Best Home Warranty Companies 2026

A home warranty is a service contract that covers repairs or replacement of major home systems and appliances that break down due to normal wear and tear. Unlike homeowners insurance, which covers damage from events like fire or theft, home warranties specifically cover mechanical failures that occur from everyday use.

For homeowners, unexpected repair bills can be financially devastating. A broken HVAC system can cost $5,000 to $10,000 to replace, while a new water heater runs $1,000 to $3,000. Home warranties provide peace of mind by capping your out-of-pocket costs for covered repairs at a predictable service fee, typically between $75 and $125 per service call.

How Home Warranties Work

When a covered system or appliance breaks down, you contact your home warranty company to file a claim. They'll dispatch a pre-screened contractor from their network to diagnose the problem. If the issue is covered under your plan, the contractor completes the repair or arranges for replacement, and you pay only the service fee.

The process typically works like this:

• Step 1: Something breaks - you notice your AC isn't cooling or your dishwasher won't drain
• Step 2: File a claim online or by phone with your warranty company
• Step 3: A contractor is assigned, usually within 24-48 hours
• Step 4: The technician diagnoses the problem and determines coverage
• Step 5: Repairs are completed, you pay your service fee

What Home Warranties Cover

Home warranty plans typically come in three tiers: systems only, appliances only, or comprehensive coverage that includes both. Understanding what's covered helps you choose the right plan for your home.

Systems Coverage

Systems coverage protects the major mechanical systems that keep your home running:

• HVAC - Heating, ventilation, and air conditioning systems including furnaces, heat pumps, and central AC units
• Electrical Systems - Wiring, circuit breakers, and electrical panels
• Plumbing - Pipes, faucets, toilets, and plumbing fixtures (excluding septic systems in most plans)
• Water Heater - Tank and tankless water heaters up to specified gallon limits
• Ductwork - Air ducts and ventilation systems
• Garage Door Opener - The motor and mechanical components
• Ceiling Fans - Built-in ceiling fans and exhaust fans

Appliance Coverage

Appliance plans cover the machines that make daily life convenient:

• Refrigerator - Including ice makers and water dispensers in most plans
• Dishwasher - Built-in dishwashers (portable units typically excluded)
• Washer and Dryer - Both units, though some plans charge extra for dryers
• Oven/Range/Cooktop - Gas or electric cooking appliances
• Microwave - Built-in microwaves (countertop units usually excluded)
• Garbage Disposal - Standard garbage disposals

Optional Add-On Coverage

Most companies offer additional coverage you can add to your base plan:

• Pool and Spa - Pumps, motors, and heating systems ($100-200/year extra)
• Septic System - Septic tank and pump ($50-100/year extra)
• Well Pump - For homes with private wells
• Guest Units - Coverage for ADUs or guest houses
• Roof Leak Repair - Limited coverage for roof leaks

Top Home Warranty Companies

American Home Shield

American Home Shield is one of the oldest and largest home warranty providers, covering over 2 million homes nationwide. They offer the most flexible plan options with three tiers (ShieldSilver, ShieldGold, and ShieldPlatinum) and the ability to customize coverage. AHS has no home inspection requirements and covers items regardless of age. Service fees range from $75 to $125, and annual premiums run $400-700 depending on your plan and location.

Choice Home Warranty

Choice Home Warranty has earned a reputation for competitive pricing and responsive customer service. They offer two main plans - Basic and Total - with straightforward pricing and no hidden fees. Choice is particularly popular among first-time home warranty buyers due to their simple claims process and nationwide contractor network. Plans start around $350/year with service fees of $85.

First American Home Warranty

First American has been in the home warranty business for over 35 years and is especially strong in coverage for older homes. They don't impose age restrictions on covered items, which is valuable if your home has aging systems. First American also offers flexible service fee options ($75 or $100) that affect your monthly premium. Their customer service is highly rated, with 24/7 claims filing available.

Select Home Warranty

Select Home Warranty positions itself as a budget-friendly option without sacrificing essential coverage. They offer a free roof coverage add-on that other companies charge extra for. Select also provides a 30-day cancellation period and prorated refunds if you're not satisfied. Plans start around $300/year, making them one of the most affordable options available.

Liberty Home Guard

Liberty Home Guard is a newer entrant that's quickly gained market share with comprehensive coverage and modern customer experience. They offer same-day service in many areas and have a user-friendly mobile app for filing claims. Liberty's plans include higher coverage caps than many competitors, and they cover items like well pumps and septic systems in their standard plans.

Home Warranty Costs

Understanding the full cost of a home warranty involves more than just the annual premium:

• Annual Premium - $300 to $600 for basic plans, $600 to $800 for comprehensive coverage
• Service Call Fee - $75 to $125 per service visit (you choose when you sign up - lower fees mean higher premiums)
• Coverage Caps - Most plans limit payouts to $500-3,000 per item and $10,000-25,000 per year
• Add-On Costs - Pool coverage adds $100-200/year, septic adds $50-100/year

Home Warranty vs. Home Insurance

Many homeowners confuse home warranties with homeowners insurance, but they serve completely different purposes:

• Homeowners Insurance covers damage from disasters, theft, liability, and accidents. It's required by mortgage lenders and protects against catastrophic loss.
• Home Warranties cover mechanical breakdowns from normal wear and tear. They're optional and protect against everyday repair costs.

You need both for complete protection - insurance won't cover your AC compressor failing from age, and a warranty won't cover damage from a fallen tree.

Is a Home Warranty Worth It?

Home warranties make the most sense in certain situations. Consider purchasing one if:

• Your home has older appliances or systems - If your HVAC or water heater is 10+ years old, a warranty can save thousands when they inevitably fail
• You're not handy with repairs - If you'd hire someone for most repairs anyway, a warranty simplifies the process
• You want budget predictability - Converting unpredictable repair costs into a fixed annual expense helps with financial planning
• You're buying or selling a home - Warranties provide peace of mind during real estate transactions and are often offered as seller incentives
• You're a landlord - Managing repair calls across multiple properties is easier with a warranty company handling contractor dispatch

Common Home Warranty Exclusions

Before purchasing, understand what home warranties typically don't cover:

• Pre-existing conditions - Issues that existed before coverage began
• Improper installation or maintenance - Problems caused by DIY work or neglect
• Cosmetic issues - Scratches, dents, or appearance-related problems
• Code violations - Upgrades required to meet current building codes
• Outdoor items - Sprinkler systems, outdoor kitchens (unless specifically covered)
• Secondary refrigerators - Usually only one refrigerator per household

Frequently Asked Questions

Can I choose my own contractor?

Most home warranty companies require you to use their network contractors. Some allow you to use your own, but reimbursement may be limited to what they would have paid their network provider.

How long does it take to get service?

Standard service calls are typically scheduled within 24-48 hours. Emergency repairs (no heat in winter, no AC in extreme heat) are usually prioritized for same-day or next-day service.

What if I'm not happy with the repair?

Reputable warranty companies will send a different contractor if you're unsatisfied with the initial repair. Most also have appeals processes for coverage disputes.

Do home warranties cover older appliances?

Yes, most home warranties cover appliances and systems regardless of age, as long as they were in working condition when coverage began.

Can I cancel my home warranty?

Yes, most companies allow cancellation with a prorated refund, though some charge a cancellation fee. Check the contract terms before signing.

How to Choose a Home Warranty

When comparing home warranty companies, evaluate these factors:

• Coverage limits - Higher caps mean more protection for expensive repairs
• Service fee options - Balance between per-call cost and annual premium
• Customer reviews - Look for patterns in claims handling and contractor quality
• Contract terms - Read the fine print on exclusions and limitations
• Local availability - Ensure they have contractors in your area