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How to Choose the Best Home Warranty Plan for Your Home
Selecting the best home warranty plan can help homeowners avoid unexpected repair costs and ensure their appliances and home systems are protected. With many options available, it’s essential to compare coverage, pricing, service fees, and provider reputation to find the right plan for your home. This guide will walk you through the key factors to consider when choosing a home warranty plan in the U.S.
What is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances due to wear and tear. Unlike homeowners insurance, which covers damages from fires, natural disasters, or theft, a home warranty focuses on breakdowns of items like:
- HVAC systems
- Refrigerators and dishwashers
- Plumbing and electrical systems
- Ovens and stoves
- Washers and dryers
Key Factors to Consider When Choosing a Home Warranty Plan
1. Determine Your Coverage Needs
Home warranty plans vary based on coverage. Some plans focus solely on appliances, while others cover both systems and appliances. Consider the following:
| Plan Type | Covers | Best For |
|---|---|---|
| Appliance Plan | Refrigerators, dishwashers, ovens, washers/dryers | Homeowners with newer home systems |
| Systems Plan | HVAC, plumbing, electrical | Homes with older appliances |
| Comprehensive | Appliances + Home Systems | Homeowners looking for full protection |
2. Compare Pricing and Service Fees
Home warranty costs include:
- Monthly or annual premium (typically $38–$70/month)
- Service fee per claim ($60–$125 per visit)
Look for a balance between affordability and coverage quality.
3. Research Customer Reviews and Ratings
Check platforms like:
- Better Business Bureau (BBB)
- Trustpilot
- Google Reviews
A company with a high rating and positive reviews is more likely to offer reliable service and fast claims processing.
4. Understand the Claim Process
- Does the company offer 24/7 claim support?
- How long does it take for a technician to arrive?
- Are there exclusions in the contract that might deny coverage?
Top Home Warranty Companies in 2025
| Company | Monthly Cost | Service Fee | Coverage Options | BBB Rating | Best For |
|---|---|---|---|---|---|
| Choice Home Warranty | $46–$55 | $85 | Appliances & Systems | B | Best Overall |
| American Home Shield | $50–$70 | $75–$125 | Customizable Plans | B | Most Comprehensive Coverage |
| Liberty Home Guard | $49–$60 | $60–$125 | Wide Range of Add-ons | A+ | Best Customer Satisfaction |
| Select Home Warranty | $44–$48 | $60–$75 | Budget-Friendly Plans | B | Most Affordable Option |
| First American | $38–$55 | $75–$100 | Great for Older Homes | B+ | Best for Older Homes |
Final Thoughts: Which Home Warranty Plan is Right for You?
- If you only need appliance coverage, an appliance-only plan may be the best fit.
- If you have aging home systems, a systems or comprehensive plan offers better protection.
- Compare providers, read customer reviews, and choose a plan that fits your budget and needs.
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