The Best Home Warranty Companies of 2022

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If you’re a homeowner, home warranties are an smart choice that can offer you financial protection and convenience when things go wrong. When searching for home warranty companies, you’ll find there are many varieties to choose from. However, the best ones will offer several types of coverages and be customizable to fit your needs.

Home Warranty Contracts

Home warranty contracts cover repairs and replacements for your home’s appliances and systems. The warranty offers coverage for everyday wear and tear to appliances and requires homeowners to pay an annual premium. In addition, they are used to provide buyers and sellers reassurance during the purchase sale of a home. A few factors to look for when searching for a home warranty company include:

• Reasonable premiums and service fees
• High payout caps
• Efficient claims process
• A wide array of flexible plans

Best Home Warranty Companies of 2022

American Residential Warranty

American Residential Warranty offers reasonable costs and low fees with highly customized plans making it the top home warranty company of 2022. The company provides coverage nationally and has excellent customer reviews. The company’s average home appliance warranty offers a $555 plan with a payout cap of $2500 annually per covered appliance. In addition, they provide service within 48 hours of your service request.

Pros

• Low costs for some plans
• Choose your technician

Cons

• Washer & dryer coverage costs extra on every plan
• Low annual limits on some appliances and systems

Home Warranty Inc.

Home Warranty Inc. is the second-best home warranty company because it offers a great online customer experience understanding pricing information with several plans and add-ons to choose from with fast response times from the company. In addition, the warranty company offers coverage in 35 states and has top ratings on Better Business Bureau, running closely behind the top choice.

The average plan Home Warranty Inc. offers costs $480 per year with a $15000 aggregate payout cap. They reply to claims within four hours of your request on weekdays and within 48 hours Saturdays and Sundays.

Pros

• No limitations on square footage
• Pick your technician

Cons

• Low annual limits on some appliances and systems
• No coverage for damage from mold, rust, or corrosion

First Premier Home Warranty

First Premier Home Warranty has the best claim response time of any warranty appliance company. They respond within 20 minutes, whereas most other businesses respond within 72 hours of a claim. The company also offers low-cost home appliance warranty plans, reasonable fees, and high payout caps. First Premier offers policies in all states except Iowa and California and is not yet rated by the Better Business Bureau because it’s new to providing home warranty services. The company’s average annual plan is $424 and a $15000 payout cap annually. In addition, they respond to requests for repairs very efficiently, within 20 minutes.

Pros

• Super fast claim response times
• Very low-cost plans and service fees
• $15,000 per year aggregate payout cap

Cons

• Limited track record (est. 2020)
• Fewer plans than competitors
• Plans & Pricing

Cinch Home Warranty

Cinch Home Services has the least expensive plan cost for California and Florida customers, offering complete comprehensive coverage for less than $500 per year. This is the low-cost winner of home insurance warranties. They service nearly every state in the country and have a Better Business Bureau rating of a B. The average annual premium with the business is $567, and $10000 aggregate payout cap. The company responds to claims within two to 24 hours.

Positives

• Protection for unknown pre-existing conditions
• 180-day service guarantee

Negatives

• Above-average service fees
• Above-average costs in some states

Liberty Home Guard

Liberty Home Guard Home Warranty is ranked the fifth highest home protection insurance provider due to its stellar customer satisfaction. Customers on Better Business Bureau rate it a 4.63 with over 1,200 reviews, ranking higher than any other warranty business in the customer happiness category. Also, the website is very user-friendly, and the business offers discounts and add-ons. The business provides insurance in all states except Washington and Wisconsin. The average plan costs $587 annually and includes a $2000 payout cap annually per system or appliance. They provide service to claims within 24 to 48 hours.

Positives

• Multi-year discounts on some plans
• Great selection of optional add-ons

Negatives

• You can’t choose your service technician
• Lower-than-average payout benefit cap

America’s Preferred Home Warranty

America’s Preferred Home Warranty offers the lowest service fee in the industry, with a $50 service fee option as part of its plans. The plans are customizable at various price points for service fees. American Residential Warranty offers reasonable costs and low fees with highly customized programs, making it the top home warranty company of 2022. The business has the maximum A+ Better Business Bureau rating, and the average plan costs $517 per year with a $25,000 aggregate payout cap. The response time to service requests varies based on the technician you choose as a homeowner. Also, the company does not cover California.

Positives

• Pick your licensed technician
• + Better Business Bureau rating

Negatives

• Limited plan options

Sears Home Warranty

Sears has the highest payout of any home warranty company, with an aggregate limit of $50,000. The company offers coverage to most of the United States, 48 states, and has an A+ rating by the Better Business Bureau. The average plan costs $720 annually and includes a $50,000 payout cap annually. In addition, they respond to claim requests within two to 13 hours.

Positives

• 180-day service guarantee
• Product replacements

Negatives

• A high number of customer complaints
• Sears Holdings is still in bankruptcy

TotalProtect Home Warranty

TotalProtect is the top pick for the best average cost of a plan with a yearly premium of $423. The company offers coverage nationally, including in the District of Columbia, with a great overall score but a lower customer satisfaction rating than some other warranty insurance companies based on Better Business Bureau reviews. The average TotalProtect policy costs $423, with a payout cap of $1,000 – $3,000 per covered item per year. In addition, the company says it responds to repair requests within 2-24 hours, with an average time of 13 hours.

Positives

• Nationwide coverage
• Average annual plan cost of $423
• Six-month service guarantee
• Rapid claim response times

Negatives

• Low customer satisfaction
• No Better Business Bureau profile
• Relatively high service fees

How To Choose the Best Home Warranty

So many companies offer home warranty plans. With several options, make sure the company you choose offers the following:

• Quotes online that you request through the business’s website once you share your name, number, and zip code.
• Multiple plans to choose from with the coverages you want for your home appliances and systems.
• Reasonable premium costs and service fees for contacting a technician.
• Policy limits that are reasonable and match the coverage of the plan. Most reputable home warranty companies will cover about $200 per item per year.
• Simple process to submit a claim when you have an issue. You should be able to submit your claim easily online and via phone call.

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Home Warranty vs. Homeowners Insurance

Homeowners insurance covers significant damage to belongings in your home and the structure of your home due to natural disasters and theft. Home warranties cover services for replacing and repairing major home systems. Home insurance companies require a home inspection for coverage and often maintenance records, whereas, with home warranties, you do not need that. Home warranties cover all types of homes and all ages of homes.

Frequently Asked Questions

What is the best home warranty company out there?

In our opinion, American Residential Warranty is the best home warranty company because it offers reasonable costs and low fees with highly customized plans making it the top home warranty company of 2022. The company provides coverage nationally and has excellent customer reviews. The company’s average home appliance warranty plan costs $555, with a payout cap of $2,500 per year per covered appliance or system. The company starts service within 48 hours of a service request.

Are home warranties worth it?

Home warranties are meant to be a safety net to safeguard against costly repairs and maintenance of appliance repairs. However, they may not always be worth it.

Here are some things to keep in mind when purchasing a home warranty:

• Warranties reassure the buyer and safeguard the seller from unforeseen costly appliance repairs after the home’s sale.
• If the maintenance clause in the contract is incorrect, the homeowner may not be protected if something goes wrong based on the previous owner’s lack of appliance maintenance.
• Homeowners may have no input based on the contract of what brand or make or model of new appliance can replace the old appliance if it needs replacing.
• Some recommend putting money into an emergency fund for any unforeseen needs for repairs and replacement rather than buying a home warranty.

How do home warranties work?

Home warranty insurance plans cover service, repair, or replacement of major home systems and appliances. Should you need to file a claim, the warranty company has several affiliated contractors with whom it connects you. In addition, you have one contractor you call to resolve the issue with the appliance. The home warranty plan can also include coverage to pay for some or all of the replacement of appliances.

How do you choose the best home warranty?

If you’re searching for the best home warranty, use the following when searching for a home warranty company:

• Reasonable premiums and service fees
• High payout caps
• Efficient claims process
• A wide array of flexible plans
• Better Business Bureau ratings and reviews

What is the average annual cost for American Residential Warranty?

The average annual cost for American Residential Warranty is $554.88.

What is the difference between a home warranty and home insurance?

Home warranties cover home appliances and home systems internal to the home. They cover issues that occur from the regular wear and tear of appliances. In contrast, home insurance covers damage to the structure of the house and your personal property, primarily due to significant weather disasters such as hurricanes, earthquakes, or tornadoes. Insurance also covers robberies and vandalism.

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What does a home warranty cover?

Home warranty insurance plans cover service, repair, or replacement of major home systems and appliances.

How much does a home warranty cost?

The average price of a home warranty in 2022 ranges from $300 to $600 per year or $25 to $50 per month. Service fees are not included in the premium and are a separate cost ranging from $60 to $100 for every service visit.

How much is a home warranty in Florida?

Home warranties in Florida range from $420 to $745 annually. More basic plans cover just appliances, while due to the weather in Miami, many opt for higher coverage rates for air conditioning, heating, and plumbing.

Summary

You must investigate these best home warranty companies of 2022 to find the right plan for you that covers your needs at the best price point. Also, find a reputable company in your area with great reviews. Remember that American Residential Warranty is the top-rated warranty company in 20022 with a wide range of reputable and flexible plans with an A+ Better Business Bureau rating. They also allow you to select your technician for service calls.