The biggest investment most people will ever make is buying a home. They may expect that normal homeowner’s insurance will cover their home and its more valuable items in the event of a fire, theft, natural disaster, or other occurrence.
That’s not the case, though, and many of the items in your home that hold value aren’t going to be covered by homeowner’s insurance. This is where a home warranty comes in. There are a number of home warranty companies that offer this kind of protection, and we will be comparing the top three companies here so that if you decide you want a home warranty, you can choose the best company for it.
Do you need a home warranty? If you’re not sure, we hope this guide will help you to make that decision.
What Is a Home Warranty?
A home warranty usually covers very specific items for you. It will cover the cost of major appliances, like your refrigerator, washer, dryer, oven, and more. The warranty can also cover many of the systems in your house, like electrical or mechanical systems, including, plumbing, air conditioning, and heating. The home warranty may extend the coverage on these items and systems far beyond what their original manufacturer’s warranty covers, giving you greater protection and safeguarding you against calamity.
The home warranty will help to protect you against having to pay for repairs and replacements on your own. Those can be very costly, so having some protection in that regard can help you control out-of-pocket costs. Let’s take a look at the best home warranty companies on the market today.
Compare the Best 3 Home Warranty Companies of 2021
Choice Home Warranty – Our Favorite Pick for Overall
Select Home Warranty – Our Pick for Best Service Coverage
First American Home Warranty – Our Pick for Best Low Deductibles & Flexibility
Choice Home Warranty – Our Favorite Pick for Overall
There is a lot to love about Choice Home Warranty. They are considered one of the best home warranty company options, as they offer so many choices for add-ons so that their customers can personalize the warranty to their needs. They have a huge national network of contracts and have experience in handling millions of service requests. The Choice Home Warranty login gives you access to your full plan details and lets you see what other options are available for customization.
- 30-day repair guarantee
- No restriction of warranty based on appliance or home age
- Customer service response within 48 hours
- Works with more than 15,000 contractors nationwide
- Offers first month free warranty in many cases
Choice offers two plans to pick from- Basic or Total. With the Basic Plan, you are covered for heating, plumbing, and electrical systems, as well as a few appliances. The Total Plan covers all of that, plus the HVAC system and even more appliances.
The plans that Choice offers a range of prices on its plans, based on which plan you choose and which ad-ons you want. You can save money by purchasing an annual plan as opposed to paying monthly for your warranty.
- Very affordable
- Huge network of technicians
- Money-back policy
- Award-winning service
- 30-day guarantee on repairs
- Not available in every state
You can be covered for your plumbing system, which includes shower and tub valves, breaks, leaks, and line stoppages. You can also be covered for ceiling and exhaust fans, including bearings, motors, controls, and switches. Another add-on is for your air conditioning system, covering the cost of a new condenser coil and compressor.
Basic add-ons include the central vacuum, a secondary refrigerator, the septic system, sump pump, roof leaks, well pump, spa, pool, and a standalone freezer.
Choice Home Warranty is available in every state except two- Washington and California.
Why We Picked It
We decided on Choice as one of our top picks because of their great customer service. They respond quickly and have a good reputation, which you can see for yourself if you look at some Choice Home Warranty reviews. They also have a customer-friendly refund service. If you decide you don’t like the warranty you have with them, you can call the Choice Home Warranty phone number and cancel after 30 days. They are also customer friendly in the way they will not deny coverage to any person regardless of the age of their appliances or the age of the home.
Select Home Warranty – Our Pick for Best Service Coverage
One of the top home warranty companies, Select Home Warranty has a large selection of plans to offer, as well as varied add-ons, all offered at reasonable prices. They have garnered excellent customer reviews over the years and offer free coverage for roof leaks (an uncommon option).
- Two free months of coverage
- Wide selection of plans available
- Repair guarantee covers 90 days
There are three Select Home Warranty plans to pick from- Gold Care, Bronze Care, and Platinum Care.
The pricing for Select Home Warranty’s plans lower for the Gold and Bronze plans and higher for the Platinum Care plan.
- Low deductibles
- Low service fee rates
- Lets you choose your own technician
- Large variety of coverage plans
- Coverage caps are lower than average
- Not available in several states
The best home warranty company will give you plenty of options for add-ons, and Select can cover you for repairs on and replacement of your sump pump, well pump, central vacuum, plumbing, and lighting fixtures, standalone freezer, second refrigerator, septic system, lawn sprinklers, pool and spa items, and your ice maker.
You can sign up for Select Home Warranty plans in all but four states- Wisconsin, New York, Nevada, and Washington.
Why We Picked It
We looked at all aspects of this company and especially the Select Home Warranty reviews, which were overwhelmingly positive, though there were a few complaints too. The company offers some of the most affordable rates overall, with low deductibles and service fees. They also discount multi-year plans, saving you money over the long term. Their wide range of coverage services and varied plans makes them one of the best home warranty providers for someone wanting very specific types of plan and who might not be happy with the one-size-fits-all approach that other providers have.
First American Home Warranty – Best Low Deductibles & Flexibility
The First American Home Warranty reviews are mostly positive, with customers citing their extensive service coverage plans and customizable policies as selling points. The company has been in operation since 1984 and has developed a good reputation in that time. They have a varied selection of plans to pick from and offer lots of different choices to personalize the plan the way you want.
- Years of experience in the business
- Great customer reviews
- 24/7 customer service access
- Provides coverage for systems that were not installed properly
- Lots of optional upgrades
There are three plan options available with First American Home Warranty. The Basic Plan covers your basic systems- electrical, plumbing, ducts, and major appliances.
The Value Plus Plan includes all of the Basic Plan, as well as coverage for the air conditioning system, building permits, some building code upgrades, and refrigerator disposal and reclamation.
They also offer an Eagle Premier Plan, which covers all of the Basic Plan and coverage for the washer and dryer, the kitchen refrigerator, air conditioning, and a first class upgrade.
The American Home Warranty monthly plans range in price based on your location and are sometimes comparable to that of Choice Home Warranty. There is a fee for filing, and that cost varies based on what kind of claim you are filling and which appliances or systems it is for.
- Low, affordable rates on all plans
- 24/7 customer service
- Coverage for improperly maintained and repaired appliances
- Very fast response time
- Not available in 15 states
- Claim fee can be expensive
- No roof leak coverage
If you want to add on to any of the available plans and extend their reach, you can use your First American Home Warranty login and request coverage for pool and spa items, a secondary refrigerator, your central AC system, a well pump, or a First Class Upgrade (covering cosmetic damage, building permits up to $250, cranes, and appliance removal).
First American Home Warranty is available in 45 states. It is not available in the following states: AL, CT, DE, HI, IL, LA, ME, MA, MN, NH, NJ, NY, ND, RI, VT, and WI.
Why We Picked It
We chose First American Home Warranty as one of our top picks because of its excellent reputation and the ability to customize plans. They also offer affordable, competitive rates on all of their plans, and they provide customer service around the clock. They offer a feature that is rare among home warranty services, which the ability to cover the cost of repairs on an appliance that wasn’t repaired properly in the first place or that hasn’t been maintained well.
How to Find the Best Home Warranty Companies?
We have looked at a few of the best home warranty companies and compared them for you, but you might have different needs. If you were to look at the home warranty cost and the home warranty plan options and add-ons, one or two may be far more appealing to you and more suitable to your needs than the others. Your coverage needs are specific and different from what other people need.
So, how do you pick the best home warranty company? You will need to consider the coverage options available and whether they are suitable for you. Does it cover appliances that are in your home or that you might get for your home later? Does it cover those add-on services at a reasonable price?
You’ll want to do a price comparison between companies but look at more than just the base monthly rates. Consider the kind of plan that you would need, calculating the necessary add-ons and optional costs, as well as service fees and other expenses. Compare that total among the different home warranty companies to get the real best value.
You should also read the best home warranty reviews, comparing what customers say about each company. Look for a company that has a low number of complaints lodged against them. They likely have the best customer service. Home warranty reviews should be posted for the company you are considering. If there are none, it is likely a relatively unknown company or a company that is hiding its customer feedback, probably for unsavory reasons.
The responsiveness and quality of the customer service will be important when you are trying to file a claim for repairs or replacement. The promise of coverage won’t mean very much if it isn’t backed up by decent customer service. The worst home warranty companies have slow response times and fight with their customers over every claim.
Also, consider the availability of the plan and provider. Some of them don’t operate in every state, so make sure that the home warranty insurance you are looking for is offered by the provider you are considering.
How Does a Home Warranty Work?
A home warranty helps to cover the cost of repairs and replacement on appliances and various systems for your house. How does a home warranty work? You sign up for a plan that covers you from specific costs and services. The plan you sign up for may cover your plumbing system. Then, if you see a leak in your plumbing, your home warranty can cover that cost for you. The company that you signed up with may have an in-house repair team that can do the work for you or they may have agreements with contractors in your area who can do the work. You may or may not be able to choose your own contractor when you sign up for a coverage plan like this.
The warranty can cover major systems in your home and works as a buffer between you and the cost of major repairs. In some instances, it could cost you thousands of dollars to repair portions of your house. When an electrical system fails or an appliance won’t operate correctly, without the insurance, you might have to wait a few weeks to get the money together to pay for repairs. With home warranty coverage, you can get repairs done right away- usually within one to two days.
The warranty helps you avoid the hassle of having to find a plumber, electrician, or other repair person yourself. You can have the home warranty service find one for you, saving you time and ensuring you get quality work. You don’t have to risk hiring a contractor who might not be able to do the work, as the warranty company will have vetted its repair people previously.
What Does a Home Warranty Cover?
The home warranty can cover you for a wide range of expenses, helping to pay for costs that you might have trouble paying for on your own. What does a home warranty cover exactly? That depends on which plan you get and what add-ons you choose. The best home warranty companies give you lots of choices and then let you customize the plan to your liking.
You can usually pick from plans that cover just appliances or just home systems- like electrical, plumbing, HVAC, and ductwork. You can also get your appliances covered by a home warranty plan. The best home warranty insurance covers a few appliances and then lets you add on other appliances as needed.
What does a home warranty cover when it comes to appliances? They can cover your refrigerator, freezer, ice maker, garbage disposal, dishwasher, cooktop or range, and more.
What is a home warranty covering beyond that? It may be able to cover repairs on your garage door, pool, spa, and air conditioner.
Does the home warranty cover roof repairs and leaks in the roof? It can in some instances. Not all home warranty companies will offer this coverage item.
Should I Get a Home Warranty?
The best home warranty reviews may tell you which company is America’s preferred home warranty company, but they won’t tell you if you really need one. That is a decision you will have to make for yourself, and even reading the best home warranty reviews may not give you the insight you need. It’s a good idea to look at your home’s value and the value of the various systems in the home and your appliances.
Consider how old your home is and how much age and use your appliances have on them. It could be worth it to enroll in a home warranty plan just to cover the cost of repairs when those inevitably come up. If your home is older or you have a lot of older or well used appliances, then it makes sense to purchase a home warranty plan.
Even the best home warranty may not be right for you. If you live in a relatively modern house with systems that are in good working order and you have well-maintained appliances, there may not be any reason for you to enroll in a home warranty plan. Despite what the best home warranty companies reviews may say, not everyone will get peace of mind or save money by purchasing one of these plans.
They are great for helping people feel protected in the event that something goes wrong with their plumbing, electrical, or air conditioning or with an appliance, and they do cover expenses that home insurance plans will not cover. They can fill in coverage gaps for you, ensuring that all the items you need covered are taken care of and leaving you little to worry about. Still, you need to consider how practical this kind of coverage is for you.
How Much Does a Home Warranty Cost?
The cost of home warranty will vary, and it is an average of $50 a month across the United States. That cost changes from one company to the next, so if you are wanting to know how much is a home warranty, then you need to do some price comparisons. You will save money by comparing prices and trying to find the best deal. Pay attention as well to what services you are getting with each quote.
The cost of coverage varies based on where you live as well. How much does a home warranty cost near you? The best way to find out is to call insurance companies for quotes or to use their websites to compare quotes locally.
The best home warranty companies in Texas offer rates that are different from what they would be in Washington state or in New York, for example. The rates from the same company can be different from state to state. Before you decide on the best home warranty Texas or Louisiana or another state has to offer, you need to compare local, current prices. You can use price comparison websites where they are available but make sure the quotes are based on your location and that the quotes are up to date.
The cost of home warranties changes every so often. Home warranty reviews may mention good prices with one company, but then that company may change its prices by the time you go to look at rates. Don’t assume the prices you get from a third party are up to date.
What Should I Look for in a Home Warranty Company?
We urge you to compare the best home warranty companies reviews. You should compare a few factors they have in common to see which one comes out on top. What should you be comparing to determine the best home warranty?
Pricing – Check the rates first of all. There is no point in spending a lot of time looking at a home warranty provider’s list of services if their rates are sky high and more than you want to pay. Warranties should be affordable; otherwise, they are a bad investment. If you are comparing rates for Super Home Warranty and Home Warranty of America, you want to ensure that you are comparing them equally. Let’s say you are comparing their base plans. Check to see what is included in their base plans, because it could be different.
Fees – Also compare the fees associated with each service. You can’t just look at the base price from Choice Home Warranty vendors or 1st American Home Warranty and then ignore the service fees. Those could add up to hundreds of dollars a year, and that information should inform your decision as to which company you go with. If you are filing a Choice Home Warranty claim, that may cost you, and each claim can carry some expense with it beyond your monthly rate.
Plan Options – The plan options are the main plans. You start with one of these and then add on to them if you need to. You probably will not be able to customize the base plans at all, choosing from one of several preselected sets of plans. Some companies offer four or more plan options, while others offer just two. Look closely at the plan options to ensure you pick one that is a good fit for you.
Add-Ons – The add-Ons are what you sign up for in addition to the plan options. You can add these to the base plan, giving yourself more coverage in areas where the original warranty plan may be lacking. You can get additional appliances covered by add-ons as well as other parts of your house not included in the original warranty. Compare add-ons among the different home warranty companies to ensure that the add-ons you need are included. Add-ons vary from one company to the next.
Customer Service – Before you make a decision on your home warranty plan, compare the options to see which offers better customer service. When you look at Choice Home Warranty customer service and their reputation for a fast customer service response and compare that to Home Warranty of America reviews and see how customers rate their customer service, you may find clear winners. Customer service is important because you want to be able to call up the First American Home Warranty phone number and get a response at any hour of the day. You expect that when you call your home warranty customer service number that your problem will be taken seriously and your claim will be addressed fast. That’s not always the case, unfortunately, and that’s why it is so vital that you compare customer service quality.
Is a Home Warranty Worth It?
You have to consider how the costs work out when you look at whether a home warranty is worth it. The best home warranty reviews will tell you that one company can save you money over another, but do they really save you money over just paying for the cost of repairs and maintenance yourself on home systems and appliances?
That’s what you have to look at. If you have a new HVAC system, you might think that it would be a long time before it would fail, so why bother getting home warranty coverage? But then you should consider that if it does break down for whatever reason that the cost of repairs could be very expensive. You have to pay for a warranty up front, while the cost of repairs is something that might happen in the future. Still, it can be cheaper to pay the warranty each month and get your repairs taken care of than to have to cover the cost of repairs on your own.
Even if it isn’t cheaper to purchase a home warranty plan, most people don’t save up money every month, and they will have to pay for the cost of repairs themselves without a home warranty. It may be impossible for them to pay those costs right away, and they could end up having to wait weeks or months to be able to fix an important system in their house. If your air conditioner goes down or your electrical system fails, you want to get that fixed right away.
The best home warranty companies reviews talk about this kind of benefit and how you can get your home’s issues taken care of quickly if you have a home warranty. The warranty provider will have money on hand to cover the costs for you when you need them covered. You won’t have to pay a bunch of money out of pocket and be inconvenienced by a faulty system or appliance. That’s the beauty and advantage of having a home warranty plan.
For many people, it is worth the money they have to pay each month, if for no other reason than that they enjoy peace of mind. They don’t have to worry about something breaking down in their home and not being able to pay for it. That kind of expense will be covered by the warranty for them. They can feel safe even knowing that their appliances may be old and in danger of breaking down. Their warranty will cover pairs or maintenance costs for them. That peace of mind can be invaluable to some people. Knowing that they don’t need to save up money and knowing how hard it can be to save up money makes the home warranty plan seem like the right choice many times.
Ultimately, you need to decide if a home warranty is right for you. Source a few quotes and find out what the prices are like and take a look at your repair costs and concerns about future repairs to help you decide as to whether you should purchase a home warranty plan.
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