Best Home Warranties
Based on In-Depth Reviews

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.