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Top 5 Best Home Warranties For First Time Buyers (2023 Review)

Top Best Home Warranty Companies For First Time Buyers Review

Written By: Ross Robinson

Edited by: Andrew Dunn

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

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Best Overall

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

Limited Time: $150 Off All Home Warranty Plans
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Our Top Home Warranty for First Time Buyers Picks

  # 1 Our Top Choice Choice Home Warranty
Editorial Rating 98.50
  • All plans have comprehensive coverage. Most other home warranty plans cover either just systems or just appliances.
  • Choice’s coverage caps are $3,000 per item, per year for most major systems and appliances beating the industry average.
  • Choice Home Warranty doesn't exclude older homes, so you can still get coverage regardless of the age of your property.
  # 2 Liberty Home Guard
Editorial Rating 98.00
  • $200 off + 1 Month Free + Free Roof Coverage!
  • BBB's Only A+ Accredited Home Warranty Company!
  • 60-day workmanship guarantee compared to the average of 30 days.
  • More than 20 options, including window washing, swimming pools, and irrigation.
  • 24/7 service calls
  # 3 American Home Shield
Editorial Rating 97.60
  • With over 52 years of experience and 1.7 million customers AHS has a long history in the industry.
  • American Home Shield, lest you choose a service fee that works for your budget.
  • Coverage caps for systems are unlimited across all three plans and are either $3000 or $6000 for appliances.
  # 4 Select Home Warranty
Editorial Rating 97.20
  • $150 off + 2 months free
  • FREE Roof Leak Coverage
  • Good selection of plans
  • Must file claims within 3 days
  • $75 cancellation fee
  # 5 Cinch Home Services
Editorial Rating 95.30
  • First 2 Months Free on all Plans! (exclusions apply)
  • Industry-leading 180-day workmanship guarantee
  • $500 Homeowner insurance deductible reimbursement
  • Thousands of reliable & fast local service providers
  • 24/7 customer service
  • Low cancellation fee

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.

Top 3 Home Warranty Companies for First Time Buyers

We’ve done the research for you on the best home warranty companies across the country so you don’t have to. Here are our top three picks, and why.

ProviderBest ForMonthly CostService FeeBBB Rating
Choice Home WarrantyBest Overall$45 – $53$85D+
Liberty Home GuardBest Customer Service$45 – $54$75A-
American Home ShieldMost Customizable$25 – $75$75 – $125B

Choice Home Warranty (Best Home Warranty for First-Time Buyers)

Choice Home Warranty is the best home warranty for first-time buyers. When purchasing a home for the first time, there are quite a few unknowns, one of them being the potential repair and replacement costs of appliances and systems. Luckily Choice Home Warranty offers one of the most reasonably priced home warranty plans for first-time buyers. The Basic Plan and Total Plan from Choice Home Warranty will help new homeowners get some peace of mind regarding their ability to afford their new homes. With Choice offering plans lower in price than American Home Shield and a deductible of only $85, millions of people find Choice Home Warranty to be the best value on the market. 

One of the hardest things for first-time buyers to decide on is what needs coverage and what does not. Choice Home Warranty allows first-time buyers to have various systems and appliances under the same affordable plan. A home warranty company like Select Home Warranty requires a systems plan or appliances plan. Choosing between systems or appliances before you truly know your home and how it functions can be quite difficult. Choice Home Warranty has been in business for more than ten years, and its plan documents are very straightforward. With the overwhelming process of purchasing a first home, the Choice Home Warranty policy enrollment will be one of the simplest steps you take. 

Choice Home Warranty knows that many first-time homeowners are on a very strict budget. This is why they are offering a sign-on bonus that includes $50 off, one month free, and no cancellation fees for the first 30 days. This incentive is a perfect way for first-time buyers to get an idea of the plan and see if it is a good fit for long-term home protection. 

American Home Shield (Most Customizable)

American Home Shield is the editor’s choice for the best home warranty for first-time buyers. With American Home Shield, first-time home buyers will have complete confidence that their home is adequately protected against system and appliance breaks. With more than 50 years in the industry, American Home Shield knows how to handle almost any issue that could come up in a home. The customer service team is highly trained, and the way the plan is laid out is clear and easy to follow. For a first-time buyer, the concept of a home warranty will be a new one, and it is vital to understand what this plan entails fully. With American Home Shield, that process will be quite straightforward. 

As a first-time buyer, you may be on a budget and worried about the plan’s total costs. Although the comprehensive coverage from AHS can be higher than Select Home Warranty or Choice Home Warranty, the plan is very customizable. You can pick and choose the systems and appliances that you want to be covered under the plan. In addition, the AHS plan allows policyholders to customize their fees as well. If you would rather pay more per month and less at the time of service, that is a possibility with the AHS plan. 

American Home Shield is currently offering a sign-up incentive of $50 off. The pricing is quite fair considering the premium quality of this plan and the fact that first-time buyers can have complete peace of mind about their home and their savings account.

Select Home Warranty (Most Affordable) 

Select Home Warranty is the most affordable home warranty for first-time buyers. As a first-time homebuyer, you will likely have a relatively strict budget that you must adhere to. The budget allows you to stay on track of your finances when you have just made a significant purchase in your life. The Select Home Warranty plan has a lower monthly payment and lower deductible than both the Choice Home Warranty and the American Home Shield home warranty. FOr a very fair price, you can get both system and appliance coverage in your new home. Most first-time buyers have no trouble fitting the lower Select Home Warranty payments into their monthly budgets. 

In addition to offering reasonably priced coverage, Select Home Warranty also gives first-time buyers free roof leak coverage. Although you likely had your home’s roof inspected prior to purchasing, the chance of a roof leak is unknown. Getting this coverage included free as part of your plan is a tremendous benefit to consider. Overall the Select Home Warranty plan helps first-time buyers ease into the process of being a homeowner. With a very strong customer service team, contractors with high levels of professionalism, and a simple to use online portal Select Home Warranty is a smart choice. 

If you need a bit of an incentive to get started with your Select Home Warranty plan, you will be quite impressed with what they are offering. For a limited time, you will get $150 off, two months free, and 30 days to cancel without a fee. There has never been a better time for first-time buyers to jump into a Select Home Warranty plan.

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

Read Also: Which Home Warranty Plan is the Cheapest?

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.

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.


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

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.

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

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.

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

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!

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

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
Choice Home Warranty (Best Overall)
  • 1 month free
  • Covers old appliances
  • Available 24/7
  • 30 days free cancellation
  • $100 discount
  • Flexible service fee
  • Available 24/7
  • Custom plans
Select Home Warranty (Most Affordable)
  • Free roof cover
  • $150 discount + 2 months free on all plans
  • Free home warranty transfer
  • Ranked number 1 by BBB
  • Free roof cover
  • 2 months free and $100 off

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

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;


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


  • 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