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Top 5 Best Home Warranties For Rental Property (2020 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

$50 Off Your Plan
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Best Overall

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

Limited Time: $150 Off + 2 Free Months + roof coverage
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Our Top Picks Overview

  # 1 Choice Home Warranty
Editorial Rating 97.50
  • $50 Off + 1 month free
  • Won't deny coverage if systems/appliances are old
  • Free cancellation within 30 days
  • Emergency service available
  • Reservice for failed repairs
  # 2 American Home Shield
Editorial Rating 97.00
  • Get $50 off
  • Lower chance of claim denial
  • 24/7 service calls and online service
  • Large and established firm
  • Choose your own service fee!
  • Market veteran
  # 3 Select Home Warranty
Editorial Rating 95.80
  • $150 off + 2 months free
  • FREE Roof Leak Coverage
  • Good selection of plans
  • High contractor professionalism
  • $0 transfer fee
  • First 30 days: Free cancellation
  # 4 Total Home Protection
Editorial Rating 95.20
  • $150 off + 2 months free
  • Free Home Security System Coverage
  • Comprehensive coverage plans
  • 1 day to submit claim
  • Limited availability (6 states)
  # 5 First American Home Warranty
Editorial Rating 94.90
  • Best Customer Service 2020
  • Large and established
  • Plans from $25/m
  • Automatically renewed policy
  • Limited selection of extra coverage

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

There are dozens of home warranty companies out there, so it can be tricky to find the best plan for your rental home. Here are some of the best options available for investment property:

Choice Home Warranty

Choice Home Warranty offers coverage for a variety of different residential property types, including single-family homes, condos, mobile homes, and townhomes, as long as they’re under 5,000 square feet, which makes it our top pick. The company will also cover properties larger than $5,000 for an additional fee.

Choice Home Warranty offers two plans – a basic appliance plan and a total coverage option that protects your rental’s appliances and home systems. They provide up to $1,500 in coverage per item and have an $85 flat-rate service fee per call.

Read Our Full Review of Choice Home Warranty


  • Coverage for rental properties up to 5,000 square feet
  • Will cover all residential property types
  • Low service fee and high per-item limit


  • Does not cover non-traditional heating systems (e.g. solar and geothermal)
  • No custom plan option

American Home Shield

American Home Shield provides home warranty protection for rental units under 750 square feet that are attached to your primary residence. They will also cover stand-alone rental properties using the same plans you can buy for your home.

With American Home Shield, you can choose between their appliances plan and their systems plan. Alternatively, you can get a combo plan for full coverage, or you can create your own warranty plan for maximum flexibility. 

The ability to build your own plan with American Home Shield is particularly helpful for rental properties if you’re looking to get coverage on a few select appliances but don’t want to commit to a comprehensive warranty contract.

Read Our Full Review of American Home Shield


  • Can mix and match plan options or build your own
  • Covers attached rental units up to 750 square feet
  • Standard plans can be used for stand-alone rental properties with no extra charge


  • Fairly high service call fee
  • Combo plan is more expensive than some other options

Select Home Warranty

Select Home Warranty’s plans can be used to protect residential rental properties, including single-family homes, condo units, townhouses, and mobile homes. They also offer coverage for multi-family homes for an additional fee.

One of the benefits of Select Home Warranty is its low service fee per repair. They also provide up to $2,000 in total coverage per service call and offer three different plans. 

Their bronze option is best for landlords that just want to protect their appliances. Meanwhile, the gold and platinum plans offer more comprehensive coverage for both home systems and appliances in rental properties.

Read Our Full Review of Select Home Warranty


  • Will provide coverage for residential rental properties
  • Low service fee
  • Three plan options give landlords a good selection of choices for coverage


  • $2,000 maximum limit is for total repair/replacement, not per item
  • No coverage options for pools, septic, or well pumps

Total Home Protection

Total Home Protection’s warranty plans are available for residential rental properties up to 5,000 square feet, including mobile homes, townhouses, condos, and single-family dwellings. They will also cover rental units about 5,000 feet and multi-unit homes for an additional surcharge. 

However, they will only protect the residential area of multi-unit buildings, not common areas. Total Home Protection has two coverage options – one for appliances and plumbing/electrical systems and a more comprehensive “platinum” plan. Both plans have low service fees, and you can add on extra items, like pools and well pumps for an additional fee.

Read Our Full Review of Total Home Protection


  • Coverage for residential rental properties, including multi-family units
  • Two plan options both have low service fees
  • Long list of add ons for complete coverage


  • Relatively low per-item coverage
  • Add ons can be expensive

First American Home Warranty

First American Home Warranty provides flexible coverage options for residential rental properties up to 5,000 square feet under their standard plans. They will also protect investment properties over 5,000 square feet for an additional fee, so long as they are used for residential purposes.

The company offers two plan types. The basic option provides home appliance protection while the premier plan covers appliances and most home systems. You can also choose from a few different add ons, including central air conditioning systems, for more personalized coverage. 

First American Home Warranty offers up to $3,500 in total protection per repair service. They also have a low service call fee to help keep your expenses at a minimum.

Read Our Full Review of First American Home Warranty


  • No age restrictions for covered systems and appliances
  • High total maximum cost for repairs and replacements


  • Few add ons available
  • Limited coverage, particularly in the northeastern USA

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?