Home Warranty: what it is, what it covers, and who to buy from
A plain-English guide built for US homeowners — the benefits, the add-ons worth paying for, the equipment that is actually covered, and the top 5 providers in the country.
Featured providers
What is a home warranty?
A home warranty is an annual service contract. When a covered system or appliance breaks down from normal use, you file a claim, pay a flat service call fee, and the provider sends a technician to repair or replace it.
It covers breakdowns from age and everyday wear — not storm, fire or flood damage.
It is not homeowners insurance, and it does not replace it.
You pay a monthly premium (roughly $40–$95) plus a service fee per visit ($60–$125).
Why it matters for US homeowners
The systems that fail most often are also the priciest to fix. A single HVAC compressor, water heater or refrigerator failure can wipe out a year of savings — and they rarely break at a convenient time.
Replacing a central AC system commonly runs several thousand dollars.
A failed water heater usually needs same-day attention.
Finding a trustworthy, available contractor is its own problem.
The benefits in four lines
Predictable repair budget
You pay a flat monthly fee plus a set service call fee instead of an unplanned four-figure repair bill.
One number to call
No hunting for a contractor at 9pm. The provider dispatches a vetted technician from its network.
Covers normal wear and tear
Homeowners insurance pays for sudden damage like fire or storms. A warranty picks up aging systems that simply break down.
Helpful on older homes
If your HVAC, water heater, or appliances are 8+ years old, the odds of a claim in any given year are high.
Which equipment is covered?
Plans are usually sold as systems-only, appliances-only, or a combined plan. Here is what falls into each bucket on most national plans.
Heating & Cooling
- Central air conditioning
- Furnace / heat pump
- Ductwork
- Thermostats
Plumbing
- Interior pipe leaks
- Stoppages & clogs
- Toilets & faucets
- Water heater
Electrical
- Main panel & sub-panels
- Interior wiring
- Outlets & switches
- Ceiling fans
Kitchen Appliances
- Refrigerator
- Oven & range
- Dishwasher
- Built-in microwave
Laundry
- Washer
- Dryer
- Motor & drum
- Control boards
Roof Leak Repair
- Leak patching
- Shingle repair
- Flashing repair
Pool & Spa
- Pool pump
- Filter
- Heater
- Motor
Well Pump & Septic
- Well pump
- Pressure tank
- Septic system
- Sewage ejector
Add-ons worth considering
Base plans leave out some of the most expensive equipment in a US home. These are the optional add-ons that most often pay for themselves.
Pumps, filters, heaters — one of the most expensive repairs to pay out of pocket.
Essential for rural properties; rarely included in base plans.
Ask whether pumping itself is covered or only mechanical failure.
Usually capped (often $500–$1,000) and limited to occupied living areas.
Garage fridges are almost never covered by default.
Coverage normally applies to the main dwelling only.
Common in TX, FL, AZ and CA yards.
Low cost to add, expensive to replace.
Check these before you buy
- Coverage caps per item and the annual aggregate cap — a low cap can make a plan almost pointless on HVAC.
- The service call fee ($60–$125) and whether you can trade it against a lower monthly price.
- Waiting period — typically 30 days before you can file a claim.
- Pre-existing conditions and maintenance-record requirements.
- Exclusions: code upgrades, permits, refrigerant, haul-away and modifications.
- Workmanship guarantee length — 30 days is standard, 90–365 days is much better.
- Cancellation terms and whether the plan transfers if you sell the home.
- State availability — several providers do not sell in CA, WA, NV or WI.
Top 5 home warranty companies for US homeowners
Ranked on coverage caps, plan flexibility, add-on depth, state availability and customer feedback. Pricing varies by ZIP code and plan.
American Home Shield
4.5The industry's most established name, with the most flexible plan tiers.
Liberty Home Guard
4.6The most add-ons and the longest workmanship guarantee in the industry.
Choice Home Warranty
4.4Straightforward coverage, high per-item payouts, budget-friendly pricing.
Select Home Warranty
4.2The most budget-friendly plans, with free roof coverage included on every plan.
First Premier Home Warranty
3.4A budget two-plan option with a long list of add-ons — read the fine print.
Want to buy the best warranty? Get your quote here
Click below to see current plans and pricing for your home.
We may earn a commission if you purchase through this link. Plan terms, pricing and availability are set by the provider and vary by state.