The Best Home Warranty Companies Of 2021
October 13, 2021
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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. I’m sure you’ve wondered about the basics of what a home warranty is, while also considering what company you should get yours from.
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 home systems such as your plumbing or electrical, as well as major appliances which may include your dishwasher or air conditioner. In addition, you can 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, a home warranty is an expense that one should factor into home buying. Nevertheless, you should be aware that a good home warranty shouldn’t break the bank.
Here’s a list of top-ranked home warranty companies.
- American Home Shield - Best For Customization
- Liberty Home Guard - Best For Customer Service
- First American Home Warranty - Best For Reliability
- America's 1st Choice Home Club - Best Overall
- American Residential Home Warranty - Best For Pricing
- Cinch Home Services – Best For Additional Benefits
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.
Best For Customer Service
Liberty Home Guard
Liberty Home Guard is an up-and-coming home warranty company with only two years in the industry. Nonetheless, it has established strong relationships with homeowners and excelled in customer service, earning an A rating from the BBB.
Best for Reliability
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+.
Best Overall
America's 1st 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.
Best For Pricing
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.
Best For Additional Services
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.
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 1st 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:
- 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.
- 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.
- The Combo Plan ($59.99 per month): Covers everything offered by both the Appliances Plan and the Systems Plans.
- 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 to 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. In addition, 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:
- The Appliance Guard Plan ($39.99 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.
- The System Guard Plan ($49.99 per month): Covers essential home systems, including air conditioning, heating, ductwork, plumbing, electrical and water heater.
- The Total Home Guard Plan ($59.99 per month): Covers everything offered by both the Appliance Guard Plan and the System Guard Plans.
In addition to these home warranty plans, Liberty Home Guard offers optional coverage for these 20 items that you can include with any plan: pool and spa, additional spa, 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, and 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 per year. 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 if purchased through an optional add-on.
Plans Offered
First American Home Warranty offers two home warranty plans:
- The Basic Plan ($25 per month): Covers essential appliances, including washer and dryer, refrigerator, dishwasher, oven/range/cooktop, microwave, garbage disposal and trash compactor.
- 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, 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.
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.
In addition, 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.
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 one 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:
- 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.
- 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.
- The Silver Plan ($43.18 per month): Covers clothes washer and dryer, refrigerator, oven/range/stove, dishwasher, garbage disposal, and garage door opener.
- 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 American Residential Warranty’s service even better is their industry low service fee of only $55.
American Residential Warranty’s annual cost ranges from $300 – $1,500 per year.
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 beneficial for technology driven homeowners.
Plans Offered
American Residential Warranty offers seven home warranty plans:
- The Heating & Cooling Plan ($39.99 per month): Covers central air conditioning, central home heating, a humidifier, and interior electrical system.
- 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.
- 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.
- 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.
- 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.
- 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 line and sewer line.
- The Ultimate Electronics Protection Plan ($24.99 per month): Covers all of your new and used electronics.
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. And 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:
- The Appliances Plan: Covers 12 home appliances, including washers and dryers, dishwashers, microwaves, refrigerators, ranges and trash compactors.
- 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.
- 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.
Another red flag is if companies aren’t able to provide you with a sample contract by sending it to you or posting it on their website. It’s also a red flag 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.
What Is 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 will need 1% of your home’s value per year to put toward maintenance costs, including the home warranty.
What Is 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.
Ultimately, the Square Foot Rule states that you will need $1 per square foot of your home to keep for maintenance, including the home warranty.
What Home Warranties Typically Don’t Cover
- 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.
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**Star ratings determined based on Better Business Bureau rating and writer research. Be sure to do your individual research as these are suggestions only.