When you think of a home warranty, you might assume it’ll cost a pretty penny. However, reputable home warranty providers offer solid home protection for less than $60 a month. According to our national average, entry-level home warranty plans start at $41 monthly.
We recommend 2-10 Home Buyers Warranty and Liberty Home Guard for price-conscious consumers. 2-10 offers competitive coverage limits and an appliance plan for less than $40 per month. Liberty Home Guard offers many add-ons and a comprehensive plan for $60 monthly in most locations.
Our team at USA TODAY Homefront researched and compared the best home warranty companies nationwide and rounded up the most budget-friendly options in this article. The companies we selected strike the right balance of affordability and quality coverage.
Top cheap home warranty providers
The companies below offer robust coverage plans that won’t break the bank.
- 2-10 Home Buyers Warranty
- Liberty Home Guard
- Elite Home Warranty
- First American Home Warranty
- American Home Shield
Compare top cheap home warranties
Your situation is unique, meaning you should select the home warranty company that fits your needs. Both 2-10 Home Buyers Warranty and Liberty Home Guard provide comprehensive coverage for appliances and major systems at an affordable price.
We gathered pricing information for the comparison table below by requesting quotes in each state and calculating a national average for all featured companies. We used a 2,000-square-foot, single-family home in each state to obtain quotes. Your pricing will vary based on your home’s size, location and coverage needs.
Our cheap home warranty recommendations
Each home warranty company below features budget-friendly entry-level plans and comprehensive protection for under $60 monthly. Generally, home warranties that charge less per month tend to have lower coverage limits per covered item.
We reviewed not only these providers’ coverage options but also the dollar limits they pay per repair or replacement. We excluded companies that offer attractive pricing at the expense of lower coverage limits.
For this article, we requested fresh quotes for each provider using a 2,679-square-foot, single-family home in Raleigh, North Carolina. We focused on finding the best home system and appliance coverage at competitive prices.
Other good cheap home warranty companies
The following companies aren’t as affordable as the options above, but they’re worth considering due to their comprehensive coverage limits and flexible service fees.
What do you need to know about cheap home warranties?
All home warranties follow the same general operating principles.
To have home appliances and systems coverage, you must pay a plan premium to the home warranty provider. Most offer monthly or annual premium options.
When a covered item breaks down, contact your provider immediately to submit a claim.
Typically, providers review your service request within 48 hours of receiving it. Companies will accept or reject your claim submission, depending on parameters set within its sample contract.
If your provider approves your claim, it’ll coordinate with an in-network technician to fix your issue. Companies typically charge a service fee before dispatching a service provider.
The in-network technician will arrive at your home, assess the issue and begin the repair or replacement process. Over 61% of our November 2023 home warranty survey respondents reported that their provider repaired their broken item during the initial visit.
Below, we outline the most important factors to consider when shopping for a cheap home warranty plan.
Cheap home warranty coverage caps
Aside from price, the most important consideration is per-item coverage caps. All home warranties limit how much they’ll pay per covered item repair or replacement. According to our research, companies that offer affordable plan premiums tend to pay less for repairs and replacements than pricier providers.
We recommend picking a home warranty company that will cover most, if not all, of the repair costs for the items that need protection. Reputable home warranty companies list item coverage caps in their online sample contracts. Coverage caps will also appear in your service contract, which you’ll receive after purchasing your home warranty.
Here’s a breakdown of the coverage caps for each company featured in this article.
Provider Name | Appliance Coverage Caps | System Coverage Caps |
---|---|---|
2-10 Home Buyers Warranty | $2,000–$5,000 | $2,000–$5,000 |
Liberty Home Guard | $2,000 | $500–$2,000 |
Elite Home Warranty | $500–$3,000 | $750–$3,000 |
First American Home Warranty | $3,500–$7,000 | $1,000–unlimited |
American Home Shield | $2,000–$4,000 | $5,000–unlimited |
Cheap home warranty cost
Home warranties cost $41 per month for a basic plan, according to our national averages. Typically, these plans cover fewer items, so they may not provide all the coverage you need. Comprehensive coverage plans typically cost $77.
The charts below highlight the average monthly and annual costs for nine popular home warranty companies we’ve reviewed. Note that the national averages factor in basic and comprehensive plans.
Common red flags
When shopping for a cheap home warranty, we suggest keeping an eye out for disreputable home warranty providers offering policies that sound too good to be true. Watch out for the following red flags.
Absurdly low prices
Based on the hundreds of quotes we’ve requested from nine home warranty companies, a comprehensive plan costs an average of $77 per month. If a home warranty company charges under $40 for its comprehensive plan, it likely pays minimal reimbursements for repair or replacement services.
Delayed communication
Contact a company’s customer service department throughout the day to see how quickly its representatives attend to you. Avoid the company if you experience long wait times each time you contact them.
No sample contract
Avoid companies that don’t have sample contracts on their websites or deny access to one when you inquire. A sample contract lists the terms and conditions of a coverage plan. Reputable companies will always point you toward their sample contract.
Poor customer reviews across the board
We suggest checking at least three third-party review sites (such as BBB and Trustpilot) to get a feel for a provider’s customer service. Avoid companies that have poor reviews across every review site you check.
Final take: A cheap home warranty doesn’t mean limited coverage, but you’ll need to do some digging
It’s easy to choose the cheapest home warranty plan you come across. However, buying the right home warranty for your needs involves more research than just requesting quotes. We recommend reviewing sample contracts for at least three home warranty companies to compare coverage caps for the items you need your provider to protect.
2-10 Home Buyers Warranty and Liberty Home Guard balance affordability and comprehensive protection. Each offers a long list of add-ons, allowing further policy customization.
Our rating methodology for home warranty companies
We research and rate home warranty providers to help you choose the right one for your budget and home. Our research includes gathering customer insights via consumer surveys, interviewing industry experts, secret shopping all of the companies we review and analyzing customer reviews from third-party review sites such as Trustpilot and BBB.
We compare home warranty providers across the following five categories:
- Coverage plans and extra features
- Coverage limits
- Price
- Reputation
- Customer service
Read our full home warranty company methodology for more information.
BBB and Trustpilot ratings are accurate as of May 2024.
Top local home warranty companies in major cities
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
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