The best home warranty companies of 2023

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

• Best Home Warranty Company For Customization: American Home Shield
• Best Home Warranty Company For Customer Service: Liberty Home Guard
• Best Home Warranty Company For Reliability: First American Home Warranty
• Best Home Warranty Company Overall: America's 1st Choice Home Club
• Best Home Warranty Company For Pricing: American Residential Home Warranty
• Best Home Warranty Company For Additional Benefits: Cinch Home Services

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.

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.

*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.

ShieldSilver^TM (Starting at $39.99 Per Month)

ShieldSilver^TM offers entry-level home coverage that provides repairs to:

• Heating and cooling systems
• Electrical systems
• Plumbing systems

ShieldGold^TM (Starting at $59.99 Per Month)

In addition to the coverage offered by ShieldSilver^TM, ShieldGold^TM offers coverage that provides repairs to:

• Kitchen appliances
• Laundry appliances

ShieldPlatinum^TM (Starting at $89.99 Per Month)

In addition to the coverage offered by ShieldSilver^TM and ShieldGold^TM, ShieldPlatinum^TM 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 totaling only $65. The annual cost of a home warranty plan with Liberty Home Guard ranges from $600 – $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.

Liberty Home Guard offers three home warranty plans in all 50 states:

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 $69.99 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 $480 – $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 $40.00 Per Month)

This entry-level plan covers:

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

The Silver Plan (Starting At $33.00 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 $47.00 Per Month)

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

The Platinum Plan (Starting At $52.00 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.

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.