A Definitive Guide to the Top Home Warranty Companies in 2022

Are you purchasing a home? Are you worried about the old appliances inside it? The last thing you want, after shelling out for a hefty down payment, is to have your roof leak, your appliances break, or your furnace not turn on.

Home warranties can cover these costs and are a common topic during the home buying process. Doing your research and investing in a reputable one can potentially save you thousands of dollars in the long run.

In this article, we’ll cover what home warranties are, the difference between insurance and a warranty, and cover the top home warranty companies.

What Is a Home Warranty?

A home warranty is additional policy protection that covers some of the most expensive appliances and repairs you may face in your home.

Most homebuyers consider purchasing one before they move in or they leverage having the seller pay for one upon move-in.

You may be asking, “do I need a home warranty?” They are especially common in older, outdated homes. Home warranties differ in what they cover, but here’s a general list:

A/C systems
Furnaces/heating Systems
Water heaters
Plumbing/septic Systems
Major electrical systems
Kitchen appliances (fridge, dishwasher, ovens, etc)
Garage doors, roof damages, wells, sprinklers, and more source

The difference between home insurance and warranties is that insurance covers the big picture: your home is robbed, burned down, destroyed by a tornado, or has catastrophic damage, and you’ll be covered.

Warranties focus on the micro more than the macro. They’ll cover anything mentioned in the list above once it breaks.

Why this is great for first-time buyers (or anyone who put down a hefty deposit on a home) is that you can put in a small amount of money per month to ensure your “new” home is covered in the event something breaks.

Top Home Warranty Companies

Here are the top home warranty companies based on certain criteria. Note that certain policies are limited to some of the 50 states.

Best Coverage

American Home Shield offers a lot of coverage. With multiple plans, you can mix-and-match to cover what you need and not what you don’t.

One limitation is there isn’t roof leak coverage.

Best Value

Value can be relative, but the key is that it isn’t cheap, just that you get your bang-for-buck.

HomeServe is lauded as one of the better services, offering great services at competitive prices. They do have coverage limitations, however.

Best Rated by the BBB

The BBB (Better Business Bureau) rates companies based on their ethics and consumer loyalty. That usually means how often policies get met with less resistance, and thus repairs and new appliances get installed.

Like grade school, companies with an A or higher are considered ideal for doing business with. While most policies have B or better, one standout “A” is Liberty Home Guard.

Great Service-Free Option

Most warranty providers charge service fees when they need to come and repair something. These can range from $40-$125. That can be more than your regular monthly fee.

Cinch offers plans that low to zero service fees, meaning you won’t be charged should you need a repair.

Check Your Local Companies

Check your local region for a good home warranty company.

Select Home Warranties offers great plans for Florida residents to consider. Your state may have programs not rated by the BBB or that offer better services with added benefits for locals.