Rental property and peace of mind may not be two phrases you typically hear together, but it’s not an impossible pairing. With a home warranty, you have a resource to call when your tenants report an appliance or built-in system breakdown. Home warranty plans provide financial coverage for a repair or replacement and convenience by directly connecting you with the service provider or contractor.
This article reviews the best home warranty companies that can protect your rental properties. All pricing information used in this article is based on a single-family home (smaller than 5,000 square feet) in Beverly Hills. Keep in mind that your pricing may vary depending on the size and location of your home.
The Top 5 Home Warranty Companies for Rental Properties
Here are five of the best home warranty companies for rental property owners:
- American Home Shield
- Choice Home Warranty
- America’s 1st Choice Home Club
- Liberty Home Guard
- HomeServe
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
American Home Shield (AHS) is an excellent choice for rental property owners who want to work with a legacy home warranty company. With 50-plus years in business, AHS has provided service to more than 2 million members across the country. Its three plans—ShieldSilver, ShieldGold, and ShieldPlatinum—cover more than 30 built-in systems and appliances, including uncommonly covered items, such as doorbells, HVAC tune-ups, and instant hot/cold water dispensers. The company also offers a flexible service call fee model, which allows you to adjust your monthly fee to your preferred price point. AHS is also one of the only providers to offer an add-on option for guest units up to 750-square-feet.
ShieldSilver ($44.99 to $59.99 per month): This plan covers your air conditioning, heating unit, ductwork, built-in exhaust fan, vent fan, attic fan, main breaker and fuse panel box, doorbells and chimes, interior electrical lines, ceiling fans, garage door openers, interior plumbing lines, toilets, faucets, valves, whirlpool tub motor and components, and water heaters.
ShieldGold ($54.99 to $69.99 per month): This plan covers all the items in the ShieldSilver plan plus 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 covered items in the ShieldGold plan plus up to $1,500 for roof leaks and provides a discounted annual HVAC tune-up, unlimited AC refrigerant, and up to $1,000 in code upgrades.
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 makes it easy if you’re looking to cover the home essentials in a straightforward policy. The company covers a combination of built-in systems and appliances with two plan options: the Basic Plan and the Total Plan.
We should note that Choice Home Warranty is involved in a class-action lawsuit in Arizona. The lawsuit alleges that the company routinely failed to follow through on its contractual obligations to consumers by denying claims without good reason. We reached out to a representative for the company, who told us that the provider had approved more than 90% of 1.1 million claims filed in 2021. To avoid misunderstanding, we recommend all prospective customers carefully review the service contract’s terms and conditions.
Basic Plan ($46.83 per month): This plan offers combination coverage for your heating system, water heater, electrical system, plumbing system, plumbing stoppages, oven, range, stove, built-in microwave, cooktop, dishwasher, garbage disposal, ceiling fans, exhaust fans, ductwork, garage door opener, and whirlpool bathtub.
Total Plan ($54.75 per month): This plan covers all the items in the Basic Plan plus your clothes dryer, clothes washer, refrigerator, and air conditioning system.
America’s 1st Choice Home Club
Fast Facts:
- State Availability: 49 (all but Hawaii)
- Number of Plans: Three (may vary by state)
- Service Fee: $75–$125 (may vary by state)
- Get a Quick Quote: Visit site
Plans
America’s 1st Choice Home Club (AFC Home Club) is among the best home warranty plans to cover your rental property due to its plan-length workmanship guarantee. With AFC Home Club, you can choose a single-year or a three-year plan. In both cases, all covered items are eligible for a plan-length workmanship guarantee after the completion of an approved claim. This guarantee is particularly advantageous for property managers and owners who may not be available to follow up on a repair during the typical 30-day period extended by other providers.
Silver Plan ($66.33 per month): This plan covers appliances, such as your clothes washer and dryer, refrigerator, oven, range, cooktop, stove, dishwasher, garbage disposal, and garage door opener.
Gold Plan ($87.08 per month): This plan covers everything in the Silver Plan plus built-in systems, such as your water heater, air conditioning, ductwork, heating system, electrical system, and plumbing system.
Platinum Plan ($95 per month): This plan covers all the items in the Gold Plan plus plumbing stoppages, faucets, ice makers, and built-in microwaves.
Liberty Home Guard
Fast Facts:
- State Availability: 48 (all but Washington and Wisconsin)
- Number of Plans: Three
- Service Fee: $65–$125
- Get a Quick Quote: Visit site
Plans
Liberty Home Guard (LHG) offers three standard coverage options for your home’s major systems and appliances. Appliance Guard covers a suite of appliances, including your laundry machines and kitchen appliances, whereas Systems Guard covers built-in systems, such as your heating, air conditioning, and ductwork. Total Home Guard combines the coverage of the two basic plans. All homeowners have the option to add up to 37 additional items to any of LHG’s three plans.
Appliance Guard ($69.99 per month): This plan covers your clothes washer, clothes dryer, refrigerator with ice maker and display, built-in microwave oven, dishwasher, garbage disposal, range, oven, cooktop, ceiling and exhaust fans, and garage door openers.
Systems Guard ($74.99 per month): This plan covers your air conditioning system, heating system, ductwork, plumbing system, electrical system, and water heater.
Total Home Guard ($79.99 per month): This plan combines the coverage of the appliance and systems plans into one cost-effective package.
HomeServe
Fast Facts:
- State Availability: 48 (all but Alaska and Hawaii)
- Number of Plans: 17 (may vary depending on your location)
- Service Fee: $100
- Get a Quick Quote: Visit site
Plans
HomeServe covers a suite of built-in systems, appliances, and utility lines. Compared to other providers featured on this list, HomeServe’s approach to the home warranty industry is slightly different. Before you can request a quote from HomeServe, you must disclose your utility provider. Because HomeServe does not partner with all utility providers, your coverage options may vary considerably depending on your location.
This provider is a worthwhile consideration for a homeowner who wants to cover specialized items, such as exterior pipes, which other home warranty plans may exclude.
Gas Line Plus ($4.99 per month): This plan covers your interior gas line, interior gas restoration, exterior gas line, and exterior gas line restoration up to $8,000.
Exterior Electrical Line Coverage ($5.49 per month): This plan covers your exterior electrical line up to $5,000.
Water Heater Repair ($6.99 per month): This plan covers water heater repairs 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 repair 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 cooling 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 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 repair up to $10,000.
TotalHome Warranty Appliances ($48.33 per month): This plan covers your refrigerator, clothes washer, clothes dryer, range, dishwasher, built-in microwave, trash compactor, and garage door opener up to $1,500 per appliance.
Interior Protection Plan ($55.99 per month): This plan covers your interior plumbing, interior drainage, interior gas line, exterior gas line, interior electrical line, cooling system, heating system, and water heater repairs up to $10,000.
TotalHome Warranty Combo ($58.33 per month): This plan covers your refrigerator, clothes washer, clothes dryer, range, dishwasher, built-in microwave, trash compactor, garage door opener, interior plumbing, interior electrical line, cooling system, heating system, water heater repair, heat pump, ductwork, garbage disposal, attic and ceiling fans, doorbell system, and central vacuum system. Each item is covered up to $1,500.
Premium Home Protection Plan ($69.99 per month): This plan covers your exterior water service line, exterior sewer/septic line, interior plumbing, interior drainage, drain cleaning, interior gas line, exterior gas line, exterior electrical line, interior electrical line, cooling system, heating system, and water heater repair up to $10,000.
Our Recommendation
The best home warranty for you will depend on your rental property’s unique needs, such as the brand of your appliances, whether a system is shared among units, or whether a property has a pool. For example, if your rental property has a saltwater pool, pro-series appliances, or a reverse osmosis system, Liberty Home Guard has a suite of add-ons that may appeal to you.
Some landlords may be unavailable to follow up on repairs within the typical 30-day workmanship guarantee period. In that case, AFC Home Club offers a plan-length guarantee that may allow you additional protection if a repair requires reservice at some point.
If you’re most concerned about your rental property’s utility lines, HomeServe specialized plans may be a good choice. On the other hand, American Home Shield may be the best option for you if you’d rather choose a home warranty provider with higher coverage caps, so you don’t have to worry about cutting into the profit margins for an investment property.
In any case, we recommend requesting a quote from at least three home warranty providers and carefully reviewing the plan terms to make sure you’re aware of all limitations and exclusions in the policies.
How to Choose a Home Warranty
Before you choose a home warranty, it’s essential to review your options in light of your priorities for a policy. By following these steps, you should be able to pick the best home warranty policy for your rental property.
- Consider your coverage needs. Think about the components of your rental home that are most likely to break down over the next year. The typical home warranty plan term is one year from the date of purchase, so you don’t want to look too far into the future when deciding the home systems and appliances you want to cover.
- See what home warranty companies are available to you. After determining the most important coverage items, you can start researching home warranty providers in your area. You can request a personalized quote from each company that interests you.
- Compare each company’s covered items and limitations. Every home warranty company will have a different suite of covered items, available plans, and contract terms. You’ll want to review the terms carefully, compare the coverage limits (the total amount a provider will pay for a covered item), and decide which company best matches the coverage needs you have identified.
Is a Home Warranty Worth It?
A home warranty is worth it because it can streamline the job of a property manager. Whether you own and manage rental units or have outsourced the role to a property management company, a home warranty can make it significantly easier to locate service providers and minimize your operating expenses by limiting the total cost of repairs and replacements. In addition, the cost of a home warranty can pay for itself after just a few approved service requests.
How Much Does a Home Warranty Cover?
The extent of your home warranty coverage will depend on the limits outlined in the provider’s user agreement. As a result, it’s important to read those terms thoroughly and ask questions if anything is unclear so you can avoid unexpected repair costs in the future.
In some cases, the amount of coverage an item is eligible for will depend on the age and prorated value of the item, such as with AFC Home Club’s formula for HVAC systems that are five years or older. In other cases, the total coverage is broken down per item, such as Liberty Home Guard’s $1,600 limit for each covered item.
Do Home Warranties Cover Old Appliances?
You may not have invested in upgrading your rental property’s appliances to the same standard as your personal residence. If this is the case, you may be concerned about the amount of coverage for older appliances. First, you should know that it’s rare for a home warranty provider to exclude an appliance based on its age. However, they do expect all covered items have been maintained according to the manufacturer’s specifications, don’t have preexisting conditions, were installed correctly, and were not improperly modified.
American Home Shield is one of the only providers to cover unknown preexisting conditions that can’t be detected by a simple mechanical or visual inspection.
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 analysis of customer reviews 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. 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.