Best Cost-Effective Home Warranty Companies (2025)
All products and services featured are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission.
Our survey of 1,000 homeowners revealed that more than 75% had previously hired a contractor to repair a home system or appliance. Nearly 50% of those homeowners spent time locating a contractor through online research. If you’re looking to reduce the inconvenience of a system or appliance breakdown, a the best home warranties can help by connecting you directly with a contractor.
In addition to sourcing knowledgeable contractors, enrolling in a home warranty helps you account for unexpected expenses. This guide will walk you through choosing a cost-effective home warranty plan that fits your needs.
We based all pricing information used in this article on quotes for a single-family home smaller than 5,000 square feet in Genoa, Nevada, near Lake Tahoe.
The Most Cost-Effective Home Warranty Companies
Here are the most cost-effective home warranty companies:
- American Home Shield: Best for Comprehensive Coverage
- Liberty Home Guard: Best Add-on Variety
- Select Home Warranty: Best for Cost-Effective Plans
- AFC Home Warranty: Best Membership Perks
- First American Home Warranty: Best for Home Systems Coverage
- HomeServe: Best for Specific Needs
American Home Shield
Best Coverage
Fast Facts
- State Availability: 48 (all but Alaska and Hawaii)
- Number of Plans: Three
- Service Fee: $100–$125
- Get a Quick Quote: Visit site
Plans and Pricing
At face value, American Home Shield (AHS) may not appear to be the lowest-priced home warranty provider on this list, but that shouldn’t be the basis for any decision on your home. Instead, consider how much you get from what you’re paying into the home warranty policy.
With AHS, you can enjoy the benefits of a flexible service call fee, allowing you to adjust your monthly fees to a price point that makes sense for the coverage you want. For example, if you expect to make infrequent claims, you can choose the highest service call fee option, which will, in turn, lower your monthly fees.
AHS offers three plan options: ShieldSilver, ShieldGold, and ShieldPlatinum. American Home Shield offers generous coverage caps for covered home systems, up to $4,000 per covered appliance in the ShieldPlatinum plan. AHS also offers a generous coverage limit of $2,000 per appliance with the ShieldGold plan.
ShieldSilver ($44.99 to $59.99 per month): This home warranty plan covers your major home systems, including your air conditioning system, heating units, ductwork, built-in exhaust, vent fans, attic fans, main breaker and fuse panel box, doorbells and chimes, interior electrical lines, ceiling fans, garage door openers, interior plumbing lines, toilets, faucets and valves, whirlpool tub motor and components, and water heaters.
ShieldGold ($54.99 to $69.99 per month): This plan expands on ShieldSilver’s coverage by adding appliances, including your refrigerator, range/cooktop, oven, dishwasher, built-in microwave, garbage disposal, instant hot/cold water dispenser, clothes washer, and clothes dryer.
ShieldPlatinum ($74.99 to $89.99 per month): This plan covers all the items in the ShieldGold plan plus roof-leak repairs, a free HVAC tune-up, access to unlimited AC refrigerant, and coverage for code violations and permits.
Read More: American Home Shield Review
Liberty Home Guard
Best Add-On Variety
Fast Facts
- State Availability: 50
- Number of Plans: Three
- Service Fee: $65–$125
- Get a Quick Quote: Visit site
Plans and Pricing
Liberty Home Guard (LHG) provides home warranty plans at a competitive price. According to our research, LHG’s prices fall near the national average of $55.52 monthly for a home warranty coverage plan. In addition to solid monthly prices, LHG provides a 60-day workmanship guarantee for added peace of mind. LHG offers over 30 optional add-ons.
LHG chooses your service call fee based on your home’s size, type, location, and add-on choices. A representative we spoke with stated the service call fee ranges from $65 to $125.
Appliance Guard ($49.99 per month): This plan includes coverage for built-in microwaves, ceiling and exhaust fans, clothes washers and dryers, cooktops, dishwashers, garbage disposals, garage door openers, ovens, ranges, and refrigerators with ice dispensers.
Systems Guard ($54.99 per month): This plan covers air conditioning, heating, ductwork, electrical and plumbing systems, and water heaters.
Total Home Guard ($59.99 per month): This plan bundles all Appliance and Systems Guard items into one comprehensive coverage plan.
Read More: Liberty Home Guard Review
Select Home Warranty
Best Budget Coverage
Fast Facts
- State Availability: 47 (all but Nevada, Washington, and Wisconsin)
- Number of Plans: 3
- Service Fee: $60–$75
- Get a Quick Quote: Visit site
Plans and Pricing
Select Home Warranty offers truly affordable home protection. The provider charges under $50 per month for its combination plan and under $80 for its service call fee. Select includes limited roof-leak repair coverage in each plan. Most providers offer roof-leak coverage as an add-on. To further reduce your cost with Select, it offers a lower service call fee of $60 when you sign up over the phone.
Bronze Care Plan ($44.42 per month): The Bronze Care plan includes coverage for built-in microwaves, cooktops, clothes washers and dryers, dishwashers, garbage disposals, ovens, refrigerators, and stoves.
Gold Care Plan ($44.42 per month): The Gold Care plan includes air conditioning, ductwork, electrical, plumbing, HVAC systems, and water heaters.
Platinum Care Plan ($47.75 per month): This plan covers appliances and systems, garage door openers, and plumbing stoppages.
Read More: Select Home Warranty Review
AFC Home Warranty
Best Membership Perks
Fast Facts
- State availability: 49 (all but Hawaii)
- Number of Plans: Four
- Service Fee: $75–$125
- Get a Quick Quote: Visit site
Plans and Pricing
Like AHS, America’s 1st Choice Home Club (AFC Home Club) allows customers to select their service fees and thus customize their monthly premiums. While some homeowners may appreciate the convenience of a combo plan, others may prefer to choose coverage for the items most important to them.
AFC Home Club offers four plan options: the Silver Plan, Systems Plan, Gold Plan, and Platinum Plan. All these plans can be purchased for a single year, or you can choose a three-year policy. Either way, AFC Home Club covers all completed repairs with its plan-length workmanship guarantee. This guarantee prevents a policyholder from paying the service fee again for the same covered item. In addition, AFC Home Club allows you to choose your service technician.
You can compare the costs and covered items of AFC Home Club’s plans below.
Silver Plan ($33.58 to $38.33 per month): This plan covers home appliances, including your clothes washer, clothes dryer, refrigerator, oven, range, cooktop, stove, dishwasher, garbage disposal, and garage door opener.
Systems Plan ($40.75 to $45.50 per month): This home warranty plan covers systems, such as your water heater, air conditioning, heating systems, electrical system, and plumbing system. Our online quote did not include ductwork, but when we spoke to a company representative, they told us that this was a mistake on their part. AFC does include ductwork with all plans that cover air conditioning and heating systems.
Gold Plan ($47.92 to $52.75 per month): This plan includes all the covered items in the earlier Silver Plan plus your water heater, air conditioning, heating systems, electrical system, plumbing system, and ductwork.
Platinum Plan ($52.75 to $57.50 per month): This plan includes all the covered items in the Gold Plan, plus plumbing stoppages, faucets, ice makers, built-in microwaves, ceiling fans, attic fans, and exhaust fans.
Read More: AFC Home Club Review
First American Home Warranty
Best System Coverage
Fast Facts
- State Availability: 33 (all but Alaska, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Rhode Island, Vermont, and Wisconsin)
- Number of Plans: Three
- Service Fee: $75–$125
- Get a Quick Quote: Visit site
Plans and Pricing
First American Home Warranty provides comprehensive coverage, although its prices are slightly higher than a few providers. First American offers solid coverage limits for major systems and appliances. It also provides service call fee flexibility, which can lower your monthly premium.
Note that First American does not cover air conditioning in its Starter Plan. However, First American offers air conditioning coverage as an add-on or within its Essential and Premium plans. Additionally, First American offers a suite of additional coverage options, including pool/spa equipment, septic system, and well pump coverage.
Starter Plan ($47–$62 per month): This plan covers appliances and systems such as built-in microwaves, cooktops, dishwashers, ductwork, electrical systems, heating systems, kitchen range hoods, ovens, plumbing systems, plumbing stoppages, refrigerators, toilet tanks, bowls, and mechanisms.
Essential Plan ($57–$72 per month): This plan includes coverage for all items listed in the Starter Plan plus air conditioning, ceiling, attic, and exhaust fans, clothes washers, clothes dryers, the First American Advantage add-on, garage-door openers, trash compactors, and water heaters.
Premium Plan ($72–$87 per month): In addition to Essential Plan items, this plan adds central vacuum systems, faucets, full garage door systems, instant hot water dispensers, luxury appliances, shower heads, shower arms, and window AC unit coverage.
Read More: First American Home Warranty Review
HomeServe
Best for Specific Needs
Fast Facts
- State Availability: 48 (all but Alaska and Hawaii)
- Number of Plans: 14 (may vary depending on your location)
- Service Fee: $100 (may vary depending on your plan)
Plans and Pricing
At first glance, you’ll likely notice that HomeServe offers significantly more plan options than its competitors. For that reason, the cost of a home warranty varies the most compared to other providers we feature in this guide. For example, in Genoa, Nevada, HomeServe offers 14 coverage plans ranging from basic gas line protection to more conventional appliance coverage. Still, your options may vary depending on your ZIP code and utility service provider.
When you choose HomeServe, you can stay true to your priorities for home protection by covering as much or as little as you’d like. Unlike other home warranty companies, HomeServe works with your utility provider, allowing it to offer coverage for exterior items, such as your septic system and pipes.
You can compare HomeServe’s plan options below:
Gas Line ($4.99 per month): This home warranty plan covers interior gas lines, interior gas restoration, exterior gas lines, and exterior gas line restoration up to $8,000.
Water Heater Repair ($6.99 per month): This plan covers water heater repair costs up to $850.
Exterior Water Service Line Coverage ($7.95 per month): This plan covers your exterior water service line and exterior water service line restoration up to $7,000.
Water Heater Repair and Replacement Plan ($8.99 per month): This plan covers water heater replacement and water heater repairs up to $1,500.
Exterior Sewer/Septic Line Coverage ($12.98 per month): This plan covers your exterior sewer/septic line and exterior sewer/septic line restoration up to $10,000.
Cooling System Coverage ($12.99 per month): This plan covers your air conditioner up to $1,750.
Heating System Coverage ($12.99 per month): This plan covers your heating system up to $1,750.
Exterior Pipe Plan ($15.99 per month): This plan covers your exterior water service line, exterior water service line restoration, exterior sewer/septic line, and exterior sewer/septic line restoration up to $10,000.
Interior Plumbing and Drainage System Coverage ($18.99 per month): This plan covers your interior plumbing and interior drainage up to $3,000.
Heating and Cooling Plan ($19.99 per month): This plan covers your heating and cooling system up to $10,000.
Home Plumbing and Drainage Coverage ($21.98 per month): This plan covers your exterior sewer/septic line, interior plumbing, interior drainage, and drain cleaning up to $12,000.
Home Comfort Plan ($29.99 per month): This plan covers your interior gas line, exterior gas line, cooling system, heating system, and water heater repairs up to $10,000.
Complete Plumbing Plan ($41.99 per month): This plan covers your exterior water service line, exterior sewer/septic line, exterior sewer/septic line restoration, interior plumbing, interior drainage, drain cleaning, interior gas line, exterior gas line, and water heater repairs up to $10,000.
TotalHome Warranty Appliances ($48.33 per month): This plan operates more like a conventional home warranty plan compared to HomeServe’s other offerings. This plan covers major appliances, such as your refrigerator, clothes washer, clothes dryer, range, dishwasher, built-in microwave, trash compactor, and garage door opener. HomeServe covers all items up to $1,500 each.
Read More: HomeServe Review
Our Recommendation
If you’re willing to pay a bit more for your monthly fees, American Home Shield offers some of the most comprehensive coverage options in the industry. Additionally, its generous coverage caps on built-in systems can help homeowners avoid many of the urgent and unexpected costs of homeownership.
If monthly premium flexibility is your priority, First American Home Warranty offers three service call fee options that change your monthly cost. You may be interested in HomeServe plan options if you’re looking for specialized coverage for items outside the typical scope of a home warranty plan, such as exterior utility lines.
How to Choose a Home Warranty
A cost-effective plan that provides the best value to a homeowner is not necessarily synonymous with the cheapest home warranty companies. With these services, the best way to get top value from your home warranty is to carefully review the terms and conditions and the covered items to confirm they align with your priorities. Follow these simple steps to choose a home warranty that meets your needs:
- Consider the most likely breakdowns to occur this year. Before you can decide if you want a plan that covers appliances or a plan that covers your systems (or both), you’ll need to take an honest look at the state of your home’s major systems and appliances. If you anticipate a big-ticket repair in the next few years, it’s a good idea to enroll in a plan before preexisting conditions develop.
- Don’t assume you need the most comprehensive plan. Most home warranty companies won’t cover items that have been improperly installed or modified or suffer from a preexisting condition. You’ll want to select a home warranty plan that covers the items least likely to be subject to typical exclusions. Making these considerations will confirm you’re choosing a policy that won’t be under-utilized.
- Request quotes from multiple providers. Before making your final decision, you’ll want to request quotes from a few of your top home warranty options. This process will allow you to compare and contrast the coverage items and terms of each provider’s service agreement.
Is a Home Warranty Worth It?
A home warranty could be worth it for the peace of mind it provides. For example, imagine you’re taking a shower after a long day. Suddenly, there’s no hot water. You discover that the water heater has broken. Though an unplanned cold shower is unpleasant, a home warranty can help you resolve the breakdown with minimal hassle. You simply file a claim and pay a minimal service call fee to start the home repair process.
After you file your claim, your home warranty provider will initiate a service request on your behalf, including matching you with a local, licensed contractor specializing in your repair need. Across the industry, providers typically initiate a service request within 24 to 48 hours of receiving a claim.
Which Home Warranty Has the Lowest Service Fee?
Our research of more than three dozen home warranty companies indicated that the industry’s average service call fee is roughly $77.
The service call fee is your responsibility each time you file a claim, so it’s important to weigh the amount you’ll be paying for a technician to diagnose the cause of the breakdown relative to the value of the covered item. If you’re expecting to cover primarily big-ticket items, a higher service call fee can allow you to lower your monthly premiums to a minimal expense.
Do Home Warranties Have Coverage Caps?
Any reputable home warranty company will provide homeowners with a copy of its service contract before they enroll in a plan. The fine print of home warranty policies will typically stipulate a coverage cap or limit. These coverage limits will outline the maximum dollar amount a provider will pay for a covered item. It does not mean you’ll always receive that coverage when you file a claim, but it does indicate the maximum potential coverage.
Do Home Warranties Cover Old Appliances?
It’s rare for a home warranty to exclude appliances based solely on their age; however, an older appliance may not be eligible for the same replacement value as a brand-new appliance. Therefore, the total coverage for an older appliance will be based on the pro-rated, depreciated value.
Home Warranties FAQ
What is a service call fee?
A service call fee is similar to a deductible charged by an insurance company. Providers charge a service call fee each time you file a new claim. Service call fees range from $65 to $125, depending on your provider and plan selection.
What should I look for when buying a home warranty?
When buying a home warranty, you should look for three main factors: cost, coverage options, and exclusions. Every homeowner’s situation is different. Consider your budget, coverage needs, and any notable coverage exclusions before selecting a home warranty provider.
Who regulates home warranties?
State government bodies and industry associations regulate home warranties. Both entities work together to create laws that regulate companies. These regulatory bodies also offer consumer resources to improve home warranty experiences.
What does a home warranty not cover?
Home warranties typically don’t cover routine maintenance, appliance removal and disposal fees, or commercial property. We recommend reading your provider’s sample contract to determine what it covers or doesn’t cover in your policy.
How We Chose the Top Home Warranty Providers
Our team reviewed and researched dozens of home warranty providers, thoroughly analyzed sample agreements, and identified customer pain points based on our analysis of customer reviews and interviews with industry experts. Our in-depth methodology outlines our review process to provide transparent information about the companies we review.
We determined that the following factors are the most important when comparing home warranty companies: available plans, plan coverage, price range, industry reputation, customer support, and additional features. Our research supported that plan coverage, customer service, and industry reputation should carry the most weight. While important, the other factors should not have as much influence when choosing a home warranty provider.