Compare home warranty companies by coverage, price, service fees, coverage caps and real claims experience.
Two simple plans covering home systems and appliances, with a $3,000 per-item cap and coverage in 49 states
Two simple plans covering home systems and appliances, with a $3,000 per-item cap and coverage in 49 states
Free Online Quote
1,843 visited Choice Home Warranty this month
The industry's oldest home warranty company - three plan tiers, a choice of service fee and some of the highest coverage caps
The industry's oldest home warranty company - three plan tiers, a choice of service fee and some of the highest coverage caps
One of the lowest-cost plans available, with frequent free-month and free roof coverage promotions
One of the lowest-cost plans available, with frequent free-month and free roof coverage promotions
A real-estate favorite backed by First American Financial, with high appliance limits and generous HVAC terms
A real-estate favorite backed by First American Financial, with high appliance limits and generous HVAC terms
Nationwide coverage with up to $5,000 on most approved repairs and 13-month contracts
Nationwide coverage with up to $5,000 on most approved repairs and 13-month contracts
Two straightforward plans with no age limit on covered systems and appliances
Two straightforward plans with no age limit on covered systems and appliances
A structural-warranty specialist owned by Frontdoor, with low-cost home warranty plans for buyers and homeowners
A structural-warranty specialist owned by Frontdoor, with low-cost home warranty plans for buyers and homeowners
To find the best home warranty, we compare leading companies on the factors that actually decide whether a plan pays off when something breaks: what is covered, how much each item is capped at, the service call fee, the exclusions in the fine print, and how claims are handled. Not sure where to start? Read our guide to the best home warranty companies for the full breakdown.
This page is a practical overview of what a home warranty is, how plans differ, what they cost, why claims get denied, and how to pick a company you can trust. Prefer to jump straight to the comparison? See our in-depth company reviews or a head-to-head like American Home Shield vs Choice.
A home warranty is a service contract that pays to repair or replace covered home systems and appliances when they break down from normal wear and tear. You pay a premium (monthly or yearly), and when something fails you file a claim, pay a set service call fee, and the company sends a technician.
It is not insurance. Homeowners insurance covers sudden damage such as fire, storms or theft; a home warranty covers the slow, inevitable breakdown of things like your furnace, water heater or dishwasher. Home warranties are regulated state by state, and in many states the contract terms are the only protection you have - which is why the fine print matters so much. Learn more in what is a home warranty?
Every company words its contracts differently, but covered items usually fall into a few groups.
Worth knowing: The single biggest difference between companies is often the per-item coverage cap. A plan that caps an appliance at $500 can leave you paying most of a replacement, while another caps the same item at $2,000-$4,000. Always find the limits table in the sample contract before you buy. Learn more in why home warranty claims get denied.
Most companies sell three or four tiers built from the same building blocks. Here is how the main plan types compare - plan names differ from company to company, but the structure is remarkably consistent.
| Plan type | What it usually covers | Who it suits |
|---|---|---|
| Systems plan | Heating, air conditioning, ductwork, plumbing, electrical, water heater - the built-in systems that are the most expensive to repair | Homeowners whose appliances are new or still under manufacturer warranty, but whose furnace, AC or water heater is getting older |
| Appliances plan | Refrigerator, oven/range, dishwasher, built-in microwave, clothes washer and dryer, garbage disposal | Owners of newer homes with recent systems but older or heavily used kitchen and laundry appliances |
| Combo (systems + appliances) | Everything in both plans above, usually at a discount versus buying them separately | Most buyers - especially in older homes, rentals or homes with several aging items at once |
| Top-tier / premium plan | Combo coverage plus higher caps and extras such as roof leak repair, code and permit upgrades, HVAC tune-ups or refrigerant | Owners who want fewer surprise denials and are willing to pay more for higher limits |
| Optional add-ons | Pool and spa, well pump, septic, sump pump, second refrigerator, standalone freezer, guest units | Homes that actually have these items - add-ons are only worth it for equipment you own |
This table is general information. Exactly what each plan covers is set by the company's contract for your state. See how much a home warranty costs for typical prices by tier.
They are often confused, but they protect against different things. Here is how they differ in practice.
| Factor | Home warranty | Homeowners insurance | Why it matters |
|---|---|---|---|
| What it covers | Repair or replacement of covered systems and appliances that fail from normal wear and tear | Sudden, accidental damage to the structure and belongings - fire, storms, theft - plus liability | They cover different risks, so many homeowners carry both |
| How you pay | Annual or monthly premium plus a service call fee (often $60-$150) each time a technician comes out | Annual premium plus a deductible (often $500-$2,500+) per claim | A warranty suits frequent small-to-mid repairs; insurance is for rare, expensive events |
| Who does the work | Usually a technician from the company's contractor network; some plans let you choose your own | You generally choose your own contractor, paid through the claim | Network-only plans can mean waits during peak season |
| Required? | Optional - often bought by sellers or buyers during a home sale | Almost always required by mortgage lenders | A warranty never replaces homeowners insurance |
For a full breakdown see home warranty vs homeowners insurance.
The process follows the same backbone at almost every company:
What a trustworthy company looks like: a published sample contract, clear caps and exclusions, 24/7 claims, a workmanship guarantee on repairs, and a long public track record.
Red flags to avoid: no sample contract before checkout, vague “covers everything” marketing, very low caps hidden in the fine print, pressure to buy multi-year plans upfront, and promotions whose conditions you can't find. See our guide to filing a claim and our company reviews.
Beyond price, five checks separate the best companies from the rest:
Want to see how specific companies stack up? Read our reviews of Choice Home Warranty, American Home Shield, Select Home Warranty and First American, or compare them head to head in American Home Shield vs Select and Choice vs Select.
Typical home warranty plans run roughly $300-$700 a year, with top tiers and add-ons costing more. Rather than chase the lowest advertised price, it helps to understand what actually drives the total:
To compare fairly, look at the yearly premium plus the service fees you expect to pay- and the caps you'd hit on a major repair - not just the headline monthly price. Our comparison of top companies is built to make that easier. Each company confirms availability for your address during checkout.
It's the most-asked question - and the honest answer is “it depends on your home.” A warranty tends to pay off when you have several aging systems or appliances, limited savings for surprise repairs, or you are buying or selling a home and want predictable costs in the first year.
It is less likely to pay off on a new or recently renovated home, if you are comfortable paying repairs from an emergency fund, or if the plan's caps are too low to cover the repairs you're actually worried about. Consumer surveys have found that a large share of warranty holders have had a claim denied or only partly paid, so the contract terms matter as much as the price. We break this down in is a home warranty worth it?
A home warranty works best when you treat it as part of maintaining your home, not a substitute for it.
In short: choose a company with clear terms and solid caps, keep your paperwork, and file claims promptly.
There is no single best company for every home. The right choice depends on what you need covered, how much you want to pay per visit and how high the caps need to be. Our rankings weigh coverage, price, claims experience and reputation - see the comparison at the top of this page.
Generally no. Most contracts exclude problems that existed before coverage began, and many exclude failures caused by missing maintenance. See why home warranty claims get denied for the most common reasons.
It depends on the company. Most dispatch a technician from their own network, and some allow you to use your own contractor - usually with approval first and reimbursement up to the plan's limits.
Many sellers do, because it can reassure buyers and some plans cover the home while it is listed. Read home warranties for buyers and sellers for the details.
No - but it is a contract with limits, and disappointment usually comes from not knowing them. Reputable companies publish their terms; the key is choosing a trustworthy one and reading the contract, which is exactly what our independent reviews and home warranty guides are for.
General information, not professional advice. This content is for educational purposes only and is not legal, insurance or financial advice. Home warranty coverage, prices, caps and exclusions vary by company, plan, state and ZIP code, and change over time. Your signed contract - not our summary - determines what is covered. Always read the full sample contract and confirm current terms with the company before you buy.