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Top 5 Best Home Warranties For Water Heaters (2021 Review)

Top Best Home Warranty Companies For A Water Heater Review

Looking for the best home warranty companies for water heaters?

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

  • Is it worth it to have a home warranty for a water heater?
  • Which home warranty companies cover water heaters in their basic plans?
  • What should you look for when picking the best home warranty for water heaters?
  • And much more!

We’ve analyzed and reviewed 68 different home warranty options, and below are our recommendations for water heaters specific to your state. Want to find out which coverage is most suited for your needs? Continue reading!

Editor's Choice

Limited Time: New Customers Get $50 Off
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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 Home Warranty for Water Heaters 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)

Top 3 Home Warranty Companies For Water Heater (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
ReviewsRead Choice Home Warranty ReviewsRead American Home Shield Reviews


Choice Home Warranty (Best Home Warranty Water Heater)

Choice Home Warranty is the best overall home warranty for water heaters. Having a water heater that is functioning is one of the key elements to having a comfortable home. Choice Home Warranty has two plans, the Basic Plan and the Total Plan. Each of these plans covers the hot water heater. Other plans from American Home Shield and Select Home Warranty will make you choose between an appliance plan or a systems plan to keep your policy pricing down. WIth the Choice Home Warranty, you get an affordable plan that covers things like your water heater, dishwasher, microwave, electrical system, and more, all under one plan. There is no question that Choice Home Warranty is one of the most affordable choices on the market for water heaters. 

Water heaters can be an expensive item to replace. Many water heaters cost several thousand dollars. Therefore it makes sense to choose a plan with a higher policy limit. The Choice Home Warranty plan has a limit of $3000 for water heaters. With American Home Shield only offering $1500, you can see that this is quite a good value from Choice. With more than ten years in the business and millions of customers, Choice Home Warranty knows how to repair and replace hot water heaters at a fast pace. Hot water heaters are difficult to live without, and if you are in a real difficult situation, you can even request emergency service from Choice Home Warranty. Signing up for this policy is straightforward, and the chance of denial due to the age of your home is very low. Overall, Choice offers everything you would need for a home warranty for a water heater. 

If you are worried about your hot water heater deciding to quit working, now is a great time to enroll in the Choice Home Warranty plan. Choice offers $50 off, one month free, and 30 days to cancel with no cost. Take advantage of this coverage before the water heater needs its next repair.


  • Simple and easy to understand home service warranty contract that covers water heater 
  • Only a few exclusions in the Total Plan which is great for any water heater 
  • The age of your water heater is not going to matter when you sign up for the plan 


  • There is no option for a custom plan where you choose the appliances or systems covered
  • You cannot choose your own technician to do the work even with the premier plan 

American Home Shield (Editors Choice)

American Home Shield is the editor’s choice for the best home warranty for water heaters. With American Home Shield, you will get premium coverage of your water heater, and it is included in all three plans. If you choose the appliance, systems, or comprehensive coverage, you will still get great coverage of the water heater. If your home comes with a tankless water heater, American Home Shield will also cover any issues that should come up. The limits on the water heater coverage are $1500, which is about the middle of the road, certainly higher than Select Home Warranty. 

One of the things that makes a home warranty company stand out is how much experience they have in the industry. American Home Shield has more than 50 years in the home warranty market. This is plenty of time to develop great contractor relationships, put together an incredible customer service team, and change the way people feel about the home warranty industry in general. When you call to submit a claim with American Home Shield, you will find the customer service to be knowledgeable and quick. Your issues will be taken care of quickly, and as long as you are keeping up with maintenance around your home, issues due to normal wear will all be covered. 

Currently, American Home Shield is offering a $50 off incentive to start your plan. This type of savings is rare from AHS, and it is certainly worth taking advantage of this while it is available.


  • Over 50 years in the business considered to be experts and professionals 
  • AHS gives customers the ability to customize the plan and payment options to fit their budget
  • A very broad range of coverage options with many add on choices 


  • The pricing is higher than other companies 
  • BBB rating is only a B, some issues with customer service in the past 
  • Optional coverages for non covered items can significantly increase costs 

Select Home Warranty (Most Affordable)

Select Home Warranty is the most affordable home warranty coverage for water heaters. Even though the policy limits on the Select Home Warranty plan are lower than Choice, the pricing of the overall plan is much less than American Home Shield and even Choice Home Warranty. In addition, the service fee or deductible for the Select Home Warranty plan is only $60. This falls well below the industry average. The combination of these impressive features allows Select to be one of the best values on the market. If you are looking for your home to be protected by a warranty, but you don’t want to disrupt the monthly budget all that much, this is the plan to do it. 

With the SHW coverage of a water heater, everything from the switches to the control board to the thermostats will be part of the plan. As long as you choose the systems plan or the combo plan, you will have complete water heater coverage up to $2000. However, in addition to the coverage for water heaters, Select offers free roof coverage that comes along with any of their policies. If your home has an older roof and you are worried about water damage through the years, the SHW roof leak coverage is a great backup plan. With the value and the savings offered as part of the Select Home Warranty plan, it is an option that all homeowners should consider. 

Select Home Warranty offers one of the best incentives for new customers. Currently, you can get $150 off, two months free, and free cancellation within the first 30 days. This is an incredible value and makes getting started with a home warranty much easier.


  • One of the most affordable plans with water heater coverage on the market
  • Plan choices are simple and straightforward
  • Free roof leak coverage with the Total plan 


  • $75 Cancellation Fee
  • Must file a claim quickly, or it will potentially be denied  
  • Lower policy limits may not cover full replacement costs on expensive water heaters 

This sounds easy. Every home warranty will cover something as common as a water heater, right? Wrong! You can definitely get coverage for your water heater, but it is not always included in a basic plan. Beyond that, service fees vary quite a bit, so you have to weigh the whole financial picture laid out in the service contract to make an informed decision.

A home warranty plan is different from your homeowners insurance policy. A home warranty covers standard wear and tear on home appliances and major systems, like air conditioning system, cooktop, dishwasher, garbage disposal, clothes washer, ductwork, and thermostat. Homeowners insurance covers damages from weather and other unexpected events that can hurt your home systems and appliances. Accidental and unexpected structural damage to your home is also only covered by a home insurance policy .

Home warranty coverage and home insurance are similar based on the fact that customers both have to pay a premium and deductible. A deductible is also known as a service call fee, which is something to think about as you consider overall costs and your budget.

Cold water is great for drinking, but you’d hate to be without hot water in your home for any length of time. Water heaters are important, but coverage varies. Unlike some systems or major appliances that are considered add-ons–like coverage for your pool or sump pump– in many plans, water heaters are part of either basic or premium plans without the need to add it on.

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.

Do Warranty Plans Cover Water Heater Replacement?

Generally speaking, yes, a home warranty will cover the cost of replacing a water heater, up to a specified limit. Exclusions apply, so read the user agreement carefully. For instance, Choice Home Warranty will not cover tankless water heaters or commercial heaters over 75-gallon capacity. These exclusions are typical, but not universal, so dig into the specifics of each plan especially if you have an on-demand or solar water heater. 

Also, if a water heater has not been maintained–for instance, if there is sediment buildup–often that will disqualify coverage. Read the fine print carefully so you understand what is covered and so that replacement costs don’t become a big surprise.

Did you know water heaters need yearly maintenance? Yep, they do! To make sure you qualify for repairs and especially replacement, make sure you maintain your water heater properly. Here is a helpful video from the fine people of This Old House with a water heater maintenance explainer:


Is Coverage For My Water Heater Worth It?

This is an excellent question. Let’s look at several factors that could play into your decision.

Risk Assessment

Home warranty purchase is all about risk assessment. In this instance, you have to think about more than just the cost of a water heater–which can be picked up at your local home center for as little as $300 or so, but if you are not handy with home repairs, the installation by a plumber or other service pro will be another fee, probably much more than the yearly cost of a home warranty.

Another factor: how old is your water heater? If it is relatively new–and covered under a manufacturers warranty–a home warranty for this specific system might not be necessary. But if it is older, a home warranty for a water heater might make sense. The average lifespan of a water heater is 10 – 15 years, though that is just an average, and some may not last that long. If you are thinking of selling your home, a home warranty to cover an aging water heater and, for instance, the HVAC system and kitchen appliances could be very attractive. Homebuyers will appreciate a year of coverage that relieves them of some of the worries a home purchase can create.

You might think water heaters would be covered under plumbing systems, but that is incorrect. They fall under a separate category of coverage.

Home Warranty Costs

With prices ranging from around $400 to $700, the cost of the home warranty could pay for all or most of a water heater repair or replacement. And even with caps on spending for repairs or replacement on home repairs like a water heater, having fewer out-of-pocket costs can make a big difference when something as crucial as a water heater breaks down.

Read Also: What Are The Typical Costs Of A Leading Home Warranty Company?

Does A Home Warranty Provider Usually Cover Pre-Existing Conditions?

Generally, home warranties do not cover pre-existing conditions. But what qualifies as a pre-existing condition on a water heater? So, if a water heater is not functioning right now, or it has failed in the past, it probably will not be covered.

Home Warranty Coverage For A Water Heater

How Soon Can You Use A Warranty For a Water Heater After Purchase?

The industry standard for the beginning of coverage is 30 days. Check with the service provider you are considering to confirm their coverage waiting period.

Read Also: How Can A Home Warranty Help With Water Damage From Your Water Heater?

What Should You Look For When Picking The Best Home Warranty For Water Heaters?

Is Your Type of Water Heater Covered?

What kind of water heater do you have? Electric and gas are the two kinds of water heaters home warranty companies usually cover. But these days, solar may be the best energy source for your home. Lucky for you, tankless water heaters are becoming more and more popular. But, your home warranty provider may not be open to covering tankless water heaters.

This is something you need to keep in mind for coverage with any home warranty plan. You have to know your coverage options. For instance, all these items: air conditioner, ceiling fans, garage door opener, and well pump, may be covered, but at different dollar levels, or they may be add-ons.

What Will My Out-Of-Pocket Expense Be?

How much will the home warranty cover, and how much will you likely need to pay? For instance, ServicePlus has a $500 cap on what they will pay out to repair or replace your water heater. If you have a $1,200 heater, that $500 will help, but don’t expect to get a comparable system without shelling out some extra dollars beyond the home warranty coverage.

Read Also: Which Home Warranty Plan is the Cheapest?

Top Home Warranties For Water Heaters 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).


  • Good Limits (up to $1,500)
  • Minimal Exclusions
  • More Affordable


  • 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!


  • Highest Payout Limits (up to $3,000)
  • Widest Coverage (21 systems and appliances)
  • Fewest Exclusions


  • 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!


  • Most Affordable Service Contracts
  • Roof leaks Are Covered In Their Platinum Plan


  • 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.


  • 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


  • 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!


  • You Can Choose Your Own Technicians
  • Roof Coverage


  • More Exclusions Than Most Competitors
  • The Worst BBB score
  • Low Payout Limits ($500)

Our Top Pick For a Home Warranty For Water Heaters

With solid coverage at the basic level, along with excellent customer service, our top pick is Choice Home Warranty.

Choice Home Warranty Is The Best Coverage For A Water Heater

But, if you live in Idaho, Wyoming, Montana or North Dakota, a home warranty that includes water heater coverage is essential. Check out our state pages for more recommendations based on your location.

Home Warranty for Water Heaters FAQs

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


Do home warranties cover water heaters?

Most home warranties do cover water heaters as part of a standard Systems Plan or in a Combo Plan. With the increasing popularity of tankless or on-demand water heaters, it pays to read the fine print to make sure the provider does cover tankless. Common exclusions would be for tanks over 75 gallons, and vents or flues connected to the water heating system. 

Does Choice Home Warranty cover water heaters?

Choice, along with all our top five home warranty providers, does cover components and parts for one dishwasher in their Appliance and Combo Plans. 

Which home warranty offers the best water heater coverage?

Choice Home Warranty offers the best coverage for water heaters. They include coverage for tankless systems and offer the highest dollar limits. 

Home Warranty Provider
Dollar Limit
Choice Home Warranty
American Home Shield
Select Home Warranty
Liberty Home Guard
Cinch Home Services

What does a home warranty cover?

Coverage varies from provider to provider, but home warranties are meant to cover your essential systems and appliances from breakdown due to everyday wear and tear. When your homeowner’s insurance falls short and the manufacturer’s warranty runs out, a home warranty is there to pick up the slack.

1. Most Common Coverage

  • HVAC including ductwork
  • Plumbing system including stoppages
  • Electrical system
  • Water heater

  • Refrigerator
  • Oven / Range / Stove
  • Dishwasher
  • Clothes Washer
  • Clothes Dryer
  • Built-in microwave

2. What some cover

Some providers will also include coverage for things like ceiling and exhaust fans, doorbells, garage doors, and garbage disposal.

Many providers offer optional coverage for items like well and septic pumps, pools and spas, sump pumps, and additional refrigerators or even HVAC units. 

3. What few cover

Not all plans cover exactly the same things. There is some unique coverage out there, for items you might not think of right away. For instance, both Liberty and American Home Shield offer coverage for household electronics. Select Home Warranty offers limited roof leak coverage on all plans, not just as an optional add-on.

Is a home warranty worth it for a water heater?

If your water heater is reaching the end of its lifespan but still in good working order, a home warranty can be a good idea. If it would need to be replaced, you would likely pay more for the unit, parts, and installation than the cost of the home warranty premiums in a given year.