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Best Home Warranty Companies in US

May 2024

Owning a home can come with significant maintenance costs. For instance, if your water heater begins to fail or your refrigerator stops working, you could face substantial repair or replacement expenses. A home warranty, available for a modest monthly fee, can help alleviate these burdens by covering the costs of repairing or replacing malfunctioning items.

Our Top Choice

Plus500

$50/month

CHOICE - Best Home Warranty in Overall

15,000+ local pre-screened technicians

Handled over 6,600,000 service requests

Covers over 2 million homes across America

First month free when

#1

MOST POPULAR

BEST HOME WARRANTY 2024

Read more

EXCELLENT

REVIEW

5.0

05/2024

What is a Home Warranty, How It Works, and What It Covers

A home warranty is a contractual agreement that provides for the repair or replacement of a home's systems and appliances. Unlike homeowners insurance, which covers the home's structure and contents from damage, a home warranty does not cover items like home furnishings. Although electronics and other specific items are typically not covered under a standard home warranty, many companies offer additional coverage options through riders for almost any home system or appliance.


A home warranty typically requires an annual fee and service fees charged when a claim is made. When a homeowner files a claim, service contractors are dispatched to address the issue. Typically, covered items are repaired or replaced within 48-72 hours, according to the service contract terms


Home warranties generally cover essential home appliances such as refrigerators, washing machines, dryers, dishwashers, microwave ovens, and stoves. They also extend to crucial home systems like HVAC, plumbing, water heaters, and electrical systems. Many policies also allow homeowners to add coverage for items like swimming pools, hot tubs, and outdoor appliances.

The Results

Plus500

$50/month

CHOICE - Best Home Warranty in Overall

15,000+ local pre-screened technicians

Handled over 6,600,000 service requests

Covers over 2 million homes across America

First month free when

#1

MOST POPULAR

BEST HOME WARRANTY 2024

Read more

EXCELLENT

REVIEW

5.0

05/2024

Read more

Home Warranty of America -Over 25 years in home repair bill protection

Covers HVAC to electrics

24/7 availability guaranteed

GOOD

REVIEW

4.9

05/2024

Starts from 35$/mo

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American Home Shield -Over 50 years of industry experience

2 million members across the U.S.

$4 billion in paid claims

GOOD

REVIEW

4.6

05/2024

Starts from 35$/mo

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AFC Home Warranty - Home warranty with plumbing and electronics coverage

Choose your own technicians

Several coverage plan choices

GOOD

REVIEW

4.3

05/2024

Starts from 59$/mo

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Select Home Warranty -For excellent coverage at the lowest price

Multi-year policy discounts

Free roof leak coverage

GOOD

REVIEW

3.9

05/2024

Starts from 52$/mo

How to Choose a Home Warranty Company

Selecting a home warranty company involves careful consideration to ensure you choose a provider that offers the appropriate coverage level, reliable service, affordable premiums, and service fees, along with high payout caps, a straightforward claims process, and a workmanship guarantee. Here's a guide to help you choose the best home warranty company for your needs:


Evaluate Your Needs: Consider the condition of your home, the complexity and number of appliances and systems you have, and what your budget can accommodate. Decide if you prefer annual or monthly payments.


Research Local Providers: Look into which warranty companies offer services in your area, as coverage options can vary by ZIP code and some providers may not be available where you live.


Review Sample Contracts: Examine contracts for excessive 

exclusions or loopholes that could limit coverage. A contract that's too restrictive might not be beneficial.


Read Customer Feedback: Check out customer reviews and ratings, such as those from the Better Business Bureau and other online sources, to gauge previous customers' experiences.


Compare Plans and Pricing: Focus not only on the cost but also on what the plan covers. Pay attention to the service or trade call fees, as these will be an out-of-pocket expense each time a service is required.


Contact the Provider: Reach out to the warranty company to clarify any questions you may have. This interaction can also give you an insight into the company's customer service quality and responsiveness.

Home Warranty vs. Homeowners Insurance

Unlike homeowners insurance, which covers unexpected disasters or accidents, a home warranty deals with predictable issues, like normal wear and tear. The coverage you select can safeguard crucial home systems like HVAC and plumbing, your frequently used appliances, or both. Additionally, you often have the option to include your costly electronics in the policy.

Plus500

$50/month

CHOICE - Best Home Warranty in Overall

15,000+ local pre-screened technicians

Handled over 6,600,000 service requests

Covers over 2 million homes across America

First month free when

#1

MOST POPULAR

BEST HOME WARRANTY 2024

Read more

EXCELLENT

REVIEW

5.0

05/2024

Bottom Line

A home warranty can offer peace of mind by financially protecting the systems and appliances in your home. However, the offerings can differ significantly from one company to another, making it crucial to compare options. Review various plans and additional benefits from different providers. Select a few companies and reach out for quotes to find a coverage plan that suits your needs.

FAQ

  1. Is a home warranty worth it?A home warranty may be worth it if you are looking for financial protection against the costs of repairing or replacing major systems and appliances in your home due to normal wear and tear. It's especially valuable for those who might not have immediate funds available for unexpected repairs.

  2. What is a service call fee?A service call fee, also known as a trade call fee, is the amount you pay each time a service technician visits your home to assess and repair a problem covered by your home warranty. This fee is typically required for each separate service visit.

  3. Is a home warranty required?No, purchasing a home warranty is not required by law. It is an optional service contract that provides additional coverage for home appliances and systems, offering peace of mind and potential savings on repair costs.

  4. Are home warranty companies regulated?Yes, home warranty companies are subject to regulation, but the level and type of regulation vary by state. It's important to check with your state's insurance commissioner or consumer protection office to understand the regulations applicable to home warranty companies in your area.

  5. Is a home warranty tax deductible?Generally, a home warranty is not tax deductible for personal homes. However, if you own rental properties, the cost of a home warranty for those properties can potentially be deducted as a business expense.

  6. What are the cons of a home warranty?The downsides of a home warranty can include the cost of the plan, service fees, limitations on coverage, potential for claim denials based on provider's assessment of pre-existing conditions or improper maintenance, and the choice of repair technicians being limited to those approved by the warranty provider.

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