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Which Home Warranty Plan is the Cheapest?

Which Home Warranty Plan is the Cheapest?

As soon as we become homeowners, we want to protect our house from unexpected malfunctions of home systems and appliances, and our wallets from high repair costs. As we start selecting the plan that is best for our home, many questions arise.

If we just look at the price and buy the plan that costs less, will it give us the best value for our money? If plans in two different companies cost the same, will they provide the same coverage? Let’s take a look at the cheapest plans available on the home warranty insurance market and try to find the answers to these questions.

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Most Affordable
95.8

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Cheapest home warranty plans

Choose your State:
Company
Plan
Premium (Year)
Deductible
Limit
Coverage
Get free quote
Company
Plan
Rating
Basic Plan
Level:
Silver
Type:
Combo
$457
$85
$500 - $3,000
57%
Details
Basic Plan
Rating: 97.50
Level:
Silver
Type:
Combo
Deductible
$85
Limit
$500 - $3,000
Premium(Year)
$457
Coverage
57%
Details
Appliances Plan
Level:
Type:
Appliance
$420
$125
$3,000
35%
Details
Appliances Plan
Rating: 97.00
Level:
Type:
Appliance
Deductible
$125
Limit
$3,000
Premium(Year)
$420
Coverage
35%
Details
Gold Care plan
Level:
Silver
Type:
Systems
$580
$60
$500 - $2,000
27%
Details
Gold Care plan
Rating: 95.80
Level:
Silver
Type:
Systems
Deductible
$60
Limit
$500 - $2,000
Premium(Year)
$580
Coverage
27%
Details
Essential Appliances Plan
Level:
Gold
Type:
Appliance
$554
$75
32%
Details
Essential Appliances Plan
Rating: 95.60
Level:
Gold
Type:
Appliance
Deductible
$75
Limit
Premium(Year)
$554
Coverage
32%
Details
Appliance Guard plan
Level:
Gold
Type:
Appliance
$600
$75
$1,600
42%
Details
Appliance Guard plan
Rating: 95.10
Level:
Gold
Type:
Appliance
Deductible
$75
Limit
$1,600
Premium(Year)
$600
Coverage
42%
Details

Prices for the Cheapest Home Warranty Companies

Our team at ReviewHomeWarranties.com has reviewed analyzed over 68 different home warranty plans and want to tell you the best coverage options for your wallet. In thirteen companies, the prices of the cheapest home warranty insurance were less than $200 per year. Six companies priced their cheapest warranty plans from $200 to $250, another forty-two companies had a price range between $250 and $500, and in six companies, the prices ranged between $500 and $625.

Cheapest plan cost distribution

Such huge differences in the costs of the cheapest home warranty insurance are explained by the coverage offered by each plan. For example, the $43 plan in HomeServe USA is called the Appliances Plan. It only covers eight major home appliances. Alternatively, the Home-SAFE Warranty/ABC Home Services plan that is available for $625 for condominiums provides coverage for a wide range of home systems and appliances.

The Cheapest Home Warranty Plans

As of 3/9/2021 we at ReviewHomeWarranties have compared and rated 65 companies and their 243 plans for the 57 covered items. Come and see our findings and recommendations of the best value-for-money plans available right now:

How much money can you save if you choose the cheapest warranty cover for a year, which is how long home warranty plans usually last? To answer this question, we compared the prices for the cheapest and the most expensive plan within one company. The difference ranged from 18.3% to 82.6%. In the graph below, we show how much you can save if you buy the cheapest warranty plan in the company instead of the most expensive plan.

Savings distribution when selecting the cheapest plan

The data was collected from 67 home warranty companies. In four companies, there was no difference, all plans cost the same. In sixteen companies you could save between 10% and 29% if you purchased a cheaper plan. In the other twenty-six companies, the difference was between 30% and 49%. In the last group, the cheapest plan cost ranged from 52% to 89% percent less than the most expensive one. In Select Home Warranty, for example, you would pay 24% less for the cheapest plan, while in HelloSuper the difference would be 74%.

Coverage of the Cheapest Home Warranty Plans

What about similar-priced home warranty plans in different companies? How different is their coverage? To answer these questions, we selected three well-known home warranty companies: American Home Shield, Total Home Protection, and Choice Home Warranty, and compared their cheapest plans. In all three companies, the cheapest plan costs around $35 per month. Now let’s see what every plan covers. In American Home Shield, there are two cheaper plans: The Systems Plan and the Appliance Plan. As we can infer from the name, the Systems Plan covers home systems: air conditioning, electrical, heating and plumbing, ceiling fans, alarm, doorbell, central vacuum, and water heater. The Appliance Plan, on the contrary, covers home appliances only. These include dishwasher, food center, microwave, oven, refrigerator, trash compactor, washer and dryer, and garage door. The service call fee for both plans is $125. In Total Home Protection, the cheapest plan is the Silver Combo Plan. It includes the plumbing and electrical system and the following appliances: dishwasher, garbage disposal, microwave, oven, trash compactor, and water heater. Additionally, this plan includes coverage for a swimming pool and a whirlpool bathtub. The service call fee, or deductible, in Total Home Protection is $60. The cheapest home warranty plan that Choice Home Warranty offers is the Silver Combo Plan for $34 a month. It includes coverage for heating and electrical systems, some kitchen appliances such as oven, built-in microwave, dishwasher, garbage disposal, and fan. Also, this plan covers ductwork, water heater, and garage door. The deductible, or service call fee, is $60. As we can see, the cheapest plans in different companies may cost the same, but the coverage may vary significantly.

Read Also: What Are The Costs of A Home Warranty For Home Sellers?

 

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

FAQs for Cheapest Home Warranties

Is a home warranty worth it?

Imagine if you have to replace your refrigerator, and a month later your heating system stops working. It’s easy to imagine you’d be looking at several thousand dollars to repair or replace those crucial home systems and appliances.
 
A home warranty can be well worth it in that or similar situations. Lower-priced home warranty plans can be purchased for the mid $30s to the mid $40s per month. With a Combo Plan, you can get coverage for multiple appliances and systems in your home. 

What do home warranties cover?

A home warranty is a service agreement that covers common home systems and appliances from breakdown due to everyday wear and tear. 

Most Common Coverage

Here are the most common appliances and systems covered under standard home warranties. Even the least expensive Combo Plans should cover most of these basics.
 
Appliances
  • Refrigerator
  • Oven / Range / Stove
  • Cooktop
  • Dishwasher
  • Clothes Washer
  • Clothes Dryer
  • Built-in microwave
Systems
  • HVAC (heating and air conditioning) 
  • Plumbing system
  • Electrical system
  • Water heater

2. What some cover

Some providers will also include coverage for things like ceiling and exhaust fans, doorbells, and garbage disposal.
 
Many providers offer optional coverage for items like well and septic pumps, pools and spas, sump pumps, and additional refrigerators or freezers. 

3. What few cover

Some home warranty companies offer unique coverage. For example, American Home Shield covers home electronics as an optional add-on. Select Home Warranty will cover limited roof leaks on all plans, not just as an add-on as many others offer.

Will the cheapest home warranty cover most appliances and systems?

Among our top 10 home warranty providers, First American offers the least expensive plan for coverage. Their Premier Plan covers all the major systems and appliances, along with basemen sump pumps. They are an industry veteran and have a solid reputation for good communication and workmanship.
 
First American
Monthly
Annually
Basic (covers most common appliances)
$32
$384
Premier (covers systems and appliances)
$46
$552

How do I choose a good home warranty?

There is a lot to consider when choosing a home warranty. But if you use these three key steps, you’ll make an informed decision.
  1. Do the Research –  Look at what the different providers offer in terms of coverage.
  2. Get Several Quotes – The least expensive might be the best option, but be sure to get quotes from several providers so you can compare prices and coverage.
  3. Due Diligence – Be sure to read the service agreement carefully before signing and making the first payment. Understand the terms and conditions of the coverage ahead of time so you know what to expect when you make a service call. 

The Cheapest Home Warranty Plans

As of 3/9/2021 we at ReviewHomeWarranties have compared and rated 65 companies and their 243 plans for the 57 covered items. Come and see our findings and recommendations of the best value-for-money plans available right now:

Final Words About the Cheapest Home Warranty Plans

To answer the question “Which home warranty plan is the cheapest?,” we analyzed data for 24 cheap home warranty companies and specifically compared the coverage of the cheapest plans in three well-known companies, American Home Shield, Total Home Protection, and Choice Home Warranty. We found that there is a big difference in prices of the cheapest plans between companies. It can be attributed to the difference in coverage offered by each company. The best cheap home warranty plan that we had in our database covered only one home system, while the most expensive of the cheapest plans covered a wide range of home appliances and systems. 

While we compared the cheapest warranty plans in three companies that had similar price tags, we noticed that there was a significant difference between them. In American Home Shield, there were two equally priced plans, one for home systems, and the other for home appliances. Both Total Home Protection and Choice Home Warranty had the cheapest plans that combined coverage for home systems and home appliances, but the lists of items did not coincide. The bottom line is that the cheapest home warranty plan does not mean the worst plan. As the cheapest plan coverage varies between companies, there is a chance to find the one that fits your house best without spending extra money on more expensive plans.  

Plans to fit your budget are available in every US state. We’ve revealed the top home warranty company in each state, all complied on our USA page. Curious which plan is most affordable in states like Delaware? North Dakota? Hawaii? Vermont? Iowa? We can help.