The best home warranties have low deductibles, low premiums and will cover most of your home appliances and systems so you never get stuck with a huge bill. With so many companies offering plans nationwide, it’s hard to know which ones will give you the most protection. To eliminate the guesswork, we’ve put together this guide for you on the best home warranty companies.
The 4 best home warranty companies of 2020
- American Home Shield – Best for customized plans
- Home Warranty of America – Best for immediate coverage
- Complete Protection – Best for deductibles
- Cinch Home Services – Best for service guarantees
|Company Name||Premiums||Deductible||What it covers|
|American Home Shield||From $29.99 to $34.99 per month||From $75 to $125||Up to 21 home systems and appliances with the option to customize your own plan|
|Home Warranty of America||From $44.62 to $53.46 per month||From $75 to $100||Premium plan covers over 30 systems and appliances; optional add-on coverage available|
|Complete Protection||From $45 to $75 per month||No deductible||Up to 21 appliances and systems; optional items like a furnace can be added for a monthly fee|
|Cinch Home Services||From $18.95 to $35.95 per month||$125||Covers up to 23 appliances and systems and allows you to add additional items like outside gas lines for a fee; no annual limit on coverage|
The 4 best home warranty companies of 2020
American Home Shield – Best for customized plans
American Home Shield is a respected home warranty company that’s been around since 1970. It offers a few types of plans, including an appliance plan, a systems plan and a combination warranty that covers both appliances and home systems like air conditioning and plumbing. If you don’t see a plan you like within your budget, American Home Shield gives you the option to personalize your own warranty. You can choose over ten different home systems and appliances to create the perfect plan for your home.
Premiums for standard and customized plans vary depending on which state you live in, but they generally range from $29.99 to $34.99 per month. Because the premiums are so low, the deductibles start a little bit higher than average at $75 and go up to $125. You can choose to increase your service to lower your monthly fee or vice versa.
Home Warranty of America – Best for immediate coverage
Most home warranties don’t take effect for a whole month after you sign up, which could certainly cause nightmares about all of your appliances breaking while waiting for the plan to take effect. If you’re worried about the gap between purchase and coverage, you may prefer to use companies like Home Warranty of America that offer immediate protection. Your home will be covered as soon as you sign up, which provides immense peace of mind.
This company offers two different plans: a premier plan and premier plus plan. The Premier plan costs around $44.62 and insures your furnace, duct work, plumbing system, washer, dryer and more. The Premier plus plan costs about $53.46 a month and includes everything in the Premier plan plus coverage for your air conditioner, toilet, plumbing fixtures, and more. Deductibles for both plans range from $75 to $100, which is a little on the high side but still within range for the industry. As with some of the other plans, you can increase your deductible to lower your monthly premium.
Complete Protection – Best for no deductible
If things tend to break in your house on a regular basis and you don’t want to pay a deductible every time you need a repair, consider checking out a plan from Complete Protection. For just $45 to $75 a month, you can get coverage for up to 21 of your home’s appliances and systems.
Complete Protection has no annual limit on coverage, so if lots of things break in one year, the company won’t deny your claims. It also allows you to use your own contractor and covers appliances with unknown pre-existing conditions, which some of the best home warranty companies don’t even do.
Cinch Home Services – Best for service guarantees
Most home warranty companies only guarantee their work for 30 to 60 days. However, Cinch Home Services guarantees their workmanship for a full 180 days. If the repair isn’t done right the first time and you experience the same problem again, you won’t have to foot the bill.
Cinch Home Services offers an appliance plan, a systems plan and a combo warranty that covers both systems and appliances. The cheapest appliance plan starts at just $18.95 a month and covers larger appliances like refrigerators and dryers. The combo plan, which provides the most protection, costs $35.95 a month or more depending on which add-ons you choose.
All three plans have a deductible of $125 per service visit, which is definitely on the high side. However, since Cinch Home Services offers such a great service guarantee, it may be worth paying a little more for the deductible.
What is a home warranty?
A home warranty is a type of annual service contract that provides coverage for home appliances like dishwashers and refrigerators in case they break. Many home warranties also cover home systems such as air conditioners and water heaters, which can be expensive to repair and replace. In certain situations, though, you may have to pay for repairs on your own.
Appliances that are poorly maintained or have failed before often aren’t covered by home warranties. You may also need to foot the bill for repairs if you accidentally damage one of your appliances. Typically, home warranty companies only cover damage that occurs due to normal wear and tear — so any unfortunate accidents that happen with your appliances, like your kid stepping on the dishwasher door, will still be on you to pay for.
How should I choose the right home warranty?
When choosing a home warranty, you should primarily consider two things: your budget and the list of appliances you’d like your plan to cover. If you have a limited budget, for example, you may want to go with a plan that includes fewer appliances but has lower monthly premiums. In addition to choosing the right plan for your needs and financial situation, it’s important to pick the right company.
“You want a company that has a reputation for covering claims. I also recommend clients find one that covers unknown pre-existing conditions. Ask your real estate agent for a recommendation and find out if the company has a good track record for covering claims. Lastly, make sure to carefully read through the service agreement of any company you consider,” Will Rodgers, a licensed real estate agent, said.
As for which companies he recommends, Rodgers said he has one he uses on a regular basis.
“I have used many companies, but American Home Shield is the company I use most often. They have been consistent in covering claims for homeowners, and have been around since 1970,” Rodgers said.
The bottom line
The best home warranties will give you peace of mind and help you cover expensive repairs, and won’t drain your wallet or deny your claims. Make sure you do your research and choose a reputable company like the four above so that you get the most out of your coverage.