Cheapest Home Warranty Companies | 2021
If you're interested in a home warranty, chances are you're looking to save money. It's important to choose a home warranty that protects your wallet the same as your home's most important items and systems.
The home warranty market contains so many companies offering comprehensive coverage at low prices, so it can be hard to tell if you're getting a bargain with your policy. Our team has done research on all of the best home warranty companies, examining prices, coverage, and service to help you make the best decision possible for you and your home. We recommend checking out all three providers listing below and getting quotes to compare prices.
All cost figures in this article reflect sample quotes received by our team for single-family homes under 5,000 square feet.
Our top-rated cheap home warranty companies are:
1. Select Home Warranty
- Cost: $41.00-47.00
- Service Call Fee: $75
For a limited time, Select Home Warranty is offering Better Homes & Gardens readers $100 off and two months free when they sign up for a plan. Get a free quote today.
In our independent review of home warranty providers, Select Home Warranty was named the best option for homeowners looking to purchase coverage while on a budget. Select offers two base plans that each cost $41.00 per month and a more complete and comprehensive plan for $47.00 per month. Each of the base plans will cover either appliances or systems, and the Platinum Care Plan covers both, offering an impressive amount of coverage for a low price.
Select has a standard $75.00 service call fee, which is on the lower end for a typical home warranty provider, and does not place a limit on how many service calls its customers can make. It also gives free coverage for roof leaks, which is generally rare in the home warranty industry.
Like most companies, Select also offers a handful of add-on options; most are between $3.00 and $6.00 per month, with the exception of optional pool coverage, which will cost you $8.33 per month. Select also offers 24/7 customer service and a 90-day guarantee for repairs made.
For more information on Select Home Warranty's plans and prices, fill out this form for a free quote or call 888-370-3956.
2. Choice Home Warranty
- Cost: $41.69-50.00
- Service Fee: $60-85
Choice Home Warranty is offering Better Homes & Gardens readers $50 off and one month free when they sign up for a plan. Get your complimentary quote today.
Choice Home Warranty is another of our top recommended providers for homeowners looking to save money on their home warranty. Choice offers two plans, both of which cover appliances and systems. The Basic Plan covers 14 essential items in your home, and the Total Plan covers a few more, like your air conditioning.
Choice's base plan costs $41.69 per month, and its more comprehensive plan costs $50.00 per month. These prices are not quite as low as Select Home Warranty's prices; however, Choice makes up for it with its generous coverage limits.
A coverage limit is how much a company will pay before the homeowner is responsible for the rest of the cost for repair. Choice sets a $3000 limit on repairs, so there's no questioning or combing through the fine print for how much you'll have to pay in the end. These limits are very competitive in the home warranty industry.
In addition to generous limits for coverage, Choice's service call fee will be between $60-85—an inexpensive rate compared to most companies. This is especially helpful for homeowners who expect to be placing a lot of repair requests.
Choice Home Warranty offers inexpensive add-ons as well, including pool, septic tank, and well pump coverage. To find out more about Choice's plans, limits, and add-ons, get a free quote and sample contract by filling out this online form, or by calling 929-400-6165.
3. First American Home Warranty
- Cost: $32.00-49.50
- Service Fee: $75
To get a free quote from First American Home Warranty, you can start by filling out this simple online form or by calling 833-777-0049.
First American Home Warranty is another company with low prices. The provider offers two plans—a Basic Plan that covers appliances and a Premier Plan that covers both appliances and important systems in your home.
The Basic Plan costs $32 per month, and the Premier Plan costs $43.50 per month. First American stands out against many of its competitors as a cheap home warranty due in part to its generous limits on coverage. On its website, the company offers no coverage limits on many items, such as your laundry appliances and electrical systems. The items that do have coverage limits have generous caps, such as the $3,500 dollar limit on your dishwasher.
In addition to competitive prices and high caps, First American offers unlimited repair claims and an inexpensive $75 service call fee. We think First American's coverage is a great option for the home warranty buyer looking for a cheap plan with comprehensive coverage.
For more information on First American's limits and plan offerings, we recommend getting a free quote by filling out this online form or by calling 833-777-0049.
Ways to Save Money on Your Home Warranty
Below are a few tips on ways you can save money on a home warranty:
- Ask about discounts: When purchasing a home warranty, you should always check to see if you're eligible for any discounts. Some companies offer discounts to veterans, while providers like Cinch Home Services will charge you less if you have new, brand-name appliances. It's one of the quickest and easiest ways to save.
- Check for promotions: Most home warranty companies offer promotions for new customers. In fact, not only does Select Home Warranty have low premiums, but it is also offering Better Homes & Gardens readers $100 off and two months free when they sign up for an annual plan.
- Consider companies with service fee flexibility: A few providers, such as American Home Shield, allow homeowners to lower their monthly premiums by opting for a higher service fee. If most of the systems and appliances in your home are new and you're confident they won't be breaking down any time soon, it might make sense to take advantage of this option.
- Compare costs: Whether you're buying a home warranty for the first time or you've always had a warranty as a longtime homeowner, you should get quotes from multiple companies to make sure you're getting the best deal for the coverage you need.
Home Warranty Rating Methodology
The Home Service Research Team at Better Homes & Gardens strives to provide unbiased and objective reviews to readers by compiling relevant information on home warranty companies and rating the providers on a variety of factors.
Here's what our review process looks like:
- We examine each provider's website to determine plan details, coverage, customer service offerings, and other benefits. We also speak with company representatives to get more insight on plan details.
- We read sample contracts from each home warranty company to analyze and compare coverage details, limits, and exclusions.
- We read at least 100 third-party customer reviews for each home warranty company to determine the real-life benefits and drawbacks of each provider.
- We gather cost information for a variety of home warranty plans in different states by completing online quote forms and speaking with sales representatives to simulate the quote process.
- We revisit each company's offerings on a seasonal basis, ensuring that we include the most up-to-date information in our reviews.
We also created a 100-point rating system to score companies based on objective factors, such as plan options, coverage, and customer service:
What we consider
The number and type of plan options offered to customers
The types of items included in a policy
How much each plan costs and the service fee options
How the company is perceived through Better Business Bureau (BBB) ratings and a company's years in business
The customer service team's availability, what guarantees are offered, and what customer communication channels are provided (online customer portals, quote forms, etc.)
Factors that make the customer experience more seamless, such as allowing customers to choose their own contractor
Overall, the Home Service Research Team has reviewed over 70 home warranty companies to select the top-rated providers in the industry.
Frequently Asked Questions About Home Warranties
What is a home warranty?
A home warranty is a policy designed to shield you from paying all at once for expensive, unexpected repairs out of pocket. Your most important items and systems will be covered from breakdowns due to normal wear and tear. You'll be charged either a monthly or annual rate, and when your items need to be repaired, you'll file a claim and pay only a service fee for labor. Your home warranty provider will cover most or all of the repair costs.
How much does a home warranty cost?
Every company offers slightly different rates, so we recommend getting free quotes from several companies before making a decision. Plans usually run between $30-60 and will cover some combination of appliances and systems.
What is a service call fee?
A service call fee acts as a deductible that the home warranty policyholder pays to cover the cost of labor. When your technician is dispatched to your home, you'll pay the service call fee, and repairs will be made. The price of these service call fees range from $60-125, depending on your provider. Companies' service call fees should be factored in to your search, as they are part of the cost of your home warranty.
What items are commonly covered by a home warranty plan?
Each company's plans offer coverage for different items, but there are several items that almost every home warranty covers in their more comprehensive plans. These items include:
- Air Conditioning
- Garbage Disposal
- Garage Door Opener
- Electrical System
- Water Heater
Again, each company is slightly different, so we recommend getting quotes from several companies to find the perfect plan for the items most important to you.
What are some benefits of a home warranty?
Saving money is the top benefit to a home warranty. If your most expensive items or systems break down, you could be looking at a repair bill reaching into the thousands of dollars. A home warranty plan can provide you with peace of mind and prevent you from having to pay so much money at one time.
Additionally, if you're selling your home, you can potentially increase its value by purchasing a home warranty. This could also help you sell your home faster as it will be more attractive to buyers.
At the end of the day, some homeowners find comfort in knowing that, with a home warranty, they won't have to deal with the headache of researching contractors and comparing prices every time a system or appliance breaks down in their home. A home warranty company streamlines the repair process with its network of technicians and can make repairs and replacements as simple as possible.