fixtures (lighting and plumbing)
    • Water softener
    • Lawn sprinkler system
    • Electronics protection
    • Swamp cooler
    • Ejector pump
    • Grinder pump

    Best Home Warranty Company For Reliability: First American Home Warranty 

    BBB Rating: B+

    First American Home Warranty (FA) home warranties offer 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.

    First American (FA) Home Warranty offers two main home warranty plans, but exactly what they offer depends on where you live. You’ll have to provide your zip code to find out exactly what services are available.

    The Basic Plan (Starting at $38.00 Per Month)

    This plan covers essential appliances including:

    • Washer and dryer
    • Refrigerator
    • Dishwasher
    • Oven/range/cooktop
    • Microwave
    • Garbage disposal
    • Trash compactor

    The plan may include more depending on your location.

    The Premier Plan (Starting at $48.50 Per Month)

    This plan covers major home systems and appliances including everything in the Basic Plan plus:

    • Plumbing, including plumbing stoppages
    • Heating system
    • Water heaters
    • Electrical systems
    • Garage door opener
    • Ductwork
    • Central vacuum system

    It may include more depending on your location.

    Add-On Coverage

    The FA warranty offers optional coverage add-ons for an additional cost including central air conditioning system, secondary refrigeration, pool and spa equipment, and well pump protection.

    It also offers an additional first-class upgrade which covers cosmetic damage on home systems or appliances, along with other benefits. More information about FA warranty plans’ first-class upgrade and coverage exclusions can be found on its website.

    Best Home Warranty Company Overall: America’s First Choice Home Club

    BBB Rating: B

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

    AFC Home Club has 24/7 customer service that 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 tune up coverage or optional roof leak coverage.

    AFC Home Club offers four home warranty plans.

    The Systems Plan (Starting At $43.75 Per Month)

    This entry-level plan covers:

    • Air-conditioning
    • Heating systems
    • Water heaters
    • Electrical systems
    • Plumbing systems
    • Ductwork

    The Silver Plan (Starting At $33.33 Per Month)

    This plan covers:

    • Clothes dryers
    • Clothes washers
    • Kitchen refrigerators
    • Ovens
    • Ranges
    • Dishwashers
    • Garbage disposals
    • Garage door openers

    It does not build on the Systems Plan and the coverage offered by the Systems Plan is not included in the Silver Plan.

    The Gold Plan (Starting At $45.83 Per Month)

    This plan combines the Silver and Systems Plans to provide strong overall warranty coverage.

    The Platinum Plan (Starting At $50.00 Per Month)

    This is the most comprehensive coverage that AFC Home Club offers. It covers your major home systems and appliances and also includes coverage for your:

    • Clothes dryer
    • Clothes washer
    • Kitchen refrigerator
    • Oven
    • Range
    • Ice maker
    • Dishwasher
    • Built-in microwave
    • Garbage disposal
    • Garage door opener
    • Air conditioning
    • Heating system
    • Water heater
    • Electrical system
    • Plumbing stoppages
    • Plumbing system
    • Ductwork
    • Fans

    AFC Home Club also offers optional coverage for items such as: 

    • Sump pump
    • Well pump
    • Pool and spa
    • Septic system
    • Hot water dispenser
    • Standalone freezer
    • Central vacuum
    • Tankless water heater

    Best Home Warranty Company For Pricing: American Residential Home Warranty

    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.

    American Residential Warranty offers three home warranty plans and three add-on bundles – services grouped together at a discount. But their plans are highly customizable so that you can pick and choose from a menu of services to get exactly the coverage you need.

    The Kitchen Plus Plan (Starting At $39.99 Per Month)

    This plan covers:

    • Built-in microwave
    • Dishwasher
    • Garbage disposal
    • Interior electrical system
    • Kitchen exhaust fan
    • Range/oven/cooktop
    • Refrigerator (not including ice maker)
    • Water heater

    The Platinum Premier Plan (Starting At $64.99 Per Month)

    This plan covers:

    • Built-in microwave
    • Ceiling fans
    • Central air conditioning
    • Central home heating
    • Dishwasher
    • Ductwork
    • Garage door opener
    • Garbage disposal
    • Humidifier
    • Interior electrical system
    • Kitchen exhaust fan
    • Plumbing stoppages (fixtures not included)
    • Plumbing system (fixtures not included)
    • Range/oven/cooktop
    • Range hood
    • Refrigerator (including ice maker)
    • Water heater

    The 4-in-1 Bundle (Starting At $129.99 Per Month)

    The 4-in-1 Bundle combines the Platinum Premier plan with three bundles: Deluxe Advantage, Ultimate Electronics Protection and Sewer and Water Lines Protection.

    Deluxe Advantage offers coverage for:

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

    The Ultimate Electronics Protection offers coverage for:

    • Flat screen TVs
    • Home theater system
    • Desktops/laptops
    • Tablets
    • Gaming consoles
    • Any other home electronics

    Sewer and Water Lines Protection offers coverage for all costs related to repairing or unblocking sewer and water lines including excavation costs, re-seeding the grass or re-paving the driveway.

    Best Home Warranty Company For Additional Benefits: Cinch Home Services

    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.

    Cinch Home Services offers three home warranty plans:

    The Home Appliances Plan (Starting At $29.99 Per Month)

    This plan covers kitchen and laundry appliances. It covers:

    • Clothes Dryers
    • Clothes Washers
    • Cooktops
    • Dishwashers
    • Food Centers (Built-in)
    • Freestanding Ice Makers
    • Microwaves (Built-in)
    • Ranges
    • Range Exhaust Hoods
    • Refrigerators
    • Trash Compactors (Built-in)
    • Wall Ovens

    The Built-In Systems Plan (Starting At $35.99 Per Month)

    This plan covers 16 major and minor systems in the home including:

    • Air conditioning including ductwork
    • Attic fans
    • Ceiling fans
    • Central vacuums
    • Doorbells
    • Electrical system
    • Garage door openers
    • Garbage disposals
    • Heating system including ductwork
    • Instant hot/cold water dispensers
    • Plumbing system
    • Smoke detectors
    • Sump pumps
    • Toilets
    • Water heaters
    • Whirlpool/jetted tub (built-in)

    The Complete Home Plan (Starting At $44.99 Per Month)

    This 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.

    Best Home Warranty Company For Making A Claim: Priority Home Warranty

    BBB Rating: Not yet rated on BBB.

    Priority Home Warranty clients have the option of calling the company to make a claim or going through a simple two-step claim form process. Along with featuring a live real-time tracker that allows clients to monitor their claims from start to finish, this home warranty company offers a 90-day workmanship guarantee. If the problem isn’t fixed, they send the licensed, insured and bonded technician back to find a resolution.

    At the time of writing, the company is offering 3 months of free coverage and has a 30-day money back guarantee for clients. Those who miss the 30-day window can still cancel at any time and get a prorated refund. Please check their website for any current promotions.

    The downsides of Priority Home Warranty are that it is only offered in 27 states at the time of this writing and has a $50 cancellation fee.

    Priority Home Warranty clients can choose from three different plans. While the company has three plans that allow clients to choose protection for their appliances or systems or both, it does offer many optional add-ons including protection for second appliances.

    Home Appliance Home Care (Starting At $43.75 Per Month)

    The Appliance Home Care plan protects nine home appliances including:

    • Clothes Washer
    • Clothes Dryer
    • Kitchen Refrigerator
    • Built-In Microwave
    • Dishwasher
    • Garbage Disposal
    • Oven/Range/Stove
    • Cooktop
    • Ceiling & Exhaust Fans

    Systems Home Care (Starting At $43.75 Per Month)

    This plan covers eight home systems, including:

    • Air-conditioning
    • Heating
    • Electrical
    • Plumbing
    • Plumbing stoppages
    • Water heater
    • Whirlpool bathtub
    • Ductwork

    Total Home Care (Starting At $55.00 Per Month)

    The Total Home Care plan protects both and –  according to Priority Home Warranty – is the best value. It covers all of the 17 different appliances and systems covered in the individual plans mentioned above.

    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 they mention 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 a general guideline 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 on the size of your home rather than its estimated value.

    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.

    Best Home Warranty Plans FAQs

    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: The Best Home Warranties Plans Offer Priceless Peace Of Mind

    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.

    Ready to embark on your journey to homeownership? Apply for approval today and set your home buying budget. You can also give us a call at (833) 326-6018.

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