Our survey of 1,000 homeowners revealed that more than 75% of homeowners had previously hired a contractor to repair a home system or appliance. From this same survey, nearly 50% of those homeowners spent time locating a contractor through online research. If you’re looking for a way to cut down the inconvenience of a system or appliance breakdown, a home warranty can help by connecting you directly with a contractor.
Enrolling in a home warranty not only gives you an easier way to connect with a knowledgeable contractor, but it also helps you account better for unexpected expenses. In this guide, we’ll help you choose a cost-effective home warranty plan that fits your needs.
All pricing information used in this article is based on a quote for a single-family home smaller than 5,000 square feet in Genoa, Nevada (near Lake Tahoe).
The Best Cheap Home Warranty Companies
Here are five of the most cost-effective home warranty companies:
- American Home Shield
- Choice Home Warranty
- America’s 1st Choice Home Club
- HomeServe
- First American Home Warranty
American Home Shield
Fast Facts:
- State Availability: 49 (all but Alaska)
- Number of Plans: Three
- Service Fee: $75–$125
- Get a Quick Quote: Visit site
Plans
At face value, American Home Shield (AHS) may not appear to be the lowest-priced home warranty provider on this list, but that shouldn’t be the basis for any decision pertaining to your home. Instead, you should consider how much you’re getting out of what you’re paying into the home warranty policy.
With AHS, you can enjoy the benefits of a flexible service call fee, which will allow you to adjust your monthly fees to a price point that makes sense for the coverage you want. If you expect to make infrequent claims, you can choose the highest service call fee option, which will in turn lower your monthly fees.
AHS offers three plan options: ShieldSilver, ShieldGold, and ShieldPlatinum. All home systems covered by these policies are not limited by a coverage cap (the total amount a company is willing to pay for a covered item), which isn’t true for any other provider on this list. AHS also offers a generous coverage limit of $3,000 per appliance with the ShieldGold plan and up to $6,000 per item with the ShieldPlatinum plan.
ShieldSilver ($44.99 to $59.99 per month): This home warranty plan covers your major home systems, including your air conditioning system, heating units, ductwork, built-in exhaust, vent fans, attic fans, main breaker and fuse panel box, doorbells and chimes, interior electrical lines, ceiling fans, garage door openers, interior plumbing lines, toilets, faucets and valves, whirlpool tub motor and components, and water heaters.
ShieldGold ($54.99 to $69.99 per month): This plan expands on ShieldSilver’s coverage by adding appliances, including your refrigerator, range/cooktop, oven, dishwasher, built-in microwave, garbage disposal, instant hot/cold water dispenser, clothes washer, and clothes dryer.
ShieldPlatinum ($74.99 to $89.99 per month): This plan covers all the items in the ShieldGold plan plus roof-leak repairs, a free HVAC tune-up, access to unlimited AC refrigerant, and coverage for code violations and permits.
Choice Home Warranty
Fast Facts:
- State Availability: 49 (all but Washington)
- Number of Plans: Two
- Service Fee: $85
- Get a Quick Quote: Visit site
Plans
Choice Home Warranty allows homeowners to bundle coverage options for major home appliances and systems. While other companies tend to separate the basic plans into appliance- and systems-exclusive plans, Choice exclusively offers combo plans. The Basic Plan covers 17 items, which is more than many comparably priced basic home warranty plans.
Unfortunately, Choice Home Warranty is involved in a pending class-action lawsuit, which alleges that the provider failed to respond to customer concerns during the claims process and denied claims in bad faith. However, a representative for the company informed us that more than 90% of the 1.1 million claims filed in 2021 had been approved, and all accounts are monitored by a small team of customer service representatives to promptly respond to claims and customer concerns.
We recommend reading the sample service contract carefully so you know the limitations and exclusions of your home warranty coverage.
Basic Plan ($46.83 per month): This combo plan covers built-in systems and appliances, including heating system, water heater, electrical system, plumbing system, plumbing stoppages, oven, range, stove, built-in microwave, cooktop, dishwasher, garbage disposal, ceiling and exhaust fans, ductwork, garage door opener, and whirlpool bathtub.
Total Plan ($54.75 per month): This plan expands on the coverage of the Basic Plan by covering your air conditioning, clothes washer, clothes dryer, and refrigerator.
America’s 1st Choice Home Club
Fast Facts:
- State availability: 49 (all but Hawaii)
- Number of Plans: Four
- Service Fee: $75–$125
- Get a Quick Quote: Visit site
Plans
Like AHS, America’s 1st Choice Home Club (AFC Home Club) allows customers to select their own service fees and thus customize their monthly premiums. While some homeowners may appreciate the convenience of a combo plan, other homeowners may prefer to break down their options into the items most important to them.
AFC Home Club offers four plan options: the Silver Plan, Systems Plan, Gold Plan, and Platinum Plan. All these plans can be purchased for a single year, or you can choose a three-year policy. In either case, all repairs completed by an AFC Home Club technician will be covered by a workmanship guarantee that extends the entire length of your plan, which prevents a policyholder from repeatedly paying the service fee for the same covered item.
You can compare the costs and covered items of AFC Home Club’s plans below.
Silver Plan ($33.58 to $38.33 per month): This plan covers home appliances, including your clothes washer, clothes dryer, refrigerator, oven, range, cooktop, stove, dishwasher, garbage disposal, and garage door opener.
Systems Plan ($40.75 to $45.50 per month): This home warranty plan covers systems, such as your water heater, air conditioning, heating systems, electrical system, and plumbing system. Our online quote did not include ductwork, but when we spoke to a representative for the company, we were told that this was a mistake on their part. Ductwork is included with all plans that cover air conditioning and heating systems.
Gold Plan ($47.92 to $52.75 per month): This plan includes all the covered items in the earlier Silver Plan plus your water heater, air conditioning, heating systems, electrical system, plumbing system, and ductwork.
Platinum Plan ($52.75 to $57.50 per month): This plan includes all the covered items in the Gold Plan plus plumbing stoppages, faucets, ice makers, built-in microwaves, ceiling fans, attic fans, and exhaust fans.
HomeServe
Fast Facts:
- State Availability: 48 (all but Alaska and Hawaii)
- Number of Plans: 14 (may vary depending on your location)
- Service Fee: $100
- Get a Quick Quote: Visit site
Plans
At first glance, you’ll likely notice that HomeServe offers significantly more plan options than its competitors. For that reason, the cost of a home warranty varies the most compared to other providers we feature in this guide. In Genoa, Nevada, HomeServe offers 14 coverage plans ranging from basic gas line protection to the more conventional appliance coverage homeowners are used to seeing, but your options may vary depending on your zip code and your utility service provider.
When you choose HomeServe, you can stay true to your priorities for home protection by covering as much or as little as you’d like. Unlike other home warranty companies, HomeServe works with your utility provider, allowing it to offer coverage for exterior items, such as your septic system and pipes.
You can compare HomeServe’s plan options below:
Gas Line ($4.99 per month): This home warranty plan covers interior gas lines, interior gas restoration, exterior gas line, and exterior gas line restoration up to $8,000.
Water Heater Repair ($6.99 per month): This plan covers water heater repair costs up to $850.
Exterior Water Service Line Coverage ($7.95 per month): This plan covers your exterior water service line and exterior water service line restoration up to $7,000.
Water Heater Repair and Replacement Plan ($8.99 per month): This plan covers water heater replacement and water heater repairs up to $1,500.
Exterior Sewer/Septic Line Coverage ($12.98 per month): This plan covers your exterior sewer/septic line and exterior sewer/septic line restoration up to $10,000.
Cooling System Coverage ($12.99 per month): This plan covers your air conditioner up to $1,750.
Heating System Coverage ($12.99 per month): This plan covers your heating system up to $1,750.
Exterior Pipe Plan ($15.99 per month): This plan covers your exterior water service line, exterior water service line restoration, exterior sewer/septic line, and exterior sewer/septic line restoration up to $10,000.
Interior Plumbing and Drainage System Coverage ($18.99 per month): This plan covers your interior plumbing and interior drainage up to $3,000.
Heating and Cooling Plan ($19.99 per month): This plan covers your heating and cooling system up to $10,000.
Home Plumbing and Drainage Coverage ($21.98 per month): This plan covers your exterior sewer/septic line, interior plumbing, interior drainage, and drain cleaning up to $12,000.
Home Comfort Plan ($29.99 per month): This plan covers your interior gas line, exterior gas line, cooling system, heating system, and water heater repairs up to $10,000.
Complete Plumbing Plan ($41.99 per month): This plan covers your exterior water service line, exterior sewer/septic line, exterior sewer/septic line restoration, interior plumbing, interior drainage, drain cleaning, interior gas line, exterior gas line, and water heater repairs up to $10,000.
TotalHome Warranty Appliances ($48.33 per month): This plan operates more like a conventional home warranty plan compared to HomeServe’s other offerings. This plan covers major appliances, such as your refrigerator, clothes washer, clothes dryer, range, dishwasher, built-in microwave, trash compactor, and garage door opener. All items are covered up to $1,500 each.
First American Home Warranty
Fast Facts:
- State Availability: 35 (all but Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont, and Wisconsin)
- Number of Plans: Two
- Service Fee: $85
- Get a Quick Quote: Visit site
Plans
First American Home Warranty is among the cheapest home warranty companies in the industry, which may cause more discerning homeowners to overlook it. Despite its low premiums, First American offers comprehensive coverage that doesn’t overpromise and thus doesn’t ask customers to overpay.
The Basic Plan covers appliances only, which can be a great option if you’ve recently renovated your kitchen with cutting-edge technology, such as a dishwasher, garbage disposal, or cooktop. If you’d rather consider a combo plan, the Premier Plan expands the coverage of the Basic plan to include eight additional major systems.
You may notice that First American does not cover air conditioning in any of its base plans. However, First American offers a suite of additional coverage options, including central air conditioning, septic system, and pool/spa equipment.
Basic Plan ($33 per month): This plan covers appliances, such as your garbage disposal, dishwasher, oven/range, cooktop, microwave, trash compactor, refrigerator, clothes washer, and clothes dryer.
Premier Plan ($46.50 per month): This combo plan covers all the items in the Basic Plan plus your plumbing system, plumbing stoppages, water heater, heating, ductwork, electrical, garage door opener, and central vacuum system.
Our Recommendation
If you’re willing to pay a bit more for your monthly fees, American Home Shield offers some of the most comprehensive coverage options in the industry, and its lack of coverage caps on built-in systems can help homeowners avoid many of the urgent and unexpected costs of homeownership.
If minimizing your monthly fees is your biggest priority, then Choice Home Warranty and First American Home Warranty both offer plan options for less than $50 a month. You may be most interested in HomeServe plan options, however, if you’re instead looking for specialized coverage for items outside the typical scope of a home warranty plan, such as exterior utility lines.
How to Choose a Home Warranty
A cost-effective plan that provides the best value to a homeowner is not necessarily synonymous with the cheapest home warranty companies. With these services, the best way to get top value from your home warranty is to carefully review the terms and conditions and the covered items to confirm they align with your priorities. Follow these simple steps to choose a home warranty that meets your needs:
- Consider the most likely breakdowns to occur this year. Before you can decide if you want a plan that covers appliances or a plan that covers your systems (or both), you’ll need to take an honest look at the state of your home’s major systems and appliances. If you anticipate a big-ticket repair in the next few years, it’s a good idea to enroll in a plan before preexisting conditions develop.
- Don’t assume you need the most comprehensive plan. Most home warranty companies won’t cover items that have been improperly installed or modified or that suffer from a preexisting condition (a malfunction that occurred before the start of your policy). You’ll want to select a home warranty plan that covers the items least likely to be subject to the typical exclusions. Making these considerations will confirm you’re choosing a policy that won’t be under-utilized.
- Request quotes from multiple providers. Before making your final decision, you’ll want to request quotes from a few of your top home warranty options. This process will allow you to compare and contrast the coverage items and terms of each provider’s service agreement.
Is a Home Warranty Worth It?
A home warranty is worth it for the peace of mind it provides. Imagine you’re taking a shower after a long day and suddenly there’s no hot water. You warm up and discover that the water heater has broken. Though an unplanned cold shower is unpleasant, a home warranty can help you resolve the breakdown with minimal hassle, as all you have to do is file a claim and pay a nominal service call fee to get the repair process started.
After you file your claim, the home warranty provider will initiate a service request on your behalf, which will include matching you with a local, licensed contractor who specializes in your specific repair need. Across the industry, it’s typical for a service request to be initiated within 24 to 48 hours of receiving a claim.
Which Home Warranty Has the Lowest Service Fee?
Our research of more than three dozen home warranty companies indicated that the industry’s average service call fee is roughly $77. American Home Shield and AFC Home Club both offer $75 service call fees, which falls slightly below that figure if you’d like to minimize time-of-service costs for repairs.
The service call fee is your responsibility each time you file a claim, so it’s important to weigh the amount you’ll be paying for a technician to diagnose the cause of the breakdown relative to the value of the covered item. If you’re expecting to cover primarily big-ticket items, a higher service call fee can allow you to lower your monthly premiums to a minimal expense.
Do Home Warranties Have Coverage Caps?
Any reputable home warranty company will provide homeowners with a copy of its service contract before you enroll in a plan. The fine print of home warranty policies will typically stipulate a coverage cap or coverage limit. These coverage limits will outline the maximum dollar amount a provider will pay for a covered item. It does not mean you’ll always receive that amount of coverage when you file a claim, but it does indicate the maximum potential coverage.
Do Home Warranties Cover Old Appliances?
It’s rare for a home warranty to exclude appliances based solely on their age; however, an older appliance may not be eligible for the same replacement value as a brand-new appliance. Typically the total coverage provided for an older appliance will be based on the prorated, depreciated value.
How We Chose the Top Home Warranty Providers
Our team reviewed and researched dozens of home warranty providers, thoroughly analyzed sample agreements, and identified customer pain points based on customer-review analysis and interviews with industry experts.
During this process, we determined that the most critical aspects of a home warranty company include available service plans and add-ons, depth of coverage, plan cost, industry reputation, customer support infrastructure, and additional features. We also focused on the ability to choose your own contractor, upgrade your coverage package, transfer your plan to another owner, and cover roof leaks, high-end appliance brands, ceiling and exhaust fans, and faucets and fixtures.
Our research supported that plan coverage should carry the most weight, with customer support as the second-most important factor. Industry reputation, plan availability, and additional features were rated equally. Therefore, we determined that price range, while worth considering, should not be the primary basis for choosing a home warranty provider for your home’s needs.