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Cheapest Home Warranty Companies – The Market in 2023
PUBLISHED: NOV , 08 2021 • 6 MINS READ
Having a broken-down home device fixed can be expensive. If you’re looking for a home warranty to cut down your repair and replacement costs, there is no better deal than a budget option that offers comprehensive coverage. Unless you’ve got an item that breaks down frequently, purchasing a costly plan is unnecessary.
However, you shouldn’t compromise on the quality of the company’s services, even when you want budget options. That’s why we’ve come up with this guide to help you find the low-cost, but reputable, home warranty companies and the things to consider before zeroing in on one.
Without a home warranty plan, repairs can go upwards of $300, even for minor fixes. A home warranty plan comes at an average premium cost of $45 and averages $75 in deductible costs. The prices vary due to the demand for the company’s services, their service quality, the location of your home, etc.
The Most Affordable Home Warranty Companies
We have selected the lowest-priced home warranty programs for you that also have favorable reviews, for the most part. You can conduct a price comparison and check out a few key facts about these companies. For more information and reviews, click the company names.
Plans – Simply Kitchen, Complete Home, Pinnacle Home
Deductible – $85-$100
Discount – Up to 65% off GE and Whirlpool appliances + $50 gift card on referrals
Why we picked it
2-10 Home Buyer’s Warranty has been around for more than two decades. Besides home warranties, they also offer new construction or builder warranties. The three plans are based on the item category, with Simply Kitchen offering appliance repair coverage and the other two plans adding systems.
Pros:
Flexible pricing options
Paid 97.5% of their claims
Member of the National Association for Home Builders
Cons:
No nationwide availability
Plans start at $41 monthly, but there is $200 off on the annual payment
ServicePlus Home Warranty is a young but fast-growing company. They have two plans, with varying levels of coverage for people who want to cover both systems and appliances in one plan. The deductible is on the lower side, and they are one of the few companies that operate in 45 states.
Pros:
Participates in the Complaint Resolution Program
Top class technicians
Cons:
Does not operate in all 50 states
Limited add-on coverage options
Plans start at $28 monthly.
Cinch Home Services
Plans – Appliances Plan, Built-in Systems Plan, Complete Home Plan
Deductible – $100, $125, $150
Discount – 2 months free
Why we picked it
Cinch Home Services is one of the largest home warranty companies. With an extensive range of items and three plans that classify offerings according to item type, CHS is a good choice. They also have many auxiliary services.
Choice Home Warranty has handled more than 4 million claims in over 13 years of its existence. The two plans cover a mix of systems and appliances and offer lower pricing in this regard. The deductible option also begins lower than the industry average.
Pros:
Large contractor network
Offers add-on coverage for 2nd fridge
Cons:
Does not serve Calif
Limited range of add-ons
In case you’re looking for a real estate home warranty, these companies provide good options. You’ll want to consider Cinch Home Services and 2-10 Home Buyers, especially for the cheapest seller home warranty. They also provide marketing materials for realtors and buyers.
How A Home Warranty Works
After you’ve purchased a home warranty, there is a waiting period of 30 days (usually). Once this period is over, you can file claims when any covered item breaks down. The following steps will show you how:
Call the home warranty company or file a claim online.
Describe the nature of your problem. The customer care representative will then schedule a service visit by an experienced service technician.
The technician The technician will diagnose the problem and communicate it to the company. They will decide whether or not coverage applies. You’ll have to pay a service call fee.
If the problem is covered, the company will authorize the technician to repair or replace the item.
The home warranty company will cover the cost of the repair or replacement. They may provide a cash-out option if they can’t get the service done.
Why Do Home Warranty Companies Have Different Prices?
Home warranty companies, on average, charge monthly premiums of $30-$50 for their plans. If the plan has more extensive coverage, it tends to cost more money, naturally. Some factors that cause price variation across companies include:
Quality of Service Contractors
Home warranty companies enroll service technicians into their networks after vetting their qualifications. These service technicians join as independent service contractors. The plans can be more expensive if the company enrolls more skilled technicians. Some older companies with good reputations for reliable service have older associations with very qualified contractors.
Coverage Extent
Some home warranty companies offer many extra items in their coverage plans, like pest control treatments, roof leak coverage, sensors, etc. These plans may cost more than the average market price. The cheaper companies tend to cover only essential home systems and appliances in their plans, though they have several add-ons for customers who want more.
Living Costs in Different States
Some companies are regional, operating only in a few states. The living expenses and repair costs would vary accordingly. Even nationwide companies may have different prices for plans offered in different states.
Remember that all of these factors together affect home warranty pricing. It’s not like a cheaper company is better or worse than a more expensive company. This is why you should check out reviews of service quality before making a decision.
How To Save Money On A Home Warranty Purchase
The most obvious way of saving money on a home warranty purchase is to go for an affordable company. This is why we have listed the cheapest home warranties for you above.
The next best thing to do is buy a home warranty during a sale or when there is a good discount available. The companies we have shortlisted above are offering the best discounts at this point.
You can also save money with a home warranty, offering a choice of service call fees. These plans are generally inexpensive if you choose a higher deductible – an amount you won’t pay until you file a claim.
Multi-year home warranty plans may come a little cheaper than annual or monthly plans, though we recommend buying those only if the company has been previously reliable.
Things to be Aware of When Choosing a Company Based on Costs
Home maintenance can be pricey, so a cheap and affordable home warranty plan may seem like a great option. However, you should exercise some caution when choosing a plan because some affordable home warranty companies may have fine print that keeps them that way. Keep reading to learn more in detail:
Customer Service Quality
Many customers write reviews on our site, mentioning delays in assigning technicians, and having the work followed up on by representatives of some poor-quality companies. You should ensure that the company offers 24/7 customer service and processes service requests quickly.
Service Contractor Quality
It is essential for service contractors associated with home warranty companies to be highly skilled and qualified with the appropriate licenses. They should be knowledgeable about the reasons home systems and items may break down.
Exclusions
A few home warranty companies put a lot of exclusions in their contracts, effectively ensuring that very few claims are accepted. Read the contract to ensure that vital mechanical parts and components are covered. Most companies, however, don’t cover accessory parts.
Coverage Limits
Most home warranty contracts limit liability for the overall service cost and prices of services per covered item. They don’t pay for services once the cap is met. For instance, a refrigerator repair coverage cap may be $2000, meaning that the company won’t pay for repairs if $2000 worth of services has been exceeded. For a few companies, the total cap is $10,000; meaning that once the total value of all claims crosses that amount, they won’t pay for further repairs and replacements.
Denials based on pre-existing conditions
Although most companies provide coverage, regardless of the item’s age, make, or model, they deny services if the cause of the malfunction is a known pre-existing condition. Therefore, getting a home inspection will help you understand the likelihood of your claim success.
The Takeaway
Getting a cheap home warranty plan can be the best investment for budget protection related to home maintenance. However, you must choose a company after investigating its offerings, service quality, and other factors we have outlined above. A company’s reputation is also essential, and we advise against going for unknown companies merely because they promise cheap rates.
FREQUENTLY ASKED QUESTIONS (FAQs)
Q.
How much do home warranties cost?
A.
Home warranties vary widely in price. The monthly premium prices generally range from $25 to an upper range of $60, when no add-on items are chosen. The monthly premiums can go over $100 if many additional items are included. The deductible costs are, on average, $75-$80. At the most, they may be $150, as is the case with AHS.
Most home warranty plans cover the following appliances when they offer appliance-only plans (these are cheaper than mixed plans):
Refrigerator
Cooktop/Range/Oven
Dishwasher
Clothes Washer/Dryer
Ceiling Fans
Systems plans include:
Air Conditioning System
Heating System
Plumbing
Electrical System
Water Heater
Garbage Disposal
If you need additional coverage for items, like your pool, spa, septic pump, roof leak, central vacuum, etc., you can have them included in the plan at extra cost. That would drive up the home warranty prices.
Q.
What does a $500 home warranty cover?
A.
$500 is likely the premium price on an annual basis. It will probably offer comprehensive coverage and provide a mixed systems/appliances plan, covering the items mentioned above.
Q.
How much does a one-year home warranty cost?
A.
The annual premium prices for home warranty plans generally range from $275-$600. Add-on coverage can increase the prices further.
Q.
Is a home warranty tax deductible?
A.
Generally, a home warranty is not tax deductible. However, if purchased for an income-generating rental property, the expenses may be counted towards the deductions. If you run an office from your home, you may deduct the premiums as expenses.
Q.
How much is a home warranty when buying a house?
A.
A home buyer’s warranty can cost between $350-$600 annually, with trade service fees ranging from $60-$150.
Q.
Which home warranties offer a military discount?
A.
American Home Shield has a support program for veterans. Most home warranty companies don’t directly offer military discounts. However, you can get a quote from us to get in touch with reps for special discounts.
Q.
How do I purchase a home warranty?
A.
You can shortlist companies of your choice and request free quotes from us. The company reps will contact you to explain the details. You can then select a company and use our coupon codes, wherever applicable. Some home warranty companies offer direct checkout on their websites, and so you can make your purchase online.
Q.
How long are home warranty contracts?
A.
The average home warranty contract is a year-long in term duration. A few companies offer two or three-year contracts as well.
Q.
How soon can you use a home warranty after purchase?
A.
Home warranty companies generally have a 30-day waiting period after policy purchase. If you are rolling over your warranty plan coverage or renewing a warranty, they waive the waiting period.
Q.
Who typically pays for a home warranty?
A.
This question comes into play when real estate home transactions are involved. Home warranties that are part of a closing deal are usually paid for by sellers and, in some cases, realtors. For a rental property, the deductibles may be the tenant’s responsibility.
Q.
Can you buy a home warranty at any time?
A.
Yes, you can buy a home warranty whenever you want, but we recommend doing so when the most reputable companies offer discounts. Before summer or winter are ideal times to buy a home warranty, in terms of the season.
Q.
Do I need a home warranty if I have homeowners insurance?
A.
A home warranty, being a service contract, is not mandatory. This differs from home insurance which is required for obtaining a mortgage. However, having a home warranty fills the gaps left by your home insurance coverage. Read more about the difference between home insurance and a home warranty to decide whether you need one.
Q.
Do home warranties cover labor?
A.
The pricing system factors in a part of the labor cost into service call fees or deductibles. This allows for sharing of the liability with the company.
Q.
Are home warranty plans a good investment?
A.
They can be good investments if you use them and end up saving money. Nonetheless, home warranties bring peace of mind from knowing that you have instant access to services if your home devices break down.
Q.
Are home warranty plans a good investment?
A.
They can be good investments if you use them and end up saving money. Nonetheless, home warranties bring peace of mind from knowing that you have instant access to services if your home devices break down.
Q.
Do home warranty companies replace items?
A.
Our reviews show that quite a few customers have received replacement items from home warranty companies. The companies only provide functional equivalents and don’t guarantee an upgraded model. However, the companies provide a cash-out option when they cannot facilitate a replacement.
Q.
Should I renew my home warranty?
A.
In general, you should renew a home warranty because your home systems and appliances undergo more significant wear and tear every year. They become more likely to have breakdowns, and problems may get costlier to fix. However, if you want to try a different home warranty, you can search for some plans before the expiry date so, you can rollover the coverage with no lapses.
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