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Top 5 Best Home Warranties For First Time Buyers (2021 Review)

Top Best Home Warranty Companies For First Time Buyers Review

Do you want to find the best home warranty as a first-time buyer?

Perfect, you’re in the right spot. In this guide, you’ll learn:

  • What is a home warranty plan for first-time homebuyers?
  • How much does coverage for first-time buyers cost?
  • Is a home warranty service contract for new home buyers worth it?
  • How do warranty contracts for new home market buyers work?
  • What are the best home warranty companies and plans for first-time homebuyers?
  • And much more!
Editor's Choice
97.0

Limited Time: New Customers Get $50 Off
Claim Offer
Best Overall
97.5

Limited Offer: $50 Off + 1 month free
Claim Offer
Most Affordable
95.8

Limited Time: $150 Off + 2 Free Months + roof coverage
Claim Offer


Our Top Home Warranty for First Time Buyers Picks

  # 1 Our Top Choice Choice Home Warranty
Editorial Rating 97.50
  • $50 Off + 1 month free
  • Won't deny coverage if systems/appliances are old
  • Free cancellation within 30 days
  • Emergency service available
  • Reservice for failed repairs
  # 2 American Home Shield
Editorial Rating 97.00
  • Get $50 off
  • Lower chance of claim denial
  • 24/7 service calls and online service
  • Large and established firm
  • Choose your own service fee!
  • Market veteran
  # 3 Select Home Warranty
Editorial Rating 95.80
  • $150 off + 2 months free
  • FREE Roof Leak Coverage
  • Good selection of plans
  • High contractor professionalism
  • $0 transfer fee
  • First 30 days: Free cancellation
  # 4 Liberty Home Guard
Editorial Rating 95.10
  • $200 off + 2 Month Free + Free Roof Coverage!
  • BBB's Only A+ Accredited Home Warranty Company!
  • Newly designed customer claim portal
  • Smaller company
  • Newer on the market
  # 5 ServicePlus Home Warranty
Editorial Rating 95.05
  • $200 OFF + 2 Months Free
  • Free Roof Coverage
  • Comprehensive coverage plans
  • 1 day to submit claim
  • Limited availability (6 states)

You’ve spent years building up enough for a down payment and countless hours scanning through real estate listings to find your first home. Eventually, you close on your dream house, move in, and sit down to relax, only to realize that your beautiful new home actually needs quite a few repairs on major appliances and systems.

Unfortunately, home repairs are one of the many realities of owning a house. But, as a first-time buyer, figuring out precisely how much to budget for these annual repairs can be tricky. Even if you have your budget figured out, when you realize that you are now solely responsible for finding an HVAC specialist that can come repair your heating in the middle of a cold winter night, the whole process can seem like an insurmountable challenge.

Thankfully, a quality home warranty policy for first-time buyers can alleviate a lot of the stress you feel like a new homeowner. The trick is getting the right plan for your unique needs.

If you’re looking for a trusted, industry-leading home warranty company, we recommend Choice Home Warranty. They’re a top-rated brand and right now you can take advantage of their current promotions that get you $50 off, plus one free month and free 30-Day cancellation. Get a free online quote or contact a specialist at 929-400-6169 before these deals end. Another great option is American Home Shield which offers $50 off. Get a free quote online or you can call a home warranty specialist directly at 866-464-7521.

We know how challenging it can be to find a good home warranty policy. So, we’ve created this guide to finding the best policies for first-time buyers, plus our home warranty reviews of the top-rated options available on the market today.

What Are Warranties Meant For First Time Home Buyers?

A home warranty for a first-time buyer is a way to protect yourself from unexpected repair bills on your home systems and home appliances. With a warranty plan, you get free or highly-reduced repair service on any covered item, such as your air conditioner or dishwasher.

First Time Home Buyer Home Warranty Plans

In exchange for an annual premium and a small service call fee whenever you submit a claim, a home warranty provider will also send a qualified service provider to your home to assess, diagnose, and repair any issues in your appliances or major systems.

So, you can think of a home warranty for a first-time buyer as a way to protect yourself financially from the often substantial costs of homeownership. These plans also come with the added bonus of easy home repairs for greater peace of mind when something malfunctions in your new house.

How Much Will A First Time Buyer Pay For A Home Warranty?

In general, a first-time buyer home warranty costs around $300-$600. However, this cost will vary quite a bit depending on the size of your new home and where the property is located.

The last major factor that determines how much your warranty will cost is the type of plan and the amount of coverage you want. Here are some of your plan options:

Systems Plans Or Appliance Plans

Top home warranty companies will let you choose between policies for either your home systems or your major appliances, also known by some companies as “basic coverage.” These plans are a good option if you just want to protect a specific set of appliances or systems in your new home.

Basic plans are generally your most cost-effective option for all-around coverage of systems and appliances and cover only your home’s most essential systems and appliances. The actual terms of coverage will vary from plan to plan, but you can usually expect protection for most kitchen appliances, heating, electrical, and plumbing, at a minimum.

Alternatively, if you know that the home seller had just had the major appliances replaced or recently redid the plumbing or electrical system, these plans can be a cost-effective way to get coverage for your first year of homeownership.

Read Also: What Is The Best Appliance Insurance On The Market?

Comprehensive Plan/Combo Plan

If you like the coverage that you can get from a basic plan but still want more protection, a comprehensive policy or a “combo plan” might be your best bet. With a comprehensive plan, you get everything found in a company’s basic policy, plus some premium coverage on things like air conditioning, refrigerator, and plumbing stoppages.

Comprehensive plans usually have higher premiums than basic plans, but they are often the best choice for people that want total protection in their homes.

Build Your Own Plan

Your last home warranty policy option is a build your own plan. These highly customizable policies are an ideal choice for homeowners that want maximum flexibility over their coverage.

The drawback to this type of plan is that they tend to be more expensive upfront. But, since they give you the freedom to choose precisely how much coverage you need, you may be better protected financially from major repairs down the line.

Optional Coverage Options

Almost every home warranty company offers optional coverage for items like pool and spa, ice makers, septic system, and roof. Add-on coverage operates as an additional price to your monthly premium. 

Add-on items are perfect for the new homeowner that has unique items in their first home. Not everyone will need pool coverage, but it is nice to know that if you decide to have this backyard luxury, coverage is available.

home warranty for a first time home buyer facts

Is A Warranty Policy Worth It For First-Time Buyers?

We get it: After paying your down payment, closing costs, and moving fees, you’re probably looking at the cost of a warranty annual premium and are saying, “Are home warranties worth it?”

We’re happy to say that, yes, home warranties are definitely worth it. Here’s why:

Coverage For Costly Home Repairs

Owning a home is expensive. Not only do you have to pay your mortgage, utilities, and property taxes, but you have to be ready to handle any major repair costs that come your way.

However, these repair bills can quickly eat away at your savings and your monthly income. With a home warranty plan, though, you get financial protection from costly repair bills. This means more money in your pocket for the future.

Quick And Easy Home Service For Repairs

One of the other major benefits of a home warranty is an efficient repair service. Indeed, this is one of the biggest advantages for first-time homebuyers who may not be familiar with the local service technician options in their area.

With a warranty plan, you simply need to submit a claim to your policy provider. Then, the company will send a qualified repair specialist to your home, saving you the time and hassle of having to find your own service provider.

Protects Your Real Estate Investment

Purchasing your first home is a major investment, so it’s important that you protect your assets as much as possible. To ensure that your home continues to grow in value over the years, you need to be ready to pay for regular repairs and maintenance costs on your house.

These repair costs can quickly eat away at your budget, though, particularly if you just spent a significant portion of your savings on a down payment as a first-time homebuyer. So, with a warranty plan, you can get financial assistance with these much needed repairs and upgrades. Over time, this repair coverage will help you gain a better return on your investment if you choose to sell it in the future.

Are you buying a condoluxury home, or duplex for the first time? Check out our reviews on the best home warranty companies for each.

Covers What Homeowners Insurance Won’t

If you’re a first-time buyer, you might be wondering why you need a home warranty plan when you already have to buy a home insurance policy. While these two coverage options sound similar, though, they’re not at all the same thing.

Appliance Home Warranty Plan For First Time Buyers

Homeowners insurance covers you financially if there is any damage to your home as a result of a fire, earthquake, flood, or natural disaster, as per the terms of your contract. A home insurance policy, though, will not offer any monetary assistance if you need to replace your air conditioning or ductwork.

In these situations, you’ll have to pay out of pocket for home repairs unless you have a warranty plan. Home warranties are designed to protect you from repair costs on issues with appliances and systems that happen as a result of regular wear and tear. 

Simply put, your warranty covers what your insurance policy won’t, giving you complete protection from any future issues in your home.

How Do Home Warranties For First Time Buyers Work (Are They Unique)?

For the most part, the home warranty plans you can get as a first-time buyer are available to any buyer, seller, or existing homeowner. Here’s how a home warranty works to help you with home repairs:

Step 1: Find Your Dream Home

The first step in this process is to find your dream home. Since warranty plans vary in cost based on your home location and size, it’s impossible to buy a policy before you know what home you want. 

Once you’ve made an offer, you can start asking warranty companies for a free quote to get an idea of how much your plan will cost.

Step 2: Get A Home Inspection

After you make an offer, your mortgage lender will almost certainly require that you get a home inspection before closing. Even though this isn’t technically required by most warranty companies, it’s always a good idea because it can find any pre-existing conditions that may not be covered under your plan.

If you do find any pre-existing issues with the home that wouldn’t be covered under your plan, it’s best to talk with the seller and deal with them before closing. That way, you can be confident that any issues that crop up are covered under your policy.

Step 3: Choose A Warranty Plan

Now that you are close to closing on your first home to decide on your warranty plan officially. Regardless of the type of plan you choose, be sure to completely read through the contract and terms/conditions so you’re aware of any conditions on your coverage.

Step 4: Submit A Claim

Once you have your home warranty plan in place to protect your home, you can go ahead and submit a claim whenever you need a repair on an appliance or system. Most top-rated companies have a 24/7 call center in place to help process your claims, and many others will also have an online claims portal to help you get the service you need.

Step 5: Pay A Service Fee

When you submit a claim under your home warranty protection plan, you’ll pay a small service fee. This fee varies from plan to plan but is usually between $60-$120. 

In general, this fee is paid just once per repair claim, and you can think of it as similar to a copay at your doctor’s office.

Step 6: Get Great Home Repair Service

Finally, as soon as your claim is processed, your home warranty service will send a qualified repair technician to get your house back in working condition. 

The local contractor will assess, diagnose, and repair any issues in your home. Your warranty provider will then cover the cost of the service up to the value listed on your contract.

Looking for more tips for first-time homebuyers? Check out this video from real estate experts on everything you might run into during your home journey.

Top Home Warranties For First Time Buyers Reviewed:

Choice Home Warranty Review (Best Overall Home Warranty)

  • Service Fee: $85
  • Coverage: 9/10
  • Limits: 9/10
  • Exclusions: 9/10
  • Affordability: 10/10
  • Customer Service: 9.5/10
  • Rating: 97.50

Visit Website

(848) 237-1571
choice home warranty

Why Do We Like Choice?

Out of all the home warranty companies we reviewed, Choice Home Warranty has the most comprehensive plans, good payout limits, minimal number exclusions, quality customer service, and affordable cost.

Choice has two main home warranty plans. The “Basic Plan” and the more comprehensive “Total Plan” covering 15 home appliances (dishwasher, etc) and systems (duct work, water heater, etc). They also have “Optional Coverage” for add on items most homeowners don’t usually have, which include pools and spas, well pump, sump pump, roof leaks, other extraneous items. 

Based on our review, Choice’s “Total” plan covers these items at a more affordable price point than its competitors although has a few more exclusions, which is how they can justify charging a lower monthly payment.

The thing about home warranties is that they are a bit complicated with a lot of moving parts that may confuse most homeowners on what’s covered versus what’s not covered.

A key deciding factor in our review looking for the best home warranty company is finding one with top quality customer service to help customers like you walk through the claims process so you don’t have to worry about nasty surprises when you need service.

That said, Choice has 24 hours a day 7 days a week 365 days a year availability and a 48 hour response time to get a contractor out to your home. Other providers tend to have slower response times and are less communicative about when technicians are assigned to your claim.

Policy On Pre-Existing Issues or Older Units?

Choice covers appliances regardless of age or existing wear and tear, so you don’t need to worry about signing up and not getting covered due to age assuming you’ve properly maintained the item over it’s life. 

What’s not covered is if you or someone else breaks the unit regardless of when it happens. All home warranties, regardless of company, won’t cover a unit you break through negligence or misuse (i.e., baby sticks chocolate bar into VCR).

Pros

  • Good Limits (up to $1,500)
  • Minimal Exclusions
  • More Affordable 

Cons

  • Only 15 Home Appliances & Systems Covered 
 

American Home Shield Review (Editor’s Choice)

  • Service Fee: $75 – $125
  • Coverage: 10/10
  • Limits: 10/10
  • Exclusions: 9.5/10
  • Affordability: 7/10
  • Customer Service: 9/10
  • Rating: 97.00

Visit Website

(866) 464-7521

american home shield home warranty

Why Do We Like American Home Shield?

Far and away the most thorough and transparent home warranty company we reviewed is American Home Shield. They are the gold standard. If you spend any amount of time on their website, it’s clear that they are very upfront about what they do cover and don’t cover when compared to their competitors.

In fact, they go out of their way to tell you they cover things their competitors don’t like rust or plumbing stoppages.

They also have the best home warranty coverage with an astounding 21 systems and major appliances including trash compactor, smoke detectors, and clothes washer. They also have the fewest number of exclusions with the highest dollar limit payout amounts ranging from $1,000 – $3,000 per claim.

Think of American Home Shield as the “BMW” or “Mercedes” of home warranty companies. More expensive than Choice, but with better coverage and limits.

Policy On Pre-Existing Issues or Older Units?

Very similar to Choice, American Home Shield covers old systems and appliances that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!

Pros

  • Highest Payout Limits (up to $3,000)
  • Widest Coverage (21 systems and appliances)
  • Fewest Exclusions

Cons

  • Most Expensive
 

Select Home Warranty Review (Most Affordable)

  • Service Fee: $75
  • Coverage: 8/10
  • Limits: 8/10
  • Exclusions: 8/10
  • Affordability: 10/10
  • Customer Service: 8/10
  • Rating: 95.80

Visit Website

(888) 370-3954
select home warranty

Why Do We Like Select Home Warranty?

Select Home Warranty made our list as a best budget friendly home warranty option. They have lower limits ranging from $500 – $2,000 per claim but also lower service fee costs and potentially reduced annual premiums as low $325 per year if you opt into multiple year contracts, far below other competitors.

If you opt for their “Platinum Care” they are on-par with other providers in terms of what they actually cover.

Overall, a great budget option for people who want a home warranty but can’t afford Choice or American Home Shield.

Policy On Pre-Existing Issues or Older Units?

Very similar to Choice and American Home Shield, Select covers old systems and appliances that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!

Pros

  • Most Affordable Service Contracts 
  • Roof leaks Are Covered In Their Platinum Plan

Cons

  • Ultra Pushy Sales
  • 3 Days To Submit Claim
  • Weaker Network Of Contractors
 

Liberty Home Guard Review

  • Service Fee: $75
  • Coverage: 10/10
  • Limits: 9/10
  • Exclusions: 9/10
  • Affordability: 8/10
  • Customer Service: 9/10
  • Rating: 95.10

Visit Website

(866) 472-3812

liberty home guard

Why Do We Like Liberty Home Guard?

Liberty Home Guard is one of the newer home warranty companies on the market. With Liberty Home Guard, you will be exposed to all of the latest and greatest theories and concepts in the industry. This attention to technology will be seen immediately on their website and when dealing with the brand new customer portal. If you like a streamlined and electronic process for your home warranty policy, Liberty is a great choice. 

Liberty Home Guard has only been in the industry for a few years, yet they have grown a network of more than 10,000 certified contractors from around the country. These contractors have to go through a rigorous application to ensure that they are qualified to be making repairs in your home. 

Like some of the other home warranty companies on the market, Liberty Home Guard allows you to customize your plan with add ons and additional coverages. When it comes to pricing, Liberty Home Guard will be right in the same ballpark as most other manufacturers. There is some customization of your plan to be able to work within your budget, but a basic plan will start around $49.99 a month. 

We like that with Liberty Home Guard, you can use a contractor of your choice if you wish. The reservice fee will not be covered if you choose your contractor, but it is an excellent option if you have people that you trust to do your home repairs.

Policy On Pre-Existing Issues or Older Units?

If you are not moving into a brand new home, you will still get coverage from Liberty Home Guard. After your 30 day waiting period to begin coverage, all working appliances and systems will be covered from that point forward. If you have a broken microwave and you haven’t signed up for converge just yet, you will need to have that fixed before your coverage can start.

Pros

  • State of the art customer portal system
  • Rigorous testing for contractors
  • Ability to use your own contractors
  • Fair pricing
  • Good customer service for a newer company

Cons

  • Must report your issues within one day of noticing a problem
 

Total Home Protect Review

  • Service Fee: $75
  • Coverage: 8/10
  • Limits: 7/10
  • Exclusions: 7.5/10
  • Affordability: 8/10
  • Customer Service: 8/10
  • Rating: 95.20

Visit Website

(267) 824-4010

total home protection home warranty

Why Do We Like Total Home Protect?

Total Home Warranty made our list as a home warranty with above average protection on more robust systems like septic systems and roof coverage.

Their monthly cost comes out to around ~$45 per month for their basic “Gold” plan, which puts them on the more expensive side of the scale when compared to other top home warranties on our list with better coverage.

Most home warranties do not cover anything related to your roof but Total Home Protect does, which we found to be unique to their offering helping them crack our top list.

Policy On Pre-Existing Issues or Older Units?

Very similar to Choice and AHS, Total Home Protect covers old systems and appliances that break down due to wear and tear, but they do not cover pre-existing issues or negligence related to the misuse of your appliance or system!

Pros

  • You Can Choose Your Own Technicians
  • Roof Coverage

Cons

  • More Exclusions Than Most Competitors
  • The Worst BBB score
  • Low Payout Limits ($500)

Final Thoughts On Home Warranties For First Time Buyers

Buying your first home is stressful enough without having to worry about the cost of home repairs. A home warranty can help you stay on top of regular home maintenance without wiping away your savings.

Plus, for first-time buyers, home warranties make it easier to find reputable service providers when something breaks or malfunctions in your new house. So, warranty plans are a must-have for anyone that’s about to purchase their first home.

Are you a first-time buyer in Dallas? Atlanta? Charlotte? Fairfax? Chicago? Kansas City? We can help!

Read Also: What Are The Best Home Warranty Plans For Buyers?

Home Warranty for First Time Buyers FAQs

Below are just some of the frequently asked questions we receive about home warranties for first time buyers.

Q.

Should I get a home warranty for first-time buyers?

A.
Imagine buying your home in September, like most Americans, and the air conditioner blows out. Or the dryer fails during winter when you really need that winter coat dried.

The cost of repairing a clothes dryer will cost you anywhere between $100- $400, and you might have to part with around $600- $1900 to repair an air conditioning system.

Considering that the average cost of a home warranty is around $300- $600, then getting yourself a home warranty for first-time buyers is definitely worth the extra bucks.
Q.

Are home warranty plans worth it for first-time buyers?

A.
When staying in a rental, you’ll probably call your property manager or landlord when the food starts going bad in the refrigerator or the air conditioner blows out. But when you buy your home, you become responsible for all the repairs and maintenance costs.

Having a home warranty to cushion you from all the unforeseen damages will be a great deal, and it will give you peace of mind. Most home warranty plans cost between $300- $600, so if you pay between $20- $50 per month and it will cover the costs for fixing your refrigerator and air conditioning system, and all the appliances, then it’s definitely worth buying.

However, if you just bought a new home, and the appliances are new, you might not need the home warranty plan after all since the appliances come with a manufacturer’s warranty.
Q.

Does Choice Home Warranty have a first-time buyers’ warranty?

A.
Absolutely! Whether you are a first-time buyer, a veteran, or a senior, Choice Home Warranty has you covered with tailor-made plans that are within your budget.

The cost will differ depending on the location, property type, and size of the house. The age of the appliances is not a matter of consideration, and as long as they are working perfectly, Choice Home Warranty has your back!
Q.

Who has the best home warranty for first-time buyers?

A.
Settling on a home warranty provider can be a daunting task, especially if you are doing it for the first time. But not to worry, we put up this list to help guide you into making the best decision when it comes to buying a home warranty.

Here are our top suggestions for the companies that offer the best home warranty for first-time buyers.

Home Warranty Providers for First Time Buyers
Service Overview
Rating
Choice Home Warranty (Best Overall)
  • 1 month free
  • Covers old appliances
  • Available 24/7
  • 30 days free cancellation
97.5
  • $100 discount
  • Flexible service fee
  • Available 24/7
  • Custom plans
97.0
Select Home Warranty (Most Affordable)
  • Free roof cover
  • $150 discount + 2 months free on all plans
  • Free home warranty transfer
95.8
  • Ranked number 1 by BBB
  • Free roof cover
  • 2 months free and $100 off
95.1
Q.

What does a first-time buyers’ home warranty cover?

A.
A first-time buyers’ home warranty plan covers all the essential appliances and systems in your home, provided they are functioning as required.

Some home warranty providers like American Home Shield categorize appliances and systems into plans. They offer an appliances-only plan, one to cover systems, and a combo plan for the systems and appliances.
 
Other home warranty companies like Select Home Warranty have plans with the appliances and systems together, the difference being the number of items in the plan and cost. 

All home warranty plans have optional add-ons for the non-basic home appliances and systems. 

Here is a list of the most common systems and appliances you’ll find in a first time buyers’ home warranty;

Systems

  • Central AC System 
  • Electrical System
  • Water Heater
  • Plumbing (including stoppages)
  • Central Heating System
  • Garage Door Openers
  • Ductwork

Appliances

  • Dishwasher
  • Clothes Dryer
  • Range / Cooktop / Oven  / Stove
  • Refrigerator
  • Microwave
  • Clothes Washer
  • Door Bell
  • Water Dispenser
  • Kitchen Fan/Exhaust Hood
  • Garbage Disposal
  • Ceiling Fan
  • Bathroom Exhaust Fan
  • Trash Compactor
  • Attic Fan

Optional Add-ons

  • Pool & Spa
  • Pool Heater
  • Freezer (Stand Alone) and additional fridge
  • Well Pump
  • Septic System
  • Water Softener
  • Whole House HumidifierRoof Leak
  • Sump Pump
  • Septic Tank Pumping
  • Ice-Maker
  • Lawn Sprinkler System
  • Jetted Bathtub