In 2022, 49% of Americans said they couldn’t cover a $400 emergency without going into debt. With a recession headed our way, coming up with ideas to save money and plan for the unexpected is more important now than it’s ever been.
That’s where a home warranty plan can help—it protects your investment and reduces repair costs that could drive you into debt. However, comparing home warranties can be confusing and time-consuming. Exclusions, coverage limitations, and service fees are just a few of the essential factors to research.
To make it easier on you and give you a better understanding of what to look for, we evaluated the most popular companies in the industry and compiled a list of the top home warranty providers
Our Top 5 Best Home Warranty Companies:
- Choice Home Warranty – Best home warranty company overall
- Select Home Warranty – Reasonably priced premiums and fees
- American Home Shield – Best for customizable plans
- Home Warranty of America – Best for comprehensive appliance coverage
- First American Home Warranty – Best for high payout caps
1. Choice Home Warranty
Company overview
Choice Home Warranty is headquartered in New Jersey and was established in 2008. Currently, the company is BBB rated “B-”, due to a large number of complaints filed against the business. However, customers have also given Choice Home Warranty 4 stars on Trustpilot.
Choice gives customers two packages to choose from, as well as many options for additional coverage. The basic plan covers 14 appliances and systems, while the total plan adds coverage to the air conditioner, refrigerator, clothes washer, and dryer for a total of 18 systems and appliances.
When signing a one-year contract, the first month is free. Choice also waives the $85 Service fee if the repair or replacement goes bad.
Total Plan
Choice’s Total Plan starts at $55 per month and adds the key coverages that the Basic Plan lacks, including washers, dryers, refrigerators, and air conditioning systems.
For further coverage, homeowners with either base plan can purchase any of the company’s individual add-ons. These include pool equipment, well pumps, and septic systems, to name a few.
These prices put Choice toward the low end of the pack for cost among our top-rated home warranty companies, with only Cinch Home Services and First American Home Warranty offering lower monthly prices.
One cost that’s consistent no matter the location or coverage plan is Choice’s $85 service fee (referred to by Choice as a “trade service call fee”). This is paid directly to the technician and, outcome aside, covers the cost of the home visit. With Choice Home Warranty, the only way this fee varies is if a specific discount or promotion is being applied.
If you would like to learn more about what home warranties cover and don’t cover, read our What Does a Home Warranty Cover? guide.
What does Choice Home Warranty cover?
Between Choice’s two plans, they cover the following items. Except for the items indicated in this section with an asterisk, a Choice warranty applies to only one covered item or instance per yearly plan without additional fees being incurred.
- AC system*
- Ceiling and exhaust fans*
- Ductwork*
- Electrical system
- Garbage disposal
- Garage door opener*
- Heating system*
- Laundry appliances
- Major kitchen appliances
- Plumbing system and stoppages
- Water heater
What does Choice Home Warranty not cover?
Choice Home Warranty lists in its user agreements many household components or issues that it excludes from both its plan-based and a-la-carte coverage options, including:
- Central vacuum ductwork, hoses, accessories, and blockages
- Doorbell
- Fireplaces
- Pool accessories
- Portable or above-ground pools and spas
- Portable sump pumps
- Rooftop or roof-level accessories
- Roof preventative maintenance, partial replacement, and cracked or missing material
- Septic leach lines, leach beds, field lines, lateral lines, and tile fields
- Smoke detectors
Fees
The home warranty plans cost $41/month for the basic plan with the total plan running $50/month. Choice Home Warranty charges an $85 service fee each time a technician comes out to the property.
Pros
- The home warranty cost is free for the first month.
- Choice offers a 90-day workmanship guarantee on parts and 30 days on labor.
Cons
- Pricing is only available after entering personal information.
- Pending consumer fraud lawsuit in Arizona.
- Choice can refuse repair or replacement at will. Loopholes cause certain components like seals or water heater tanks to be excluded from home warranty coverage.
2. Select Home Warranty
Company overview
Select Home Warranty has been in operation since 2012 and provides coverage to policyholders in 45 states. Currently, the company has a B rating at the BBB. Select offers three simple plans to cover a home’s systems and appliances.
When paying annually and upfront, Select gives customers the first two months free. Additionally, all plans offer free coverage for roof leaks.
What does Select Home Warranty cover?
Select Home Warranty offers coverage for the following:
- Appliances
- Ceiling fans
- Electrical system
- Garage door opener
- HVAC
- Plumbing
- Roof leaks
- Water heater
Select Home Warranty also offers the following add-ons:
- Central vacuum
- Lawn sprinkler system
- Pool and spa
- Septic system
- Stand-alone freezer
- Sump pump
- Well pump
What does Select Home Warranty not cover?
Select Home Warranty doesn’t offer coverage for the following:
- Appliances or systems improperly installed or maintained
- Clogged drains or lines
- Cosmetic issues
- Electrical failures
- Manufacturer’s defects
- Refrigerants or damage caused by a refrigerant leak
Fees
Bronze Care is $52 per month and covers 8 of the most breakable appliances. Gold Care is also $52 per month and covers systems, including HVAC, water heater, plumbing, and electrical.
Select’s most popular plan is their Platinum Care plan. At $58 per month – the items from Bronze and Gold are covered, plus ceiling fan & garage door opener. The average service fee runs $60-75 and there is optional coverage available for pools, sump pump sprinkler systems, among others.
Pros
- Low premiums (when factoring in the two free months) and low service fees.
- 90-day workmanship guarantee.
- Free roof coverage for leaks.
Cons
- Low payout caps ($150) on appliances without proof of regular maintenance before coverage.
- Service fee must be paid for each service call, even if the item in question has already been looked at.
3. American Home Shield
Company overview
American Home Shield is the home warranty industry pioneer. They’ve been around since 1971 and are headquartered in Memphis, Tennessee. Currently, AHS has about 1,600 employees, serves 1.8 million customers, and has a B rating from the BBB.
AHS allows you to build your own plan. This feature makes it much more customizable than other competitors. Also, customers can also book an electronics extended warranty as additional coverage.
What does American Home Shield Warranty cover?
Depending on the plan you choose, American Home Shield Warranty can cover a variety of items. Some of the systems and appliances that are covered include the following:
- Air conditioning and heating units
- Interior electrical lines
- Ceiling fans
- Garage door openers
- Plumbing system
- Kitchen appliances
- Laundry appliances
Plans can also include unlimited A/C refrigerant and coverage for code violations and permits, among other things.
What does American Home Shield not cover?
There are some things that American Home Shield doesn’t cover:
- Stand-alone freezers
- Flues, venting, chimneys, and exhaust lines
- Solar systems and components
- Fire sprinkler systems
American Home Shield also doesn’t cover routine maintenance or system and appliance upgrades. This is not a full list of everything American Home Shield doesn’t cover. To be sure what is and isn’t covered, carefully read over your home warranty policy.
Fees
American Home Shield’s Appliances Plan covers appliances and garage door openers for between $34.99-49.99 per month, depending on deductible and location. Built-in Systems are covered by their Systems Plan, which costs $34.99-49.99.
The Combo Plan is their most popular and costs $44.99-59.99, covering 21 systems and appliances. AHS’s Build Your Own Plan allows policyholders to pick and choose 10 items valued most of the 21 appliances and systems available and costs $39.99-54.99 per month. Customers can choose from three options for service calls, $75, $100, or $125. Selection affects the monthly fees.
Pros
- Build your own plan option – only pay for what’s needed.
- 15,000 contractors nationwide.
- Pricing flexible, the tradeoff for higher service fees or higher monthly premiums.
- BBB B rating.
Cons
- Multiple service fees per visit are possible.
- As part of the flexible pricing agreements, the service fees can be high.
4. Home Warranty of America
Company overview
Home Warranty of America is headquartered in Lincolnshire, IL, and has been around since 1996. Homeowners, buyers, and sellers can choose from HWA’s four available plans. In essence, there are two plans, Premium and Premium Plus, and each is available with a service fee of $75 or $100.
All plans cover 23 systems and appliances, and the Premium Plus Plan offers additional coverage for the cooling system. HWA offers environmentally conscious customers GreenPlus, an add-on allowing certain appliances that cannot be repaired to be replaced with EnergyStar qualified products. For example, a broken hot water heater could be replaced with a tankless model or an old furnace with a 90% efficiency heater.
What Does Home Warranty of America Cover?
Home Warranty of America covers repairs or replacements of appliances and systems of all ages as long as the items are in working order when you purchase the warranty and the damage stems from regular wear and tear.
Direct-to-consumer plans cover the following:
- Built-in microwave
- Dishwasher
- Range, oven, and cooktop
- Refrigerator
- Washer and dryer
- Trash compactor
- Ductwork
- Electrical system
- Water heater
- Ceiling and exhaust fans
- HVAC
- Central vacuum
- Doorbells
- Plumbing system
- Garage door opener
- Burglar and fire systems
What Does Home Warranty of America Not Cover?
Home Warranty of America does not cover claims for systems or appliances that fall outside of everyday wear and tear, such as damage from the following:
- Insect infestation or pests
- Mold, fungus, or mildew
- Cleaning or preventative maintenance failures
- Electrical failures or surges
- Water damage
- Theft, intentional acts, or riots
- Soil movement or settlement
- Storms, fire, freezing, earthquake, or lightning
Fees
The Premier Plan with $100 TCF (service fee) costs about $41 per month while the Premier Plus Plan ($100) runs about $50 per month. When the service fee is reduced to $75 per call, the Premier Plan increases to about $45/month and the Premier Plus Plan goes to $53 per month. Additional a la carte coverage is available for homeowners needing a bit more.
Pros
- The coverage of 23 appliances and systems is guaranteed. Homeowners can also purchase extra coverage for home repairs on pools & spas, freezers, and septic pumps.
- The GreenPlus option (for less than $6 per month) helps homeowners to upgrade their home’s efficiency when certain appliances or systems need to be replaced.
Cons
- HWA’s pricing and limitations are not very transparent. Details regarding home and location must be entered before pricing is visible, and clients must sign up to view coverage limitations and exclusions.
- Coverage is not available month-to-month or on a quarterly basis. Customers must sign a one-year contract.
5. First American Home Warranty
Company overview
First American Home Warranty has been around since 1984 and is one of the USA’s largest home warranty companies. Nearly two-thirds of their 600,000 customers file at least one claim per year.
One of the most interesting optional coverages offered by First American is First Class Upgrade for $9/month. This add-on covers policyholders for cosmetic damage to appliances, covers crane expenses required for installation, and appliance removal expenses.
What does First American Home Warranty cover?
- Ceiling/attic/exhaust fans
- Central vacuum system
- Ductwork
- Electrical
- Garage door opener
- Garbage disposal
- Heating
- Major appliances
- Plumbing
- Trash compactor
- Water heater
What does First American Home Warranty not cover?
- Central air conditioner (added cost)
- Doorbell
- Fireplace
- Removal of old appliance
- Roof leak
- Smoke detectors
Fees
First American’s Basic plan covers standard appliances and costs $32 per month. In addition to the Basic plan, the Premier plan also covers heating and ductwork, plumbing, and water heater and costs $46.50 per month.
Service fees range from $75-100 depending on the property’s location. Coverage for air conditioners is not included in any plan and must be purchased separately. Customers can save $3 per month by paying annually, upfront.
Pros
- Premiums are low and service fees are reasonable, although not the lowest available.
- Broad coverage, including for improperly installed appliances and systems.
- Service and claims are available 24/7, 365 days per year.
Cons
- Coverage is only available in 35 states.
- No coverage for air conditioning in any of the plans, it must be purchased extra.
- A 30-day workmanship guarantee is less than some home warranty providers.
