7 Best Home Warranty Companies of 2020 – This Old House

The Top Home Warranty Companies of 2020

The best home warranty plan will cover expensive repair and replacement costs when a major system or appliance, such as an air conditioning or refrigerator, breaks down due to normal wear and tear. Because there are a variety of home warranty providers to choose from, this guide will allow you to compare different home warranty companies and help you find the right home protection plan.

We chose American Home Shield as the best overall home warranty company because of its customizable plan options, nationwide coverage, simple claims process, generous coverage caps, flexible service fees ($75$125), and nearly 50 years of experience in the home warranty industry.

Get a free quote from American Home Shield:

American Home Shield (AHS) is the best home warranty company available. A veteran in the home warranty industry, AHS has been in operation for almost 50 years, making it one of the most trusted home warranties on the market. AHS has three plans and allows customers to choose the service fee$75, $100, or $125they want to pay (note: a higher service fee will likely come with a lower monthly premium and vice versa).

While there are more than 45 active home warranty companies, almost one in two customers buys an American Home Shield policyAHS is far and away the most popular provider available. Read more: American Home Shield review.

Our Score Breakdown for American Home Shield

Get a free quote from Choice Home Warranty:

Choice Home Warranty (CHW) offers two plansBasic and Totalthat provide comprehensive coverage for both appliances and systems. CHW doesnt restrict coverage based on the age of your home or its appliances, as long as youve properly maintained them, and it offers a generous 90-day repair guarantee. Read our full Choice Home Warranty review for more details.

Our Score Breakdown for Choice Home Warranty

Get a free quote from Amazon Home Warranty:

Amazon Home Warranty has one of the most robust contractor networks in the home warranty industry and covers major systems and appliances regardless of their age. Not to mention, Amazon Home Warranty provides an extensive list of add-ons and offers customers one month free of coverage when signing up for a home warranty plan. Read more: Amazon Home Warranty review.

Our Score Breakdown for Amazon Home Warranty

Get a free quote from Select Home Warranty:

Select Home Warranty is a great option for people looking for an affordable home warranty. This company offers plan premiums at around $36$38 a month, whereas the median cost in the industry is $50 per month. Select Home Warranty also provides two free months of coverage to customers who sign up for a plan along with free roof leak coverage, which isnt typically offered by companies. Read more: Select Home Warranty review.

Our Score Breakdown for Select Home Warranty

Get a free quote from Americas First Choice Home Club:

Americas First Choice Home Club (AFC Home Club) is one of the best home warranty providers for customizable coverage and comprehensive plans. It allows customers to choose their own service technician and has the longest work guarantee in the industry (guaranteeing parts and labor for as long as youre a member). Additionally, they offer benefits like emergency alert network services, free credit monitoring, and discounts on maintenance-related supplies.

AFC Home Club also provides twice as many plans as most home warranty companies do, allowing customers to choose from four plan options instead of two. Read more: AFC Home Club review.

Our Score Breakdown for AFC Home Club

Get a free quote from First American Home Warranty:

First American Home Warranty (FAHW) offers two easy-to-understand plans with solid coverage and flexible payment options for customers. What makes First American Home Warranty a stand-out is its optional First Class Upgrade, which protects systems and appliances that were improperly maintained, modified or installeda rarity in the home warranty business. Read more: First American Home Warranty review.

Our Score Breakdown for First American Home Warranty

Get a free quote from Liberty Home Guard:

Liberty Home Guard has only been in the home warranty industry for a few years, but it provides a variety of plans at affordable prices and offers 24/7 customer service. Not to mention, Liberty Home Guard offers 20 add-onswhich is more than what most companies typically offerand provides coverage regardless of the age of your systems and appliances. Read our full Liberty Home Guard review for more details.

Our Score Breakdown for Liberty Home Guard

Before purchasing a home warranty, you want to make sure youre considering all the necessary factors to get the best plan for you and your home. Here are just a few questions you should keep in mind during the home warranty buying process.

1. What type of home warranty plan do I need?

Most home warranty companies offer three different levels of coverage: systems plans, appliance plans, and combination plans. Systems plans cover major home systems such as your air conditioning, electrical, and plumbing system, while appliance plans protect important items like your refrigerator, dishwasher, and oven. Combo plans protect both systems and appliances.

In addition to these plans, home warranty companies will generally offer coverage for optional add-ons, such as a swimming pool or spa, second refrigerator, well pump, septic system, and roof leaks.

2. How much can I afford to spend every month?

On average, a home warranty costs $25$50 every month, or $300$600 a year. You may be able to bring that cost down slightly if you enroll in a multi-year plan upfront or if you get quotes from multiple companies and ask for price matching.

Additionally, customers will have to pay a service call fee, a one-time fee that is paid every time a contractor comes to your home to assess the broken item and make a repair or replacement. Service fees typically range between $75$125, but there are some companies, like Choice Home Warranty, that have service fees as low as $60.

While a home warranty does have its costs, know that a lower monthly premium may be more affordable than unexpectedly paying for a $400 air conditioning repair or a complete system replacement, which could cost thousands of dollars.

Note: We consistently see that home warranty companies adjust their pricing depending on the size of your home and where you live, so use our general cost estimates as a guide, but confirm them with each provider based on your actual address and square footage. The price of your home warranty will depend on where you live, the type of plan you choose, how many add-ons you include on your plan, and the home warranty company you select.

We recommend getting at least three quotes, then asking your favorite company to match the best offer you receivedin doing so, you may save one to two months off your overall payment.

3. How does the claims process work?

When you file a claim with your home warranty company, they should get a technician out to you within 48 hours. While this is a guarantee for most companies, some dont promise work within this timeframe and will instead send a technician within 72 hoursand sometimes even later.

Companies like American Home Shield and Choice Home Warranty guarantee a technician will come to assess your covered item within 48 hours of you making a service request. We recommend going with one of these companies so youre not stuck at home with a broken system or appliance.

Get a free AHS quote customized to your zip code.

4. Are there limitations in the service contract?

Before you buy a home warranty, its a good idea to read the companys sample contract. In this contract, youll be able to see if there are any coverage caps (these are coverage limits placed on certain items that tell you how much the company will pay before you have to pay any dollar amount out of pocket). Youll also find information about a companys item replacement policy and if a home inspection is required before home warranty coverage begins.

Not only do home warranties protect you in the event that a major item breaks down due to normal wear and tear, they also save you hundreds of dollars on home repairs or replacements. Additionally, home warranties offer peace of mind that if something were to break, a trusted expert will be at your door within a few days to fix the problem.

Though we would recommend any of the seven best home warranty companies in this article, here are our top three suggestions. As mentioned above, American Home Shield is the best home warranty company available, with Choice Home Warranty and First American Home Warranty following close behind. We encourage you to get quotes from all three providers to help you compare coverage, negotiate a price that works for you, and secure the best home warranty for you and your home.

The home warranties listed in this article are some of the best home warranties in the industry. Excellent customer service, comprehensive coverage, and affordable pricing are all qualities that these companies exhibit. Though we recommend American Home Shield, Choice Home Warranty, and First American Home Warranty as top picks, we think any of the seven companies in this article merit attention.

This Old House plans to publish detailed reviews of theseand other prominent home warranty companiesin the next month, so keep checking this review as we roll out new details!

What is a home warranty?

A home warranty is an annual service contract that protects systems and appliances in the home when they break down or malfunction due to normal wear and tear.

Whats the difference between a home warranty and homeowners insurance?

A home warranty is different from homeowners insurance in that it covers damage on systems and appliances only, whereas homeowners insurance covers structural damage on your home due to theft, natural disasters, or fire.

How long do home warranties last?

Home warranties typically last for a year, but some companies allow customers to enroll in three- or five-year plans for a more affordable price.

What does a home warranty cover?

A home warranty typically covers both systems and appliances, however, some companies split their coverage options into systems plans, appliance plans, and combination plans. The most common systems and appliances covered under a home warranty include air conditioning, heating, electrical, plumbing, ductwork, refrigerators, water heaters, built-in microwaves, dishwashers, ovens, clothes washers, clothes dryers, and garbage disposals.

How much does a home warranty cost?

A home warranty costs around $300$600 per year and comes with service fee deductibles that range between $65$125.

How does a home warranty work?

When a home system or appliance breaks down due to normal wear and tear, you can call your home warranty company to file a claim or submit a service request online. Your company will send a trusted technician to your home within 48 hours or allow you to choose an approved contractor of your choice. In your home, the contractor will assess the issue and recommend a repair or replacement. Before they leave, youll pay the service fee set by your company.

Is a home warranty necessary?

A home warranty isnt mandatory to have, but we recommend getting coverage as an extra layer of protection on your important home systems and appliances. For example, if you have completely new appliances that are all under manufacturers warranties, you may not need a home warranty. However, when those manufacturers warranties run out, having home warranty coverage could protect you if one of your systems or appliances breaks down.

How can I cancel my home warranty?

Typically, you can cancel your policy and receive a full refund within the first 30 days of coverage. After the first 30 days, you may still be able to cancel, but youll likely receive a prorated amount based on how much of your contract you have remaining. Check your policy to figure out what the cancellation process looks like.

The This Old House Reviews team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations. With that in mind, we spent time creating an objective rating system to score each home warranty company. Heres what that review process looks like:

With all of that data, we created a rating system to score each home warranty company. Our rating system is a weighted, 100-point scale on the following factors:

In summary, the This Old House Review Team reviewed 45 companies to select this list of the seven best home warranty providers. To keep our ratings and data current, we have a full-time researcher who collects (and regularly updates) more than 100 specific data points from each company to help us compare them on key factors such as coverage, cost, service, and dependability.

To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.

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7 Best Home Warranty Companies of 2020 - This Old House