Top Rated Home Warranty Companies For 2023

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You have many things to decide throughout the home buying process, including whether you’ll purchase a real estate home warranty. Let’s learn more about home warranties and discuss whether one is right for you. We’ll also list some of the top-rated home warranty companies for 2022.

What Is A Home Warranty?

Before helping you decide whether you should purchase a home warranty, let’s define what a home warranty is. A home warranty is a service contract, generally issued in 1- or 2-year terms, designed to provide repairs or replacements on major appliances and systems in the home.

Home warranties can be beneficial for first-time home buyers and sellers to purchase because of the peace of mind they provide. If something does break down in your house – like the water heater, HVAC system or plumbing – would you be prepared to make a DIY repair or pay an expensive home repair bill?

When items aren’t damaged in some type of unforeseen emergency like a fire or a theft, that’s when a home warranty comes into play.

Best Home Warranty Companies Of 2022

As you consider whether you should purchase a home warranty, you should also think about what home warranty company you’d want to work with. To help you decide, we did some research to provide you with a list of the best and most reputable home warranty companies available.

Based on our ranking criteria, these home warranty companies are some of the best companies you can get a home warranty plan from in 2022. But keep in mind that these are only a select few home warranty companies, and there are plenty of other good companies to choose from.

Liberty Home Guard

Starting us off, we have Liberty Home Guard, known for its customer service, offering 24/7 service calls and a newly designed customer claim portal. Although it’s a smaller company that’s newer to the market, Liberty Home Guard has multiple optional coverage items and lower chance of claim denial. The Better Business Bureau (BBB) gives Liberty an A rating; Trustpilot reviews put this company at 4.3 stars out of 5 among customers.

The home warranty company serves homeowners in the majority of the United States, except California, Washington, Wyoming, Wisconsin and Illinois.

Pros:

• Highly rated customer service
• No cancellation fee and full refund within 30-day start period

Cons:

• Cannot choose your own technician resulting in longer wait periods
• Not available in all 50 states

First American Home Warranty

First American Home Warranty is known for having the best flexibility because it provides 24/7 customer service to homeowners in need and offers unlimited service calls. The company has numerous custom plan options, featuring coverage available for items that were improperly installed or modified. First American Home Warranty has a B rating from the BBB. U.S News And World Report gives First American 3.8 out of 5 stars.

The company’s home warranty plans are not available to homeowners in Alaska, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Maine, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont or Wisconsin. 

Pros:

• No coverage cap on heating, cooling or ductwork
• Coverage includes pest control

Cons:

• Air conditioning is only available as an add-on coverage
• Basic plan coverage does not include plumbing or electrical systems

American Home Shield

A top reason we chose American Home Shield as one of the best home warranty options is because it offers homeowners the ability to choose from three plans that cover up to 23 appliances and systems. The company also has low-cost options, coverage add-ons, excellent customer service and skilled technicians who can give you advice on what plan will best suit you. American Home Shield has a B rating from the BBB and serves homeowners in every state except Alaska. 

Pros:

• Ability to submit online claims
• Previous maintenance records aren’t required

Cons:

• Limited to technicians within American Home Shield network
• Repairs are only guaranteed for 30 days

Choice Home Warranty

Choice Home Warranty has the best service out of any home warranty company, offering guaranteed response time within 48 hours and it doesn’t deny coverage based on the age of the home or the systems or appliances inside. In addition, Choice Home Warranty offers competitive pricing, multiple coverage options, promotions and a 90-day repair guarantee. Choice Home Warranty has a B rating from the BBB and does not offer warranties to residents of California or Washington. 

Pros:

• No cancellation fee within 30-day start period
• Home inspections aren’t required

Cons:

• Higher service fee of than most competitors
• Limited to technicians within Choice Home Warranty network

Select Home Warranty

For homeowners wanting the best value, Select Home Warranty has some of the lowest deductibles and prices and even offers customers 2 free months of coverage as well as free roof coverage when they sign up. In addition, Select Home Warranty is known for having great customer service and connections to many skilled home repair technicians. Select Home Warranty has a B rating from the BBB, 3.9 out of 5 stars from U.S. News and is available in all 50 states. 

Pros:

• Roof coverage
• Same day response time (within 12 business hours)

Cons:

• Multiple trade service fees if more than one appliance or system needs repair during the same visit
• Lower coverage caps

American Residential Warranty

American Residential Warranty has one of the lowest service fees in the industry and the company has earned an A+ rating from the BBB.

American Residential Warranty offers four basic plans or homeowners have the choice to bundle their plan and customize their coverage. They also provide the option to choose your own technician. The savings and simplicity in American Residential Warranty were too good to not be included on our list. Plus, service is available in all 50 states. 

Pros:

• Lowest service fee in the industry
• Emergency services available

Cons:

• Lower coverage cap
• No online claims submission form 

Home Warranty FAQs

Is a home warranty worth it?

There are many reasons why a home warranty might be worth purchasing. Home warranties can keep you from stressing about damages to your home and its appliances. When a major system or appliance breaks down, homeowners are usually left to pay the repair bills or even try to fix the issue themselves. This is where a home warranty comes in – helping to lighten the financial burden when a crucial home appliance or system needs to be repaired or replaced.

While a home warranty can be beneficial for most homeowners, if you have newer appliances from renovations or just moved into a newly constructed home, you may have a manufacturer’s warranty or new builders’ insurance for extra protection. Even new appliances can have issues so be sure to read your fine print for coverage limits.

What do home warranties cover?

The average home warranty covers eligible appliances and systems in new and existing homes. Most companies offer a variety of warranty packages and add-ons that can be tailored to each homeowner’s needs. Many plans include:

• Washer and dryer
• Dishwasher
• Refrigerator
• HVAC systems

Add-ons can include:

• Pools
• Spas
• Sprinkler systems
• Roofs
• Septic systems

What should I look for in a home warranty company?

When shopping for a home warranty, you want to have peace of mind that you’re in good hands when things go wrong. Look for a home warranty company that meets your appliance needs, is within your budget and has customer reviews that meet your expectations.

Who should purchase a home warranty plan?

Usually, home buyers and sellers purchase home warranty plans, but builders can also purchase them.

Why should sellers buy a home warranty plan?

Home sellers should consider purchasing a home warranty because there are many marketing advantages to offering them to prospective buyers, particularly in a buyer’s market. Being able to tell buyers that there is already a warranty on the home’s systems and appliances could make the home more desirable and help it to sell faster.

In addition, many sellers who don’t live near the house they’re selling may want to purchase a plan for when they’re not around to maintain the systems and appliances and handle repairs themselves.

Why should home buyers consider a home warranty plan?

If you’re buying a home and the seller doesn’t already have a home warranty, you should consider one. As you learn about the cost to maintain a home, buying a home warranty can save you time and money in the long run, especially if you are considering an older home.

If you’re in a buyer’s market, you may be able to negotiate a home warranty as a seller’s concession, especially if the home is older and the appliances or systems need updating. On the other hand, if you’re in a seller’s market, you’ll likely need to shop around for the best home warranty rates and coverage yourself.

Can home builders buy a home warranty?

Home builders should consider purchasing a home warranty because, while home builders’ warranties cover some repair expenses, that coverage is usually for permanent parts of the home and the warranty might only last through the first year of ownership.

The Bottom Line: Purchasing A Home Warranty Provides Peace Of Mind

As a home buyer, seller or builder, having a home warranty can often be very beneficial and can save you time and money if a system or appliance fails. And if you’re planning on selling your home, adding a home warranty to the sale may make it even more desirable. But remember, each home warranty plan and company is different, so make sure you research each one to determine which best fits your needs. Check out the Rocket Homes® Homeowner Guide for more homeowner tips.

Methodology

Our writers perform in-depth research from various sources that may feature customer reviews and third-party ratings. These sources include – but are not limited to – Better Business Bureau (BBB) and U.S. News & World Report. We take into account company transparency and plan exclusions, as well as pricing, coverage options and any outstanding legal issues. Writers use this research to compose their reviews of each company.