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Top Ten Home Warranty Companies
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Is A Home Warranty Worth It?
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Our experts answer our readers' home buying questions and write unbiased product reviews (we rate mortgages here). In some cases, we receive commissions from our partners; however, our opinion is our own.
A home warranty can be a good investment for homeowners looking to reduce repair costs. However, not all home warranty companies are the same.
To find the best home warranty company, we look for companies with a wide range of coverage options, positive customer reviews, good Better Business Bureau ratings and low costs – including warranty and company service fees. charged each time you request a repair. Below are our top picks.
The Best Home Warranty Companies Of 2023
Bottom line: American Home Shield is the best home warranty company because of its wide range of coverage options, flexible pricing and positive customer reviews.
The cost of coverage can be quite high depending on the price of the service you choose. American Home Shield offers service at $75, $100, or $125; The higher your fee, the lower the cost of your contract.
American Home Shield currently has a rating of 4.2 out of 5 from Consumer Affairs based on 11,175 customer reviews. Not available in Alaska, New York or some Hawaii zip codes.
Bottom line: America's 1st Choice Home Club stands out because of its four different coverage plans. Most home warranty companies only offer two or three options.
Select Home Warranty
The AFC Home Club coverage plan ranges from basic system coverage to complete home coverage that includes systems, appliances and smaller home components.
You can choose a $75, $100, or $125 service. The higher your service, the lower your monthly fee.
AFC Home Club has a rating of 3.6 from Consumer Affairs based on 126 customer reviews. AFC Home Club does not offer services in Hawaii.
Bottom line: Liberty Home Guard offers a wide variety of add-on coverage, making it a great option if your home has unique components or features that you want covered.
Home Buyers Warranty Review: Coverage & Cost (2023)
You can also add additional coverage for a wide variety of home features, including more common ones like pools or sprinkler systems, and more unique features like wine coolers, reverse osmosis water filtration systems, or professional appliances.
The cost of your service will vary depending on where you live, and Liberty Home Guard does not disclose how much it costs online. You should get a personal quote over the phone to see what you can afford.
Liberty Home Guard is rated 4 out of 5 by Consumer Affairs based on 178 customer reviews. Not available in Washington or Wisconsin.
Bottom Line: Cinch Home Services has the lowest monthly rates of any company on this list.
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You can choose between a $100, $125, or $150 service fee. The higher your compensation, the lower your monthly fees.
Bottom line: ARW Home earns the best BBB rating and has the highest consumer affairs customer rating of any company on our list.
ARW Home is rated 4.4 out of 5 by Consumer Affairs based on 275 customer reviews. Available in all 50 states and Washington, DC.
A home warranty contract includes two fees: a plan fee and a service fee. These costs are the same as the premiums and deductibles you would pay with insurance.
Will A Home Warranty Bring You Peace Of Mind? Maybe Not.
When you buy a home insurance plan, you'll pay for your coverage monthly or annually. For the providers on this list, these fees range from $30 to $130 per month.
Whenever you request a repair, you will also pay a service fee, which is a flat fee that covers the cost of a technician coming to your home and performing the repair.
When you sign up, some companies will let you choose from multiple service fee options, allowing you to choose a higher fee in exchange for a lower monthly fee, or vice versa—much like a higher deductible gives you a lower premium.
The Better Business Bureau rates companies based on their responsiveness to customer complaints, honesty in advertising and transparency of business practices. Here are the BBB ratings for the best home insurance companies:
American Home Shield Review: Home Warranty Not Worth It
American Home Shield, America's 1st Choice Home Club and Cinch Home Services received B grades for complaints filed against the companies. ARW Home has an A- because it has 2 complaints filed against it. Liberty Home Guard has an A- rating because it has 518 complaints filed against it.
What is a home warranty? This Chevron icon indicates an expandable section or menu, or sometimes previous/next navigation options.
A home warranty is a service contract that provides coverage for certain repairs. If you need to repair or replace home components covered by your plan, your home warranty will cover the cost.
How does a home warranty work? This Chevron icon indicates an expandable section or menu, or sometimes previous/next navigation options.
Afc Home Club Review
You will pay for a home warranty plan monthly or annually. When repairs are needed, you will call your warranty company and ask them to send out a technician. A technician will come to your home and make the necessary repairs or replace the item if it cannot be repaired.
As long as the component that needs to be repaired is covered by your plan, you won't pay for the repair or replacement. However, you will pay a service fee each time you request a repair, which can vary from $75 to $150 depending on your home insurance company and the plan you have.
Is a home warranty worth it? This Chevron icon indicates an expandable section or menu, or sometimes previous/next navigation options.
A home warranty can help homeowners avoid spending money on expensive home repairs. However, they can also be a waste of money if you spend more on your home warranty than on repair costs.
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Whether your home warranty is worth it can depend on whether your home's components and appliances are in good condition. If you can afford it, a home warranty gives you the peace of mind that unexpected home expenses won't blow your budget.
What does the home warranty cover? This Chevron icon indicates an expandable section or menu, or sometimes previous/next navigation options.
Home warranty contracts typically cover things like heating and cooling systems, electrical systems, plumbing systems, and major appliances. Each company has different plans, coverage amounts, and limits. Many companies offer add-ons that allow you to extend your coverage and ensure that things like swimming pools, sump pumps or electronics are covered.
How do I choose a good home warranty? This Chevron icon indicates an expandable section or menu, or sometimes previous/next navigation options.
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Do your research and get quotes from multiple companies to see who offers the best deal. Each company has different levels of coverage, so find a package that includes what you're talking about.
What is the difference between a home warranty and home insurance? This Chevron icon indicates an expandable section or menu, or sometimes previous/next navigation options.
A home warranty covers repairs to major systems and appliances in your home, while home owner insurance provides you with funds to repair or restore your home if something unexpected happens to your home or the insured items inside.
We review some of the most popular home warranty companies across the country. Many of them do not participate because they have a low BBB rating or a recent lawsuit against them for alleged unfair business practices.
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Molly Grace is a reporter at Insider. Covers mortgage rates, refinance rates, lender reviews and home buying articles for Personal Finance Insider. Before joining the Insider team, Molly was a blog writer for Rocket Companies, where
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