Best Home Warranty Companies: Your Top 12 Picks for 2024

What is the deal with home warranty companies? Is a home warranty really a wise financial decision? A home warranty is a service agreement that helps homeowners cover the cost of repairs and replacement of home components. If you are in the market for a home warranty, you’re in luck! We’ll talk about the top home warranty companies to keep your home covered.

Top 12 Home Warranty Companies:

Here’s the scoop on the top 12 home warranty companies of 2024:

Select Home Warranty

The go-to for roof coverage. But, they have some state restrictions and coverage caps to watch out for.

American Home Shield

Awesome for HVAC coverage. They’re everywhere but do have a few geographical limits.

Liberty Home Guard

King of add-ons. Customization is their game but watch those payout limits.

AFC Home Club

Great for premium perks. You choose your technician, but there are some reporting time restrictions.

Cinch Home Services

Solid for systems coverage. A bit pricier on deductibles, though.

2-10 Home Buyers Warranty

Top-notch for enhanced coverage. Just note, that they don’t cover all states.

First American Home Warranty

Ideal for first-timers. Easy to get started with, but check what’s included in their basic plan.

HMS National

Excellent for comprehensive coverage. They’re pretty broad in what they cover but dig into the details.

Choice Home Warranty

Good all-rounder. They’ve got a mix of everything, but balance that with their service fees.

Home Warranty of America

Known for reliability. They’ve been around and know their stuff, but make sure their plans fit your needs.

Total Home Protection

Great for essential coverage. They keep it simple, which can be a plus or minus, depending on what you’re looking for.

Blue Ribbon Home Warranty

Perfect for the budget-conscious. Affordable options, but their coverage scope might be limited.

Pros and Cons of Home Warranty Companies

Here’s a table outlining the pros and cons of the top 12 home warranty companies for 2024:

Company	Pros	Cons
Select Home Warranty	Great roof coverage; 60-day repair guarantee.	Unavailable in some states; low coverage caps.
American Home Shield	Largest provider; customizable plans; covers home electronics.	30-day repair guarantee; unavailable in Alaska; no roof leak coverage in Hawaii.
Liberty Home Guard	Over 20 additional coverage options; 60-day repair guarantee.	Relatively low payout limits.
AFC Home Club	Clients choose their technicians; a variety of additional benefits.	Reporting issues within a day; $75 plan cancellation fee; limited availability.
Cinch Home Services	Available in 47 states; 180-day workmanship guarantee; rust and corrosion coverage.	Higher deductibles; limited additional coverage options.
2-10 Home Buyers Warranty	Discounts on appliances; color match for replacements; monthly discount with auto-renewal.	No coverage for garage doors/roof leaks without add-on; not available in Hawaii and Alaska.
First American Home Warranty	Good for beginners; basic plans available.	Coverage limitations in the basic plan; certain exclusions apply.
HMS National	Comprehensive coverage options; established reputation.	Specifics of coverage can vary; check for state availability.
Choice Home Warranty	Balanced coverage options; good reputation.	Service fees; potential limitations in coverage.
Home Warranty of America	Reliable service; experienced provider.	Plan specifics vary; some coverage limitations.
Total Home Protection	Simplified coverage; straightforward plans.	Basic coverage may not fit all needs; limited add-ons.
Blue Ribbon Home Warranty	Budget-friendly; good for basic coverage.	Coverage scope might be limited; check for exclusions.

Key Features of a Home Warranty:

Coverage

Typically includes major systems like HVAC (heating, ventilation, and air conditioning), electrical, plumbing, and appliances like refrigerators, dishwashers, washers/dryers, ovens, and sometimes even pools and spas.

Cost

Home warranties usually involve an annual contract fee, along with a service call fee (or deductible) that is paid each time a technician visits your home for a repair.

Repair or Replacement

If a covered item breaks down and can’t be repaired, the home warranty company will typically replace it.

Convenience

Homeowners can avoid the hassle of finding a service provider when something breaks; the warranty company usually handles this, sending a technician to your home to assess and fix the issue.

Limitations and Exclusions

Home warranties often have limitations on coverage, such as caps on repair costs and exclusions for pre-existing conditions or improper maintenance.

Renewal and Cancellation

Most home warranty contracts are for one year and can be renewed. They may also have specific cancellation policies and fees.

Benefits and Considerations:

• Peace of Mind: They provide reassurance that if something goes wrong, you have a plan in place to address it without incurring large out-of-pocket costs.
• Budget Protection: Helps in budgeting for home repairs by converting unpredictable repair costs into more predictable service fees.
• Convenience: Simplifies the process of getting repairs done.
• Limitations: Be aware of the coverage limits, exclusions, and the reputation of the home warranty company.
• Cost vs. Value: Evaluate if the annual cost of the warranty is worth the potential savings on repairs.

How to Evaluate Cost vs Value of Home Warranty

Evaluating the cost versus value of a home warranty involves comparing the annual cost of the warranty against the potential savings on home repairs and replacements that the warranty covers. Here’s a step-by-step approach to make this assessment:

Calculate the Annual Cost of the Warranty:

• • Base Fee: Note the annual premium of the home warranty plan.
  • Service Fees: Include the service call fee or deductible you pay for each repair visit. Estimate the number of service calls you might have in a year and multiply it by the service fee.
  • Additional Costs: Consider extra costs for any add-on coverage beyond the standard plan.

Estimate Potential Repair/Replacement Costs Without Warranty:

• • Research Common Repair Costs: Look up the average costs for repairs and replacements of major home systems and appliances like HVAC, plumbing, electrical systems, refrigerators, washers, dryers, etc.
  • Assess Your Home’s Needs: Consider the age and condition of your home’s systems and appliances. Older systems are more likely to need repairs.

Review Historical Repair Frequency:

• • If you’ve lived in the home for a while, think about how often you’ve needed repairs in the past.
  • For a new home, ask the previous owner or get a home inspection report to estimate repair frequency.

Consider the Inconvenience Factor:

• • Assign a value to the convenience of having a home warranty, like ease of finding a service provider and reduced hassle in managing repairs.

Risk Tolerance and Peace of Mind:

• • Consider your comfort with risk. A home warranty might be worth more to you if you prefer the certainty of covered repairs over the potential of unexpected high costs.

Calculate Potential Savings:

• • Total potential repair/replacement costs (without warranty) – Total annual warranty cost = Potential savings
  • If this number is positive, and you value convenience and peace of mind, a home warranty might be a good investment.

Read Reviews and Service Quality:

• • Consider the reputation and customer satisfaction of the home warranty company. Poor service can diminish the value of the warranty.

Compare with an Emergency Fund:

• • If you have a robust emergency fund for home repairs, compare the potential savings with the interest or investment return you could earn on that money if it wasn’t tied up in a warranty.

Conclusion

That’s your roundup of the best home warranty companies for 2024. Each has its own perks and quirks, so think about what you need and choose the one that fits like a glove.