Top Home Warranty Service Companies

How to choose a home warranty service company

Read the contract, not the brochure. Check exclusions for pre-existing conditions, improper maintenance and code upgrades, the dollar caps per item and per term, and what happens when a part is no longer available.

Ask how claims work. Who picks the contractor, how quickly a visit is scheduled, and whether claims can be filed online at any hour? For landlords, ask how tenants report problems and whether the property manager can manage claims for several units.

Check the provider's licensing or registration with the state regulator, where required, and look at complaint patterns with consumer agencies. Red flags include vague coverage language, frequent denials for lack of maintenance records, and slow contractor dispatch in your area.

Home warranty cost and what drives it

Home warranties carry two costs: the contract price, paid annually or monthly, and a service fee each time a contractor is sent. Some plans let you choose a higher service fee for a lower contract price, or the reverse.

The contract price depends on the plan level, whether systems, appliances or both are covered, add-ons like pools or extra appliances, property type and size, and location. Multi-unit and rental properties may be priced per unit. Coverage caps also matter: a cheaper plan with low limits may leave you paying the difference on an HVAC replacement. To compare plans, estimate a likely year of claims and add the contract price, service fees and amounts above the caps.