What Is a Home Warranty?
A home warranty is a contract that helps homeowners cover the cost of repairing or replacing appliances and systems that break down or fail. Using home warranties, homeowners can get discounted repair and replacement services (up to certain limits) for covered items that fail during the coverage period.
The best home warranty companies offer a diverse set of coverage options, have high coverage limits, and make it easy for homeowners to file claims. These companies also offer plenty of details about their offerings right on their websites, make it easy to buy coverage, and are flexible when it comes time to choose a contractor.
"Home appliance warranties are great solutions for protecting your precious items that are used on a daily basis. They cover the costs of repairing or replacing your device if it breaks down due to any defects or malfunctions.
However, not all home appliances have warranties. And some may only come with one-year coverage, which might not be enough depending on how often you use them and the severity of the damage they might incur over time. Plus, some devices may carry more expensive prices than others so there is no guarantee that they will be covered by warranty if something goes wrong. This is why it's important to do your research beforehand so you know what types of devices you should invest in and which ones are best for you."
BEST OVERALLAFC Home Club
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We chose AFC Home Club as our best overall because it's one of the most flexible home warranty companies for getting fast, reliable service. For example, while several competitors allow you to choose your own technician, AFC Home Club doesn't require prior approval—the company will connect directly with the repair person you select.
Low service fees
Pick your own technician
Good selection of plans and add-ons
Turnaround time on claims is two to four days
Must enter personal details to view pricing
With AFC Home Club, you can choose from four plans and a list of additional coverage options. If you need service, you can call customer service 24/7/365 or file a claim online. In general, the company will dispatch a technician within 24 to 48 hours.
AFC Home Club offers four plans (prices depend on the plan and service fee you choose):
- System Plan: air conditioning, heating system, water heater, electric system, plumbing system, and ductwork
- Silver Plan: washer/dryer, refrigerator, range/oven/cooktop, dishwasher, garbage disposal, and garage door opener
- Gold Plan: everything covered by the System and Silver Plans
- Platinum Plan: everything covered by the Gold Plan plus plumbing stoppages, ice maker, and built-in microwave
If you have an AFC Home Club policy, you're entitled to several extra "member benefits," including:
- Moneytips: Free credit monitoring and identity protection alerts
- DealCash: Savings at thousands of participating restaurants and retailers
- Emergency Alert Network: Alerts to notify friends and family in an emergency
You can also add coverage for the following:
- Sump pump
- Septic system
- Pool and spa
- Hot water dispenser
- Stand-alone freezer
- Tankless water heater
- Central vacuum
- Well pump
BEST PRICINGAmerican Residential Warranty
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American Residential Warranty is our top pick for pricing because the company is very transparent about its rates, has plans starting at low price points, and charges low service fees ($55). Plans are also customizable, coverage is available nationwide, and the company has an A+ rating with the Better Business Bureau.1
Low costs for certain plans
Pick your own technician
Low annual limits on some appliances and systems
American Residential Warranty offers four basic plans:
- Kitchen Plus ($34.99 per month): built-in microwave, dishwasher, garbage disposal, interior electric system, kitchen exhaust fan, range/oven/cooktop, refrigerator (excluding ice maker), and water heater
- Heating & Cooling ($39.99 per month): central air conditioning, central home heating, humidifier, and interior electrical system
- Platinum ($49.99 per month): everything the Kitchen Plus and Heating & Cooling plans cover
- Platinum Premier ($59.99 per month): everything the Platinum plan covers plus ceiling fans, ductwork, garage door opener, plumbing stoppages (fixtures not included), plumbing system (fixtures not included), range hood, and refrigerator ice maker
You'll get immediate service for emergencies; other requests for service are taken care of within 24-48 hours. You can speak with a live, U.S.-based customer service representative during the following hours: Monday through Thursday 8:30am to 7pm, Friday 8:30am to 4pm, and Saturday 9am to 6am. What's more, you can choose your own service provider or use the company's network of licensed, pre-screened technicians.
You can further customize your plan with bundles or by including coverage for any of the following add-ons:
- Enhanced air conditioning coverage
- Extended coverage on multiple appliances and systems ("Deluxe Advantage")
- Well pump
- Pool and spa
- Additional range/oven/cooktop
- Additional refrigerator or freezer
- Additional air conditioner
- Plumbing system (included with Platinum Premier)
- Ceiling Fans (included with Platinum Premier)
- Enhanced plumbing coverage that includes faucets and fixtures ("Plumbing Advantage")
- Food loss
- External water or sewer lines
- Water heater (included with Platinum Premier, Platinum, and Kitchen Plus)
- Clothes washer and dryer (included with Platinum Premier)
- Ice maker (included with Platinum Premier)
- Built-in microwave (included with Platinum Premier, Platinum, and Kitchen Plus)
BEST FOR GUARANTEED SERVICECinch Home Services
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No matter which Cinch Home Services plan you choose, you won't be denied coverage for unknown preexisting conditions, rust, or corrosion. In addition, there's a 180-day "workmanship guarantee." If the problem persists, Cinch will fix it at no additional cost to you. If you need to make a claim, you can call customer service 24/7/365.
Protection for unknown preexisting conditions
Rust and corrosion coverage
180-day workmanship guarantee
No coverage in Alaska and Hawaii
No option to pick your own technician
Many home warranty companies have one or two service fees to choose from, but Cinch Home Services offers three. This can make it easier to find a plan that meets your budget—pay more each month for a plan with a lower service fee, or vice versa.
The amount you pay each month depends on the plan and service fee you choose and where you live. The Cinch website has an easy-to-use online quote: Enter your zip code and choose a deductible to see prices for the various plans (you don't have to enter any personal details).
Cinch offers three plans (price varies by region and plan):
- Appliances: washer/dryer, range/oven/cooktop, dishwasher, built-in food center, freestanding ice maker, built-in microwave, range exhaust hood, refrigerator, built-in trash compactor, and wall oven
- Built-in Systems: air conditioning (including ductwork), attic fans, ceiling fans, central vacuum, doorbells, electrical system, garage door opener, garbage disposal, heating system (including ductwork), instant hot/cold water dispenser, plumbing system, smoke detectors, sump pump, toilets, water heater, built-in whirlpool/jetted tub
- Complete Home: everything covered by the Appliances and Built-in Systems plans
You can also add coverage for the following:
- Swimming pool and spa
- Septic system
- Well pump
BEST FOR COVERAGE OPTIONSAmerican Home Shield
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American Home Shield has been in business for nearly 50 years. It's the industry's leader and it pays out more service requests than any other home warranty company.
Many plans to choose from
Low-cost options
Coverage add-ons
Low annual limits on some appliances and systems
Need prior authorization to use your own technician
The company offers three different primary plans plus real estate and electronics coverage. You can also customize the plans by adding coverage for more items. When a covered appliance or system breaks down, you can request service online or by calling customer service.
American Home Shield offers three plans (price varies by region and plan):
- ShieldSilver: 14 major systems covered including plumbing, heating and cooling, and electrical.
- ShieldGold: Nine additional systems covered including kitchen and laundry appliances.
- ShieldPlatinum: Even more coverage than gold, including roof leaks, code violations, HVAC tune up, and more.
You can also add coverage for:
- Electronics (extended warranty; no receipts required)
- Pools and spas
- Well pump
- Septic system
- Guesthouse (under 750 square feet)
BEST FOR RELIABILITYFirst American Home
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- Service Fees: $75 - $125
- Annual Cost: $540 to $840
- No. of States: 36, plus the District of Columbia
First American Home Warranty has served over 8.6 million homeowners since getting its start in 1984. It wins our spot as the most reliable home warranty because, with over three decades in the industry and 24/7/365 service requests, customers can feel confident that First American will be there when needed.
Service claims 24/7
Provides coverage for duplicate appliances
Unlimited service requests
No coverage for roof leaks
With First American Home Warranty, you can choose from two plans as well as purchase several optional add-ons for each plan. All plans have a service call fee which varies by plan and state and is payable online or to the technician during the initiation of the claim. There is a 30-day wait period before starting coverage
- Basic plan: covers all essential appliances including garbage disposal, dishwasher, oven range, cooktop, microwave, trash compactor, refrigerator, and washer-dryer
- Premier plan: covers everything in the basic plan plus major home systems including plumbing, plumbing stoppages, water heater, heating, ductwork, electrical, garage door opener, and central vacuum system
Optional coverages include:
- Central air conditioning (electric)
- Additional refrigeration
- Pool/spa equipment
- Well pump
- First-class upgrade
- Septic tank pumping/system
- HVAC tune-up
BEST REGIONAL COVERAGELandmark Home Warranty
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Landmark Home Warranty wins top spot for best regional coverage because it specializes in servicing six states including Arizona, Idaho, Nevado, Oregon, Texas, and Utah.
Transparent pricing
Optional coverage for guest home
Flexible payment plans
Easy to use homeowner dashboard
No appliance only plan
Coverage is only available in six states
- Service Fees: $70 or $100
- Annual Cost: $420 to $672
- Coverage Area: Arizona, Idaho, Nevada, Oregon, Texas, and Utah
Landmark was founded in 2005 and is headquartered in Phoenix, Arizona. It offers its regional customers access to two different plans as well as plan add-ons. Plan prices vary between states and are based on a single-family home under 5,000 square feet. To be eligible for a plan you must have lived in your home for over 30 days.
Landmark Home Warranty offers two plans:
- Total Protection Plan: covers air conditioning and heating as well as appliances including built-in microwave, central vacuum, dishwasher, garbage disposal, kitchen refrigerator, oven/range/cooktop, washer/dryer. It covers the electrical system and garage door opener and includes no-fault coverage, and plumbing system. Services that are covered include air conditioning tune-up, heating tune-up, pest control, re-key service, and subterranean termite treatment.
- Home Systems Plan: covers air conditioning and heating, electrical system, no-fault coverage, plumbing system, air conditioning tune-up, heating tune-up, pest control, re-key service, and subterranean termite treatment
Add-ons can be purchased to cover multiple appliances in a home (e.g. if you have multiple refrigerators or ovens), or to customize your plan coverage. Home warranty plan add-ons include:
- Booster and well pump
- Built-in microwave
- Dishwasher
- Exterior pipe leak repair
- Freestanding ice maker
- Freezer (stand-alone)
- Garage door opener
- Garbage disposal
- Grinder pump
- Guesthouse
- Kitchen refrigerator
- Oven/range/cooktop
- Pool and hot tub (chlorine)
- Pool and hot tub (saltwater)
- Roof leak repair
- Septic system
- Washer/dryer
- Water softener
- Well pump
- Wet bar refrigerator
BEST FOR CONVENIENCEOneGuard Home Warranty
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OneGuard is our winner for best home warranty for customer experience because it offers both home warranty services and home maintenance services, all in one place. This equates to more convenience and more time back in the homeowner’s day.
Strong customer experience
Combines home warranty and home maintenance services
Only provides coverage to three states
Must use OneGuard technician
OneGuard Home Warranties was founded in 1990 and currently serves customers in Arizona, Texas, and Nevada. If you live in one of these three states, you can reach out to OneGuard for an instant online quote. If you have OneGuard coverage and encounter an issue, contact OneGuard’s customer service team which is available 24/7. There is a $69 service call fee and plan pricing varies between states.
OneGuard Home Warranty offers three different plans each with optional coverage options:
- ApplianceGuard: covers appliances including kitchen refrigerator with ice maker and dispenser, dishwasher, range/oven/cooktop, built-in microwave, garbage disposal, instant hot water dispenser, trash compactor, and washer and dryer. Also covers services including re-key and garage remote reprogram, carpet cleaning, window cleaning, dryer vent cleaning, pest control treatment, termite treatment, weed kill treatment, pool maintenance, and yard maintenance.
- Optional coverage: includes undetectable pre-existing condition coverage, built-in pool/spa (one set of equipment), saltwater pool/spa (one set of equipment), additional pool pump/water feature (per unit), upgrade to built-in kitchen refrigerator, additional built-in kitchen refrigeration unit, additional freestanding kitchen refrigerator, additional freestanding refrigeration units (per unit), additional built-in microwave, additional dishwasher, additional range/oven/cooktop, and second washer and dryer
- SystemGuard: covers systems including air conditioning, heating, plumbing, plumbing stoppages, water heater, electrical, ceiling and exhaust fan, central vacuum, smoke detectors, doorbells, garage door opener, permits and code upgrades, and equipment disposal. Also covers all services included in the ApplianceGuard plan plus A/C and heating system tune-ups and garage door tune-ups. Optional coverage: includes undetectable pre-existing conditions coverage, built-in pool/spa, saltwater pool/spa, and additional pool pump/water feature
- Home Guard: covers all appliances, systems, services, and optional coverage included in the ApplianceGuard and SystemGuard plans plus it also covers a guest house
Each of OneGuard Home Warranty's plans offers its own optional coverage add-ons.
BEST FOR TRANSPARENCYSears Home Warranty
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Sears Holdings has been in business since 1887 and didn’t introduce home warranties until 1999. While Sears Holdings filed for Chapter 11 bankruptcy in 2018, it is still offering home warranties.
We chose Sears as our best home warranty for transparency because it clearly outlines all of the coverage details on its website. No need to search for the cost of a service charge or the cap per claim; all of the details are listed in an easy-to-read table along with links to sample contracts.
Transparency of plans terms and conditions
Up to 25% discounts offered on non-covered items (based on policy)
Free heating and cooling check once per year
Sears Holding Corporation is operating under Chapter 11 bankruptcy
Annual costs more expensive compared to others in the industry
- Service Fees: $70 or $100
- Annual Cost: $599.88 to $839.88
- Coverage Area: 47 states
Sears Home Warranty program covers appliances and systems regardless of age, brand, or where they were purchased. The deductible per service ranges from $75 for the Appliance Plan to $100 for the System or Whole Home Plans. Claims are capped at $10,000 with an annual cap of $50,000. Expect a 30-day hold on all claims as well as a service guarantee of 180 days.
Sears Home Warranty has three plans:
- Appliance Plan: covers refrigerator and icemaker, built-in dishwasher, washer, dryer, range, cooktop, oven, built-in microwave, range exhaust fan, built-in trash compactor, and unknown pre-existing conditions
- System Plan: covers central air conditioner, central heating, plumbing system, water heater, water softener, faucets and toilets, garbage disposal, plumbing stoppages, electric system, ceiling fans, garage door opener, and unknown pre-existing conditions
- Whole Home Plan: covers everything included in the Appliance Plan and System Plan
There are also extra benefits included in each of the three plans.
- One heating and one cooling preventive maintenance check per year included with any of the three plans
- 25% discounts on appliance repairs for the System Plan
- 25% discounts on HVAC and water heater repairs available for the Appliance Plan
- Discounts on appliances, HVAC, and water heater repairs during the 30-day waiting period for any of the plans
You can also purchase add-on coverage for your plan which includes:
- Pool and/or spa with heater (heater limit $1,000)
- Septic tank with pumping (pumping limit $500. Thank replacement limit $1,000)
- Stand-alone freezer
- Sump pump
- Well pump
BEST FOR COMPREHENSIVE COVERAGEThe Home Service Club
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The Home Service Club was founded in 2008 and is based in New York. It is our winner for best comprehensive coverage because of its extensive plans which include many items that are normally considered add-ons. The Home Service Club has also won many home warranty service awards for “best in service” and “editors choice.”
Comprehensive home warranty plans
Nationwide coverage
No home inspection required
Expensive compared to other home warranty programs
High service fee
- Service Fees: Three options
- Annual Cost: $650 to $800 (varies by state and plan)
- Coverage Area: 50 states
With The Home Service Club, you can cover your systems and appliances regardless of age, make, or model and repairs are guaranteed for 90-days. The Home Service Club offers two robust plans that can be further extended with additional coverage options. Standard coverage included 18 major systems and appliances and the comprehensive coverage included a total of 33 systems and appliances.
The two different plans cover the following items:
- Standard Coverage: systems coverage for air conditioning, heating, plumbing, water leaks, water heaters, electrical systems, ceiling fans, central vacuums, garbage disposal and garage door opener. Appliance coverage includes built-in microwave oven, dishwashers, refrigerators, ovens/ranges/cook-tops, trash compactor, food centers (built-in), clothes washer, clothes dryer, and freestanding ice makers
- Comprehensive Coverage: systems coverage for everything in the standard coverage plan plus ductwork, gas leaks, sump pump, whole house exhaust and attic fans, instant hot/cold water dispenser, pest control, telephone wiring, alarm warning, smoke detectors, doorbells, whirlpool motor and pump assemblies, plumbing stoppage coverage, plus all appliance coverage included in standard coverage option
You can also purchase add-on coverage including:
- Sprinkler system line coverage
- Freestanding freezer
- Refrigerator built-in units with dual compressors
- Well pump
- Water softener
- Jetted bathtub
- Roof coverage
- Pool and spa equipment
- Spa and spa heater
- Sewage ejector pump
- Utility and home service line coverage
Final Verdict
When choosing a home warranty program, it’s important to consider the type of coverage you need and the transparency of the home warranty company, as well as the cost. Before selecting a home warranty program, comparison shop between companies as coverage and rates will vary.
AFC is our choice for the best home warranty company because of its transparency, variety of plans and add-ons, and its moderate prices. We also like that AFC lets you choose your own service technician. This is a great feature if you have a trustworthy technician you prefer to work with as not all home warranty programs allow this.
Compare the Best Home Warranty Companies
| Company | Annual Cost | Service Fee | Coverage | Year Founded |
|---|---|---|---|---|
| AFC Home Club Best Overall | Request a Quote | $75– $125 | 48 states | 2009 |
| American Residential Warranty Best Pricing | $420– $1500 | $55 | 50 states | 2008 |
| Cinch Home Services Best for Guaranteed Service | $336– $480 | $100– $150 | 48 states | 1979 |
| American Home Shield Best for Coverage Options | $480– $700 | $75– $125 | 49 states | 1971 |
| First American Home Best for Reliability | $540– $840 | $75– $125 | 36 states | 1984 |
| Landmark Best Regional | $420– $672 | $70-$100 | 6 states | 2005 |
| OneGuard Best for Convenience | $300– $600 | $69 | 3 states | 1990 |
| Sears Best for Transparency | $600– $840 | $75-$100 | 47 states | 1999 |
| The Home Service Club Best for Comprehensive Coverage | $650– $800 | Three choices | 50 states | 2008 |
Home Warranty vs. Homeowners' Insurance
Most people are very familiar with homeowners' insurance, which protects against any accidental damage to your home and belongings due to theft, fire, storms, and natural disasters. A home warranty protects your home, too, but it works differently.
A home warranty is a service contract that helps pay for repairs and replacements for covered appliances and major home systems. For a monthly or annual fee, you can then pay a set service fee each time an appliance or system fails.
In general, you don't need a home inspection or maintenance records to buy coverage. And it doesn't matter if your home is brand new or 50 years old.
How Does a Home Warranty Work?
After you choose a plan, service fee, and any add-on coverage, you pay upfront for the entire year or set up monthly payments. Most companies have a waiting period of 15 to 30 days after you buy the plan before coverage takes effect.
Once that waiting period is over, you're free to start using the home warranty. If you bought or were given a home warranty as part of a real estate transaction, your coverage typically starts when you close on your new home.
While the specifics depend on the company, here's a general rundown of how a home warranty works:
- If a covered appliance or system breaks down, you submit a claim with your home warranty company either online or by phone. Most companies have 24/7/365 customer service representatives ready to help you.
- Your home warranty company chooses a service provider.
- The service provider contacts you to set up an appointment.
- The technician comes to your home to diagnose the problem. If it's covered, the technician repairs or replaces the item.
- You pay the service fee to your home warranty company or directly to the technician (depending on your plan). The home warranty company covers the rest.
What Does a Home Warranty Cover?
A home warranty covers eligible appliances and systems in new and pre-owned homes. Many home warranty companies offer three types of plans, including:
- Appliance plans (e.g., washer/dryer, dishwasher, and refrigerator)
- Systems plans (e.g., air conditioning, heating, plumbing, and electrical)
- Combo plans that cover everything included in the appliance and systems plans
Most companies allow you to add coverage for specific items not covered under the appliance or system plan. Add-ons include pools, spas, lawn sprinkler systems, additional appliances (such as a second air conditioner or refrigerator), wells, and septic systems.
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What Doesn't a Home Warranty Cover?
While a home warranty can provide coverage in case home appliances or systems break down or fail due to normal wear and tear, warranties are not designed to replace existing homeowners insurance policies and they do not cover homeowners against many of the perils that are covered by homeowner policies. For example, warranties are not meant to cover repairs to a home's foundation or its structure due to accidents, nor do they cover homeowners against liability if someone gets hurt on their property.
Additionally, home warranty plans have coverage limits or caps. For example, you may be covered for up to $2,000 per year per appliance, with an annual claim limit of $15,000. Take a close look at the fine print to be sure you understand what's covered by the plan and the limits that apply. This may be especially important if you have higher-end appliances and systems.
Many (but not all) home warranty companies will also deny claims if an appliance or system:
- Was not installed correctly or maintained properly
- Was not used properly
- Does not meet local building codes
- Had a known or unknown pre-existing condition when you bought the warranty
What Does a Home Warranty Cost?
There are two costs to look at when you compare home warranty plans: the service fee and the monthly (or annual) cost.
The service fee is the amount you pay each time you request service. These fees typically range between $55 and $150. Depending on the company, you can choose from one, two, or three service fees. In general, the lower the service fee, the more expensive the plan.
If you need more than one type of technician for the same issue—for example, you need a plumber and an electrician to work on a water heater—you may owe two service fees.
The monthly or annual cost is the amount you pay to have access to the "discounted" service calls. These costs range from about $350 to more than $1,100 a year, depending on the plan, service fee, house size, and where you live.
Are Home Warranties Worth It?
Whether a home warranty is right for you depends on a number of factors, including the age of your home, the quality of your appliances, and your own repair skills.
In a recent interview with Chad Marzen, a home warranty expert and an American General Insurance Associate Professor of Insurance Law, he explained that "If an individual has the funds to self-insure their appliances, then a home warranty may not necessarily be as pressing as the situation where maybe you are on a really tight budget and anticipate that an appliance may be in the last year or two or three of running. That might be more worth it for the consumer to get a home warranty to provide peace of mind. So, the issue of home warranties is a question of your risk tolerance for large expenses."
Every appliance and home system eventually breaks down. If you're handy, you might be able to do repairs yourself and save money. Many homeowners, however, don't have the skills, tools, time, and patience to do their own repairs. In these situations, a home warranty can make financial sense. Here's why: According to the "1% rule," you should set aside at least one percent of your home's value each year to cover maintenance and repairs. For example, if your home cost $200,000, you should budget $2,000 a year for maintenance. Another rule—the "square foot rule"—advises you to budget $1 per square foot. So, if your home is 2,000 square feet, you should set aside $2,000 a year.
The annual cost of a home warranty could be well under those guidelines, even if you use the service several times a year. Say you have a $200,000 home and want to set aside the recommended $2,000 a year for maintenance. Now, assume you buy a home warranty instead. If the plan costs $500 a year and you have a $100 service fee, you could make 15 claims before reaching that $2,000 threshold.
Of course, there's no way to tell if you would use the $2,000 you set aside—and if not, you can save it for the next year. Likewise, you can't predict if you'll use a home warranty if you buy one. Still, a home warranty often ends up saving money in the long run. And it can certainly help you budget and provide peace of mind.
Methodology
To review offerings available, we developed a home warranty review methodology that accounted for elements like coverage area, price, and service. We wanted to recommend companies that had broad coverage throughout the majority of the U.S. while keeping pricing in line with industry standards. We also considered the cost of trade service fees due at the time of a claim. Overall, we chose companies that priced their services fairly based on the industry norm.
We then took a deep dive into the service each company provided, assessing how customers could address a claim and whether doing so was convenient. Finally, we looked at third-party reviews to see what real customers had to say about their claims experience to determine the companies with the best reputations. In the end, we balanced price with service for the best customer experience.
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