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Top 5 Best Home Warranties For Rental Property (2021 Review)

Top Best Home Warranty Companies for A Rental Property

Looking for the best home warranty for your rental properties?

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

  • How can home insurance for a rental unit help you?
  • How much do home warranties cost for your rental properties?
  • Is coverage worth it for your investment real estate?
  • What does a warranty for rental homes include?
  • Which company offers the best home warranty for your rental property?

We’ve reviewed 68 different home warranty companies, and below are our top picks for rental coverage specific to your state. Want to find out which coverage is most suited for your needs? Continue reading!

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
96.5

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


Our Top Home Warranty for Rental Property 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 96.50
  • $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 96.10
  • $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 95.50
  • $200 OFF + 2 Months Free
  • Free Roof Coverage
  • Comprehensive coverage plans
  • 1 day to submit claim
  • Limited availability (6 states)

Renting out your investment property is a fantastic way to make money on the side. But, if your rental home needs repairs, you might get stuck with a hefty bill that your insurance policy just won’t cover.

If you have renters living in your home, it’s important to protect yourself from costly home repairs that eat away at your monthly income. That’s where a home insurance for appliances & systems can make a big difference in your property management strategy.

Top 3 Home Warranty Companies For Rentals (2021)

Company NameChoice Home WarrantyAmerican Home ShieldSelect Home Warranty
Number of Plan Options2 Plans3 Plans2 Plans
Monthly Plan Cost$45 – $55$35 – $65$36 – $45
BBB RatingBBB
ReviewsRead Choice Home Warranty ReviewsRead American Home Shield Reviews

Choice Home Warranty (Best Home Warranty for Rentals)

Choice Home Warranty is our top pick for rental income properties for several reasons: first, there are few better ways to manage the cost of property management than to have the set cost of a home warranty plan from a company with a great track record on the important stuff: cost, coverage, and customer service. For instance, the Choice Total Plan will cover 18 major appliances and systems in your rental property for just $53 a month. Choice has excellent coverage limits and will pay up to $3,000 to repair or replace covered items. That’s a pretty good return on your investment. Select Home Warranty is another great choice but has coverage limits of only $500 – $2,000. So if you get that horrible call from a tenant that the water heater is leaking and definitely not heating, or they have an air conditioner malfunction in the middle of a long, hot summer, Choice has your back. 

But what about customer service with Choice? Well, claim denial is one of the biggest complaints about the home warranty industry. But our research shows that Choice has a much better track record regarding claim denial than the industry standard. In fact, customer complaints about claim denial are half the industry average. Compare that with our number 5 pick of Service Plus, with claim denial complaints much closer to the industry average. That’s a big deal when it comes to getting what you pay for in covering your income properties. Finally, you want a home warranty provider to excel at communication, especially when problems arise. Choice gets excellent marks for good communication, having a good communication rating that is twice that of the industry average. Compare that with runner-up American Home Shield, where strong communication is below the industry average.

To get the top rental property pick at the best price possible, Choice Home Warranty is offering $50 off plus one month free, so your monthly cost for protecting your income property will be even lower. Go online for a free quote, or call them at 929-400-6169 before this offer goes away.

American Home Shield (Editor’s Choice)

American Home Shield is a very close second, and if you are looking for premium, soup-to-nuts coverage of your rental property, AHS is our Editor’s Choice for just that reason. With a Shield Gold or Shield Platinum plan, your properties will get coverage on 23 systems and appliances. Similar plans from Choice and Select offer coverage on around 18 items. So if you are an investment property owner looking for maximum coverage, AHS is a good pick. For coverage on these extra items, you will be paying a bit more. For instance, Shield Platinum coverage will cost $75 per month, compared with $58 for Select Home Warranty’s Platinum Plan. You could choose a higher service call fee with AHS to get a lower monthly premium. So if you agree to a $125 service call fee rather than $75, you can get a Platinum Plan for $75.

In similarity with Select, AHS is among a handful of providers that offers transfer to another property for $0. This can come in handy if you are buying and selling properties and need to switch coverage around to a new property. AHS has excellent coverage limits similar to Choice, with a top range of $3,000 for appliances and a lower limit of $1,000. $1,000 to $3,000 coverage on 23 common rental property breakdowns waiting to happen is some decent security for your investment. This puts you in a much stronger position than our number 5 pick, ServicePlus, with coverage limits maxing out at $500.

For a great deal on premium comprehensive coverage for your rental properties, right now, American Home Shield is offering $50 off the plan of your choice. Get a free quote online or request information about rental property coverage from AHS at 866-464-7521.

Select Home Warranty (Most Affordable)

Select Home Warranty is another excellent pick for investment property owners. If you are looking to stretch your dollar on premiums and service call fees, Select is a good choice. With a top price of $58 for the Platinum Plan, you’ll get free limited roof leak coverage. With all the other top five picks, roof leak coverage is an optional add-on. So while Select’s Platinum Plan is slightly above the cost of Choice’s premium plan, you get more from the standard coverage. 

At $60, the service call fee with Select is lower than the industry average. With Choice, you’ll pay $85, and with AHS, you can pay between $75 and $125. With Select, the coverage limits are above average, but not quite at the same level as Choice and AHS. Select offers coverage limits between $500 and $2,000 for repair or replacement of covered items. Our research does show Select to have a higher rate of claim denial complaints than the industry average. The industry average is 10%, with Select at 13%. Compare this with Choice at 5%. But that being said, Select gets very high marks for good communication and contractor professionalism.

Right now property owners who choose Select Home Warranty can get $150 off plus 2 free months of coverage, along with free roof leak coverage on all plans. That’s a major value to take advantage of! Go online for a free quote, or contact one of their customer service pros at 888-370-3954 to get that deal and begin coverage on your rental property.

What Are Home Warranties For Rental Properties?

Rental homes with home appliance insurance and system coverage are a way to lower your overall operating expenses by protecting you from unforeseen major repair costs. With a home warranty, you pay a monthly or annual premium to protect your home if you should need to call a repairman to fix a broken system or appliance.

Home warranty plans come in many different shapes and sizes. But the basic premise is that they will cover the cost of major systems and major appliance repair and replacement, minus a service call fee.

Of course, most warranty plans will have maximum spending limits for repairs and replacements, which will be clearly outlined in your contract’s fine print. Every company offers different coverage, so you can choose one that best meets the needs of your investment real estate.

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.

How Much Does A Insurance Plan For Your Rental Unit Cost?

Every home warranty plan is different, so it’s hard to give a specific number for how much they cost. Ultimately, the premium you’ll pay for a warranty on your home or investment property will depend on quite a few factors. These include:

  • Location of the property
  • Age of the home
  • Condition of the home systems
  • Which home appliances you have
  • How much coverage you need

Additionally, many companies offer you the option to choose between a basic plan and premium add-ons. Others will allow you to pick and choose coverage options for different appliances and home systems that you have.

In general, you can expect to pay between $400-$800 a year for a service contract from a top home warranty provider for your rental property. Multi-family homes and larger units will often incur an additional fee on top of the annual premium.

Rental property home warranty facts coverage

Is a Warranty For Your Investment Home Worth It?

$800 a year might sound like quite a lot of money, particularly if you rent out your home as a side gig. But, warranties for rental homes are worth the investment. Here’s why:

Read Also: What Do The Real Figures Of A Home Warranty Look Like?

Covers What Homeowners Insurance Won’t

Most homeowners will have insurance, but this won’t cover you if your water heater breaks or your air conditioning decides to stop working. Home insurance shields you from some liability during a flood, fire, or another natural disaster – not from home repairs. Meanwhile, home warranties will cover repair costs due to standard wear and tear for your different home systems and appliances.

Protects Your Investment

Investment real estate isn’t cheap, so you want to be sure that your rental property is in good working condition for years to come. No one will want to rent your home if your HVAC system doesn’t work or if the dishwasher keeps acting up. 

So, what you spend on annual warranty costs is really just a way to protect your investment to ensure that you can keep making money off your home indefinitely.

Prompt Repairs And Service

One of the biggest benefits of a home warranty is that they provide quick and easy repairs when something breaks. Unless you contract with a property management company, as a landlord , you’re responsible for getting a service provider to come to your home.

When you have a warranty policy, though, your warranty provider will arrange for a trusted repairman to come to your home. This saves you time and hassle, particularly if you also work a full-time job.

Do you own a duplex and are in need prompt service repairs? Check out this link to learn how your property can be protected.

Home Warranties Are Tax-Deductible

Owning a rental home involves running a business, so many of your expenses, like a home warranty, are tax-deductible. So, not only does a home warranty help protect you from major repair bills, it can save you money come tax time.

Are You A Veteran Looking For A Home Warranty For Your Rental? Check Out This Article!

How Do Home Warranties For Your Rental Properties Work (Are They Unique)?

Home warranties for rental units are more or less the exact same as what you’d buy if you were looking to protect your own house. However, when you’re purchasing a warranty plan for an investment property, you’ll want to think carefully about precisely what you’d like coverage for.

With your own home, you’ll want to protect as much as possible. But, if you have a rental agreement with a tenant that requires them to maintain certain aspects of the building, such as the washer and dryer or the pool, then you might not have to include that in your coverage.

Read Also: Can My Older Rental Home Have Coverage?

How Home Coverage For Rental Properties Work

All home warranties, including those for rental properties, operate in a similar manner. Here’s how it works:

1. Buy A Plan

As soon as you find the right warranty provider and coverage for your needs, you’ll sign a contract to seal the deal. Be sure to read the fine print to see if the contract provides coverage for all of your home systems and for any pre-existing conditions. If not, you’ll want to fix these before you start your contract.

2. Wait For The Grace Period

Most home warranties will have a 30 day waiting period before you can make your first claim. This will generally be waived if you’re simply switching from one company to another.

3. Make A Claim

If your appliances or home systems need repairs, call the company’s helpline to have a repair technician sent to your home.

4. Pay A Service Fee

You’ll have to pay a small fee every time a repairman comes to your home. This is sort of like a co-payment when you visit the doctor.

5. Enjoy Your Repaired Appliance

Your appliances and systems will be repaired or replaced by a service provider. The home warranty company will pay for any expenses up to the maximum spending limit listed on your contract.

Want to learn more tips and tricks for managing your investment real estate? Check out this video below.

Top Home Warranties For Rental Properties 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
 

Service Plus 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

Service Plus home warranty

Why Do We Like Service Plus?

Service Plus 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 Service Plus 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, Service Plus 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 A Rental Property

If you rent out one of your properties, a home warranty is a must-have to protect your investment. Renting out a house or an apartment is a business, so it’s important to protect your property’s appliances and home systems in the long-term. 

A quality warranty plan for your rental unit is a great way to eliminate surprise repair bills and keep your property functioning for years to come.

Considering a home warranty for your rental home for a few years in Dallas, Charlotte, Atlanta, Chicago, Fairfax, Kansas City or any other metroplex? We can tell you the top companies in your city!

Read Also: How Can A Rental Townhouse Be Covered By A Home Warranty Plan?


Our Top Picks Recap

  # 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 96.50
  • $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 96.10
  • $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 95.50
  • $200 OFF + 2 Months Free
  • Free Roof Coverage
  • Comprehensive coverage plans
  • 1 day to submit claim
  • Limited availability (6 states)

Home Warranty for Rental Property FAQs

Below are just some of the frequently asked questions we receive about home warranties for rental property.

Q.

Do home warranties cover rental properties?

A.
Yes, if you are the owner of a property, you can get home warranty coverage on that property. It does not have to be a primary residence. A home warranty can be a great way to minimize unexpected expenses when appliances or systems at the rental property malfunction.
Q.

Does American Home Shield cover rentals?

A.
Yes, American Home Shield does cover rentals. Also of interest if you are in the short-term rental business, AHS offers optional coverage for guest units under 750 square feet. 
Q.

Which home warranty offers the best rental coverage?

A.
With the excellent coverage and the option of covering a guest unit, American Home Shield comes out on top in terms of rental properties. They have comprehensive coverage, high coverage limits, and a good reputation for customer service.  

Rental Coverage
Guest Unit Coverage
Choice Home Warranty
 
American Home Shield
Yes
Select Home Warranty
 
Service Plus
Liberty Home Guard
 
Q.

What does a home warranty cover?

A.
Whether you are purchasing a home warranty for a rental or your primary residence, you should know what to expect in terms of coverage.

Here are some of the standard items covered in a home warranty Combo Plan:

Commonly covered appliances:
  • Stove / range / cooktop
  • Refrigerator
  • Clothes washer
  • Clothes dryer
  • Dishwasher
  • Built-in microwave

Commonly covered systems: 
  • HVAC including ductwork
  • Plumbing system
  • Electrical system
  • Water heater

Many providers also include coverage on smaller systems and appliances like doorbells, garage door openers, garbage disposals, and exhaust fans.

For a cost above the standard monthly premium, you can also get add-on coverage.

Common optional coverage:
  • Pool/spa
  • Sump pump
  • Well pump
  • Roof leak
Q.

How do I choose the right home warranty?

A.
Here are the steps to take in choosing the right home warranty for your home and specific needs. 
  • Research. Do the kind of legwork you are doing right now. Is the company available in your state? Do they cover the most important systems and appliances in your rental property?  
  • Get several quotes. Don’t just sign on with the first company you come across. Find out the premium, the specific items covered, and the service call fee from several companies.
  • Read the fine print. Home warranty plans have exclusions, exceptions, and dollar limitations for coverage. Be sure to read the service contract carefully before signing anything and handing over your money.