A typical plan costs roughly $300-$700 a year plus a service fee of $60-$150 per visit. A single furnace, AC or water heater replacement can cost several thousand dollars. So a warranty can come out well ahead in a year when a major item fails - and behind in a year when nothing does.
The basic math
When a home warranty is more likely to be worth it
- Your home has several aging systems or appliances - especially HVAC and water heaters past mid-life.
- You don't have a comfortable emergency fund for surprise repairs.
- You're buying a home and want predictable costs in the first year (often the seller pays).
- You're a landlord who wants a single number to call for tenant repairs.
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
When it's less likely to be worth it
- Your home or major systems are new and still under manufacturer or builder warranties.
- You can comfortably pay repairs from savings.
- The plan's caps are too low to cover the repairs you're actually worried about.
- You're handy and prefer to choose your own contractors.
Questions to ask before buying
- What is the per-item cap for my HVAC, water heater and appliances?
- Is there an overall annual or contract limit?
- How are pre-existing conditions and maintenance defined?
- Are code upgrades, permits and haul-away covered?
- Can I choose my own contractor?
- What's the workmanship guarantee on repairs?
Our reviews answer these for each company - start with Choice, American Home Shield and Select, or read why claims get denied.
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.