A home warranty is a one-year service contract, not insurance. You pay a monthly price, and when a covered furnace, air conditioner, water heater or appliance breaks down from normal wear, the company sends a technician and pays for the repair up to the limits in the contract. You also pay a service fee on every claim, which runs $50 to $200 at the companies below.
Three questions sort the options. How old are your heating, cooling and water heater, since those are the bills a warranty is really for? How much will the plan actually pay on each one, because covered and paid in full are not the same thing? And do you want to choose the repair person, or take whoever is sent? We read each company’s plan pages and the sample contracts they publish to answer those. Start with the four picks, then check the catch on each card.
Highest coverage capsAmerican Home ShieldUp to $5,000 per heating or cooling system
Choose your own contractorAmerica’s Preferred Home WarrantyAny licensed contractor, $50 or $100 deductible
365-day repair guaranteeLiberty Home GuardSold in all 50 states and D.C.
Prices listed up front2-10 Home Buyers WarrantyFrom $39.99 a monthBest home warranty companies at a glance
| Company | Plans | Service fee | Most it pays | Not sold in | |
|---|---|---|---|---|---|
| American Home Shield | Systems or combo, 3 plans | $100 or $125 | $5,000 HVAC, $50,000 a term | Check your ZIP | See plans |
 Cinch Home Services | Combo, 3 plans | $100 to $150 | $10,000 a term | Check your ZIP | See plans |
| Liberty Home Guard | Appliances, systems or combo | In your quote | $2,000 per item | Sold in all 50 | See plans |
| 2-10 Home Warranty | Systems or combo | You choose | $5,000 HVAC, $50,000 a term | Check your ZIP | See plans |
| America’s Preferred | One combo plan | $50 or $100 | $2,250 heating or AC | Check your ZIP | See plans |
 First American | Combo, 3 plans | In your quote | No total cap | 14 states | See plans |
 Choice Home Warranty | Combo, 2 plans | $100 | $3,000 per item | Washington | See plans |
 AFC Home Club | Appliances or combo, 4 plans | $75 to $125 | $2,000 per item | CA, HI, WA | See plans |
 Select Home Warranty | Appliances, systems or combo | $65 to $200 | $3,000 HVAC, $500 appliances | Check your ZIP | See plans |
Plan on a 30-day wait after you buy before you can file a claim. Seven of the nine state that outright, First American applies it to many new customers, and America’s Preferred shows your waiting period on your confirmation page. Plans bought with a home sale usually start at closing. Fees and limits are each company’s own published terms, read for this update. They vary by state, so confirm yours before you pay.
Home warranty reviews: our six picks
Every number on these cards comes from the company’s own plan pages or the sample contract it publishes. We do not print star ratings. The contract decides what gets paid, so the contract is what we compared.
American Home Shield
Highest capsThree plans: ShieldSilver covers home systems, ShieldGold adds kitchen and laundry appliances, and ShieldPlatinum adds roof leak repair. The contract covers breakdowns from rust, corrosion and poor maintenance, plus pre-existing problems you could not have known about. Several rivals exclude those.
The catchAHS sends the technician. You can use your own only when it approves that in advance. After the first 30 days, canceling costs an administrative fee of up to one month’s payment. Prices depend on your ZIP code, and the sample contract requires arbitration.
See AHS plansCinch Home Services
180-day guaranteeThree plans cover the same 37 systems and appliances. Repair Only fixes but never replaces, Repair + Replace does both, and Premier adds outside water, sewer and gas lines. Cinch covers rust, corrosion and pre-existing problems that a visual check could not have caught.
The catchEverything you claim in a term shares one $10,000 limit, and Repair Only stops at $1,000 per repair. The deductible is charged per trade, so a plumber and an electrician means two. Its sample terms require arbitration unless you opt out in writing within 30 days of signing.
See Cinch plansLiberty Home Guard
All 50 statesAppliance Guard, Systems Guard or both as Total Home Guard, plus an HVAC-only plan at $29.99 a month. It sells in all 50 states and Washington, D.C., and its 365-day workmanship guarantee is the longest fixed guarantee we found.
The catchThe sample policy excludes pre-existing conditions whether you knew about them or not. On annual and monthly plans it caps labor, installation, removal and haul-away at $150 across all items, and it pays up to an item’s book value. Canceling costs $50, even in the first 30 days.
See Liberty Home Guard plans2-10 Home Buyers Warranty
Prices listedTwo plans with prices on the site: Systems from $39.99 a month for home systems, and Pinnacle from $59.99 with appliances added. Frontdoor, the parent of American Home Shield, bought 2-10 in December 2024, and this contract also covers breakdowns from rust, corrosion and poor maintenance.
The catchThe Systems plan has no appliance coverage at all, and the listed prices are starting prices. The 30-day guarantee and the cancellation fee of up to one month’s payment match AHS, and the sample contract requires arbitration.
See 2-10 plansAmerica’s Preferred Home Warranty
Your own contractorThe one company here built around your own repair person. Call any licensed contractor, APHW approves the claim by phone, then pays the contractor or reimburses you. One plan covers 26 systems and appliances, and the $50 deductible is the lowest fee we found.
The catchThe limits in its homeowner terms are the lowest here: up to $2,250 for heating or central air, $500 for a water heater, $500 total for a washer and dryer, and compressor only (up to $1,000) on a refrigerator. Finding and scheduling the contractor is on you.
See APHW pricingFirst American Home Warranty
No total capStarter, Essential and Premium plans start at $35 a month. First American says it sets no dollar limit on the total it will pay in a contract term, which matters most when two big things fail in one year.
The catchIt lists plans in 36 states, so it is not an option in New York, Massachusetts, Minnesota, Louisiana and 10 others. Starter leaves out air conditioning, the water heater, and the washer and dryer. Appliance and roof limits and your service fee show up only in the quote and sample contract for your state.
See First American plansThree more big names, and what to know first
These three advertise heavily and show up on most lists. Each has something in its contract or its record that you should weigh before you buy.
Choice Home Warranty
Two simple plansTwo plans keep it simple. Basic covers heating, plumbing, electrical, the water heater and most kitchen appliances, and Total adds air conditioning, the refrigerator, washer and dryer. Coverage can start before the usual 30 days with proof of prior coverage and no lapse.
The catchIts user agreement excludes known and unknown pre-existing conditions, and Basic has no air conditioning. Arizona’s attorney general announced an $11.8 million settlement with Choice on February 10, 2026 over claims that its phone sales misrepresented coverage. Choice denied the allegations and admitted no wrongdoing.
See Choice plansAFC Home Club
Pick your service feeFour plans, from Silver (appliances) to Diamond, which adds electronics and outside water and sewer lines. You choose the service fee, repairs are guaranteed for as long as your plan runs, and AFC will let you use your own licensed technician if it approves first.
The catchThe sample contract on its site pays at most $150 on a claim in days 31 to 61, asks for an annual maintenance record before an HVAC claim, and applies depreciation once an item is 5 years old. Washington’s insurance commissioner announced a $300,000 fine against its operator in June 2025 for selling there without registering.
See AFC plansSelect Home Warranty
Low appliance capBronze Care covers appliances, Gold Care covers systems and Platinum Care covers both. Its site promotes discounts, extra months of service and free roof leak coverage, so read what the offer adds before you compare prices.
The catchThe sample agreement sets a yearly allowance of up to $500 for appliances, plumbing and electrical, and $3,000 for heating and cooling. It will not replace a whole system, appliance, compressor or motor in the first 30 days of coverage, and it can pay a cash settlement at depreciated value. Canceling costs $75.
See Select plansWhat a home warranty covers and what it does not
A home warranty covers parts that fail from normal wear and tear. Plans come in three shapes: systems only, appliances only, or both. The plan name tells you little, so go by the list of covered items in the contract.
| Status | What that usually means |
|---|---|
| Usually covered | Heating and central air, ductwork, plumbing lines and stoppages, electrical, the water heater, and on appliance or combo plans the refrigerator, oven, range, cooktop, dishwasher, built-in microwave, washer and dryer. |
| Usually an add-on | Pool and spa equipment, well pump, septic system, roof leak repair, a second refrigerator or freezer, and outside water and sewer lines. |
| Usually excluded | Problems that existed before coverage started, code upgrades beyond a small allowance, damage from misuse, pests, weather, fire or flood, and cosmetic parts such as handles, shelves and racks. |
The pre-existing conditions line is where contracts differ most. American Home Shield, 2-10 and Cinch cover a problem that was already there if you could not have known about it. Choice, Liberty Home Guard and AFC Home Club exclude pre-existing conditions whether you knew or not.
Home warranty vs. homeowners insurance
They cover different things, and one does not replace the other. Homeowners insurance pays for sudden damage. A home warranty pays when something wears out. Insurance will not buy you a furnace because the old one died of age, and a warranty will not fix the roof a tree fell on.
| Question | Home warranty | Homeowners insurance |
|---|---|---|
| What triggers it | A breakdown from normal wear and tear | Sudden damage from a covered event such as fire, a storm or theft |
| What it covers | The systems and appliances listed in the contract | The structure, your belongings and liability |
| What a claim costs you | A service fee, $50 to $200 at the companies here | Your policy deductible |
| Is it required | No | Usually, if you have a mortgage |
MoreBest homeowners insurance companies
How much does a home warranty cost?
Most companies price by ZIP code, home size and the service fee you pick, so the real number comes from a quote. A few publish figures. First American says the average home warranty runs about $55 a month and that its own plans start at $35. 2-10 lists its Systems plan from $39.99 a month and Pinnacle from $59.99. Liberty Home Guard and American Home Shield both advertise plans starting at less than $1 a day.
The monthly price is only half of it. Every claim costs a service fee, and the two trade off: pick a higher fee and the monthly price drops. If your home is older and you expect several claims a year, take the lower fee. If you are buying the plan for one big failure, take the higher fee and the lower monthly price.
Buying a house? Plans bought or given as part of a home sale usually skip the waiting period and start the day you close on the house, so ask your agent whether one is included before you buy your own.
MoreA guide to buying your first home
Is a home warranty worth it?
Here is the honest math. At First American’s $55 a month average, a plan costs $660 a year. Add a service fee every time you file, $100 or $125 at American Home Shield. Two claims in a year puts you at $860 to $910.
Now the other side. America’s Preferred cites HomeAdvisor averages of $376 for a central air repair, $307 for a heating repair, $230 for a dishwasher repair and $220 for a plumbing repair. Any two of those add up to between $450 and $683. In an ordinary year, the warranty loses.
The year you win is the year something big dies. Frontdoor, which owns American Home Shield and 2-10, says a 2024 survey of homeowners put the high end of a repair or replacement (the 80th percentile) at $6,000 for an air conditioner, $5,600 for a heating unit and $2,000 for a water heater. A plan that pays $5,000 toward that air conditioner changes the math. A plan that caps it at $2,000 leaves you holding most of the bill.
So a warranty tends to pay off when three things are true. Your heating or cooling is old enough to fail soon (ENERGY STAR says it is time to consider replacing an air conditioner or heat pump that is more than 10 years old, or a furnace or boiler that is more than 15). A $5,000 bill would land on a credit card. And the plan’s limit on that system covers most of it.
It tends to lose when your equipment is newer or still under a manufacturer’s warranty, or when you already have an emergency fund that could take the hit. Putting the same $55 a month into savings leaves you with $660 at the end of the year and no fine print. If the thing most likely to fail is one aging appliance, price a replacement first at the cheapest places to buy appliances. And no warranty pays for a new roof or a rewire. For jobs that size, most owners use savings or borrow against the house, so it is worth knowing the best HELOC lenders before you need one.
How to read a home warranty contract before you buy
Most companies on this page post a sample contract on their site. If one does not, ask for it before you pay. Ten minutes with it tells you more than any ad. Look for six things.
- The dollar limits. Find the cap for each item and the total for the term. In the contracts we read, they run from a few hundred dollars on some items to $5,000 on a heating or cooling system.
- The pre-existing conditions line. “Known or unknown” means a hidden problem is your problem. “Known” or “reasonably detectable” is much better for you.
- What it says about maintenance. American Home Shield and 2-10 cover breakdowns from poor maintenance. Others can ask for your records, and AFC Home Club’s sample contract wants a yearly service record before a heating or cooling claim.
- Who picks the technician. Most companies send their own and will not pay for work you arranged. If you want your own contractor, that narrows the list to America’s Preferred, or AFC Home Club with its approval.
- The exit. Cancellation fees we found: $25 at Cinch, $50 at Liberty Home Guard, $75 at Select, and up to one month’s payment at American Home Shield and 2-10. Most contracts also require arbitration, and several bar class actions.
- Who stands behind it. The Federal Trade Commission warns that a home warranty is only as good as the company responsible for coverage. Select’s sample agreement says its obligations are backed only by the company itself, not by an insurance policy. That matters: Elite Home Warranty filed for Chapter 7 liquidation on November 21, 2025, and its notice tells customers who are owed refunds to file a claim in bankruptcy court.
Why home warranty claims get denied, and how to avoid it
Denials follow a short list of reasons, and the contracts spell them out. Most are avoidable if you know them on day one.
| Why it gets denied | How to protect yourself |
|---|---|
| It was broken before coverage started | Buy while everything works. Keep your home inspection report, or take dated photos and video of each system running in the first week. |
| Lack of maintenance | Keep receipts for filter changes and yearly heating and cooling service. Several contracts let the company ask for them. |
| You hired someone first | Call the warranty company before anyone touches it. Work it did not approve is not reimbursed. |
| Code or installation problems | Ask what the plan pays toward permits and code fixes. American Home Shield allows $250. Several pay nothing. |
| The repair costs more than the cap | Look up the limit for that item before you file, and get any cash offer in writing. |
| That part is not covered | Read the not covered list for the item. The FTC puts it simply: if it is not listed in the contract, assume it is not covered. |
If a claim is denied, ask for the reason in writing along with the contract section it relies on. Then ask for a second opinion. American Home Shield’s contract gives you seven days to request one for another service fee, which it refunds if the second diagnosis shows the breakdown is covered. If that fails, the FTC says to report the problem to your state attorney general and at ReportFraud.ftc.gov.
Some problems never need a claim. A tripped breaker, a clogged filter or a running toilet can cost less to fix yourself than one service fee.
More6 home repairs you can do yourself
Home warranty FAQ
It depends on what you need covered. American Home Shield has the highest limits we found, up to $5,000 per heating or cooling system, and it covers breakdowns from rust and poor maintenance. Cinch backs repairs for 180 days and covers pre-existing problems you could not have known about. America’s Preferred Home Warranty is the one to look at if you want to choose your own licensed contractor. Compare the limit on your oldest system before you compare the monthly price.
First American puts the average at about $55 a month, with its own plans starting at $35, and 2-10 lists plans from $39.99 a month. On top of that you pay a service fee on each claim, from $50 to $200 at the companies we compared. Most companies price by ZIP code, so get the quote for your address.
In an average year, usually not. A plan plus two service fees costs more than two typical repairs. It pays off in the year a furnace, air conditioner or water heater fails, as long as the plan’s limit on that item is high enough to cover most of the bill. If your systems are newer or you have savings set aside for repairs, you can skip it.
It covers parts of major systems and appliances that fail from normal wear and tear: heating, air conditioning, plumbing, electrical, the water heater, and kitchen and laundry appliances, depending on the plan. Pools, well pumps, septic systems and roof leaks are usually add-ons. Anything not listed in the contract is not covered.
Homeowners insurance pays for sudden damage from events such as fire, storms and theft. A home warranty is a service contract that pays to repair or replace systems and appliances that wear out. One does not replace the other.
Usually not. Most companies assign a technician from their own network and will not reimburse work you arrange without approval. America’s Preferred Home Warranty is built around choosing any licensed contractor, and AFC Home Club allows your own licensed technician if it approves first.
Yes. Seven of the nine companies we compared state a 30-day wait after you buy, First American applies one to many new customers, and America’s Preferred lists yours on your confirmation page. Plans bought as part of a home sale usually start at closing, and Choice says coverage can start sooner if you show proof of prior coverage with no lapse.
Yes, at any of these companies. Cancel in the first 30 days and you generally get your money back minus any claims paid, though Liberty Home Guard still keeps its $50 fee. After that the refund is prorated and most companies keep a fee: $25 at Cinch, $75 at Select, and up to one month’s payment at American Home Shield.
Plans, prices, service fees and coverage limits on this page are each company’s own published terms, read for this update. They vary by state and change often. Read the sample contract for your state before you buy.
