A home warranty can make a listing more appealing by giving buyers some protection against early breakdowns. It can also reduce post-sale disputes about systems that fail soon after closing. Real estate agents frequently recommend it, and brands such as First American, American Home Shield and 2-10 have dedicated real estate plans.
Why sellers offer home warranties
How coverage works at closing
Real estate plans are typically bought before or at closing, and buyer coverage begins at closing - usually without the 30-day waiting period that applies to plans bought directly. Some plans also offer seller coverage while the home is on the market, and terms of 12-13 months are common.
Top-Rated Providers
1
Our Top Pick
Choice Home Warranty
Read ReviewTwo simple plans covering home systems and appliances, with a $3,000 per-item cap and coverage in 49 states
- Basic & Total plans
- $3,000 per covered item
- Online claims, 24/7
- Available in 49 states
9.6
Exceptional
9.6
Exceptional
Two simple plans covering home systems and appliances, with a $3,000 per-item cap and coverage in 49 states
- Basic & Total plans
- $3,000 per covered item
- Online claims, 24/7
- Available in 49 states
Free Online Quote
2
American Home Shield
Read ReviewThe industry's oldest home warranty company - three plan tiers, a choice of service fee and some of the highest coverage caps
- ShieldSilver, Gold & Platinum
- Up to $5,000 HVAC coverage
- Choose a $100 or $125 fee
- In business since 1971
9.4
Excellent
9.4
Excellent
The industry's oldest home warranty company - three plan tiers, a choice of service fee and some of the highest coverage caps
- ShieldSilver, Gold & Platinum
- Up to $5,000 HVAC coverage
- Choose a $100 or $125 fee
- In business since 1971
3
Select Home Warranty
Read ReviewOne of the lowest-cost plans available, with frequent free-month and free roof coverage promotions
- Bronze, Gold & Platinum Care
- Low starting price
- Free roof leak coverage promo
- Multi-year plan options
9.1
Excellent
9.1
Excellent
One of the lowest-cost plans available, with frequent free-month and free roof coverage promotions
- Bronze, Gold & Platinum Care
- Low starting price
- Free roof leak coverage promo
- Multi-year plan options
What buyers should check
- Which plan tier the seller bought, and whether you can upgrade it.
- The caps on HVAC, water heater and appliances.
- How the home inspection affects pre-existing condition exclusions.
- Whether the plan auto-renews, and at what price.
Comparing real estate plans
Compare American Home Shield vs First American and First American vs 2-10, or see all companies on our rankings page.
This article is general information, not legal, insurance or financial advice. Coverage, prices and terms vary by company, plan and state - always read the full sample contract before you buy.