Best Home Warranty Companies In 2021
UPDATED: Dec 29, 2022
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Any homeowner knows that unexpected repairs can be expensive, and they always seem to pop up at the least opportune times. And unfortunately, homeowners’ insurance doesn’t cover most of these repairs. Luckily, a home warranty can help take some of the surprise out of home maintenance and help reduce the cost of those unforeseen costs.
Wondering which home warranty is right for you? We’ve rounded up the best home warranty companies of 2021 to help you find the perfect one for you.
What Is A Home Warranty?
A home warranty is a contract between a homeowner and a home warranty company where the warranty company promises to cover certain home repair costs on behalf of the homeowner. Most home warranties stipulate certain costs that are covered, including home appliances and more. Expenses commonly covered by warranties include your kitchen appliances, HVAC system, plumbing system, electrical system, and clothes washer and dryer.
We’ve compiled a list of the top-ranked home warranty companies to help you determine which is best for you. Below are the companies we’ll be covering in this roundup.
- Choice Home Warranty: Best Overall
- American Home Shield: Best Coverage Options
- Select Home Warranty: Best Value
- Cinch Home Services: Best Customer Service
- America’s First Choice Home Club: Best For Customization
- Liberty Home Guard: Best For Flexibility
What Is The Best Home Warranty Company?
There are dozens of highly rated home warranty companies on the market. As a result, choosing the best home warranty company can feel overwhelming. Below we’re rounding up the best home warranty companies, along with what we like about them.
Choice Home Warranty: Best Overall
Choice Home Warranty earns our title of the best overall home warranty because of the comprehensive coverage plans, its outstanding customer service, and its solid reputation. When you sign up with Choice Home Warranty, you'll also have a specialist who can help customize a plan to meet your needs and provide a free quote. Whatever plan you choose, you'll get your first month for free, and you can cancel within 30 days.
Once you have your warranty, you can have peace of mind knowing Choice Home Warranty's trained professionals are available online or by phone 24 hours a day, 365 days per year – including holidays. Looking for even more assistance? The company's site provides FAQs, home maintenance tips and a blog to help you on the homeownership journey.
Pros And Cons
Pros:
- More affordable warranty plans than many competitors
- Your first month is free with the purchase of any single payment home warranty plan
- You get free repairs if an item breaks within 90 days of a repair
Cons:
- Not available in California or Washington
- Doesn’t allow customers to choose their own technician
- $500 limit for roof leak coverage
Plans Offered
Choice Home Warranty cuts down the overwhelm by offering two comprehensive plans — a basic plan and a total plan — with the option to add on more coverage.
First, the Basic Plan covers most of the systems and appliances in your home. The only things it doesn’t cover are the air conditioning system, the refrigerator, and the clothes washer and dryer. The Total Plan, on the other hand, covers all of the appliances and systems in your home, including those that the Basic Plan doesn’t cover.
In addition to the basic plans offered, Choice Home Warranty allows you to add several optional coverages, including your pool and spa, central vacuum, well pump, septic system, sump pump, stand-alone freezer and more.
As for a price tag, Choice Home Warranty costs $25 – $60 for its monthly premiums and $75 – $125 for its service fees.
American Home Shield: Best For Flexibility
Credited with founding the home warranty industry, American Home Shield offers the right kind of flexibility when it comes to plans and services fees. Customers have the option to build their own plan or pick from three different plans: appliance, systems, or combination. You can also opt for extra coverage for things like electronics, pools, and pumps. The company’s site helps you choose the right option for you by allowing you to compare plans side by side and even read sample contracts to give you a better idea of what’s covered, what’s not, and what to expect with your plan.
Another great feature of American Home Shield is that it lets you choose your own service call fee. With this ability, you have control of what you pay for less — the service call or the monthly payment.
Pros And Cons
Pros:
- Offers extensive coverage options for both systems and appliances
- Has payment flexibility so customers can choose their monthly payments and service fees
- There are fewer requirements to provide service, including no home inspection
Cons:
- Has more customer complaints than other competitors
- Not available in all 50 states
- Some plans are more expensive than competitors
Plans Offered
American Home Shield offers three different coverage plans: ShieldSilver, ShieldGold, and ShieldPlatinum. The ShieldSilver covers your home’s systems, including your heating and cooling system, electrical system, and plumbing system. The ShieldGold plan covers your home’s systems, as well as your kitchen and laundry appliances. Finally, the ShieldPlatinum covers everything in the other two plans and comes with roof leak repairs, a free HVAC tune-up, unlimited A/C refrigerant, and coverage for code violations and permits.
As far as pricing, each of American Home Shield’s prices costs $35 – $75 per month, with an extra fee for service calls or to add an Electronics Protection Plan.
Select Home Warranty: Best Value
- 60-day free roof leak guarantee when you purchase a home warranty contract
- Multiyear discounts to help you save when you sign a contract for multiple years
- 90-day repair guarantee on all service work
- Customers can’t choose their own technician
- Not available in all 50 states
- Low coverage caps on certain repairs
Cinch Home Services: Best Customer Service
Cinch Home Services, wins our vote for the best customer service. It makes it easy for homeowners to get the help they need with easy-to-read plan documents and a digital platform that allows users to schedule repairs online in minutes. Instead of having several exclusions for what parts and components are covered, Cinch instead covers all parts and components up to a dollar amount per term for most of the appliances and systems included in their plans. While there are some exceptions on a few household items, this makes it much easier to know what to expect if a covered appliance or system breaks down, instead of trying to go through your contract with a fine-toothed comb.
And if something does break, you don’t have to worry about making a service call. Instead, Cinch’s digital dashboard allows you to request service online, 24 hours a day, 7 days a week.
Pros And Cons
Pros:
- Coverage for all components and parts for most appliances
- Longest workmanship guarantee of all home warranty companies
- Covers unknown pre-existing conditions that other companies won’t
Cons:
- Not available in all 50 states
- Higher service fees than many competitors
- Can’t see the pricing for optional coverage until the end of the purchase process
Plans Offered
Cinch Home Services offers three different service plans: the Appliances Plan, the Built-In Systems Plan, and the Complete Home Plan. The Appliances Plan covers all of the appliances in your home, including both your kitchen appliances and your washer and dryer. The Built-In Systems Plan covers the systems within your home, including your electrical, plumbing, and HVAC systems. Finally, the Complete Home Plan covers everything from the previous two plans. There are also optional coverages that include pool, spa, septic tank, and well pump coverage.
Cinch Home Services plans start around $28 per month and go up to around $51.
America’s 1st Choice Home Club: Best Member Benefits
In addition to its four different plan options (platinum, gold, silver, and systems plans), AFC Home Club members also have access to something that most other companies don’t offer: member benefits. Current promotions include free credit monitoring and identity protection alerts, discounts on home maintenance supplies, and savings on home security and alarm systems. AFC Home Club also partners with to provide discounted pricing for its clients.
Pros And Cons
Pros:
- Customers can choose their own service technicians
- Guarantees parts and labor for your entire membership
- Additional member benefits like credit monitoring and discounts on home maintenance supplies
Cons:
- Not available in all 50 states
- Higher cancellation fee than competitors
- Starting prices are higher than many competitors
Plans Offered
ACF Home Club offers three different plans: the Systems Plan, Silver Plan, Gold Plan and Platinum Plan. The Systems Plan includes all of the systems in your home, including heating and cooling, water heater, electrical, plumbing, and ductwork. The Silver Plan includes all of your kitchen appliances, clothes washer and dryer, and garage door opener. The Gold Plan covers most of your home’s systems and appliances but doesn’t cover plumbing stoppages, your built-in microwave, and your ice maker. Finally, the Platinum Plan covers everything included in the Gold Plan and the three components not included in the Gold Plan. Additional optional coverages include your sump pump, septic system, pool and spa, and more.
AFC Club Home has flexible pricing, with premiums ranging from $43 – $59 per month.
Liberty Home Guard: Best New Home Warranty Company
Liberty Home Guard is relatively new to the home warranty company industry and offers excellent service. Founded in 2019, the company has top ratings from both the Better Business Bureau and Consumer Affairs thanks to its affordable plans, reliable customer service, and modern claim portal. Liberty Home Guard offers a variety of service plans for your appliances and systems and has more optional add-ons than any other company.
Pros And Cons
Pros:
- No cancellation fee and a full refund if you cancel within 30 days of your start date
- Affordable service plans, including a sign-on deal, two months free, and free coverages
- Modern customer claim portal that makes it easy to file claims
Cons:
- Not available in all 50 states
- Only two years of industry experience, which may not be enough to prove itself
- No customizable plan options
Plans Offered
Liberty Home Guard offers three different plans: Appliance Guard, Systems Guard and Total Home Guard. The Appliance Guard plan covers all of your kitchen appliances and your washer and dryer. The Systems Guard plan covers all of your home’s systems, including your heating and cooling, ductwork, plumbing, and electrical. Finally, the Total Home Guard plan combines both of the other two plans for the most comprehensive plan. There are also a large number of optional add-ons that include your pool and spa, well pump, sump pump, central vacuum, pest control, re-key, carpet cleaner, generator, and many more.
As for pricing, Liberty Home Guard’s plans range from $40 for the Appliance Guard plan to $60 for the Total Home Guard plan. There’s also a $60 service fee required for claims.
How To Choose The Best Home Warranty Company For Your Needs
There are plenty of factors to consider when choosing the right home warranty plan for you. Here are a few of the most important factors:
1. Determine What Coverage You Need
First, determine what you want covered. Take inventory of the appliances in your home and look into the average cost of repair for each one. Then determine which systems and appliances will be too costly to pay out of pocket to repair or service — these should be the first on your home warranty list. Look through your manufacturer’s warranties to see if any additional coverage is needed. You can choose to leave out systems that are still under warranty.
2. Know Your Budget
Once you know what you want covered, consider how much you’re willing to spend on a plan. Most home warranties include a monthly or yearly cost and a service fee. To help fit your home warranty plan into your personal budget, you may choose to cover fewer items or shop around for the best deal.
3. Research Providers And Compare Quotes
The first home warranty company you call may not give you the lowest quote or the best plan. Call around and get pricing for different plans from at least two different home warranty providers. Many offer a free quote and list their coverage plans on their websites.
4. Review Contract Terms
It’s critical that before you enter into a home warranty contract, you review all of the contract terms and policies. Any company should be happy to talk through any questions you have about your contract so that you feel entirely comfortable before signing on the dotted line.
Home Warranty FAQs
There’s a lot to know about home warranties before you purchase one. Below we’re answering some of the most frequently asked questions about home warranties.
How does a home warranty work?
A home warranty is a contract between you and a home warranty company. These contracts often last for 1 year and require a cancellation fee if you decide to end it early. During your contract, your home warranty company will provide service on all covered appliances and systems, usually with a service fee. Your home warranty company will send a technician to repair the item and may replace it if necessary.
What are the different types of home warranty plans?
While each home warranty provider has its own business model, most will provide a variety of comprehensive plans that have different types of coverage amounts. Many providers have a plan that covers appliances and another that covers systems, as well as a comprehensive plan that covers both. Other providers offer tiered plans, with each increasing tier covering more systems and appliances in your home. Finally, some providers offer a build-your-own plan so you can get the full amount of coverage you need.
What does a home warranty cover?
Home warranties usually cover home appliances such as kitchen appliances and your washer and dryer, as well as home systems such as heating and cooling, plumbing, electrical, and more.
What doesn’t a home warranty cover?
While most appliances and systems are covered by your home warranty, most plans don’t cover windows, walls, and doors, nor do they cover appliances with pre-existing conditions in most cases. They may also not cover anything that wasn’t properly installed, properly maintained, or up to code.
What’s the difference between a home warranty and homeowners insurance?
While your home warranty is designed to cover the appliances and systems in your home that need to be repaired or replaced due to normal wear and tear, homeowners insurance covers damage to the structure of your home or the items within it.
Are home warranties worth it?
There are many benefits of a home warranty, but they aren’t necessarily right for everyone. When deciding whether a home warranty is right for you, consider how it would fit within your budget, whether you have emergency funds set aside for unexpected repairs, and whether you expect any of your appliances or systems to need to be repaired or replaced in the near future.
The Bottom Line
A home warranty can go a long way in helping to prevent unexpected home maintenance costs. There are several highly rated home warranties to choose from, which we’ve rounded up in this guide. When you’re buying a home, be sure to learn more about other forms of coverage, like mortgage insurance.
Hanna Kielar
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