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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 $100 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 Picks Overview

  # 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 $100 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
  • $175 off + 2 months free
  • FREE Roof Leak Coverage
  • Good selection of plans
  • High contractor professionalism
  • $0 transfer fee
  • First 30 days: Free cancellation
  # 4 Amazon Home Warranty
Editorial Rating 95.60
  • $100 Off + 1 Month Free
  • Good BBB rating B
  • 24/7 service calls
  • Smaller company
  • Online chat not supported
  # 5 Liberty Home Guard
Editorial Rating 95.10
  • $200 off + 2 month free + Free Roof Coverage
  • Newly designed customer claim portal
  • The BBB's #1 Home Warranty Company
  • Smaller company
  • Newer on the market

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 plan can make a big difference in your property management strategy.

What Are Home Warranties For Rental Properties?

Rental homes with appliance 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.

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
 

Total Home Protect Review (Best For Larger Systems)

  • 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)
 

First American Home Warranty Review (Best Customer Service)

  • Service Fee: $75 – $100
  • Coverage: 8/10
  • Limits: 7/10
  • Exclusions: 7.5/10
  • Affordability: 8/10
  • Customer Service: 9.5/10
  • Rating: 94.90

Visit Website

(888) 445-5837

first american home warranty

Why Do We Like First American Home Warranty?

First American Home Warranty made our list as a home warranty with above average customer service mixed with in with a decent price point.

The only drawback was that they aren’t nationwide lacking coverage in the following states: ND, MN, WI, IL, NY, VT, NH, ME, MA, CT , RI , DE, AL, HI, LA.

Their plan options include a “Basic“ plan, which only covers appliances and will run you about $28 per month. Their combo plan, which covers major systems and appliances branded the “Premier” plan costs around to ~$43 per month.

Overall a good home warranty provider, but just lacking the coverage, which would have helped make a better case for “best overall home warranty company”.

Policy On Pre-Existing Issues or Older Units?

Again, all of the home warranty providers seem to have adopted a similar policy in that they cover “old” appliances and systems 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

  • Great Customer Service (B+ BBB Score)
  • Online Chat Support

Cons

  • Not Available In 15 States
  • Can’t Choose Your Own Contractor

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 $100 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
  • $175 off + 2 months free
  • FREE Roof Leak Coverage
  • Good selection of plans
  • High contractor professionalism
  • $0 transfer fee
  • First 30 days: Free cancellation
  # 4 Amazon Home Warranty
Editorial Rating 95.60
  • $100 Off + 1 Month Free
  • Good BBB rating B
  • 24/7 service calls
  • Smaller company
  • Online chat not supported
  # 5 Liberty Home Guard
Editorial Rating 95.10
  • $200 off + 2 month free + Free Roof Coverage
  • Newly designed customer claim portal
  • The BBB's #1 Home Warranty Company
  • Smaller company
  • Newer on the market