Top 5 Best Home Warranties For Rental Property (2023)
Written By: Ross Robinson
Edited by: Andrew Dunn
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!
Our Top Home Warranty for Rental Property Picks
- 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.
- $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
- 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.
- $150 off + 2 months free
- FREE Roof Leak Coverage
- Good selection of plans
- Must file claims within 3 days
- $75 cancellation fee
- 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
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 home insurance for appliances & systems can make a big difference in your property management strategy.
Compare Top Providers for Rental Property
| Provider | Best For | Monthly Cost | Service Fee | BBB Rating |
| Choice Home Warranty | Best Overall | $45 – $53 | $85 | D+ |
| Liberty Home Guard | Best Customer Service | $45 – $54 | $75 | A- |
| American Home Shield | Most Customizable | $25 – $75 | $75 – $125 | B |
| Select Home Warranty | Most Affordable | $44 – $48 | $60 | B- |
| Americas First Choice Home Club | Best For Customization | $46 – $68 | $75 – $125 | B |
| First American Home Warranty | Best Appliance Coverage | $52-$77 | $75 – $125 | B |
| Cinch Home Services | Best Add On Coverage | $35 – $50 | $100 – $150 | B |
Top 5 Best Home Warranty Companies for Rental Properties
- Choice Home Warranty (Best Overall)
- Liberty Home Guard (Best Customer Service)
- American Home Shield (Most Customizable)
- Select Home Warranty (Most Affordable)
- America’s 1st Home Club (Best For Customization)
1. Best Overall: Choice Home Warranty
Choice Home Warranty is the best overall home warranty for rentals. Owning a rental property is a great investment, but it can also be a major headache. With Choice Home Warranty, you can decide on a comprehensive plan option that will help give you peace of mind that any emergency phone call from your tenant will be easily handled. Choice Home Warranty has been on the market for 13 years and is known for its simple and straightforward policies. When you look at the coverage from Choice, it is easy to see how this plan moves to the top of the list. In addition, coverage caps of $3000 will be plenty high enough to accommodate high-end appliances and systems.
Pros | Cons |
Comprehensive plan options | No option to build out a custom plan |
Simple contract |
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Fair pricing for monthly and service fees |
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Free cancellation for the first 30 days |
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Plans, Pricing, and Coverage
The two plans from Choice are the Basic Plan and the Total Plan. The service fee associated with Choice Home Warranty is $85. Overall the pricing is considered fair and better than average. With Choice Home Warranty, a $3000 coverage limit is in place to help homeowners that have expensive repairs or need a replacement. The fact that these plans have a mix of systems and appliances helps Choice stand out.
Here’s a more detailed look at CHW’s plan options:
- Basic Plan ($45 per month): The Basic Plan is the most affordable option for your rental. The only issue is that it is a more streamlined plan with a few coverages missing. The Basic Plan covers 13 items, including plumbing system, ceiling fans, garbage disposal, heating system, cooktop exhaust fans, microwave, dishwasher, ductwork, electrical system, garage door opener, oven, toilet, and water heater.
- Total Plan ($53.33 per month): This comprehensive plan covers a total of 18 items. This plan includes the clothes washer, dryer, refrigerator, and air conditioner coverage. The additional coverages you get with the Total Plan are well worth the extra few dollars each month. As a landlord, you know that the air conditioner coverage will be key to have in place.
- Optional add-ons: Choice offers nine optional coverages, including roof leaking, central vacuum, septic tank, well pump, pool and spa, sump pump, and stand-alone freezer. These add-on coverages vary in starting at around $5.00 per month. Some homeowners will include the add-in coverage after they have had Choice Home Warranty in place for a few months.
Plan | Cost Per Month | Service Fee |
Basic Plan | $45 | $85 |
Total Plan | $53.33 | $85 |
What Customers Are Saying:
“Choice has always been fast to set up appointments and the service companies response quick and efficient” – Source
Read our Choice Home Warranty Review for more information.
2. Best Customer Service: Liberty Home Guard
Liberty Home Guard offers the best customer service for rentals. If you have several rentals and are trying to manage your own home plus your rental, chances are you will be a little stressed when you make your call to LHG regarding the service issue. The good news is that with a Liberty Home Guard plan in place, your needs will be handled by friendly and well-trained agents. Liberty Home Guard has only been on the market for about three years, but they have earned an A- rating with the BBB. The extensive coverage and wide range of add-on coverage options help the Liberty Home Guard plan to stand out.
Pros | Cons |
BBB rating of an A- | Optional plan choices tend to be priced a bit high |
Quick response times to inquiries and claims | To get a very comprehensive policy, the price increases considerably |
Easy to get in touch with |
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60 Day workmanship guarantee |
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Add-on coverage list is very extensive |
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Plans, Pricing, and Coverage
The three Liberty Home Guard plans include Appliance Guard, Systems Guard, and Total Home Guard covering both appliances and systems. The pricing from Liberty Home Guard is slightly higher than it is from other companies, but the overall coverage is good. Coverage caps are typically around $1500 for most covered items. Service fees from Liberty Home Guard are very fairly priced.
Here are more details on Liberty Home Guard’s plans:
- Appliance Guard ($45 per month): Appliance Guard is the most basic and affordable LHG plan. The plan covers 11 major appliances, including garage door opener, ceiling fans, cooktop exhaust fan, oven, refrigerator, garbage disposal, dishwasher, microwave, clothes washer, clothes dryer, and refrigerator ice-maker. Those that are new to home warranty policies can start with this plan and then upgrade.
- Systems Guard ($49.83 per month): Systems Guard offers coverage on nine systems, including the electrical system, air conditioner, bath exhaust fan, heating system, toilet, ductwork, plumbing, plumbing stoppages, and water heater. With these systems being expensive to replace, this is a good plan to have in place.
- Total Home Guard ($54.33 per month): Total Home Guard covers all of the systems and appliances of the two other plans to cover a total of 20 items. This is a premium-priced home warranty plan, but it has good coverage and lower service fees.
- Optional add-ons: Liberty has one of the most extensive lists of items offered as add-ons, including some unique ones such as gutter and floor cleaning, re-key service, lawn sprinklers, pest control, and wine refrigerator. The pricing of. Liberty Home Guard add-on coverages can add up quickly.
Plans | Cost Per Month | Service Fee |
Appliance Guard | $44.99 | $75 |
Systems Guard | $49.83 | $75 |
Total Home Guard | $54.33 | $75 |
What Customers Are Saying:
“I had a problem with my heating system and it was 30 degrees. I called in and spoke with Jake explaining that we needed someone asap as we had little kids in the home. Jake was able to find a local contractor not in their network, get Liberty to sign him onto their network, and the next day the technician was at my home. He repaired the issue on his first visit. Needless to say, I’m happy with their service.” – Source
Read our Liberty Home Guard Review for more information.
3. Most Customizable: American Home Shield
American Home Shield is the most customizable plan for rentals. With an American Home Shield plan in place, you can pick and choose the coverages that match the needs of your rental property. We love this plan option for the homeowner with several rentals with different appliances and systems. You can get a policy for each property and customize the coverage. American Home Shield has been on the market for 50 years, and it stands out as having some of the best customer service and plan value. In addition, AHS is known for its high approval rating for claims.
Pros | Cons |
More than 50 years of industry experience | Considered to be a more premium home warranty policy |
Can build out your custom plan and customize pricing | Some of the policy choices are priced a bit higher |
Impressive customer service |
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Plenty of add on coverage choices |
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Plans, Pricing, and Coverage
American Home Shield has three plans to choose from. The plans are ShieldSilver, ShieldGold, and ShieldPlatinum. The pricing on these plans is a bit higher than others on the market, but the coverage caps are higher, around $2500, and can increase from there with the Platinum Plan in place. ShieldGold tends to be a really popular choice for homeowners with rentals.
Take a closer look at AHS’s protection plan options (note: these prices are based on a $100 service fee):
- ShieldSilver™ ($35.82 per month): ShieldSilver is the most basic plan from AHS. The plan offers coverage on 14 home systems, including air conditioning, electrical system, smoke alarms, water heater, doorbells, garage door opener, heating system, plumbing, and ductwork. Most of the systems on this plan include coverage caps around $2500.
- ShieldGold™ ($55.82 per month): ShieldGold is a unique option that is a mix of value and premium coverage. This is a comprehensive plan covering both systems and appliances. ShieldGold plan covers 23 systems and appliances, including many offered on the ShieldSilver plan, plus clothes washer, dishwasher, clothes dryer, microwave, oven, and refrigerator.
- ShieldPlatinum™ ($85.82 per month): ShieldPlatinum is the most comprehensive home warranty plan on the market. This plan covers a total of 27 systems and appliances, including the 23 items covered in ShieldGold, plus disposal, water dispenser, locksmith, and free roof leak coverage. ShieldPlatinum is expensive, but it will leave you with no worries about your rentals.
- Optional add-ons: There are six additional coverages offered by AHS, including the septic system, pool, spa, PC, TV, and well pump coverage. The pool coverage seems to be the most popular option considering the pricing and the depth of coverage.
Plans | Cost Per Month | Service Fee |
ShieldSilver | $25.82-$45.82 | $75 – $125 |
ShieldGold | $45.82-65.82 | $75 – $125 |
ShieldPlatinum | $75.82-95.82 | $75 – $125 |
What Customers Are Saying
“American Home Shield has been a big plus as an add on warranty for our home. We have had to use them several times in various areas such as our home heating system, a/c, garbage disposal and bathroom plumbing. The service companies that AHS uses are, for the most part, very professional and knowledgeable to how to fix the problem in the best way and the fastest way. I would highly recommend American Home Shield to anyone who owns a home. This is one expense that will most definitely pay for itself very quickly.” – Source
Read our American Home Shield Review for more information.
4. Most Affordable: Select Home Warranty
Select Home Warranty is the most affordable home warranty for rentals. Select Home Warranty has been on the market for nearly ten years, and they continue to offer simple solutions for homeowners with rentals. If you are trying to ensure that your rental stays profitable while still providing the protection you need, Select Home Warranty is a perfect choice. Each of the home warranty plans from Select comes with free roof leak coverage. In addition, the service fees and monthly pricing are some of the best around. Select Home Warranty has high workmanship quality and allows you peace of mind about how Select Home Warranty will handle your needs as a landlord.
Pros | Cons |
Impressive customer service | Some of the covered items have lower policy limits |
Combo plan is one of the best on the market | Not always the best plan for high-end appliances and systems |
High workmanship quality |
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One of the most comprehensive plans on the market |
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Plans, Pricing, and Coverage
The three Select Home Warranty policies for homeowners include the Gold Care plan which covers appliances, the Bronze Care plan which covers systems, and the comprehensive combo Platinum Care plan. Homeowners with rentals find the Platinum Care plan to be the best overall value. With this Platinum Care plan in place, your coverage caps will be slightly lower than they are from other home warranty providers, but you will have a good range of coverages for your rental.
Take a detailed look at Select Home Warranty’s plan options:
- Bronze Care ($44.42 per month): The Bronze Care plan covers seven major appliances, including refrigerators, built-in microwaves, clothes washers and dryers, ovens, garbage disposals, and cooktops. Although the Bronze Care plan is a good option, the lack of system coverage can become problematic.
- Gold Care ($44.42 per month): Gold Care is very similar to Bronze Care, except it only offers systems coverage. This plan covers six major systems, including plumbing, air conditioning, heating, water heaters, electrical systems, and ductwork. These systems are expensive to repair, and that is why there are only six covered under this plan.
- Platinum Care ($47.75 per month): The Platinum Care plan offers complete protection and covers all systems and appliances in Bronze Care and Gold Care combined. It has higher coverage limits on important items such as a $2,000 air conditioner, heating, and hot water heater and comes with free roof leak coverage. This is the best affordable home warranty for rentals.
- Optional Add-Ons: There are several optional add-ons, including central vacuums, lawn sprinkler systems, pools, spas, stand-alone freezers, sump pumps, and well pumps. Keep in mind that roof leak coverage is free.
Plans | Cost Per Month | Service Fee |
Gold Care | $44.42 | $60 |
Bronze Care | $44.42 | $60 |
Platinum Care | $47.75 | $60 |
What Customers Are Saying
“My oven blew on Thanksgiving day 2020. I called Select a few days later to file a claim. The filing of the claim was fast and easy. Their cushion window to have someone come out was very large, I think they said it could take up to 30 days, it didn’t take that long. The first tech who came out was very polite and quick. They had to order parts which took about a week, and then they had a different tech come and repair the oven. He was also polite and quick. I think had I been able to locate the serial number of my oven it would have been faster but all in all from start to finish it took almost a month. It wasn’t horrible, my stove worked and so did my broiler I just couldn’t bake, which was not the end of the world.” – Source
To learn more, read our Select Home Warranty Review.
5. Best for Quick Coverage: The Home Service Club
The Home Service Club has the best quick coverage for rentals. When you acquire a new rental property and want to ensure that it is covered quickly, The Home Service Club is a perfect option to consider. The Home Service Club offers comprehensive coverage, and it will start just ten days after paying the premium. Many home warranty companies will require a 30 day waiting period. Homeowners who invest in The Home Service Club home warranty will benefit from the 13 years that this company has spent in the industry and the overall fair pricing and coverage caps that come with the plan.
Pros | Cons |
Policy starts in just ten days | No cheap plan option with limited coverage |
Both plans are comprehensive | |
Strong history in the industry | |
Great customer service |
Plans, Pricing, and Coverage
There are two The Home Service Club home warranty plans to choose from. The Standard Coverage has 18 covered appliances and systems while the Comprehensive Plan has 33. The Home Service Club is known for it’s broad range of coverage, something that can really help landlords that are trying to protect themselves from the unexpected issues that come up at a rental. Coverage caps from The Home Service Club will range in price from around $500 to more than $2500.
Take a more detailed look at The Home Service Club’s home warranty plans:
- Standard Coverage ($46.25 per month): The Standard Plan is the most basic option from The Home Service Club. There are 18 covered items under the Standard Coverage plan, and they include all major systems and appliances. The coverages include air conditioners, ceiling fans, water leaks, water heater, electrical system, central vacuum, dishwasher, refrigerator, trash compactor, oven, and more. This is the most popular HSC home warranty.
- Comprehensive Coverage ($58.75 per month): The Comprehensive Coverage Plan has a total of 33 coverages. The extra coverages include things like gas leaks, ductwork, sump pump, pest control, doorbells, plumbing stoppages, attic fans, whole house exhaust, and more. Although this coverage is helpful, it may be more than some rentals are going to need; make sure to look at the individual coverages carefully.
- Optional add-ons: The add-on coverages from The The Home Service Club are extensive. There are 12 additional or add-on coverages as part of their home warranty plan. Many companies only offer two or three. The add-ons include things like a well pump, service line, plumbing sprinkler, spa and spa heater, free-standing freezer, water softener, and more. These coverages vary in price and start around $5.00 extra per month.
Plans | Monthly Fees | Service Fees |
Standard Coverage | $46.25 | $95 |
Comprehensive Coverage | $58.75 | $95 |
What Customers Are Saying:
“More than making sure that they get the replacement for you, Home Service Club works really fast on it too! It only took forty eight hours to get my fridge replaced. 10/10 would call again!” Source
Read The Home Service Club Review to learn more.
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 do you have
- How much coverage do 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.
Read Also: Which Home Warranty Plan is the Cheapest?
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.
Best Home Warranty For Rental Properties?
Choice Home Warranty is our top pick in the rental home insurance market. Choice has more than 10 years of experience helping landlords insure their properties, offers three extensive plans to choose from and customer service 24/7.
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.
Are You A First-Time Buyer? Check Out This Article!
Want to learn more tips and tricks for managing your investment real estate? Check out this video below.
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 Atlanta, Charlotte, Chicago, Dallas, 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
- 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.
- $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
- 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.
- $150 off + 2 months free
- FREE Roof Leak Coverage
- Good selection of plans
- Must file claims within 3 days
- $75 cancellation fee
- 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