Consumer Advocacy
What you need to know
Home Warranties
  • Reputable companies offer transparent prices and service contracts
  • Read the fine print to find out what's covered and what's not
  • Keep an eye on appliance, system, and claim caps
  • Look for providers through the National Home Service Contract Association
Our Approach

How we analyzed the best Home Warranties

Transparency
The best home warranty companies clearly disclose their plan details, pricing, coverage limits, and exclusions. We looked at 13 companies and recommended the ones that offer sample contracts with concise language, readily available on their website.
Claims Processing
From start to finish, claims processing is at the top of our list. We reviewed providers that charge reasonable service call fees and give you sufficient time to notify them if their systems and appliances need further repairs.
Coverage Options
Flexible plans help you save by allowing you to choose the appliances or systems you want protected, and great home warranty companies offer enough options to cover more than just the basics.
Additional Benefits
Additional benefits are definitely a plus. Whether it's an added roof leak coverage, a no-fault protection plan or a discount on services, the best companies offer additional perks or bonuses for subscribing to their plans.
Customer Experience
Companies who offer 24/7 customer support and different means to reach out to them (email, live chat or social media) score highly with us. We spoke to service representatives and contractors to learn about the inner workings of the home warranty industry and offer the best solutions for both homeowners and realtors.
628 People found this helpful.
HelpfulNot Helpful
We receive compensation from these partners, which impacts the order they appear on the page. That said, the analyses and opinions on our site are our own and we believe in editorial integrity.

Our Top Picks: Home Warranties Reviews

Home Service Club review

Best home warranty for older homes

Because of its extensive coverage for appliance and home system repairs regardless of their age, The Home Service Club is our top home warranty pick for older homes. Plans are available in 49 states, and there is only a 10-day waiting period for coverage to kick in, while most other companies have a 30-day waiting period.

The plan covers more than most home warranty companies, with a list of 31 major appliances and systems, a 90-day guarantee on covered repairs, and a 30-day workmanship guarantee on labor. Customers can choose from 11 add-on options.

 

Screenshot hscwarranty.com, August 2019.

 

Coverage, cost and plans

The Home Service Club has three plan options, as well as 11 add-on options. 

  • Standard coverage: At approximately $50 per month or $650 per year, the standard plan covers items such as electrical systems, ductwork, water heaters and HVAC systems.
  • Comprehensive coverage: At around $63 per month or $800 per year, the comprehensive plan covers everything in the standard plan and includes items like plumbing stoppages, alarm wiring, sewers and water lines.
  • Optional add-ons: For around $5 to $21 a month, add-ons include things like jetted bathtubs, freestanding freezers, sewage ejector pumps, gas lines, sewers, plumbing sprinklers, water softeners and more.

Along with the monthly premiums or yearly fee, customers pay a service fee of $75 to $95.

Screenshot hscwarranty.com, August 2019.

Membership benefits

The Home Service Club boasts a nationwide network of more than 10,000 technicians and is a stable company with over a decade in business. Members benefit from 13 months of coverage even on annual plans, and warranties are available in 49 states.

Screenshot hscwarranty.com, August 2019.

Drawbacks

The premiums for a warranty are often higher than others, but the company makes up for that with quick repairs and an easy claims process. The Home Service Club also has slightly higher deductibles than other companies. 

 

See Details

Elite Home Warranties review

Best home warranty for prompt repairs

Home warranties often receive complaints about the time it takes for customers to get repairs done after filing a claim to their providers. While this issue may directly correlate to the high volume of claims some companies might be processing, it’s still a big drawback for customers, considering home warranties are supposed to take care of emergency repairs. 

This is not the case with Elite Home Warranty. The company has consistently received glowing reviews praising the timeliness in which members received services, among other things. That’s why Elite is our choice for prompt repairs.


 

Screenshot elitehw.com, August 2023

Coverage, cost and plans

Elite Home Warranty offers three main plans: Elite Appliances, Elite Systems, and Elite Complete. All plans have a service call fee of $75 and are purchased on a yearly basis.

  • Elite Appliances: Takes care of eight important appliances in your home including refrigerators, washers, dryers, ranges/stoves/cooktops, dishwashers, built-in microwaves, ceiling fans, and garbage disposals. This plan starts at $44.99 per month.

  • Elite Systems: Covers important systems that run your home, including air conditioning, heating, electrical, and plumbing, as well as plumbing stoppages, water heaters, and garage door openers. Elite Systems’ monthly cost starts at $49.99.

  • Elite Complete: A combination of both of the previously mentioned plans, combining the most important appliances and systems in your household. Due to its extensive coverage, the Elite Complete is the most expensive plan offered, starting at $59.99 per month.

Aside from these plans, Elite offers a fully customizable plan option. Customers who choose this plan are able to select as many items as they want or need covered. This plan starts at $79 per year.

Membership benefits

Elite Home Warranty customers are assigned a Claims Concierge to assist them with the claims process from start to finish. Additionally, the company allows members to choose their own contractors, or be serviced by one of its vetted professionals. Elite also offers a 90-day workmanship guarantee.

Drawbacks

Elite Home Warranty is currently not available for residents of California, Florida, Texas, Washington, or Wisconsin. In addition, Elite does not offer monthly payment options, which means customers must pay for a year in advance.

See Details

American Home Shield review

Best for Customized Coverage

Customization is highly desirable for any type of service, especially one that protects your valuables. Of the 13 companies we’ve researched, American Home Shield (AHS)  offers some of the most customizable coverage available.

Customers can choose among three different American Home Shield plans: ShieldSilver, ShieldGold, and Shield Platinum. The first is a systems-only plan. The second two cover both systems and appliances. The ShieldPlatinum plan features higher coverage limits on appliances, roof leak protection, and some routine maintenance tasks.

 

Screenshot from ahs.com 7/24/2023

 

AHS also lists optional coverages that can be included in any plan for an additional cost. These add-ons include pools and spas, well pump, septic pump, guest unit, and electronic extended warranties.

In addition, AHS allows you to choose how much you want to pay per trade service fee: $100, or $125, which alters how much you pay monthly for your plan. The higher the trade service fee, the lower the monthly payment (just like a deductible if you were purchasing an insurance policy).

 

The AHS website provides instant quotes. Customers need only enter their contact information, home address, and the plan they're interested in to find out how much it will cost. You can also see how your quote changes depending on the service call fee you select. 

User-Friendly Contracts & Customer Service

Transparency is key when it comes to earning a consumer’s trust. American Home Shield’s sample contract is well organized and easy to read, without confusing terminology or convoluted phrasing. Not all home warranty companies publish sample contracts (or some make them very difficult to find). So we give AHS points for allowing homeowners to educate themselves about specific coverage and coverage limits prior to purchasing a plan. 

The contract is easily accessible through the website, as well as the full list of limitations and exclusions, which are mentioned multiple times on both the main page and the contract. We found it particularly helpful that the exclusions, restrictions, and limitations are highlighted in bold typeface.

AHS doesn't require customers to provide service records on their appliances or systems before purchasing a warranty. The company stands out for clearly stating that it will cover items that have been poorly maintained and that if offers coverage for items with undetectable pre-existing conditions. No home inspection is required to purchase a plan. 

AHS is also very active on social media. Not only does the company answer questions and respond to posts, they also allow customers to freely express both their positive and negative experiences and reviews in the comments section of their Facebook and Twitter pages.

Since businesses have the option to hide or disable comments, we found it worthy of mention that AHS keeps customer comments visible to the public. The company also has received much online praise regarding its customer service.

To see for ourselves, our team called AHS to make general inquiries. We experienced a two-minute wait time and the representative was kind and informative.

Another admirable characteristic is the company’s intuitive and resourceful website. AHS educates customers on home warranty through informative blog posts and how-to videos, lists thorough FAQs, and provides live chat assistance for additional information.

It’s worthy to note that AHS has many resources, including home maintenance tips and "hacks." Prospective customers can browse the company’s Pinterest and YouTube page for how-to guides and learn home maintenance tips through its monthly newsletter. Additionally, customers have access to their contract, service requests, and more via their custom login accounts. Customer service is available 24/7 both online and via phone.

Drawbacks

AHS is one of the nation’s first home warranty companies, having been in business since 1971 and currently serving over 2 million customers. This is most likely why their reputation, as well as customer complaints, surpass competitors'.

Although AHS has over 17,000 contractors within its network, the company doesn’t have its full contractor directory online.

Also, we noticed a pattern in customer complaints regarding misunderstanding about coverage terms and dissatisfaction with the work of the company's contractors.

Because of this, we highly encourage consumers to do the following:

  • Read the fine print: “AHS has the sole right to determine, according to the terms of this contract, whether a covered item will be repaired or replaced.”

  • Have an emergency fund for appliances: Should a contractor find an appliance irreparable and the cash in lieu of the replacement isn’t enough, it’s beneficial to have money saved up.

See Details

Cinch Home Services review

Best home warranty for pre-existing conditions

Founded in 1988, Cinch Home Services is available in every state except California, Hawaii and Alaska. Their plans cover corrosion and rust damage, along with other pre-existing conditions that don’t always show up with a simple mechanical or visual inspection.

Cinch is also known for its extensive coverage plans that cover 30 appliances and systems. Their plans also have unique perks like a $500 reimbursement for any insurance claim filed during your contract terms. There is also a 180-day guarantee on replacements and repairs, compared to the 30-90 days of most home warranty companies.

Screenshot CinchWarranty.com, July 2023

Coverage, cost and plans

Cinch offers three monthly plans, along with three service fee options of $100, $125 or $150.

  • Appliances plan: Starting at $30.99 per month, this plan covers basic appliances like refrigerators, ranges, dishwashers, cooktops, washers, dryers and trash compactors.

  • Built-in Systems plan: Starting at $35.99 per month, this plan includes coverage for systems such as water heaters, central vacuums, attic fans, garbage disposals, garage door openers, plumbing systems and smoke detectors.
  • Complete Home plan: Starts at $44.99 per month and includes everything in the two previous plans along with a $500 homeowner’s insurance deductible reimbursement benefit per year.

Membership benefits

Cinch’s customers have access to an online account platform where they can request services by filling out a form. Customers can also check the status of their service requests through their accounts.

Drawbacks

Cinch is not available in California, Alaska or Hawaii.

 

See Details

2-10 review

Best home warranty for HVAC

Available in the lower 48 states, 2-10 Home Buyers Warranty offers affordable home warranty plans and coverage, as well as 20 additional coverage options. Among these are their HVAC Surplus and Pre-Season HVAC Tune Up add-ons, designed to offer coverage for additional systems and routine maintenance for peak seasons. These are great options for homeowners in areas where heating and cooling systems have to overcompensate for harsher conditions. 

Screenshot 2-10.com, July 2023

Coverage, cost and plans

2-10 Home Buyers Warranty offers three coverage plans and a long list of add-ons.

  • Simply Kitchen Plan: Covers main kitchen appliances starting at around $17 per month.
  • Complete Home: Includes coverage for kitchen appliances and includes electrical, plumbing, heating and cooling systems for about $46 per month.
  • Pinnacle Home: Includes coverage provided in Complete Home and Simply Kitchen and includes protection for alarm systems, faucets, shower heads, haul away and disposal fees, and more for approximately $60 a month.
  • HVAC Surplus add-on: For $10 per month, this add-on will cover repairs and/or replacements for one additional HVAC system within the home.
  • Pre-Season HVAC Tune Up ad-on: For $8 per month, this option covers a 28-point inspection and tune-up carried out by one of the company’s independent contractors before the peak seasons begin.

Buyers choose their own service fees, which range from $65 to $100.

Membership benefits

Members can save $5 a month if they sign up for an auto-renewal of their service agreement when they check out. The company website also offers a live chat and a service request tool through the member portal.

Drawbacks

2-10 Home Buyers Warranty does not offer services for residents of Alaska or Hawaii.

 

See Details

American Residential Warranty review

Best home warranty for plumbing

When up against competitors, American Residential Warranty stands out for their coverage of plumbing systems. With comprehensive coverage for internal and/or underground plumbing available, the company ensures customers will not have to worry about paying out-of-pocket for the different costs related to plumbing repairs. ARW home warranties are available in all 50 states and have no contract requirement. Homeowners can choose from annual or month-to-month plans. 

Screenshot AmericanResidentialWarranty.com, July 2023

Coverage, cost and plans

ARW home warranties come in four different plans:

  • Water and Sewer Line Combo: Starting at $17.98, the most basic plan covers driveway repaving, grass reseeding, excavation costs, line unblocking, and repairs related to problems with the water or sewer line. 
  • Kitchen Plus: This plan starts at $39.99 and includes repair and replacement services for water heaters, kitchen exhaust fans, dishwashers, refrigerators, garbage disposals, built-in microwaves and interior electrical systems.
  • Platinum Premier: With a starting cost of $64.99, the company’s most popular plan includes everything from the first two plans along with coverage for heating and cooling systems, ceiling fans, ductwork, humidifiers, garage door openers, and plumbing stoppages.
  • 4-in-1 Bundle: For $129.99, ARW’s premier plan includes all coverage from the first three plans and added protection for internal plumbing accessories, electronic devices, washers and dryers, garage door springs and tracks, mismatched systems, improper installation, toilets and internal mechanisms, permits, modifications, code violations, plumbing fixtures and faucets, refrigerant recapture and A/C refrigerant and coils.

Membership benefits

ARW partners with some of the most popular insurance companies in the world and works extensively with companies like Lowe’s, General Electric, and Ironwood Warranty Group. The company offers 24/7 service requests and assigns licensed, local contractors or lets customers choose the contractors they trust.

Drawbacks

The ARW cancellation process can be hard to understand, even with the option to cancel at all times. Smartphones aren’t covered under the electronics plan, and there is no option to file claims online.

See Details
Our Research

More insight into our methodology

Our team spent over 320 hours of research, interviewed experts, and read more than 13 service contracts to determine the five most important factors to consider when looking for the best home warranty companies.

When you purchase a brand new car, you can rest assured knowing it has a manufacturer-backed warranty. When you buy a new shirt from a department store, you have the confidence of knowing you can return it for a full refund.

Buying a new home, however, does not extend the same security to buyers. After all, once you’ve moved in, you can’t send it back, even if the air conditioning fails in the middle of the summer. A home warranty, however, can help homeowners handle those unexpected–and often expensive–mishaps.

Home warranties 101

A home warranty is a service contract that can help repair or replace systems and appliances in your home.

Not to be confused with homeowners insurance, which covers the home in case of damage from perils (fires, natural disasters, floods, etc.), a home warranty provides coverage for home systems and appliances that exhibit sudden failure or malfunction.

These are meant to provide homeowners with peace of mind by covering the unexpected costs of necessary repairs or replacements. Home warranty companies offer consumers warranty plans in which they agree to cover said expenses for a fixed period.

Unlike homeowners insurance, which mortgage lenders generally require before financing a home, home warranty plans aren’t mandatory. They are, however, convenient.

With 34 percent of American adults having less than $500 in savings, anyone who doesn’t have money set aside for a huge repair or replacement bill can benefit from a home warranty.

Home warranty plans are also ideal for homes with appliances that are a few years old. The average appliance lifespan is ten years, yet an average appliance warranty ends within a year after purchase.

How it works

Plans vary from company to company, but the majority operate in a similar way:

  1. An appliance or home system fails or breaks.
  2. The homeowner calls the home warranty company and submits a claim or service request.
  3. The home warranty company calls a service contractor with whom it has a partnership or is in its network of providers.
  4. That contractor then contacts the homeowner to schedule an appointment.
  5. The contractor fixes the problem and sends the home warranty company a bill for the repair service.
  6. The homeowner pays the contractor the agreed trade service fee listed in their home warranty contract.

What home warranties cover

Home warranties work similarly to insurance in that homeowners pay an annual or monthly fee to their provider in exchange for coverage of their home systems and appliances.

Depending on the contract, should the appliance or system be deemed irreparable by the contractor, the home warranty company will pay for a replacement. Coverage generally falls within two categories: systems and/or appliances.

Common Home Systems Covered:

  • Plumbing
  • Electrical wiring
  • Heating & Air conditioning
  • Water heaters
  • Garbage disposals
  • Doorbells

Common Home Appliances Covered:

  • Laundry machines
  • Refrigerators
  • Ovens & stoves
  • Dishwashers
  • Garage door openers

Popular Add-on Coverages

Some companies may offer coverage for additional items that homeowners can add to their warranty plans for an additional fee. General add-ons include:

  • Pools
  • Well pumps
  • Septic pumps and more

Consumers should be aware that not all systems and appliances are covered, so we highly recommend they read the policy’s fine print carefully before purchase.

Items Typically Not Covered:

  • Items with pre-existing conditions
  • Systems and appliances with previous repairs
  • Appliances outside the home
  • Anything already covered by homeowners insurance or manufacturer warranty

The pros and cons of home warranty plans

Home warranties are ideal for homeowners who are not in a financial position to cover the unexpected costs of repairs or replacements of home systems and appliances. With a predictable payment schedule and minimal premiums, a home warranty makes it easier for you to budget for repairs or replacements.

In addition, instead of having to find and communicate with contractors, the home warranty company takes care of that for you.

Since service providers are outsourced by warranty companies, they save you the time and effort of having to find a service provider on your own. Knowing that they’ll be connected with licensed, certified technicians can bring homeowners greater peace of mind.

Like any investment, there are a few things to consider before deciding if a home warranty is right for you. As mentioned above, home warranties typically have policy exclusions and coverage limitations, usually depending on the age, location, and condition of your home.

Some home warranty companies don't offer services nationwide and may have a limited network of technicians.

Also, keep in mind that homeowners are still required to pay service or visit fees, sometimes even if the system or appliance is deemed irreparable. In this case, when home warranty companies provide cash for replacement, the amount may be less than expected, since depreciation can affect its replacement value.

Transparency

The most crucial factor to focus on when shopping around for a home warranty is transparency, and that applies to both contract language and terminology as well as online advertisements. Most negative online customer reviews for the home warranty industry revolve around claims being denied. To get the most out of your warranty and truly understand what you're paying for, you need to know what's covered under your plan, how your plan works, and what your responsibilities are as a homeowner. Only do business with companies that provide sample contracts for your area or state, and read these thoroughly before making a purchase decision. Great companies will use accessible language and terminology or have representatives available to answer your questions online or over the phone.

Home warranty claims processing 

When do you truly know when your home warranty provider is up to par? When it's time to file a claim. Consumers tend to purchase home warranties as a gift to the new homeowners when they sell their house or as a gift to themselves as they're about to move to a new home. Many, however, don't use their warranties for years, opting to auto-renew their plans as a backup, but never taking the time to understand how they work.

In a nutshell, when a covered system or appliance breaks down, you can file a claim with your warranty company for repair. Most companies offer round-the-clock customer service and support and can schedule your repair in as little as 24-48 hours. The choice of repair technician is usually up to the warranty provider unless they explicitly state you're allowed to choose your own. Once the company has set up the repair appointment for you, the technician will come to your home to assess the damage and confirm what's covered under your warranty.

A good home warranty provider will give you a clear explanation about what this process entails and what your responsibilities will be. There's typically a service fee that's charged per visit unless the technician is returning to your home for additional repairs to a system or appliance they recently worked on. Repairs are guaranteed for a specified period, and covered claims are typically approved for systems and appliances that have been well maintained. Whether or not your provider requires it, it's never a bad idea to keep a maintenance log as a safety precaution.

Coverage options

Coverage refers to the specific systems and appliances that your home warranty includes in their plan. In order to determine the value of a given plan we looked at the cost of the premium and service fee in comparison with the amount of items covered, the payout limits (caps), and the cost of any additional items.

Most home warranties provide a system plan an appliance plan, and maybe some kind of hybrid plan of the two. Some items that are universally covered by all home warranty companies include:

  • Heating
  • Electrical
  • Plumbing
  • Water Heater
  • Ovens
  • Refrigerator
  • Dishwasher
  • Washer & Dryer
  • Garbage Disposal
  • Garage Door Opener

We gave extra points in this area for the companies that allow customers to customize their plans, either by adding or choosing which specific items they need coverage for. Companies with a robust list of add-on features also score highly. However, the highest ranked are those whose standard plans included items that would mean additional costs with other companies, such as whirlpools, sump pumps, septic tanks, and central vacuum systems.

Some items that would generally be considered add-ons include:

  • Pool/Spa
  • Septic Tank
  • Water Softener
  • Second Refrigerator

This is not a matter of ranking the lowest costs versus the highest. We looked at the relationship between covered items, payout caps, cost of service fees, and deductibles. A given company might offer a rock bottom premium, but you can be sure you’re getting a plan that’s not worth the paper it’s printed on. We looked for a robust list of covered items at competitive prices, with additional items included. 

Some home warranties offer you the ability to customize your deductible and/or service fee. We rank these plans highly, as they give the customer more control of their plan, allowing them to tailor it to their individual needs and financial situation.

Home warranty discounts and perks

Additional benefits are always a plus, and many home warranty companies offer perks that compliment their services and add value to their warranties. Be it added roof-leak coverage, discounted services or no-fault protection, extras can make or break a deal when it comes to products for which there's a lot of competition. Consider your options carefully and go with a company that offers standard protection, added value, and excellent support.

Customer experience

Round-the-clock customer support is now a staple in many industries, and home warranties are no exception. We looked at providers who offer 24/7 customer service and different ways to reach out. To ensure the companies on our list are all they claim to be when it comes to customer support, we also called their service lines as homeowners and inquired about their products and services on different days and at different times. In our book, a great home warranty provider is one that goes above and beyond to give thorough explanations and offer support during the most challenging times. If your central heating system broke down in the dead of winter, we're sure you'd agree this aspect is just as important as any other.

 

Transparency

The most crucial factor to focus on when shopping around for a home warranty is transparency, and that applies to both contract language and terminology as well as online advertisements. Most negative online customer reviews for the home warranty industry revolve around claims being denied. To get the most out of your warranty and truly understand what you're paying for, you need to know what's covered under your plan, how your plan works, and what your responsibilities are as a homeowner. Only do business with companies that provide sample contracts for your area or state, and read these thoroughly before making a purchase decision. Great companies will use accessible language and terminology or have representatives available to answer your questions online or over the phone.

Claims Processing

When do you truly know when your home warranty provider is up to par? When it's time to file a claim. Consumers tend to purchase home warranties as a gift to the new homeowners when they sell their house or as a gift to themselves as they're about to move to a new home. Many, however, don't use their warranties for years, opting to auto-renew their plans as a backup, but never taking the time to understand how they work.

In a nutshell, when a covered system or appliance breaks down, you can file a claim with your warranty company for repair. Most companies offer round-the-clock customer service and support and can schedule your repair in as little as 24-48 hours. The choice of repair technician is usually up to the warranty provider unless they explicitly state you're allowed to choose your own. Once the company has set up the repair appointment for you, the technician will come to your home to assess the damage and confirm what's covered under your warranty.

A good home warranty provider will give you a clear explanation about what this process entails and what your responsibilities will be. There's typically a service fee that's charged per visit unless the technician is returning to your home for additional repairs to system or appliance they recently worked on. Repairs are guaranteed for a specified period, and covered claims are typically approved for systems and appliances that have been well maintained. Whether or not your prover requires it, it's never a bad idea to keep a maintenance log as a safety precaution.

Coverage Options

Coverage refers to the specific systems and appliances that your home warranty includes in their plan. In order to determine the value of a given plan we looked at the cost of the premium and service fee in comparison with the amount of items covered, the payout limits (caps), and the cost of any additional items.

Most home warranties provide a system plan an appliance plan, and maybe some kind of hybrid plan of the two. Some items that are universally covered by all home warranty companies include:

  • Heating
  • Electrical
  • Plumbing
  • Water Heater
  • Ovens
  • Refigerator
  • Dishwasher
  • Washer & Dryer
  • Garbage Disposal
  • Garage Door Opener

We gave extra points in this area for the companies that allow customers to customize their plans, either by adding or choosing which specific items they need coverage for. Companies with a robust list of add-on features also score highly. However, the highest ranked are those whose standard plans included items that would mean additional costs with other companies, such as whirlpools, sump pumps, septic tanks, and central vacuum systems.

Some items that would generally be considered add-ons include:

  • Pool/Spa
  • Septic Tank
  • Water Softener
  • Second Refrigerator

This is not a matter of ranking the lowest costs versus the highest. We looked at the relationship between covered items, payout caps, cost of service fee, and deductible. A given company might offer a rock bottom premium, but you can be sure you’re getting a plan that’s not worth the paper it’s printed on. We looked for a robust list of covered items at competitive prices, with additional items included. 

Some home warranties offer you the ability to customize your deductible and/or service fee. We rank these plans highly, as they give the customer more control of their plan, allowing them to tailor it to their individual needs and financial situation.

Additional Benefits

Additional benefits are always a plus, and many home warranty companies offer perks that compliment their services and add value to their warranties. Be it added roof-leak coverage, discounted services or no-fault protection, extras can make or break a deal when it comes to products for which there's a lot of competition. Consider your options carefully and go with a company that offers standard protection, added value, and excellent support.

Customer Experience

Round-the-clock customer support is now a staple in many industries, and home warranties are no exception. We looked at providers who offer 24/7 customer service and different ways to reach out. To ensure the companies on our list are all they claim to be when it comes to customer support, we also called their service lines as homeowners and inquired about their products and services on different days and at different times. In our book, a great home warranty provider is one that goes above and beyond to give thorough explanations and offer support during the most challenging times. If your central heating system broke down in the dead of winter, we're sure you'd agree this aspect is just as important as any other.

Helpful information about Home Warranties

We understand there’s a lot to think about before choosing a home warranty provider. That’s why our researchers and editors spent over 320 hours reviewing the home warranty industry, comparing multiple companies and contracts, and even reaching out to get advice from experts such as professional contractors and industry attorneys.

Before making a final decision, here’s what you need to know:

Common Misunderstandings About the Industry

A common problem we noticed while reviewing hundreds of online complaints regarding the home warranty industry is how hard it is for consumers to understand contracts. A warranty is not an insurance plan—it’s a service contract. It has service fees instead of deductibles and providers are not obligated to cover everything.

Exemptions and exclusions are not always obvious, so it’s important to read the contract's fine print. Also, coverage differs from policy to policy and from state to state, so comparing your policy to that of a friend or family member in another state may not be ideal.

State Regulations

The most important thing a home warranty company must prove—as well as any other company offering services to consumers—is whether it is legally allowed to do business in a particular state. That means the company is accountable to follow the regulations of the industry by an authority in that state.

In many states, the home warranty industry is regulated by its state’s Commissioner of Insurance or department of consumer protection. Keep in mind, however, that each state has its own rules and regulations.

In some states, such as Delaware, a home warranty company is classified as a risk retention group and is therefore exempt from state regulations.

As a consumer, you are entitled to protection against malpractice, fraud, and other illegal actions that may be committed by a home warranty company.

In the event a company doesn't perform the services promised to you in the contract, or has deceived you into signing a contract in which it does not service your state, the state regulator is where you have to go to file a complaint.

Before choosing a home warranty company, we recommend consumers research and review home warranty regulations in their home state, as well as federal laws.

To find out the regulator of your particular state, you can use our map below:   

Common Mistakes that Result in Customer Dissatisfaction

When you don't understand your contract or don’t read the fine print, it can cost you.

We spoke with Timothy Meenan, attorney and Board Counsel to the Florida Insurance Guaranty Association about this issue. His advice? Read the contract thoroughly.  “One of the things I tell customers to do is research. Read what’s covered, but also read what’s not covered. Take time after you get the actual terms and conditions. Spend five minutes reading the exclusions and coverages.”

Another common mistake is not being aware of your system or appliance’s failing condition. We’ve analyzed hundreds of customer reviews online that consist of complaints about the home warranty company in regards to dissatisfying service performed by the contractor.

Our team spoke with Rich Morgan, owner of Magic Touch Mechanical in Phoenix, Arizona and professional contractor with over 30 years of experience in HVAC.

Morgan, who attested to this experience, said that “when you [contractors] see equipment that's in a state of disrepair or presents a problem that a previous technician might not have gotten to the root of, you think about the wear and tear on the entire system. It’s difficult to point out and they [customers] aren't happy when you do it.”

Last, consumers should remember that the service contractors may not be from the home warranty company. While companies should be aware of who they hire, customers should keep in mind that one contractor’s work doesn’t account for the other thousands working with that warranty company.

It’s best to contact your home warranty company directly and submit a complaint to customer service about the particular contractor sent to you. Some companies allow you to find your own contractor and will take care of the service bill.

According to Todd Washam, Director of Industry and External Relations for Air Conditioning Contractors of America (ACCA), word of mouth is still the best referral method. Talk to your friends, neighbors, and coworkers to see who they like and would recommend to you.

What To Watch Out For When Buying A Home Warranty

The home warranty industry isn’t the easiest to navigate. To get the best service for your home or the property you're selling, there are a few things you need to keep an eye on, including policy exclusions, limitations, overall costs, and reputation.

That’s why it’s so important to research each company, as this will give you the insight you need to make the right call. To help you with this first step, we’ve gathered the top five things to watch out for when purchasing a home warranty.

It's also very important for you to know that the home warranty industry isn’t the most ethical industry out there. Most companies have overwhelmingly negative reviews on consumer review websites like the Better Business Bureau, with the majority of complaints involving claim denials due to plan exclusions.

Companies have been sued over allegedly practicing what is known as bad faith insurance, where a customer’s claim is delayed or wrongly denied by the home warranty company.

For example, in 2015, Choice Home Warranty agreed to pay nearly $800,000 to settle a lawsuit brought by the New Jersey attorney general for using “creative and deceptive means to deny their customer’s claims.”

Additionally, other companies have been found guilty of illegally selling system and appliance protection plans without proper licensing.

Read the Terms and Conditions Carefully

The first and most important step you should take is to carefully read your contract. This will let you know whether the benefits are worth the cost or if there are other companies offering better alternatives.

As with many industries, home warranty companies offer different plans, policies, and costs.

Spend all the time you need to read each service contract, leaving no stone unturned. Check which appliances and/or systems are covered under each plan, what they exclude, and the coverage limitations for each system and appliance.

For example, basic home warranties cover typical appliances like dishwashers, microwaves, refrigerators, and washing machines, but they don’t all cover less familiar appliances or house systems such as doorbells, fans, septic tanks, and garbage disposals.

Some of these can be added as optional coverages, but they come at an additional cost.

Look at Common Exclusions

You will want to check how systems and appliances are covered by examining the limits and exclusions to the coverage for each system and appliance.

Typically, home warranties only cover malfunctions due to normal wear and tear, and they usually don’t cover preexisting conditions (mechanical problems before the plan kicked in) or failures due to unforeseen circumstances such as lack of proper maintenance, rust, or corrosion.

Additionally, home warranties only cover the mechanics of an appliance or system and excludes anything not mechanical. For example, a home warranty would cover all mechanical components of an oven, but it wouldn’t cover handles, hinges, doors, seals, glass or lighting.  

Some companies offer coverage for these circumstances as standard, while others offer them as optional add-ons. For this reason, you need to be clear on what is and isn’t covered on a contract, since most home warranty conflicts derive from customers not understanding the coverage their plans provide.

Beware of hidden language in home warranty contracts

Although there are well-organized and clearly-worded home warranty contracts out there, most contracts use complex sentence structures that can cause readers to skim over specific clauses that may hinder or limit their understanding of covered items.

Additionally, contracts can use subjective wording that, if not read carefully, can lead customers to agree to clauses that don’t benefit them.

The two best examples are “properly maintained” and “normal wear and tear.” Many companies only cover systems that break down due to normal use and aging, but they also can deny claims if said items weren't properly cleaned or taken care of by the customer.

A homeowner or realtor can conclude their appliance or system broke down due to age, but the scheduled contractor may determine the opposite, stating the failure was due to improper maintenance.

To prevent this, you should always read the contract thoroughly, especially the sections involving exclusions, restrictions, and limitations. You should also ask about any unclear terminology and keep certified maintenance records of your systems and appliances to prove you've been taking care of them properly.

Get three home warranty quotes before buying a plan

We highly recommend that you don't settle for one policy, but instead, review at least three home warranty companies that interest you and see if they've published sample contracts online.

It’s best to get quotes from at least three different companies and compare benefits and price ranges. If you call or contact them by live chat or email, ask all the questions you feel are necessary to make an informative decision.

Trends to be aware of in the home warranty industry

Keeping an eye on current housing market trends can play a role in saving you money on premiums. Let’s review some current trends:

  1. Some realtors make agreements with home warranty companies to refer their clients to them, but realtors shouldn’t accept compensation as it could possibly violate the Real Estate Settlement Procedures Act (RESPA), i.e., buyers aren’t obligated to purchase a home warranty from any specific provider.

  2. It’s ideal to get your home inspected by a professional who can offer suggestions on whether or not a warranty is necessary—there are circumstances where home warranties aren’t needed. For example, if a home’s systems or appliances are all new, they are usually protected by a manufacturer’s warranty. Home warranty companies don’t cover anything that’s covered under another type of warranty, so purchasing this type of product for brand new systems and appliances would be impractical.

FAQs about Home Warranties

What is a home warranty?

A home warranty is a service contract that covers the repair or replacement of your home’s systems and appliances not covered under your homeowners insurance. Home warranties are meant to protect homeowners from unexpected expenses resulting from sudden system or appliance breakdowns. Be wary though that not all systems and appliances are covered, so make sure to carefully read the policy’s fine print before purchasing any home warranty policy.

How do home warranties work?

Home warranties work similar to many types of insurance. Homeowners or renters pay a yearly premium in exchange for coverage of their home systems and appliances. When a system or appliance stops working, the homeowner submits a claim with their home warranty company. The company then contacts a local service technician to schedule an evaluation appointment where it will be determined to repair or replace the broken system or appliance. In exchange, the homeowner pays a visitation fee.

What does a home warranty cover?

Although coverage varies by company and the home’s geographic location, basic home warranty policies do cover common home appliances and systems, such as air conditioning units, refrigerators, ovens, dishwashers, garbage disposals, and plumbing fixtures. If a specific appliance or system is not included in the basic warranty, coverage is usually available at an additional cost.

What is the difference between home warranties and home insurance?

While the terms "insurance" and "warranty" both imply some type of protection for homeowners, they mean different things. Insurance pays for loss and damage caused by forces outside your control such as fire, weather and vandalism. If your home is damaged or destroyed by these events, insurance is used to rebuild and replace it.

Home warranties cover the replacement and repair of certain systems and appliances, generally necessitated by normal wear and tear or aging. 

One way to remember the difference is that insurance covers unexpected damage, while warranties cover breakdowns and problems that you expect after a certain amount of use.

How much does a home warranty cost?

Generally, the cost can range between $300 and $600 annually. This does not include optional coverage, which can add $100 to $600 depending on how many extra systems and appliances a customer covers. Furthermore, home service fees can fall between $75 and $125, depending on the warranty company, the service provider, and the appliance or system in question.

When does home warranty coverage start?

For homebuyers, the typical wait time for a policy is 30 days after the closing, when the title is transferred to the new owner. For sellers, coverage usually begins after the receipt of a contract number and will continue throughout the initial listing period or until close of sale, whichever comes first. Since all companies vary in their policies, it is important to read the fine print to confirm a contract’s start time and duration.

Are home warranties worth it?

Home warranties can be an excellent savings tool, but we do encourage you to study what each company has to offer. Carefully examine each contract to learn about the exclusions and limitations. By knowing the exact coverage details and parameters, you will make sure that there will be no surprises down the line.

How soon can you use a home warranty after purchase?

Each company has a different policy, but on average, most home warranties can be used within 30 days of the first payment on the warranty. 

Why was my home warranty claim denied?

Appliance and system claims can be denied due to pre-existing conditions, improper installation, or lack of maintenance. Most companies do not cover pre-existing conditions or improper maintenance, which is why it is important to read your contract to know what they do or do not cover.

Our Home Warranties Review Summed Up

Company NameBest for
Home Service Club Home WarrantyOlder homes
Cinch Home Services Home WarrantiesPre-existing conditions
American Residential WarrantyPlumbing
American Home ShieldCustomized coverage
2-10 Home Buyers WarrantyHVAC
We receive compensation from these partners
Read a summary of our top picks.

Latest From Our Editors

Best Home Appliance Insurance
What Home Warranties Do and Do Not Cover
Should You Renew Your Home Warranty?