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The Best Home Warranty Companies (2020)

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If you’re considering a home warranty, do you know how it differs from homeowners insurance? Insurance will cover your home and appliances in a natural disaster, not damages from typical use. A home warranty is a service contract that covers repairs or replacement for home systems or appliances that have suffered from everyday wear and tear. If your dishwasher stops washing or your hot water heater stops heating, a home warranty can save you money.

Based on our research surveying home warranty customers, speaking with sales agents, and analyzing sample contracts, we recommend Choice Home Warranty as the best home warranty. Choice Home Warranty offers customizable plans and service contracts to fit any home’s needs. Call (848) 256-4657 or fill out this form to get more information. They will answer all of your questions, including:  

    • What is the benefit of a home warranty plan? Is it worth it? 
    • Who needs a home warranty plan?
    • How do plans work?  
    • How much is the plan I need?
    • What kind of plan do I need?

Keep reading to find out more about how home warranty plans work and what they cover. We also walk through our recommended provider, Choice Home Warranty, as well as other honorable mentions in more detail.

How do home warranties work?

Unlike your homeowners insurance, home warranties offer coverage on systems and appliances when they fail or break due to everyday “wear and tear.” This means items that are damaged as a result of normal aging and use. Home systems won’t last forever. There’s no fortune teller that will tell you when they will stop working. Warranty plans help pay for the repairs or replacements of parts for your appliances and home systems. 

Home warranty companies, like Choice Home Warranty, offer a warranty plan and coverage within 30 days of the acceptance and receipt of payment on the plan of your choice. Customizable plans are also available from the best home warranty providers.

What do home warranties usually cover?

Each service provider and contract is different. Make sure that you’re getting the coverage you need for you and your family. Here is a list of the home systems and appliances that should be covered under home warranties:

  • Appliancesdishwashers, refrigerators, garbage disposals, built-in microwaves, washing machines, and dryers.
  • Systemsincluding heat, electric, central air conditioning, ductwork, central vacuums, exhaust fans.
  • Plumbing Systemsstoppages, water heaters, toilet tanks, circulation and sump pumps.

Other companies like American Home Shield will give you the option of choosing one of their plans and adding on more appliances and systems you need to be covered. Items such as a central vacuum, a standalone freezer, or sump pump could be added to a basic plan as “optional coverage.” Purchasing a service contract from a provider that doesn’t allow you to customize it can be logistically challenging.. The best plan is the plan that works for your household needs. 

How do you choose the right home warranty? 

Navigating through home warranty companies and their plans can be overwhelming. Here are the top factors to consider and questions to ask when you’re choosing a service plan:

  • Coverage—What do you need to be covered? Does the home warranty company cover it? If what I want isn’t on the plan, can I add it? 
  • Service Charges—What’s my responsibility for the service charge? Every company charges you a fee for calling a professional to your home. Make sure you don’t get stuck paying high service fees. 
  • Timeliness—How quickly will the company respond to claims? How long will it take to get a service technician to your home?
  • Convenience—Is customer service available on the weekends or in the evening? Appliances don’t always break during office hours. Having 24/7 access to customer service representatives can offer peace of mind. 
  • Terms—Do you have written confirmation of the terms of your contract? If a company is hesitant to show you their terms up-front, chances are they’re hiding something. Putting the terms of the service contract in writing is good insurance that you’ll be taken care of professionally and respectfully.

Who pays for home warranties?

Unlike homeowner’s insurance—which covers your home from devastation like hurricanes, fires, and other natural disasters, home warranties cover your home appliances and systems. Items like your smart home system and household necessities like dishwashers are covered under home warranty plans. Warranties for large home appliances like a washing machine or a refrigerator are available. Home systems, especially air conditioners, need to be reliable and consistent.

Homebuyers Purchasing a Home Warranty

You will likely receive discounts from home warranty companies with an incentive for a plan when you first close on your new home. This is the best time to buy your home warranty plan. Even if you perform regular upkeep and maintenance (which we highly recommend), you still can’t predict when something will stop working. Don’t get stuck paying for repairs within the first few months of moving in. 

If the home you buy is older, the chances are older appliances and systems are already in the home. Even though everything passed a home inspection, how much longer will your new-to-you appliances and home systems last? 

Homeowners Purchasing a Home Warranty

The longer you’ve been living in your home means the older your appliances will be. If your appliances are nearing the end of their life, you might want to buy a plan so you don’t have to pay out of pocket for home system repairs or last-minute replacement appliances. You will not be denied coverage based on the age of your appliances.

Home Sellers Purchasing a Home Warranty

While it may be common for the conscientious homebuyer to purchase a homeowner’s warranty with their new home, not everyone knows about the advantages these warranties offer. Include a warranty in the deal offered to the new buyer during closing costs. A home warranty plan will increase the value of your home and ensure you don’t have any more costly bills to pay while getting the house on the market. Choice Home Warranty will help incentivize buyers to purchase your property. It also saves you the pain of dealing with angry buyers if appliances break down after move-in.

A study by the Service Contract Industry Council found that properties that come with a home warranty sell faster and for more money than homes without a warranty. What a great advantage for a property flipper or real estate agent. Click here to find out if Choice Home Warranty is available in your state.

Consider offering a home warranty as part of a real estate transaction. You may be educating your clients on home warranties and this will make you look knowledgeable and caring. An agent can purchase a plan for their listing and may receive a free listing from their home warranty provider. Call Home Choice Warranty today so you can learn how to increase your attractiveness to potential buyers today.

What are the cost benefits of a home warranty?

The high cost of repairing or replacing a refrigerator, a dishwasher, or a hot water heater, could have you paying thousands of dollars out of pocket without a warranty. The average cost of a home warranty is between $300-$600 a year. Here is a list of average repair costs if you don’t have a home warranty plan: 

  • Repairing a water heater: $546 on average
  • Repairing an air conditioner unit: $347 on average
  • Repairing a heating system: $285 on average
  • Repairing a sewer line: $2,560 on average
  • Repairing a refrigerator: $310

A warranty plan will give you peace of mind about affording surprise repair and replacement costs on your appliances. Without a warranty provider, you will be paying the full costs of repairs and replacements, as well as the labor costs on the repair call. Unlike other home warranty plans, Choice Home Warranty charges only $75 for a service fee – just ask a technician for their hourly rate.

When you have a Choice Home Warranty plan, you will have a network of trusted and professional providers. No more sitting on hold waiting to find the right technician. 

Our Picks for the Best Home Warranty Providers

choice home warranty logo
Choice Home Warranty
Best Overall
  • Technicians are pre-screened by CHW to ensure reliability
  • If their technicians cannot fix your appliance, they will replace it
  • Customer service is available 24/7
American Home Shield
Best Appliance Coverage
  • Nearly two million customers served across the U.S.
  • Almost 50 years worth of experience
  • Has paid out $2 billion worth of home warranty claims
Select Home Warranty
Best Value
  • 4.5-star rating on Consumer Affairs
  • Only serviced by local technicians
  • Easy appliance repair and replacement process
First American Home Warranty
Best Claim Acceptance
  • Unlimited request service calls
  • Appliance protection guarantee
  • 4-star rating on Trustpilot
America’s First Choice
Best Customizable Plans
  • One month free, plus $50 off when you sign up
  • Affordable rates as low as $1 a day
  • Signing up is fast and convenient

The Best Home Warranty Option: Choice Home Warranty

Choice Home Warranty offers the following benefits:

  • Industry experience for over 10 years 
  • Coverage in 49 out of 50 states 
  • Automatic policy renewal 
  • Emergency service availability
  • Customer support 24/7
  • Professional, experienced service technicians
  • A personable, dedicated team willing to assist your needs
  • Up-to-date technology
  • High-quality service with affordable pricing*
  • Plans starting as low as $1 per day

Choice Home Warranty has personable customer service agents, they maintain a network of high-quality and professional experts throughout the country, and offer customizable plans.

Choice Home Warranty Plan Options

Your appliances aren’t getting any newer. At Choice Home Warranty, you get three options for coverage. Choose the best protection plan for your home and customize it as needed. This company is not to be confused with America’s Choice Home Warranty, which is now called Freedom Home Warranty. Here’s what Choice Home Warranty offers:

  • Basic Plan: Kitchen appliances like a dishwasher, built-in microwave, stove range, and oven are included. Water heaters are also included in the plan. This covers every home system from plumbing to electrical. 
  • Total Plan: All of the advantages of the Basic Plan as well as additional systems like air conditioning—that will come in handy in the summer heat. Larger appliances like the refrigerator and clothes washer and dryer are included. 
  • Optional Coverage: This plan offers everything above and pool and spa equipment,  central vacuum systems, sump pumps, roof leaks, and wells.

Purchase your home warranty today

Contact Choice Home Warranty today by calling a representative at (848) 256-4657. You can get a free quote by filling out this form as well. Choice Home Warranty protection plans can be customized to include the systems or appliances that matter to you most. 

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