5 Best Home Warranties of 2024

The best home warranty providers offer a variety of coverage options, transparent pricing, good customer support and large coverage caps on customer claims. Your best option depends on your anticipated home repair needs and what’s most important to you.

Liberty Home Guard: Best overall

Liberty Home Guard offers three plans:

• Appliance Guard: Covers appliances such as your refrigerator, oven, dishwasher, and clothes washer and dryer. 

• Systems Guard: Covers air conditioning, heating, electrical, plumbing and ductwork.

• Total Home Guard: Covers both appliances and systems.

Read NerdWallet's full review of Liberty Home Guard.

American Home Shield Home Warranty: Best for broad coverage

American Home Shield offers three plans:

• ShieldSilver: Covers heating, air conditioning, electrical and plumbing.

• ShieldGold: Covers items included in ShieldSilver, plus kitchen appliances and a washer and dryer.

• ShieldPlatinum: Covers items included in ShieldGold with a higher coverage cap, plus roof leak repairs; comes with a few other benefits.

Read NerdWallet's full review of American Home Shield.

Choice Home Warranty: Best for high coverage limits

Choice Home Warranty has two plans:

• Basic Plan: Covers heating, electrical, plumbing, water heaters and kitchen appliances except the refrigerator.

• Total Plan: Includes items in the Basic Plan, plus air conditioning, refrigerator and clothes washer and dryer. 

Read NerdWallet's full review of Choice Home Warranty.

First American Home Warranty: Best basic plan

First American Home Warranty has three plans:

• Starter Plan: Covers plumbing, electrical and heating systems, plus several kitchen appliances. 

• Essential Plan: Includes items covered in Starter Plan, plus air conditioning systems, water heaters and a few more appliances. 

• Premium Plan: Includes items covered in the Essential Plan plus higher-end appliances that are usually not covered and a few additional perks.

Read NerdWallet's full review of First American Home Warranty.

Select Home Warranty: Best plan options

Select Home Warranty offers three plans:

• Bronze Care Plan: Covers major kitchen appliances, washers and dryers. 

• Gold Care Plan: Covers air conditioning, heating, plumbing, electrical,  water heaters and ductwork.

• Platinum Care Plan: Covers items included in the Bronze and Gold Care Plans, plus coverage for other items, such as plumbing stoppages and ceiling fans.

Read NerdWallet's full review of Select Home Warranty.

When selecting home warranty providers for inclusion in this roundup, NerdWallet considered companies with the largest market share and highest search volumes (as a proxy for consumer interest).

How do home warranties work?

A home warranty is a plan you can purchase to help cover the cost of repairing or replacing appliances or systems in your house. It is sold by a third party, not a manufacturer, and kicks in when certain items malfunction or stop working altogether. Home warranty plans usually cover appliances only, systems only or both (a comprehensive plan).

With a home warranty, you can submit a claim to have a covered item repaired or replaced. You’ll have to pay a service fee to have a technician come out, which is generally $75 to $125 per claim. Usually, the home warranty company dispatches a technician to your home within 48 hours of receiving your claim. In some cases, you have the option of choosing your own technician and getting reimbursed.

Depending on the technician’s report, the home warranty provider will approve the claim and cover the repair or replacement — up to the coverage caps defined in your plan — or deny the claim. Even if the claim is denied, you’ll still have to pay the service fee. There are several reasons a company might deny a claim, such as poor maintenance by an owner.

Unlike homeowners insurance, home warranties generally cover repairs and replacements of appliances and systems due to regular wear and tear. Homeowners insurance, by contrast, covers losses due to unforeseen events such as house fires or thefts.

» MORE: How to budget realistically for home repairs

Is a home warranty worth it?

A home warranty can be worthwhile if you:

• Anticipate steep repair or replacement expenses for your home systems and appliances due to wear and tear.

• Have systems and appliances that aren’t covered by manufacturer warranties.

• Prefer to have a third party source technicians rather than finding them on your own. 

A home warranty can minimize how much you’ll have to pay to repair or replace qualifying issues, which can save you money. However, if your appliances or systems aren’t well-maintained or have been modified, there’s a higher chance that your claims will be denied. And systems and appliances still under manufacturer warranty generally aren’t covered.

If the appliances and systems you have would be excluded for any of these reasons, it would be more cost-effective to contribute to an emergency fund rather than pay premiums on a home warranty. Or you might opt for an appliance-only or systems-only plan rather than a comprehensive plan.

Before signing up, check the service agreement and review the exclusions to make sure you’re getting the needed coverage.

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