Home Warranties: Compare Plans, Costs & Coverage
A home warranty is a service contract that covers repair or replacement of major systems and appliances when they fail from normal wear.
- Avg annual cost
- $400–$900
- Service fee
- $75–$125 per visit
- Avg payout per claim
- $300–$700
- Cap per item
- $1,500–$3,000 typical
- Wait period
- 30 days from start
- Cancel grace period
- 30 days for full refund
Compare top providers
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Independent comparison — see disclosures.
| Provider | Coverage | Price | Deductible | |
|---|---|---|---|---|
| American Home Shield | Systems + Appliances | $60/mo | $100 | Get quote |
| Choice Home Warranty | Systems + Appliances | $45/mo | $85 | Get quote |
| Liberty Home Guard | Premium full | $70/mo | $75 | Get quote |
| First American | Systems only | $42/mo | $100 | Get quote |
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Pros & cons
Pros
- ✓Predictable annual cost vs. surprise $1k+ repairs
- ✓Vetted contractor network (you don't have to find one)
- ✓Often transferable at sale (selling-point for buyers)
- ✓Pairs well with insurance (covers what insurance excludes)
Cons
- ✕Coverage caps mean partial payouts on big failures
- ✕Pre-existing conditions usually excluded
- ✕You don't pick your contractor
- ✕Service quality varies by region
What to look for
- • Clear list of covered items and exclusions
- • Reasonable service fee ($75–$100 ideal)
- • Coverage cap per item ($1,500+ on major systems)
- • Response time guarantee (24–48 hours)
- • Cancellation terms and prorated refunds
- • Customer review patterns on actual claims
How to choose a home warranty in 5 steps
- 1Inventory your covered items
List every system and appliance, with age and condition. Decide what coverage actually matters to you.
- 2Compare 3 plans side-by-side
Match the exact coverage list, caps, service fee, and contract length — not just headline price.
- 3Read the exclusions in full
Most denied claims trace to a specific exclusion. Pre-existing issues and 'lack of maintenance' are the big two.
- 4Check claim reviews, not Google stars
Look for patterns: time to dispatch, partial-payment frequency, escalation experience.
- 5Test with one claim before recommending
If a system fails in the first year, the company's response is your real review.
Frequently asked questions
Are home warranties worth it?
Often, for owners of older homes (10+ years) without an emergency repair fund. Less so for new homes with manufacturer warranties still in effect. The math: average payout per covered failure is $300–$700; average annual cost is $400–$900.
What's the difference between a home warranty and home insurance?
Insurance covers sudden damage from named perils (fire, wind, theft). A home warranty covers normal wear-and-tear breakdown of systems and appliances. They're complementary, not redundant.
Are pre-existing issues covered?
Generally no. Most plans exclude pre-existing problems and require items to have been in good working order at the start of coverage.
Can I choose my own contractor?
Usually no — most home warranty plans dispatch their own network of contractors. Premium plans sometimes allow you to use your own with prior approval.
What's a service fee?
A flat per-visit charge ($75–$125 typical) you pay each time a contractor comes out, regardless of the repair cost.
Estimates and guidance are educational. Always confirm with a licensed local professional before making decisions.