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A home warranty can be a good investment for homeowners who want to keep their repair costs down. But not all home warranty companies are equal.
To find the best home warranty companies, we looked for companies that have a wide variety of coverage options, positive customer reviews, good ratings from the Better Business Bureau, and low costs — including both the cost of the warranty and the service fee the company charges every time you request a repair. Here are our top picks.
How home warranty pricing works
Home warranty contracts come with two costs: the cost of the plan, and a service fee. These costs are similar to a premium and deductible you’d pay with insurance.
When you purchase a home warranty plan, you’ll pay for your coverage on either a monthly or annual basis. For the providers on this list, this cost ranges from $30 to $130 per month.
You’ll also pay a service fee whenever you request a repair, which is a flat fee that covers the cost of a technician coming to your home and making 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 cost, or vice versa — similar to how a higher deductible gets you a lower premium.
Best overall home warranty company: American Home Shield
American Home Shield
Cost$30 to $100 per monthService fee$75, $100, or $125BBB ratingB
The bottom line: American Home Shield Home Warranty is our best overall home warranty company thanks to its range of coverage options, flexible pricing, and positive customer reviews.
American Home Shield offers three different coverage options:
ShieldSilver covers the major systems of your home, including your heating and cooling systems, electrical systems, and plumbing systemsShieldGold covers everything in the Silver plan, plus kitchen and laundry appliancesShieldPlatinum covers everything in the other two plans, along with roof leak repairs, free HVAC tune-ups, unlimited A/C refrigerant, and coverage for code violations and permits
Prices for coverage can range quite a bit depending on which service fee you choose. American Home Shield offers a $75, $100, or $125 service fee; the higher your fee, the lower your contract cost.
American Home Shield currently has a 4.2 out of 5 rating from Consumer Affairs, based on 11,175 customer ratings. It’s not available in Alaska, New York City, or certain zip codes in Hawaii.
Best range of coverage options: America’s 1st Choice Home Club
America’s 1st Choice Home Club
Cost$36 to $60 per monthService fee$75, 100, or $125BBB ratingB
The bottom line: America’s 1st Choice Home Club Home Warranty stands out thanks to its four different coverage plans. Most home warranty companies only offer two or three options.
AFC Home Club’s coverage plans range from basic systems coverage to full house coverage, which includes systems, appliances, and smaller house components.
Systems covers your water heater, air conditioning and heating systems, electrical system, and plumbing systemSilver covers your major appliances, such as your refrigerator, stove, dishwasher, and garbage disposalGold covers everything in the Systems and Silver plans, plus ductworkPlatinum covers everything in the Systems, Silver, and Gold plans, plus faucets, ice makers, built-in microwaves, and fans
You can choose a service fee of $75, $100, or $125. The higher your service fee, the lower your monthly cost will be.
AFC Home Club has a 3.6 rating from Consumer Affairs, based on 126 customer reviews. AFC Home Club doesn’t offer service in Hawaii.
Best for customizing your coverage: Liberty Home Guard
Liberty Home Guard
Cost$50 to $60 per monthService feeNot disclosedBBB ratingNR (“No Rating”)
The bottom line: Liberty Home Guard Home Warranty offers a huge range of add-on coverage, making it a great option if your home has unique components or features that you want covered.
Liberty Home Guard offers three different home warranty plans:
Appliance Guard covers your major home appliancesSystems Guard covers your major home systemsTotal Home Guard covers both your major home appliances and your major home systems
You can also add additional coverage for a huge variety of different house features, including common ones like a pool or sprinkler system, and more unique features like a wine fridge, reverse osmosis water filter system, or professional-grade appliances.
Your service fee will vary depending on where you live, and Liberty Home Guard doesn’t disclose how much it charges for this fee online. You’ll need to get a personalized quote over the phone to see what you might pay.
Liberty Home Guard has a rating of 4 out of 5 from Consumer Affairs, based on 178 customer ratings. It’s not available in Washington or Wisconsin.
Best prices: Cinch Home Services
Cinch Home Services
Cost$30 to $57 per monthService fee$100, $125, or $150BBB ratingB
The bottom line: Cinch Home Services Home Warranty had the lowest quoted monthly prices out of all the companies on this list.
With Cinch Home Services, you can choose from three different warranty plans:
Appliances covers your kitchen and laundry appliancesBuilt-in Systems covers your heating and cooling systems, electrical systems, and interior gas and plumbingComplete Home covers everything covered by the other two plans
You can choose from a $100, $125, or $150 service fee. The higher your fee, the lower your monthly costs.
Cinch Home Services has a 3.9 rating from Consumer Affairs, based on 328 customer ratings.
Best for customer satisfaction: ARW Home
ARW Home
Cost$40 to $130 per monthService feeNot disclosedBBB ratingA-
The bottom line: ARW Home Home Warranty earned the best grade from the BBB and has the highest customer rating on Consumer Affairs out of all the companies on our list,
ARW Home offers three different coverage plans:
Kitchen Plus covers your interior electrical system, water heater, and major kitchen appliancesPlatinum Premier covers everything in Kitchen Plus and central heating and cooling systems, plumbing systems, plumbing stoppages, garage door openers, humidifiers, ductwork, ceiling fans, and ice makers.4-in-1 Bundle includes everything covered by the other two plans, plus your washer and dryer, water and sewer lines, electronics, and the Deluxe Advantage package, which includes things like plumbing faucets and fixtures or A/C refrigerant and coils.
This company doesn’t disclose its service fee cost online.
ARW Home has a 4.4 out of 5 rating from Consumer Affairs, based on 275 customer ratings. It’s available in all 50 states and Washington, DC.
Other home warranty companies we considered
We reviewed some of the most popular home warranty companies across the country, and many of them didn’t make the cut because they had low ratings from the BBB or recent lawsuits against them alleging dishonest business practices.
Select Home Warranty: Select Home Warranty has good online customer reviews, but it earned a C rating from the BBB for 5,047 complaints filed against the business, including 5 that weren’t resolved.First Premier Home Warranty: This company has a C rating from the BBB and was the subject of a cease and desist from the California Department of Insurance in 2021 for selling warranty contracts in the state without proper authorization.Choice Home Warranty:: Choice Home Warranty has a C rating from the BBB because it has 10,373 complaints filed against the business and “has failed to resolve underlying cause(s) of a pattern of complaints.” It was also the subject of a lawsuit brought by the Arizona Attorney General in 2019 that alleged Choice Home Warranty made false promises to policyholders.ServicePlus Home Warranty: This company has poor online customer reviews. In 2021, when it went by the name Total Home Protection, the company settled a lawsuit brought by the Pennsylvania Attorney General that claimed the company engaged in deceptive marketing practices.Home Warranty of America Home Warranty: The BBB says that because of “the entire organization’s interactions with its customers, including interactions with local locations,” Home Warranty of America earns an F rating.
Methodology: How we chose the best home warranty companies for 2022
We rated home warranty companies based on four main criteria:
Affordability: To find out how much each home warranty company charges, we got quotes from each company for a sample home that’s less than 5,000 square feet. Depending on your home’s size and location, you may pay more or less. We then compared these prices to see which companies offer the best value.Customer satisfaction: We looked at online customer reviews for each company to gauge how satisfied current customers are with their coverage.Trustworthiness: Most of our top picks earned at least a B rating from the BBB, with the exception of Liberty Home Guard, which currently has an NR (“No Rating”). We also considered any recent public scandals from the last three years.Types of coverage: We looked at how many plans each company offers, what is included in those plans, and what types of coverage they offer as add-ons. Companies that offer a larger amount of coverage and a wider variety of coverage options were rated more favorably.
Are these home warranty companies trustworthy?
The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB grades for our top home warranty companies:
Company
BBB rating
American Home ShieldBAmerica’s 1st Choice Home ClubBLiberty Home GuardNRCinch Home ServicesBARW HomeA-
The BBB gives explanations for why it gives certain grades.
American Home Shield, America’s 1st Choice Home Club, and Cinch Home Services all earned B ratings due to complaints filed against the businesses. ARW Home has an A- because it has 2 complaints filed against it. Liberty Home Guard has an NR rating because its BBB accreditation is currently suspended.
None of these companies have any recent public scandals.
Frequently asked questions
What is a home warranty?
A home warranty is a service contract that guarantees coverage for certain repairs. If you need a repair or replacement of a house component that’s covered by your plan, your home warranty will cover the cost.
How does a home warranty work?
You’ll pay for a home warranty plan on either a monthly or yearly basis. When the need for repairs come up, you’ll call your home warranty company and ask them to send out a technician. The technician will come to your home and either make the necessary repairs or replace the item if it can’t be fixed.
As long as the component that needs fixing is covered by your plan, you won’t pay for the repair or replacement. However, you will pay a service fee every time you request a repair, which can range from $75 to $150, depending on your home warranty company and the plan you have.
Are home warranties worth it?
Home warranties 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 you would in repair costs.
Whether a home warranty is worth it can depend on whether your home’s components and appliances are in good shape. It’s also important to remember that home warranties don’t cover everything, and you should understand the limits of any coverage before you purchase a plan.
If you can afford it, a home warranty provides peace of mind that your budget won’t suddenly be derailed by an unexpected home expense.
What does a home warranty cover?
Home warranty contracts typically cover things like your heating and cooling systems, electrical systems, plumbing systems, and major appliances. Each company has different plans, amounts of coverage, and limits. Many companies offer add-ons that allow you to expand your coverage and make sure things like pools, sump pumps, or electronics are covered.
What’s the difference between a home warranty and home insurance?
A home warranty covers repairs to your home’s major systems and appliances, while homeowners insurance gives you the funds to repair or rebuild your home if something unexpected happens to your home or any insured belongings in it.
Warranties and insurance may cover some of the same things, but they differ in terms of when they can be used. Homeowners insurance kicks in when things like fire, weather damage, or theft happen. For example, if your refrigerator was damaged in a fire, your homeowners insurance might give you money to replace it. But if your fridge suddenly stops working, you’d need to make a request with your home warranty company to have them come repair it.