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According to our research, . is the best overall home warranty company based on its competitive pricing, package options, and high payout caps. To find the best home warranty companies, we analyzed 25 of the top companies, examining 18 features across four key categories: total plan cost, coverage, support, customizability, and transparency. We also looked at each company's Better Business Bureau (BBB) rating.
Best Home Warranty Companies of March 2024
- Best Overall: Home Warranty Inc
- Best for Customer Service: Liberty Home Guard
- Best If You Need Immediate Repairs: Old Republic Home Protection
- Best for Payout Cap: HomeServe USA Corp.
- Best Plan Pricing: ServicePlus Home Warranty
- Best for Pricing Transparency: Home Warranty of America
Why Trust Us
38
Providers reviewed
35
Criteria considered
875
Data points analyzed
59
Primary data sources used
According to the National Home Service Contract Association, a basic home warranty yearly service contract costs $400 to $550 per year. However, service charges that apply to technician service calls, labeled as a trade call fee, and damage assessment can range between $35 and $100 per visit.
Best Overall : Home Warranty Inc
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- Average Annual Cost: $479.33
- Service Fees: $100
- Response Time: 4 - 48 hours
Why We Chose It
With an extra two months of coverage (14 months versus the usual 12 months) for an already competitive average price, package options, and a higher payout cap than many competitors, Home Warranty, Inc. is our top overall pick.
Pros & Cons
Pros
- 14 months of coverage versus the usual one year
- Customers can choose their own repair person
- Pricing is transparent
Cons
- Only available in 45 states
- Service fee slightly higher than competitors
Overview
Home Warranty, Inc., headquartered in Rock Rapids, Iowa, and founded in 1999 is our choice as the overall best home warranty company thanks to its competitive and transparent pricing. Customers have a nice selection of plans from which to choose, and everything is clearly laid out on the website, including exclusions. Another advantage is that you can choose your serviceperson, with Home Warranty, Inc.’s approval.
Compared to other warranty companies in our roundup, Home Warranty, Inc. is the only one that offers a 14-month contract, essentially giving you two bonus months of coverage. Plans are available in 45 states (they are not available in Arizona, California, New York, Oregon, and Washington). The company also scores well with customer reviews, has an A rating with the Better Business Bureau, and has a decent payout cap of $15,000.
Plan Pricing
The Home Warranty, Inc. plans start at $595 annually, with $100 service fees, and an aggregate payout cap of $15,000 per contract period (typically 14 months). The company says it responds to claims within four hours on weekdays and 48 hours on weekends (if not answered immediately).
Home Warranty, Inc. offers three basic plans, and pricing can vary by location:
- Application Protection Plan: This à la carte plan lets you cover the mechanical systems and appliances of your choice. If something can’t be repaired, Home Warranty, Inc. will reimburse you for the full cost of the appliance.
- Supplemental Home Protection Plan: Aimed at insurance agents and long-term homeowners, this plan is designed to fill coverage gaps that your homeowners insurance does not cover. You’ll get coverage for 14 appliances and mechanical systems.
- Home Protection Plan: For new homeowners and builders, this is the largest package, covering 20 mechanical systems and appliances in your home. You can opt to forgo repair and put the approved repair cost toward a new system or appliance anytime.
Add On Options
- SurgeShield: Get protection for your home’s motor-driven appliances including heating/AC, washer/dryer, oven/range, refrigerator, dishwasher, and ceiling fans.
- SurgeShield Bundle Plan: In addition to appliances covered in SurgeShield, you’ll get surge protection coverage for electronics like tablets, computers, televisions, home theaters, and game consoles.
Read the Full
Home Warranty Inc. Home Warranty Review
Best for Customer Service : Liberty Home Guard
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- Average Annual Cost: $574.99
- Service Fees: $80 - $125
- Response Time: 24 - 48 hours
Why We Chose It
Among the home warranty companies we researched, Liberty Home Guard has the best overall review rating from the Better Business Bureau—4.53 stars from more than 2,000 reviews. Customers have three options for filing a claim: an online ticket, by phone, or via email.
Pros & Cons
Pros
- Multi-year discounts on some plans
- Great selection of optional add-ons
Cons
- Can't choose your service technician
- Lower-than-average payout benefit cap
Overview
Liberty Home Guard’s Better Business Bureau customer review rating is by far the highest satisfaction rating for any company we reviewed and reflects a strong pattern of treating their customers well. Liberty also has a very user-friendly website, transparent pricing, helpful live-chat customer service, discounts, and many optional add-ons (including coverage for pro-series appliances). The company was founded in 2017 and is located in Brooklyn, NY, offering policies in all 50 U.S. states.
Plans & Pricing
The average Liberty Home Guard Home Warranty plan costs $575, with a payout cap of $2,000 per year per covered appliance or system. The company tries to dispatch repair technicians within 24 to 48 hours of service requests.
Liberty Home Guard offers three basic plans (price depends on the plan you choose and your ZIP code):
- Appliance Guard: Washer/dryer, refrigerator, built-in microwave, dishwasher, garbage disposal, range/oven/cooktop, ceiling and exhaust fans, garage door opener
- Systems Guard: Air conditioner, heating, ductwork, plumbing, electrical, water heater
- Total Home Guard: Everything the Appliance Guard and Systems Guard plans cover
Add On Options
- Additional spa
- Carpet cleaning
- Casita guest unit
- Central vacuum
- Ejector pump
- Electronics protection
- Generator
- Grinder pump
- Gutter cleaning
- Ice makers (in-fridge or freestanding)
- Instant hot water dispenser
- Lawn sprinkler system
- Lighting fixtures
- Limited roof leak
- Pest control
- Plumbing fixtures
- Pool and spa
- Pro-series dishwasher
- Pro-series dryer
- Pro-series microwave
- Pro-series range/oven/cooktop
- Pro-series refrigerator
- Pro-series washing machine
- Re-keying
- Reverse osmosis water filter system
- Saltwater pool
- Second refrigerator
- Septic system pumping
- Standalone freezer
- Sump pump
- Swamp cooler
- Trash compactor
- Water dispenser water line
- Water softener
- Well pump
- Window washing
- Wine cooler/fridge
Read the Full
Liberty Home Guard Home Warranty Review
Best If You Need Immediate Repairs : Old Republic Home Protection
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- Average Annual Cost: $576.67
- Service Fees: $75
- Response Time: 48 hours
Why We Chose It
Unlike many home warranty companies that have waiting periods as long as 30 days, Old Republic Home Protection covers you from day one. The company’s top-notch customer reviews also make it a viable option if you live in a state where it operates.
Pros & Cons
Pros
- No waiting period once you purchase coverage
- Coverage up to $5,000 per appliance
- Strong customer reviews and an A+ BBB rating
Cons
- Service is only available in 28 states
- Must use company's service contractor unless one isn't available
- No free cancellation after 30 days
Overview
Old Republic Home Protection, based in San Ramon, CA, stands out for its immediate coverage, which may be especially important to you if you are a new homebuyer. In business since 1974, it’s one of the older companies on our list, and it’s built a strong customer service reputation.
It’s not available in 22 states, however, and pricing isn’t immediately available on the site without filling out your information for a quote (though with some online research, you may be able to find a pricing brochure for your state). Our research found the pricing to be average, with a slightly lower service fee. Take the time to understand your coverage well since canceling after 30 days comes with a fee and only a partial refund.
Plan Pricing
Old Republic Home Protection charges an average of $577 for plans that are similar to some of the higher-priced plans on our list. Service fees are $75. These are the three main plans offered, though there are several optional add-ons:
- Basic Heating System: This package covers the electrical system, plumbing system, kitchen appliances, and re-key service.
- Deluxe: For additional coverage, this package gives you everything in the Basic plan, plus air conditioner/cooler, washer/dryer, code violations, permits/haul-away, and deluxe enhancements.
- Elite: The highest level package includes everything in the Deluxe plan plus: pre-season HVAC tune-up, no HVAC refrigerant limit, and ice/water dispensers. The Elite plan doubles the coverage limit on appliances, washer/dryer, and enhancements.
Add On Options
These services can be added for an additional fee:
- Ornamental fountain motor/pump
- Saltwater circuit board and cell
- Solar pool and/or spa components
- Solar hot water system equipment
- Limited roof leak repair
- Outdoor kitchen
- Washer/dryer (per appliance)
- Kitchen refrigerator
- Additional refrigeration units (in total)
- Appliance limit upgrade
- Water softener/RO filtration system
- Well pump and/or booster pump
- Enhanced slab leak limit ($1,000)/external plumbing ($1,000)
- Septic system/sewage ejector pump
Read the Full
Old Republic Home Protection Review
Best for Payout Cap : HomeServe USA Corp.
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- Service Fees: $100 - $200
- Response Time: 2 hours
Why We Chose It
Though plans vary, HomeServe offers some unlimited plan options that have no payout cap. This is a unique benefit that you won’t find from other warranty companies on our list. Another stand-out perk is that HomeServe does not charge service or call fees for many of its plans.
Pros & Cons
Pros
- No caps on the number of service calls and no payout caps with certain plans
- Very fast response to claims, usually within two hours
- Online chat support is available
Cons
- Combo plans are not available in all areas
- You must use HomeServe’s contracted servicepeople
- No monthly plan option is available
Overview
HomeServe’s programs are highly appealing because once you pay the upfront yearly fee, there is little to no out-of-pocket cost no matter how many calls you need. The company, which has been operating since 2003 and is based in Stamford, CT, serves the 48 lower states, though not all services are available in all areas.
For that reason, general pricing is difficult to source since there’s so much variation by ZIP code.
Plan Pricing
HomeServe has four packages in some service areas, while other areas offer individual home system plans for heating, cooling, electric, and plumbing services.
- TotalHome Warranty Appliance: This plan covers appliances including built-in microwaves, trash compactors, clothes washers, clothes dryers, kitchen refrigerators, garage door openers, stovetops and ovens, and dishwashers.
- Premium Home Protection Plan: This plan covers exterior water service and sewer/septic line, exterior sewer/septic line, gas line, interior plumbing and drainage, exterior and interior electrical lines, water heater replacement, and heating and cooling systems.
- TotalHome Warranty Combo: If you want both appliance and home system coverage, this plan covers central vacuum, clothes dryer, clothes washer, dishwasher, kitchen refrigerator, garage door opener, built-in microwave, range/oven/cooktop, trash compactor, central vacuum system, doorbell system, ductwork, garbage disposal, interior electrical system, cooling system (including heat pump), internal plumbing system, heat system, water heater, and attic and ceiling fans.
- Complete Plumbing Repair Plan: A complete plumbing home warranty plan with HomeServe can include comprehensive coverage for five of your major home systems: exterior sewer septic service line, exterior water service line, gas line, interior plumbing and drainage, and water heater repair and replacement.
Add On Options
Extra protection is available for items related to your home system operation such as gas line repairs or exterior water lines, exterior pipes and sewers, septic tank, etc.
Read the Full
HomeServe Review
Best Plan Pricing : ServicePlus Home Warranty
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- Average Annual Cost: $459
- Service Fees: $75
- Response Time: 48 - 96 hours
Why We Chose It
If you are looking for a budget-friendly home warranty program, ServicePlus Home Warranty has one of the lowest average prices in our rankings. Just be aware that the $1,500 payment limit per covered item is on the lower side. Only annual plans are available.
Pros & Cons
Pros
- Plan pricing more affordable than competitors
- Service fees of $75 also lower than some
Cons
- Better Business Bureau reports legal action against the company
- Response time can take up to four days if you call on a weekend or holiday
- Payout cap of $1,500 per item low compared to competitors
Overview
If you’re shopping around for warranties and making your decision purely on price, ServicePlus Home Warranty offers one of the most affordably priced plans. Even its service fees are on the lower end. The coverage limits are not fantastic, but they should cover most minor repairs or parts replacement.
The company, which is based in Edison, NJ, and has been serving 46 states since 2016, is not without its growing pains, however. In 2022, it was ordered to pay restitution to elderly customers for deceptive sales practices. Its average customer ratings on BBB are also dismal.
Plan Pricing
At $459 on average, ServicePlus Home Warranty’s pricing is more affordable than some competitors. It offers just two main plans, but there are lots of add-ons if you need extra coverage.
- Gold: Gold coverage includes plumbing system, plumbing stoppage, water heater, whirlpool bathtub, electrical system, oven/stove, cooktop, sump pump, microwave, dishwasher, garbage disposal, trash compactor, ductwork, garage door opener, and fans.
- Platinum: You’ll get everything offered in the Gold plan plus coverage for your AC system, heating system, clothes washer, clothes dryer, and refrigerator.
Add On Options
Additional services coverages are available for an extra fee:
- Pool/spa
- Limited roof leak
- Central vacuum
- Sump pump
- Well pump
- Septic system
- Septic pumping
- Second refrigerator
- Standalone freezer
- Water softener
- Refrigerator ice maker
- Free-standing ice maker
- Additional A/C system
- Additional heating system
- Additional water heater
- Additional garage door opener
- Additional oven/range/stove
- Additional spa
Read the Full
ServicePlus Home Warranty Review
Best for Pricing Transparency : Home Warranty of America
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- Average Annual Cost: $656.76
- Service Fees: $75 - $100
- Response Time: 24 hours
Why We Chose It
When shopping around for a home warranty, it can be tedious to have to fill out all of your information just to see the pricing. Home Warranty of America is one of the few home warranty companies that shares pricing details upfront.
Pros & Cons
Pros
- Pricing is transparent, even without requesting a quote
- Monthly or annual plans available
- Annual payment cap is $15,000
Cons
- Company has a low BBB rating of C+
- Plan prices slightly higher than some competitors
Overview
Founded in 1996, Home Warranty of America serves customers in all 50 states. The company was originally based in New Jersey but is now headquartered in Houston, TX. Its transparent pricing shares plan costs directly on the website without having to fill out a quote request form.
We also like that Home Warranty of America offers a 30-day money-back guarantee.
Plan Pricing
Home Warranty of America offers two different plans, one basic and one more extensive. The average plan cost is $657, which is on the higher side compared to other home warranty companies.
- Premier: This plan covers most systems and appliances including heating system/furnace, water heater, plumbing system, dishwasher, built-in microwave, range/oven/cooktop, trash compactor, garage door systems, whirlpool bathtub, electrical system, ductwork, permanent sump pump, doorbell, ceiling and exhaust fans, central vacuum, burglar and fire alarm systems, garbage disposal, kitchen refrigerator with ice maker, washing machine, and dryer.
- Premier Plus: This plan covers your air conditioning system or cooler, plus adds premium coverage on all items in the Premier plan. For example, with the plumbing system, coverage for fixtures and cartridges, faucets, shower heads and shower arms would only be with the Plus plan.
Add On Options
Additional services coverages are available for an extra fee:
- GreenPlus
- Pool/spa combo
- Well pump
- Saltwater pool
- Septic tank pumping
- Second refrigerator
- Standalone freezer
- SEER/R-410A modifications
- Septic system
- Premium coverage
Read the Full
Home Warranty of America Review for 2024
Compare the Best Home Warranty Companies of March 2024
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The Bottom Line
Overall, buying a home warranty can save you money on repairs. We found Home Warranty, Inc. to be the best overall home warranty service for its reasonable and transparent pricing. Another standout for value is HomeServe, thanks to it having no service fees and no payment caps, but like others on the list, availability varies by location. If you’re looking for immediate coverage with no waiting period, consider Old Republic Home Protection if it serves your area.What is a Home Warranty?
A home warranty is a service contract that covers the cost of repairs or replacement of home systems and appliances. Home warranties do not cover home furnishings or other things that homeowners insurance normally covers, however. Home warranty policies often exclusions for certain types of items like electronics but many companies offer riders to provide coverage options for virtually any home system, appliance, or device. How Do Home Warranties Work?
Home warranties involve an annual service contract fee as well as service fees that are charged whenever a claim is filed and service contractors are sent to the customer's home. Covered items are usually repaired or replaced within 48-72 hours of claims submission per the terms of the service contract.
What Do Home Warranties Cover?
Home warranties typically cover major appliances like refrigerators, washing machines, clothes dryers, dishwashers, microwave ovens, and stoves. They also can cover major home systems like HVAC, plumbing, hot water heaters, and electrical. Most home warranty policies offer the option for additional coverage on things like hot tubs, swimming pools, and outdoor appliances.What Don’t Home Warranties Cover?
Home warranties don't cover the things that homeowners insurance covers - like damage to the home's structure, foundation, flooring, or home contents. Such excluded items are listed as specific exclusions in the home warranty terms of service agreement.How to Choose a Home Warranty Company
Choosing a home warranty company requires careful deliberation to find the right coverage level, reliable service, reasonable monthly premiums and service fees (trade call fees) high payout caps, an easy claims process, a workmanship guarantee. Here’s how to find and choose the best home warranty company for you:- Assess your situation. What condition is your home in? Do you have many appliances and complex home systems? Does your budget allow a warranty contract? Would you rather pay yearly or monthly?
- Research companies in your area. Warranty companies may have different coverage available based on your ZIP code, and some may not serve your area.
- Look at sample contracts. If there are too many exclusions and loopholes, you should look elsewhere. Along those lines, read customer reviews and check the company’s Better Business Bureau rating and other online reviews to learn about customer experiences.
- Compare plan prices. Look beyond the price to what the policy covers. Also, see what the service or trade call fee is, since you’ll have to pay that out of pocket every time a repair person comes to your home.
- Contact the company with any remaining questions. Call the warranty company to answer any remaining questions. With this call, you can get a sense of how responsive and customer-friendly the company is.
How Much Does Appliance Repair Typically Cost?
| Appliance | Average Repair Cost Range |
|---|---|
| Refrigerator | $200 – $300 |
| Freezer | $90 – $500 |
| Cooktop, Range, Oven | $100 – $500 |
| Microwave | $50 – $400 |
| Dishwasher | $160 – $300 |
| Garbage Disposal | $70 – $250 |
| Washing Machine | $50 – $450 |
| Dryer | $100 – $400 |
Are Home Warranties Worth It?
If you are purchasing an older home with systems and appliances that are out of their warranty period then it can make good financial sense to purchase a home warranty policy to cover yourself against significant unforeseen repair costs. The annual cost of a home warranty policy is often well worth the expense even if a single claim is made during the policy period.
For those with newer home systems and appliances, the value of a home warranty policy can be more challenging to initially justify. In these situations, a good option can be to self-insure and begin saving money to cover the unlikely event of a breakdown in the near term and then plan to shop for a home warranty policy when systems and appliances are a little older.
Home Warranty vs. Homeowners Insurance
| Home Warranty | Homeowners Insurance |
|---|---|
| Optional coverage | Required if you have a mortgage |
| Service contract for the repair/replacement of home appliances and systems |
Coverage for the loss and damage of the actual structure of your home, liability protection for you, and your possessions within the home |
| Requires a service fee when you call for a repair | Requires a deductible payment when you put in a claim |
Frequently Asked Questions
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What Is the Difference Between a Home Warranty and Homeowners Insurance?
A home warranty and homeowners insurance are two different financial products, but both can provide peace of mind and financial protection. A home warranty is a service contract for the repair/replacement of your home appliances and systems, while homeowners insurance protects the home structure and its contents, plus liability protection for you, in the case of a fire, flood, or other accident.
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Are Home Warranty Companies Regulated?
Home warranty companies are state-regulated, but there is no uniform body that oversees them. It might be the state’s consumer protection agency or it might be left to an industry regulating body that covers real estate or insurance. When doing your research, look into how your state regulates warranty companies so you know where to turn with any questions or to file a complaint.
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How Long Does a Home Warranty Last?
Home warranties typically last one year. You might find some have slightly longer contracts (such as 13 or 14 months) to account for the waiting period when you sign up. As you approach the end of your contract, the company will provide you with renewal options and you can decide whether to continue.
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How Much Does a Home Warranty Cost?
Home warranty costs vary but in general, you can expect to pay several hundred dollars per year. Costs often depend on the level of coverage, where you’re located, and the company that you choose to work with.
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Is a Home Warranty Tax Deductible?
Unlike other home ownership tax benefits, home warranties are not tax deductible. Still, they can help you save money if you need service on your appliances or systems year-round.
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What Are the Cons of a Home Warranty?
The biggest con is likely trying to choose home warranties worth considering whose overall value outweighs their cost. Since the breakdown of covered items like appliances is impossible to predict and home warranty premiums are incurred regardless, the contract could end up costing more than the consumer derives in value if no services are needed. Other cons can include long response times, the required 30-day waiting period before filing claims, disputes over claims on items still covered under a manufacturer's warranty, and customer service complaints. -
Why Do Sellers Offer Home Warranty?
Oftentimes home sellers will offer a home warranty to offset any potential buyer concerns about the age and reliability of appliances and major systems within the house that is being sold. -
Companies We Reviewed
Investopedia analyzed and reviewed the following home warranty companies:2 10 Home Warranty, Achosa Home Warranty, America’s First Choice (AFC) Home Club, Amazon Home Warranty, America's Preferred Home WarrantyAmerican Home Shield Warranty, ARW Home, Choice Home Warranty, Cinch Home Warranty, Fidelity Home Warranty, First American Home Warranty, First Premier Home Warranty, Home Warranty Inc, Home Warranty of America, HomeServe, Home Security of America (HSA) Home Warranty, Liberty Home Guard Home Warranty, Old Republic Home Protection, One Guard Home Warranty, Priority Home Warranty, Sears Home Warranty, Select Home Warranty
ServicePlus Home Warranty, and Super Home Warranty
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How We Picked the Best Home Warranty Companies
Our methodology for reviewing home warranties examines four major categories—total plan cost, coverage and support, customizability, and transparency. Within those four major evaluation categories, we look at 18 core features that include:
- Overall cost: 22.2%
- Service fee: 9.3%
- Payout cap: 7.9%
- Claim response time: 7.5%
- Allows you to use your own repair person: 6.2%
- State availability: 6.1%
- Waiting period: 5.8%
- Pricing available on website: 5.6%
- Contract length options: 4.9%
- Exclusion information available online: 4.7%
- Sample contract available online: 4.4%
- Free cancellation: 4.4%
- Customizable coverage: 4.2%
- Dispute resolution information: 3.0%
- Claim filing channels: 1.4%
- Customer support channels: 1.4%
- Plans for realtors: 0.5%
- Plans for sellers: 0.5%
Why Trust Us
Investopedia collected 18 data points from 25 companies across two months to identify the most important factors for readers choosing a home warranty company. We used this data to review each company for total plan cost, service, reputation and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best home warranty companies since 2019.
Learn More About Home Warranties
- Home Warranty: Meaning, Qualifications, Costs
- How to Get a Home Warranty
- Do You Need a Home Warranty?
- Understanding and Evaluating Home Warranties
- What Does a Home Warranty Cover?
- Home Warranty vs. Home Insurance
- How much does a home warranty cost?
- Best home warranty in Florida
- Best home warranty in Texas
- Best home warranty in California
- Best home warranty in New York
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