Most families consider a home to be their most valuable asset. A homeowner’s insurance may protect a home against natural disasters and property theft, but they leave homeowners vulnerable against other types of risk.
The Most Affordable Home Warranty Companies
The home warranty market has many companies to choose from. Some offer good coverage while others give customers a more affordable rate. When it comes to protecting their house, homeowners should look for a balance between comprehensive coverage and affordability. In this article, we list seven home warranty companies who meet these requirements.
American Home Shield (AHS)
American Home Shield is the oldest and most recognized home warranty company in the United States. It was AHS that introduced the idea of home service contracts to the market in 1971. In 1989, the company was acquired by ServiceMaster and began its expansion nationwide. As of 2018, the company services more than 1.5 million people with offices in almost all states including the District of Columbia.
American Home Shield has a BBB rating of “B”. The company’s plans have premiums between $30 and $40 dollars for standard coverage, with service fees of up to $125. Comprehensive plans have higher premiums of around $100. Coverage is often split between items in AHS plans, with a combined amount of around $15,000. Coverage becomes effective 30 days after the plan has been purchased.
AFC Home Club
AFC Home Club was established in 2009 and has quickly become one of the top home warranty companies across the country. Its affordable plans and easy-to-receive quotes makes AFC the first choice of customers who are in the process of obtaining their first home warranty plan. AFC is one of the few companies which provide a quote without much personal information, offering wary customers a way to gauge the cost of their plans without exposing themselves to data theft.
AFC Home Club has a BBB rating of “B”. The company’s plans have premiums ranging from $40 for basic coverage to 60$ for comprehensive coverage. Customers can also purchase 3-year plans for a significant discount. Service fees go from $60 to $100. Customers who choose higher fees have their monthly payments reduced.
AFC Home Club offers homeowners the chance to expand their basic plan with coverage for specific items at an additional cost. For example, their $40/month home warranty plan can be expanded to include a Central VAC unit for $2/month. Coverage becomes effective 30 days after the plan has been purchased.
America’s Preferred Home Warranty (APHW)
America’s Preferred Home Warranty, also known as APHW, is a privately held Christian-based home service company established in 1999 with headquarters in the city of Jackson, Michigan. As of 2018, the company has offices on 33 states and the District of Columbia, offering its services to more than one million customers.
America’s Preferred has been chosen as the best home warranty company for several years due to its affordable plans and comprehensive coverage. The company offers contracts for condos, townhouses, single-family and multi-family units. New constructions are also covered under special home service contracts offered by the company in some states. The cost of basic coverage varies according to state, but monthly payments average between $40 and $50 and cover most mechanical systems and appliances. Comprehensive coverage starts at $60/month.
Complete Protection (CP) was established in 1998 by entrepreneur Jim Ingram and family. In recent years, the company has grown to become one of the best home warranty providers nationwide. Complete Protection offers some of the cheapest home service contracts available to customers. Their Kitchen and Laundry protection plan costs $32/month and includes coverage for seven appliances and no deductible.
More comprehensive options can be purchased for up to $60/month to cover items such as inbound pipes, electrical wires, furnaces and more. None of CP’s home warranty plans have a deductible to be paid by the customer. The Full House and Full House Plus contracts also include a once-a-year preventive maintenance service at no additional cost. Complete Protection has been rated A+ by the Better Business Bureau and services thousands of customers across 42 states and the District of Columbia.
Select Home Warranty
Select Home Warranty was established in 2012 and since then has expanded its services nationwide. The company has received a BBB rating of “B” and has been selected as one of the best home warranty provider for two consecutive years by the Home Warranty Awards.
Select Home Warranty offers its customers service plans with premiums between $450 and $500, with a $75 deductible. Additionally, customers have to pay a $75 service fee whenever they use the warranty plus a $75 cancellation fee. Unlike other home warranty providers, Select Home does not offer the option to pay a lower service fee in exchange for higher monthly payments. However, its plans usually cover most home components and appliances without extra fees.
Landmark was founded in 2004 and has become one of the fastest-growing home warranty providers in recent years. The company only offers its services in six states (Arizona, Idaho, Oregon, Texas, Utah and Nevada) but has plans to expand to other states in the future. The Better Business Bureau has awarded Landmark a B+ rating due its affordability and quality of its service.
Landmark has a B+ rating by the Better Business Bureau. The company offers basic coverage from $35/month, which includes air conditioning, heating, electrical wiring, plumbing, and periodic maintenance. The comprehensive alternative begins at $55/month and includes most home appliances, garage door opener, and more. Only homeowners who have lived in their houses for at least 30 days can purchase a Landmark home warranty, and the plan becomes effective 30 days from payment.
Home Warranty of America
Home Warranty of America is one of the few home service companies offering coverage from the day the homeowner purchases it, instead of waiting 30 days to become effective. This company was established in 2009 and has received a B rating from the Better Business Bureau. As of 2018, Home Warranty of America is available in almost every state, servicing thousands of homeowners.
The company operates two home warranty plans, Premier and Premier Plus. Premier Plan has a cost of $45/month and includes coverage for basic home components and appliances such as the electrical system, central vacuum and dishwashers. The Premier Plus plan has a cost of $54/month and covers air conditioners. It also offers higher coverage on specific items as well as the option to replace the damaged appliance entirely.
More coverage can be purchased for items such as to cover septic systems, roof leaks, and more for an average of $8/month per item. Customers have the option to choose deductibles of $75, which maintains the standard monthly rate, or $100, which lowers payments by about $4/month. Overall, total coverage for both plans is around $15,000 annually.
There are more than 100 million homeowners across the country. For them, protecting their home is among the top priorities. A home warranty plan offers them the financial protection they need. However, choosing the best home warranty company is important to get an affordable and comprehensive protection that will work when families need it most.