Bevy of Best Home Warranty Companies Compared

When your dishwasher suddenly starts leaking, your home warranty provider -- if you have one -- is your first phone call.  

Home warranty plans are service contracts for major systems and/or appliances in your home. In this context, systems refer to built-in mechanics, like plumbing, electrical, and heating. And appliances are what they sound like: your dishwasher, cooktop, oven, washer, dryer, etc. 

The home warranty process works like a roadside assistance program. When you have an issue that's covered by your plan, you call the provider to schedule a trade technician. The technician comes to you, diagnoses the problem, and repairs it. 

While a home warranty sounds like it might overlap with homeowners insurance, it really doesn't. Your homeowners insurance covers costs related to sudden, unexpected events -- like fire and downed trees. A home warranty plan steps in when things break down from normal use.

Major home warranty providers 

Major home warranty service providers include: 

• American Home Shield (aka AHS Warranty)¹

• Choice Home Warranty² 

• Cinch Home Warranty³

• Fidelity National Home Warranty⁴

• First American Home Warranty⁵

• Liberty Home Guard⁶ 

• Select Home Warranty⁷

• Tend Home Warranty⁸ 

Each of these providers has its own plan types, service fees, and policy limits. Let's see how they stack up. 

Plan types: Appliance, home systems, or both 

Home warranty plans come in various forms. You can get coverage for your appliances only, your systems only, or a mix of both appliances and systems. Commonly, home appliance warranty plans will cover these items: 

• Clothes washer and dryer 

• Dishwasher

• Oven 

• Cooktop 

• Built-in microwave

• Refrigerator 

Home systems plans usually apply to: 

• Electrical 

• Heating 

• Plumbing 

• A/C and ductwork 

• Garbage disposal 

• Water heater 

• Garage door opener 

• Ceiling fans 

You can also get coverage for roof leaks, pool and spa equipment, septic tanks, and more -- but these are typically paid upgrades. 

The table below outlines the main plans offered by the major providers. 

Table data source: Provider websites. 

Unfortunately, most of these plans aren't comparable, even when they have similar coverage types. As an example, there are plans that cover appliances, but exclude your refrigerator or washer and dryer. 

Sadly, surprising exclusions like that are all too common with home warranty services. We highlight several of them below, but this is not an exhaustive list. The variations from one plan to the next are often hidden among pages of fine print. For that reason, you should force yourself to read all the contract language carefully before you buy. 

Refrigerators excluded 

Choice Home Warranty's plan of Basic, and Fidelity National's plans of Standard, Standard Plus, and Comp. plans do not cover refrigerators.

Clothes washers and dryers excluded 

Choice’s Home Warranty's plan of Basic, and Fidelity National's tiers of Standard, Standard Plus, and Comp. also exclude washers and dryers. The same goes for First American’s Starter plan.  

No A/C with these basic plans 

A few of the basic combo plans that exclude key appliances also exclude your air conditioning systems. If you expect to need A/C repairs, you won't get help from Choice’s Basic, Fidelity National’s Standard or Standard Plus, or First American’s Starter. 

Cinch: Insurance deductible reimbursement 

Here's an example of a positive differentiating point on a home warranty plan. If you incur a covered loss under your homeowners insurance, Cinch will reimburse your deductible once annually, up to $1,000. Among our carriers here, Cinch is the only plan with this feature. 

Tend Home: Use your own provider

Tend has two plans that reimburse you for covered expenses rather than providing repair services directly: Tend Home Standard and Tend Home Plus. 

With these plans, you don't schedule a technician through Tend. Instead, you call a service provider of your choice. You pay for the work and file the claim afterwards. Tend then reimburses you according to the terms of your plan: 

• Tend Home Standard provides $2,500 in annual coverage. You can use it across any covered losses. 

• Tend Home Plus provides $15,000 in annual coverage, with lower caps on specific items. The limit on appliance reimbursements, for example, is $5,000. Plumbing and electrical caps are $2,500 each. 

See our Tend home warranty review for more.

Trade service fees 

Most home warranty plans charge trade service fees. Think of this as a deductible. You pay this fee to each technician who arrives at your home. That fee will be your only cost for warranty repairs -- unless the repair involves items specifically excluded from your policy. 

Note that the service fee is by trade, not by incident. If your issue requires a plumber and an electrician, for example, you'll pay two service fees. 

The table below shows trade service fees by provider and plan. 

Table data source: Provider websites. 

Home warranty policy limits by provider 

With most home warranty services, the provider specifies annual liability caps by "covered item," which is usually a single appliance or system. 

Say you have an appliance-only plan that covers six appliances with a per-item limit of $2,000. In that scenario, your provider will not pay for repairs over $2,000 annually on, say, your dishwasher. Your refrigerator and oven would each have the same limit. The cumulative annual payout on that plan would be six times $2,000, or $12,000.

The table below shows general per-item limits by provider and plan. 

Table data source: Provider websites. 

These plans do specify lower sub-limits for certain types of repairs. Take Liberty Total Home Guard as an example. According to the Liberty contract, Total Home Guard has a per-item limit of $2,000. But the plan caps plumbing and electrical repairs at $500 annually. 

Know your needs before buying a home warranty 

Home warranty plans are complicated. The contracts typically outline covered items and exclusions in detail. Sadly, if you don't read and understand the contract, there's a chance you'll be disappointed in your coverage when something breaks down.

Sidestep that outcome proactively by making a list of the items that present the most risk to you. You might include the washer and dryer that's 20 years old, or the electrical system in your historic home. Then find a plan that definitively covers these items with ample limits and minimal exclusions. As an extra precaution, also check customer reviews. 

At the end of the day, your home warranty should provide peace of mind and streamline your out-of-pocket expenses for home repairs. Do your research to ensure you achieve those goals.