Homeownership comes with a lot of responsibility, especially when it comes to ensuring that all of your home essentials are in working order. One of the best ways to ensure that you are prepared for these expensive surprises is to purchase a home warranty.

Having a home warranty is like having a supplemental plan for your homeowners’ insurance. Where your insurance covers big emergencies, such as fire or storm damage, a home warranty is meant to cover more everyday issues such as leaky pipes or a broken furnace. As you can guess, there are many home warranties to choose from, and finding the best one can take some time. Not to worry though, we have done some research and compiled a list of some of the best home warranties of 2020. We are also here to tell you everything you need to know to choose the best home warranty for you.

Top 5 Best Home Warranty Companies of 2020


Reviews of the Best Home Warranty Companies

Complete Protection

Quick Look: No deductibles. 24-hour help desk. Offers month to month plans. A+ with the Better Business Bureau.

When an emergency strikes it is always good to know that someone has your back. With a Complete Protection home warranty, you can rely on them to fix what is broken and get your appliances and your home systems back to normal.

Complete Protection can save you thousands by covering repair costs on all the appliances that you use every day. They offer plans that cover everything from your built-in microwave to your sump pump. Just looking for a plan to protect your home systems, like heating and cooling? They offer that too. Whether you want extra coverage for 5 things or 25 things, they have the plan for you.

Unlike many other home warranty plans, Complete Protection does not charge deductibles. They will also cover unknown pre-existing issues which is something that other companies do not usually cover. These are just a couple of the reasons that Complete Protection has an A+ rating with the Better Business Bureau.


American Residential Warranty

Quick Look: Offers discounts on bundled plans. 24-hour help desk. Available in all 50 states. Offers an extra protection plan for electronics.

There are few things more frustrating and stressful than having your heat go out in the middle of the night. Having a home warranty from American Residential can help to relieve that stress and frustration. At American Residential, they realize the importance of being able to get help whenever you need it which is why they have a 24-hour help desk.

Not everything that breaks down around the house is an emergency, but it is still frustrating like when your phone or computer stops working. Don’t worry, American Residential has you covered there too. With their Ultimate Electronics Protection Plan, you can expect coverage for everything from your flat-screen television to your child’s handheld gaming console.

American Residential offers plans starting as low as $39.99 and they offer discounts for bundled plans, so you can have the protection you need for one low monthly price. This plan is available in all 50 states.


American Home Shield

Quick Look: No home inspection or repair records required. 24-hour help desk. Offers discounts for referrals.

With 50 years of experience in home warranties, American Home Shield knows what you need in a quality home warranty plan. As the founders of the home warranty industry, American Home Shield prides themselves on offering the best plans for every level of coverage.

American Home Shield does not require a home inspection or repair records to sign up. They do not care how old your home is or how old your appliances are, they still have you covered. They offer basic plans that cover just your appliances or home systems as well as combo plans that will cover up to 21 select items and systems in your home. Have just a few select things that you want to cover? No problem, they offer custom plans as well.

There are also discount options available to save you even more money. You can receive discounts for referring friends as well as discounts for covering multiple properties. You can even use your membership with American Home Shield to get discounts on things like furnace filters and name brand appliances.


Select Home Warranty

Quick Look: Quick quotes. 24-hour help desk. Month to month plans. Allows multiple claims per month. Low deductibles. Free roof leak coverage.

Choosing the right warranty can be complicated, but Select Home Warranty wants to make the decision-making process easy for you. They offer three simple plans to choose from. Once you have chosen the right plan for you, you can add additional coverage as you need it. They even offer quick and easy quotes to give you a solid idea of how your new home warranty will fit into your budget.

Their Gold Care plan covers all your basic home systems where their Bronze Care package covers appliances. If you want both, then you can choose their Platinum Care package which covers more than 15 systems and appliances in your home. Have extra items to cover such as a pool or a septic system? They can cover that as well.

Select Home Warranty does not require a home inspection for coverage and they offer low deductibles. As a new customer, you will receive two months of free coverage as well as free roof leak coverage.


America’s 1st Choice Home Club Home Warranty

Quick Look: Quick Quotes. Choose your service fees. 24-hour help desk. Allows outside technicians. Provides credit monitoring, discounts on home security, and service guarantees.

When it comes to home repairs, you want to have a service person who you can trust. Unlike most home warranty companies, America’s 1st Choice (AFC) allows you to choose your own repair company when you need one. This allows you to stick with the people and the companies you trust. Don’t worry, if you don’t know a good repair company, AFC has a wide network of companies who can help you out.

Speaking of trust, AFC wants you to always have peace of mind when it comes to home repairs, so they offer repair guarantees. As long as you are a member, any of the repairs they offer are guaranteed. They offer a wide range of coverage plans, allowing you to decide what to cover and what to leave off. They even allow you to choose between multiple levels of service fees before you get your free quote. This allows you to know the full cost of the service and coverage you will receive.

AFC wants to make sure that you’re covered for more than just your home systems and appliance repairs. They also offer free credit monitoring and discounts on home security systems, so you can feel secure in every area of your life.


How We Chose The Best Home Warranties

Versatility In Coverage Options

We know that everyone is different and that means that some people will need more coverage than others. That is why we chose plans that offered a lot of coverage options. All the companies on our list offer premade plans as well as add-ons for your extra coverage needs. We chose warranties that would cover the majority of regular home systems and appliances for a decent price as well as having comparable prices for the add-ons.

Transparency

Warranties and service plans always involve a lot of complicated legal jargon. That is why we chose companies that were upfront about their monthly fees, service charges, and cancelation fees. Each of the companies we listed offer free quotes, sample contracts, and copies of their terms and conditions on their websites. Having this information available without a lot of hassle shows that these companies know what is required for their customers to make informed decisions about purchasing their plans.

Ease of Use

When you are faced with a home emergency, the last thing you want to worry about is whether or not customer service is open at your home warranty company. That is why we looked for companies that supported 24-hour help desks and in-house service people. We also looked for companies that offered multiple ways to submit claims such as over the phone or through their website. A home warranty is supposed to make your life easier, not more complicated, so we looked for companies that offered quick and simple service whenever you need it.

What You Need To Know About Home Warranties

The name “Home Warranty” is a little deceiving, since these are not warranties for your home but are instead more like discounted service and replacement plans for the items in your home. Before we talk about how to choose the best home warranty for you, let’s discuss why you should have one in the first place. Then we will go over a few other details about home warranties and how they work.

Why Should You Have A Home Warranty?

If you already have homeowners’ insurance, why would you need a home warranty? Home warranties are like a supplemental plan for your insurance. If a tree falls on your house and damages the roof, then your insurance will pay for the repairs, but if your $1,200 washing machine breaks down, you are stuck paying for repairs or replacement. With a home warranty, those repairs are covered. This means that you only pay a small service call fee instead of having to pay out of pocket for the service visit, the parts, and the repairs or replacement. A home warranty can protect you from the big unexpected costs of home system repair as well, such as replacing faulty ductwork or electrical systems. Of course, what is covered depends on the plan you choose, but as you can see, a good home warranty can save you a lot of money in the long run.

Available Coverage

Each company has their own rules about what they will cover and how much they will cover. It is important to determine what type of coverage a company offers before you sign up.

Here are a few coverage considerations that you should check:

Who Does The Work?

Does this warranty cover outside work or will they only cover work done by their technicians? You should always call your warranty company before calling the repair company because most warranties will not cover any services provided without prior authorization, even if the repair is done by a company they accept.

What Parts Are Covered?

For appliance repairs, it is important to know what parts are covered and which are not. For example, some companies only cover the parts inside the sealed metal casing of the appliance, so if a handle or knob breaks on your oven, you are responsible for the full cost of repair.

Repair Records and Inspections Required

Some companies require that you get a home inspection before you sign up as well as annual inspections to ensure that your home and appliances are well maintained. Some also require that you keep repair records to prove that you properly maintain your property and that any breakages or failures are only caused by common wear and tear.

Limitations

Just like your homeowners’ insurance, home warranties have limitations as well. Before choosing a plan, double-check the plan limitations so that you are not taken by surprise when a claim is denied. Here are some examples of why a claim could be denied:

Pre-Existing Conditions

Most home warranties will not cover known or unknown pre-existing issues. This is where a home inspection comes in handy. Although many companies do not require an inspection, having an inspection done can help you to prove that your claim is legitimate if your warranty company chooses to deny it based on the premise that the problem was an issue before your coverage began.

Unusual Situations

Home warranties are meant to cover damage from everyday use and normal wear and tear which means they may not offer coverage for unusual situations such as power surges. Although some homeowners’ insurance plans will cover this, some don’t. Check your insurance plan, then choose a warranty that can fill in those coverage gaps.

Misuse

If a product is damaged by misuse, your home warranty will not cover the repairs. This includes damage that is caused by a lack of maintenance, so keep your appliances well-maintained.

How to Choose The Best Home Warranty For You

Now we get to the personal stuff, how to choose the best home warranty for you. You already have the knowledge you need to seek out a good plan, but here are the steps you should take to use that knowledge properly.

Do Your Research

The first step is finding out which companies provide coverage in your area. Many companies provide service throughout America, but some do not. If you are purchasing a house, you can ask your realtor if they are aware of which companies are available and they may be able to tell you which ones are the most reliable. You can also do a simple Google search. Most companies have an option on their website where you can enter your zip code and they will tell you if they are active in your area.

Once you know your options, begin researching those companies on third party websites such as Consumer Reports, Consumer Affairs, and the Better Business Bureau. The best way to know the quality of a company is to check out their customer reviews. Read the reviews and see what others have to say about the kind of service they received.

Know Your Home

Once you have chosen a quality company, it is time to determine the type of coverage you need. This requires having a good knowledge of your home and appliances. If you have brand new appliances that are still under the manufacturer’s warranty, you may not need to spend extra money on a home warranty for those. Instead, choose a plan that only covers your home systems. Perhaps you’re not worried about your home systems, but want coverage for your old washer and dryer. Take the time to consider all the products that you could purchase coverage for. Consider their condition as well as their overall worth and determine if paying for extra coverage will be worthwhile.

Know The Fine Print And Additional Fees

Time to read the fine print! This may be boring, but it is worth the trouble. Ask the company for a sample contract as well as their full terms and conditions, then go over them carefully. A few important things to look for include:

  • Service Call Fees
  • Payments Per Repair
  • Claims Per Month Limitations
  • Coverage Limitations
  • Cancelation Fees

Each of these things can add unexpected costs when you do have to make a claim or choose to cancel your service. Knowing the cost in advance means you can plan better and experience less stress which is the whole point of home warranty in the first place.

Bottom Line

Homeownership is wonderful, but it does come with its share of stresses and frustrations. Relieve some of that stress with a quality home warranty. A comprehensive home warranty will provide discounted repair and replacement services on all your home systems and appliances. Knowing that you and your wallet are protected from those unexpected system failures can give you the peace of mind you need to truly relax and enjoy your home.

It’s hard to go wrong with any of our top home warranty picks, but we recommend Complete Protection for its coverage, transparency, and ease of use. Compare all of your options before making a final decision, though, to make sure that you’re choosing the right warranty for your circumstances.

Top 5 Best Home Warranties of 2020


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