Best Home Warranty Companies for New Construction Homes
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Purchasing a recently constructed home provides several benefits. The foundation, walls, and other dwelling structures are at the start of their life spans. In addition, you can design your home to your liking. To ensure your dream home remains protected, consider a home warranty, which is a service contract that covers your home’s major appliances and systems from normal wear-and-tear breakdowns. Our team compared dozens of top home warranty companies before selecting our recommended providers for new constructions.
Do Home Warranty Plans Cover New Constructions?
A newly built home typically comes with a builder’s warranty when you purchase it. A builder’s warranty is different from a home warranty. Below are the main differences between a home builder’s warranty and a typical home warranty.
Home Builder’s Warranty
A builder’s warranty covers the newly constructed home’s foundation, structural components, and integrity. We discovered during our research that most states require the home builder to provide a warranty on the home. The warranty covers the following items:
- Builder’s workmanship
- Essential system components and routing, such as HVAC ductwork
- Materials used to construct the home, such as drywall
- Structural elements, such as the home’s ceiling
Each state determines how long a builder’s warranty lasts. For example, in Texas, a builder’s warranty covers the major structural components of a new home for up to 10 years. This means the builder will cover the cost of repairing a major structural defect if you discover it during the warranty period. A builder’s warranty, however, won’t cover your home systems and appliances.
Home Warranty
A home warranty covers your new construction home’s appliances and systems. Common items covered under a home warranty include the following:
- Air conditioning
- Built-in microwaves
- Clothes washers and dryers
- Electrical systems
- Refrigerators
- Stovetops
- Water heaters
Therefore, we suggest pairing your home builder’s warranty with a home warranty for total home coverage.
Home Warranty Companies That Cover New Constructions
Our research shows that the companies below offer new-construction home warranty plans:
- American Home Shield: Best for Comprehensive Coverage
- Liberty Home Guard: Best Add-on Variety
- Select Home Warranty: Best for Cost-Effective Plans
- First American Home Warranty: Best for Home Systems Coverage
- AFC Home Warranty: Best Membership Perks
This article’s pricing information is based on quotes our team pulled for the same single-family home in Lubbock, Texas. Your monthly premium may differ due to your home’s type, size, and location and your coverage and add-on selections.
American Home Shield
- State availability: 48 (all but Alaska and Hawaii)
- Service fee: $100–$125
- Get a quick quote: Visit American Home Shield’s site
Coverage Overview
American Home Shield provides generous new-construction warranties that cover your essential appliances and systems. The company offers a $5,000 coverage cap per built-in covered system. It pairs appliances with a $2,000 coverage limit in its ShieldGold plan and $4,000 in its ShieldPlatinum plan. It also covers items most home warranties don’t, such as those with preexisting conditions.
American Home Shield offers two service call fees. You can choose from a $100 or $125 service fee—the higher the service fee, the lower your monthly premium.
Plans
American Home Shield provides three home warranty coverage plans. We listed each plan’s coverage details below:
ShieldSilver ($24.99–$39.99): This plan covers major systems. It includes coverage for doorbells and chimes, garage-door openers, ceiling fans, ductwork, built-in exhaust and attic fans, heating units, air conditioning, and HVAC systems. It covers electrical system components, including interior electrical lines, main breakers, and fuse panel boxes. It also includes faucets, valves, interior plumbing lines, toilets, whirlpool tub motor components, and water heaters.
ShieldGold ($34.99–$49.99): The ShieldGold plan covers all items in the ShieldSilver plan, plus major appliances. Covered appliances include built-in microwaves, clothes washers and dryers, dishwashers, garbage disposals, instant cold and hot water dispensers, ovens, cooktops, ranges, and refrigerators.
ShieldPlatinum ($64.99–$79.99): This plan is American Home Shield’s most comprehensive plan. It protects everything in the ShieldGold plan and adds roof-leak repair coverage, a $1,000 cap for plumbing system modifications, discounted HVAC system tune-ups, and an increased coverage cap of $4,000 per covered appliance.
American Home Shield
Read more: American Home Shield Review
Liberty Home Guard
- State availability: 50
- Service call fee: $65–$125
- Get a quick quote: Visit Liberty Home Guard’s site
Coverage Overview
Liberty Home Guard (LHG) offers solid home protection and an extensive list of unique coverage options. When we pulled a quote from Liberty Home Guard’s website, we found it provides gutter cleaning and pest control services. In addition, it has a $2,000 coverage limit for all covered items except electrical and plumbing. It limits these systems to $500 per claim.
Liberty Home Guard provides $65 to $125 service call fees. Unlike American Home Shield, your service call fee doesn’t adjust your monthly premium. When we spoke to a Liberty Home Guard representative, we found the company selects the service call fee based on your home’s type, size, and location and your coverage and add-on selections.
Plans
Liberty Home Guard offers three plans. We listed each plan’s coverage details below:
Appliance Guard ($49.99): This plan covers home appliances, such as built-in microwave ovens, ceiling and exhaust fans, clothes washers and dryers, dishwashers, garage-door openers, garbage disposals, ranges, ovens, cooktops, and refrigerators with built-in ice makers.
Systems Guard ($54.99): This plan covers mechanical systems, such as your home’s air conditioning, plumbing, heating and electrical systems, ductwork, and water heaters.
Total Home Guard ($59.99): The Total Home Guard covers all items listed in the Appliance Guard and Systems Guard plans.
Liberty Home Guard
Read more: Liberty Home Guard Review
Select Home Warranty
- State availability: 47 (all but Nevada, Washington, and Wisconsin)
- Service call fee: $60–$75
- Get a quick quote: Visit Select Home Warranty’s site
Coverage Overview
Select Home Warranty is another solid home warranty provider for new-home buyers. The company provides competitive pricing via a low service call fee and coverage plans under $50 per month. Select includes roof-leak repair coverage of up to $400 per instance in each plan. We called Select to obtain our quote. The representative offered us a $60 service call fee. This price is only available if you sign up over the phone.
Select provides a $3,000 coverage limit for heating and cooling systems. However, it limits all other covered systems and appliances to $500 per claim.
Plans
Select Home Warranty offers three plans. We listed each plan’s coverage details below:
Bronze Care ($44.42): This plan includes appliance coverage for built-in microwaves, clothes washers and dryers, dishwashers, garbage disposals, ovens, refrigerators, and stovetops.
Gold Care ($44.42): This plan protects home systems, including ductwork, water heaters, cooling and heating systems, and plumbing and electrical systems.
Platinum Care ($47.75): The Platinum Care plan covers everything listed in the Bronze Care and Gold Care plans.
Select Home Warranty
Read more: Select Home Warranty Review
First American Home Warranty
- State availability: 30 (not available in Alaska, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Montana, Nebraska, North Dakota, New Hampshire, New York, Rhode Island, Vermont, Washington, or Wisconsin)
- Service call fee: $75–$125
- Get a quick quote: Visit First American’s site
Coverage Overview
First American Home Warranty offers comprehensive home protection. The company has generous appliance caps and built-in system limits. It offers its First American Advantage upgrade to increase your total home protection. First American includes this upgrade in its Essential and Premium plans. It provides a $3,500 coverage limit per covered appliance and increases the limit to $7,000 in its Premium plan. There are no preset coverage caps for built-in systems such as HVAC and plumbing.
Like American Home Shield, First American allows you to choose your service call fee. Its service call fees are $75, $100, or $125. Choosing a higher service call fee lowers your monthly premium and vice versa.
Plans
First American provides three home protection plans. We listed each plan’s coverage details below:
Starter Plan ($47–$62 per month): This plan covers a mix of home appliances and systems such as built-in microwaves, dishwashers, ductwork, electrical, heating, plumbing, kitchen range hoods, ovens, cooktops, plumbing stoppages, refrigerators, and toilet tanks.
Essential Plan ($57–$72 per month): The Essential Plan covers all items listed in the Starter Plan, plus air conditioning, ceiling fans, attic fans, exhaust fans, clothes washers and dryers, the First American Advantage upgrade, garage-door openers, trash compactors, and water heaters.
Premium Plan ($72–$87 per month): The Premium plan is First American’s most comprehensive coverage plan. It includes all items listed in the Essential Plan, central vacuum and full garage-door systems, faucets, garbage disposals, instant hot water dispensers, luxury appliances, shower heads and arms, and window air conditioning units.
First American Home Warranty
Read more: First American Home Warranty Review
AFC Home Warranty
- State availability: 49 (all but Hawaii)
- Service call fee: $75–$125
- Get a quick quote: Visit AFC Home Warranty’s site
Coverage Overview
AFC Home Warranty is our final recommendation for new constructions. It offers solid major system and appliance coverage, an unlimited workmanship guarantee, and flexible monthly premiums via three service call fees. Its service call fees are $75, $100, or $125. Choosing a lower service call fee raises your monthly premium and vice versa.
AFC provides a $3,000 coverage cap per covered appliance. However, it limits covered items over five years to a depreciated value based on similar items. Its major systems coverage caps vary. We suggest reading the company’s fine print to understand the exact terms of coverage, exclusions, and limitations.
Plans
AFC Home Warranty offers four plans. We listed each plan’s coverage details below:
Silver Plan ($37.17–$41.83): This plan covers appliances, such as clothes washers and dryers, dishwashers, garage-door openers, garbage disposals, ovens, ranges, stovetops, and refrigerators.
Systems Plan ($40.00–$44.75): This plan covers home systems, including ductwork, air conditioning, electrical, plumbing, heating, and water heaters.
Gold Plan ($51.25–$56.00): The Gold Plan bundles all items covered in the Silver Plan and Systems Plan.
Platinum Plan ($56.00–$60.67): The Platinum Plan covers all items in the Gold Plan, plus additional coverage for built-in microwaves, faucets, ice makers, and plumbing stoppages.
AFC Home Warranty
Read more: AFC Home Warranty Review
Compare the Top Home Warranties for New Construction
Company | Coverage Cap for Appliances | Coverage Cap for Built-in Systems | Service Call Fee |
|---|---|---|---|
|
$2,000–$4,000 |
$5,000 |
$100–$125 |
|
|
$2,000 |
$500–$2,000 |
$65–$125 |
|
|
$500 |
$500–$3,000 |
$60–$70 |
|
|
$3,500–$7,000 |
$1,000–unlimited |
$75–$125 |
|
|
$3,000 |
$500–unlimited |
$75–$125 |
Our Recommendation
Becoming a homeowner involves a unique set of challenges. Purchasing a newly built home gives you more peace of mind that your home can stand the test of time. However, the structural warranty provided by the builder provides limited coverage. A home warranty can fill in the coverage gaps of a builder’s warranty, ensuring your new home is fully protected.
We recommend American Home Shield due to its generous coverage caps and extensive list of covered systems. Liberty Home Guard is another solid option thanks to its 60-day workmanship guarantee. Select Home Warranty is worth considering due to its roof-leak repair coverage. We recommend pulling quotes from three providers to compare coverage costs and plan options before signing up.
New Construction Home Warranty FAQ
What’s the difference between a builder’s warranty and a homeowners insurance policy?
A builder’s warranty covers your home’s main foundation and structural components from workmanship defects. A homeowners insurance policy also covers your home’s foundation and structural components if they are damaged by a covered incident, such as a wildfire. Builder’s warranties last a defined amount of time, such as 10 years, whereas homeowners policies typically renew yearly.
How long does a home warranty last?
A home warranty typically lasts 12 months. This means a home warranty plan covers system and appliance breakdowns that occur within a 12-month period. Most providers offer longer coverage terms if you need extended coverage.
How often do I have to pay my service call fee?
You typically pay your service call fee each time you file a new claim. However, reputable providers won’t charge an extra service call fee if you experience issues with your completed repair within 30 days. Some providers extend their repair guarantee past the industry standard of 30 days.
Who do I contact if my new construction has structural issues?
Contact the contractor company that built your home if you notice a workmanship flaw.
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.