For many people, homeownership is the realization of the American dream. However, when you were picking up paint samples for your bathroom, you probably weren’t dreaming about a broken toilet. The realities of homeownership and the cost can set in sooner than you might want.
Home warranty coverage offers financial protection for first-time homeowners who might be a little short on cash after closing. Policies protect your budget from taking a hit when unexpected repairs become necessary. It’s hard to predict repair costs, particularly if you have no experience with a plumber, but if you have a home warranty, you just have to pay a service fee for the repair.
A home warranty works by charging a monthly or annual fee in exchange for the ability to pick up the phone, place a service request, and have pre-vetted, licensed, insured technicians come to perform the repair. Since there are many options for home warranty companies, Today’s Homeowner compared their cost, customer service, and plan options to find the best home warranty companies for first-time buyers. We did the work, so you can go back to picking out paint chips.
Here’s how we ranked and reviewed the nation’s top home warranty companies to bring you the most accurate information.
Our team of experts reviewed over 70 home warranty providers to compare plan options, coverage limits, prices, and customer feedback.
We collected over 100 sample quotes from dozens of home warranty companies to give you an accurate look at industry pricing.
Our rating system scores providers based on 6 key factors: coverage options, affordability, customer experience, reputation, claims processes, and availability.
Read our full Home Warranty Review Methodology for more details.
Top 4 Home Warranty Companies for First-Time Buyers
- 2-10 Home Warranty is one of the best options for first-time buyers. They have a broad workmanship guarantee combined with low service fees, and you can get very high coverage limits with their policies.
- Keep all home inspection and maintenance records. Some home warranty companies may ask to see them as proof that the breakdown wasn’t a preexisting condition.
- When calculating the cost of a home warranty, don’t forget about service fees. Every time you place a claim, you’ll pay this fee (on top of your monthly premiums). Make sure you pick a company with fees that fit your budget.
What’s Most Important in a Home Warranty for First-Time Buyers?
If you just bought a home, chances are, money is tight. And if the seller didn’t include a home buyer’s warranty in your real estate transaction, any unexpected repairs will come out of your pocket, so looking for an affordable home warranty that works for you and your budget is top priority.
First-time buyers on a tight budget should look for home warranties with higher coverage caps. A coverage cap, or limit, is the maximum amount that a home warranty covers for a repair or claim. While the industry standard is $2,000 to $3,000, some policies raise their limits much higher.
It’s also a good idea to consider service fees when comparing home warranty companies. Even though you pay a monthly premium, similar to a homeowners insurance policy, for your policy, you’ll also pay a fee every time you place a service claim, like a deductible. These fees can add up, and if money is still tight after closing on your house, you might want to pick a home warranty company with a lower service fee.
Finally, be careful about preexisting conditions and keep a copy of your home inspection handy. If the home inspector found something wrong, a home warranty company will likely exclude it from coverage. However, if you can prove the home inspector didn’t see it during the inspection, they will likely pay for the repair, saving you even more money.
Home Warranty Companies for First-Time Buyers I Don’t Recommend
In every industry, you’ll find bad actors. There are two home warranty providers that I think should be avoided due, in part, to their poor reputations and legal actions taken against them.
In 2022, the Better Business Bureau sent out a press release warning consumers about the marketing tactics of a company called US Home Guard. The company is known for sending out deceptive mailers that use scare tactics with subject lines such as “Your home warranty is about to expire!” that imply a homeowner already has a warranty with them. However, they send these mailers to homeowners who’ve never had a home warranty with them!
After getting in trouble with the Pennsylvania Office of the Attorney General, Total Home Protection changes its name to Service Plus Home Warranty. But that doesn’t mean they’ve changed how they do business. The Attorney General fined them $400,000 for deceptive marketing tactics, and their online reviews indicate the company might not have cleaned up its act.
Compare The Highest Rated Home Warranties for First Time Buyers
| Company | Rating | Monthly Cost | Service Fee | Response Time | BBB Rating | Link |
|---|---|---|---|---|---|---|
 |
$50-$60 |
$75 |
12-48 hrs. |
NR |
VISIT SITE | |
 |
$35–$75 |
$100–$125 |
24-72 hrs |
B |
VISIT SITE | |
 |
$44.99-$58.99 |
$70 |
48 hours |
A+ |
VISIT SITE | |
 |
$46–$55 |
$85 |
24-48 hrs. |
B |
VISIT SITE | |
 |
$52–$58 |
$75-$85 |
24-48 hrs. |
B |
VISIT SITE | |
 |
$38–$62 |
$75–$125 |
48 hours |
B |
VISIT SITE | |
 |
$38–$48 |
$75–$125 |
48 hours |
B |
VISIT SITE | |
 |
$17–$60+ |
$65–$100 |
2–24 hrs |
A- |
VISIT SITE | |
 |
$28–$68 |
$100–$150 |
2–24 hrs |
B |
VISIT SITE |
Quote and cost data gathered January 2024. Cost data are updated and monitored continuously.
Our Reviews of the Best Home Warranties for First Time Buyers
2-10 Home Warranty
4.3
Our Rating
Even if you still have some savings after closing on a house, 2-10’s “even if” workmanship guarantee could save you some bacon (to cook in your brand new kitchen, obviously). Under their warranty, if you place a service request and the technician determines your home warranty doesn’t cover the repair, 2-10 refunds the service fee. What’s more, as long as you keep a policy with 2-10, you’ll never pay twice to have the same item fixed.
Nervous about the unknown? Even the best home inspection can miss something, and the wrong home warranty company could call it a preexisting condition and deny coverage. However, 2-10’s service contract states that the company will not exclude coverage for a covered item for a preexisting condition, even if they could have or should have known about it at the effective date. And after you’ve owned the house for a few years, they’ll pay for repairs caused by normal wear and tear. All around, they’re a great choice for first-time homebuyers.
Most competitors limit their workmanship guarantee. American Home Shield only covers past repairs for 30 days, and Liberty Home Guard for 60 days. If you paid for your dishwasher to get fixed and it breaks down on day 31…you’re paying another service fee.
But not with 2-10. Their “even if” service guarantee applies for the entire contract term. If any item they’ve previously repaired fails again during the contract’s life, they don’t charge a second service fee to have it fixed again. If you bought a home with older appliances and don’t have time to replace them immediately, 2-10 doesn’t exclude items from coverage due to age or normal wear and tear.
Unfortunately, 2-10’s standard coverage limits of $2,000 per item aren’t that impressive. Once a repair hits $2,000, you’re paying the rest out of pocket. However, the Luxury Package add-on adds just $6 a month to your premiums and increases coverage caps to $5,000. With 2-10, you get decent coverage, a great workmanship guarantee, and peace of mind for first-time buyers.
It’s hard to balance the responsibilities of a new home with the rest of life — yes, you can still go out with friends Saturday night, but you’ll need to wake up Sunday to mow the lawn. One thing you’ll quickly learn is that if you need help, you’re often at the mercy of someone else’s schedule.
2-10 doesn’t help with this. They don’t guarantee a service window of 24 to 48 hours. Instead they just promise to contact a service technician within this period. Also, unlike competitors who set it all up for you, you have to talk to the technician and make the appointment yourself.
Some customer complaints online say that it took weeks or months to get service. Others were upset that technicians couldn’t get the repair done in one visit. Even with 2-10’s cheapest service fee option, just $65, multiple service calls add up, and you could spend a lot of time sitting at home waiting for help to arrive. While plans are reasonably priced, 2-10 only gives its best deal if you agree to auto-renew your contract.
If you want flexibility when picking a service fee, 2-10 offers homeowners the choice of three different service fee options. You’ll have your pick between paying $65, $85, and $100 every time you place a service request. If you can afford a higher fee, it lowers your monthly premiums. That might be a better fit for your monthly budget if you don’t have much wiggle room after buying your first house.
2-10 has industry-standard coverage limits for appliances, home systems, and plumbing, of $2,000 per covered item. If you think you need higher limits, it only costs $6 more a month to increase your coverage limits to $5,000.
Their cheapest home warranty plan, Simply Kitchen, covers kitchen appliances, which is more restrictive than most competitors’ basic plans. It offers protection for your dishwasher, range, oven, cooktop, built-in microwave, and refrigerator with icemaker and water dispenser coverage.
If you can afford a step up, the Complete Home plan adds HVAC, plumbing, and electrical systems to the Simply Kitchen plan’s coverage. Oddly, plans don’t cover your clothes washer and dryer until you purchase the most expensive plan. Most competitors offer this coverage sooner in lower-tier plans, but with 2-10 you have to pay the highest monthly fee to get it.
However, if you pick the most expensive plan, you’ll also get Supreme coverage on your appliances. It includes components like handles and hinges, heating filters, haulaway or disposal fees, and fans in its coverage, which are often excluded in competitor’s coverage.
While prices can be on the lower end for the industry, you do have to agree to auto-renew your contract to get the cheapest pricing. This isn’t customer-friendly, particularly if you don’t like auto-charges on your credit card. It also means they won’t call and give you the option to add or drop additional coverage when it’s time to renew, which Liberty Home Guard does.
However, if you choose a higher or lower service fee, you’ll pay a lower or higher monthly cost. For example, a $100 service fee with the Pinnacle Home Plan reduces your monthly premium by $3.
| Plan | Monthly Cost | Service Fee* | Available Discounts |
| Simply Kitchen | $35, $30, $27 | $65, $85, $100 | $27 a month with auto-renewal and a $100 service fee |
| Complete Home | $55, $50, $47 | $65, $85, $100 | $47 a month with auto-renewal and a $100 service fee |
| Pinnacle Home | $69, $64, $61 | $65, $85, $100 | $61 a month with auto-renewal and a $100 service fee |
*If you choose the higher service fee of $100, you pay the lower monthly premium. For example, the $61.00 with the Pinnacle Home plan pairs with the $100 service fee.
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Seattle, WA. The cost data presented was accurate at the time of writing.
Available Add-Ons
Add-on options with 2-10 include:
- Luxury package: $6
- HVAC surplus: $10
- Garage door opener: $3
- Roof leak: $8
- Pre-season HVAC tune-up: $8
- Extended pipe leak: $5
- Septic system: $5
- Additional refrigerator: $4
- Additional freestanding freezer: $4
- Freshwater pool: $18
- Well pump: $6
- Water softener: $8
- Saltwater pool: $30
- Additional wet bar refrigerator: $4
- Additional pool: $15
- Additional built-in wine cooler: $4
- 2nd additional refrigerator: $8
- 2nd additional built-in wine cooler: $7
- 2nd additional freestanding freezer: $7
- 2nd additional wet bar refrigerator: $7
2-10’s Home Warranty pricing falls within the normal industry range. If you’re willing to sign up for a high service fee and auto-renewal, you can pay even less. Add-ons are also much cheaper than competitor pricing. For example, septic system coverage at Liberty Home Guard is $12.99 a month and $7 a month with First American, but only $5 a month when added onto a 2-10 policy.
The $65 service fee is one of the cheapest out of all the options on this list, and even if you want to pay a higher fee in exchange for lower monthly premiums, their service fee options don’t go above $100 a service request. After signing up, you’ll have 30 days to cancel and, as long as you haven’t filed a claim, receive a full refund. If you have any questions about 2-10’s policies, they make a sample contract available to download online.
After applying for a quote online and giving 2-10 some basic information, you can add and subtract coverage options to land on a monthly cost that fits your budget. Unfortunately, you have to give them your contact information to get many details, and they immediately begin calling, emailing, and texting.
Like most home warranty providers, you’ll wait 30 days for coverage to begin after you buy your policy. While the company says that they’ll find a service technician within 48 hours after you place a claim, they don’t guarantee when you’ll receive service. Once they’ve found someone, the technician contacts you to make an appointment directly instead of going through the company.
Some customers report waiting a long time for the repair.
2-10 Home Warranty has forty years of experience in the home warranty industry, during which they’ve built a strong network and deep expertise. They have an excellent A rating with the Better Business Bureau, though some customers have left poor reviews. Positive reviewers were happy that, if they had to find and pay a service technician to come out on the weekend, 2-10 reimbursed them quickly. Other positive comments mention fast, professional service.
However, service does depend on the local network, and complaints say that it took over a month to receive service or to resolve a claim. Other negative reviewers said that technicians had to come out multiple times before they completed the repair. After you buy a policy, some people say that it’s hard to reach customer service.
Customer experience with a home warranty provider always depends somewhat on their local service network. Ask a few neighbors with a 2-10 policy what their experience has been with the local network before you buy a policy.
| Rating Site | Rating | Number of Reviews |
| BBB | A, 1.28 / 5 stars | 374 |
| Trustpilot | 2.1, / 5 stars | 10 |
| 4.2 / 5 stars | 7,180 |
Editor’s Note: The ratings provided were accurate at the time of writing.
Homeowners with a 2-10 policy can either call or place claims online 24/7/365 days a year. However, 2-10 has an odd wrinkle in its claims process. While everyone else on this list has their policyholders pay the service fee to them, with 2-10, homeowners pay the technician that the company sends out to their house.
The technician, who 2-10 assigns within 48 hours of placing a service request, also contacts you directly to make the appointment. Some homeowners may appreciate being able to pick a time that works for their schedule; others may find it an unnecessary step.
However you feel about making the appointment directly, be aware that service calls only happen within normal business hours. After-hours or weekend requests will only receive service if you’re willing to pay overtime or additional fees. The only time 2-10 only responds after-hours and for the regular service fee if it’s an emergency.
They define an emergency as when the home has no electricity, gas, or water when the toilet isn’t working, or during a condition that endangers someone’s health and safety. In these instances, 2-10 tries to get someone out within 24 hours, and some online reviewers confirm that 2-10 stuck to this service commitment.
2-10 has a full sample contract available online, reasonable and normal exclusions within their contract, and a website with comprehensive FAQs.
Exclusions
All of 2-10’s plans have the following exclusions:
- Failure to perform routine maintenance
- Home appliances not located in the primary kitchen, excluding the washer and dryer
- Collapsed ductwork
- Commercial-grade or professional equipment
- Corrections of building, fire, and zoning violations
- Damage due to fire or freezing
- Duplicate appliances, unless add-ons are purchased
- Hazardous materials, such as asbestos
- Matching features of current systems that are not directly related to the primary function of that system or appliance
- Repair of cosmetic defects
While 2-10 generously covers many preexisting conditions, a failure to perform routine maintenance could exclude an appliance or system from coverage. Ask the seller if they can provide you with any records at closing, and keep good maintenance records after you’ve moved in.
Editor’s Note: While this article highlights certain exclusions, readers should review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
If 2-10 is your home warranty provider, you can only choose your technician under certain conditions. 2-10 only extended flexibility in your service provider if they have no local technicians nearby. After you find a licensed, insured technician, they must agree to work with 2-10 for payment. You could also be responsible for any difference in price between the person you find and someone in their network.
First American Home Warranty
4.3
Our Rating
First American has generous coverage limits — even expensive repairs and replacements won’t cost you much. Coverage caps for appliances are up to $3,500, and if you buy the Premium Plan add-on, they rise to $7,000 for your washer, dryer, refrigerator, or other appliances. If you were lucky enough to buy a house with newer or professional-grade appliances, these limits will keep you protected.
Items in good working order from the day you buy your policy, unknown defects not detectable through visual inspection, or problems due to a lack of maintenance, rust, corrosion, or chemical or sedimentary build-up all have coverage under First American’s policy. Preexisting conditions and problems left by the previous homeowner won’t become your problem.
For the budget-conscious home warranty shopper, First American has reasonable pricing. Monthly premiums range from $57 to $97, and they give you three choices for service fees. You can either pay less monthly and pay more when you need service or vice versa.
Their generous policy regarding preexisting conditions, combined with generous coverage limits, means you can sleep well at night. The low coverage caps at other companies like Liberty Home Guard could stick you with an inferior replacement item if you bought a high-end appliance that needed replacing and you couldn’t afford to make up the difference. In the same situation, you’d be safe with First American. The company covers up to $3,500 for an appliance, and if you buy the Premium Plan, limits increase to $7,000 for most major appliances.
First American could do a better job educating homeowners about their plans on their website. Until you apply for a quote — and give them your contact info — you can’t read a sample contract or find out about coverage limits, exclusions, or fees. If you’re trying to comparison shop, this isn’t ideal.
Once you give them your contact information, prepare for endless calls, texts, and emails. They lose points on customer experience for their relentless attempts to sell a plan.
First American also doesn’t give homeowners any options to pick their own service technician. So uou will not be able to call your neighbor’s favorite plumber and instead have to go with whoever First American has in network. This is even more worrisome since some online reviews mention poor experiences with the technicians First American sent to them.
Most home warranty companies divide plans by either appliances or systems, so the split between plans in First American is odd to me. First American’s Starter and Essential plans cover up to $3,500 of the repair or replacement of a dishwasher, refrigerator, built-in microwave oven, oven, range, cooktop, and kitchen range hood. The Essential Plan increases coverage to include a washer, dryer, and trash compactor with the same $3,500 limit.
However, First American’s cheapest plan does protect your dishwasher, refrigerator, kitchen range hood, built-in microwave oven, oven/range/cooktop, plumbing, plumbing stoppages, toilet tanks, bowls, mechanisms, electrical system, ductwork, heating, and refrigerant. This is broader coverage than many competitors offer in their cheapest plan.
The Essential Plan adds your water heater, washer, dryer, trash compactor, fans (attic, exhaust, ceiling, whole-house), garage door opener, air conditioning, and a mini-split ductless system to the coverage under the Starter Plan. First American is the only home warranty provider that covers a mini-split system. If you bought an older home and it’s too expensive to add ductwork, a mini-split might one day make air conditioning possible, and you’ll want this coverage.
The coverage cap increases to $7,000 for appliances with the Premium Plan, and coverage expands to include hose bibbs, a ground-level cleanout, an instant hot water dispenser, a shower head, a shower arm, garage door springs, hinges, transmitters, central vacuum system, registers, grills, filters, and window A/C units. I haven’t seen A/C window units covered on any other plan, another great perk if you bought an older home without central air conditioning.
With three options for service fees, you can adjust your monthly costs to fit your budget. A higher fee equals lower monthly premiums.
First American helps pay for permits and code violations, concrete encasement, HVAC lifting equipment, improper installations/modifications, and refrigerant recapture, reclaim, and disposal, with two of their plans, too.
| Plan | Monthly Cost | Service Fee* | Available Discounts |
| Starter Plan | $57, $62, $72 | $75, $100, $125 | None on website |
| Essential Plan | $67, $72, $82 | $75, $100, $125 | Spring sale: $200 off |
| Premium Plan | $82, $87, $97 | $75, $100, $125 | None on website |
*If you choose the lower service fee of $75, you pay the higher monthly premium. For example, the $97 with the Platinum Plan pairs with the $75 service fee.
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Seattle, WA. The cost data presented was accurate at the time of writing.
Available Add-Ons
Some of First American’s add-ons come with more expensive plans, while others you can add to more basic plans for an extra charge. Among the optional coverages are:
- Pool/spa equipment: $21/month
- Well pump: $7/month
- Additional refrigeration: $4/month
- Limited roof leak: $8/month
- Septic tank pumping/system: $7/month
- Water softener/reverse osmosis system: $7/month
- HVAC tune-up: $2/month
First American gives homeowners flexibility in their pricing and service fees. While their add-ons list may be small, it’s mighty in terms of pricing. Add-ons cost from $2 to $21 a month and often cost less than competitors.
Their cheapest plan option is only $57 a month, and their most expensive is $97. The service fee you choose, whether it’s $75, $100, or $125 for a service call, influences monthly pricing. A lower service fee increases your monthly premiums,and vice versa. For example, a $125 service fee with the Essential Plan means that it will cost $67 a month, but a $75 fee increases its pricing to $82 a month.
If you’re unhappy or regret paying for a home warranty, you can cancel early for a prorated refund and a $50 cancellation fee.
After you buy a policy with First American, it takes 30 days for coverage to begin. They give prorated refunds if you cancel and charge a cancellation fee. Fees for service requests can be lower than those of competitors, depending on what you pick when you sign up.
There aren’t any red flags in the pricing and experience of applying for a quote, but the company loses points for constantly calling, texting, and emailing after you apply for a quote. They’re very eager to win your business.
While Liberty Home Guard guarantees its technician’s work for 60 days, First American’s guarantee is only 30 days, which is barely enough time for an item to break down again. Homeowners with older appliances who reviewed the company online have complained often about repeat service calls that fell just outside the 30-day window. If a dishwasher starts leaking again 31 days after a repair, you’ll pay another service fee to have someone come out and look at it.
First American’s ratings are higher on some sites than others. On Trustpilot, they have 4.2 out of 5 stars, but on the Better Business Bureau, they’ve only received 1.74 out of 5 stars. Positive reviewers were happy with the skills and professionalism of the technicians. Even if the technician had to go order a part and come back later, the repair was done in a week
However, other reviewers were unhappy that First American didn’t have technicians close to their homes, and they had to wait weeks for service. At times, they had to arrange for service on their own and apply to get reimbursed. Low payouts for replacement items and repairs just outside the 30-day window for the workmanship guarantee also came up.
I think it’s fair to say that customer experience with First American varies widely based on the network of service technicians in the area. Before buying a policy, I’d advise homeowners to ask friends about anyone who has recent, local experience with service claims through First American.
| Rating Site | Rating | Number of Reviews |
| BBB | B, 1.74 / 5 stars | 1,823 |
| Trustpilot | 4.2 / 5 stars | 14,464 |
| 2.9 / 5 stars | 2,779 |
Editor’s Note: The ratings provided were accurate at the time of writing.
While it’s easy to place a claim online or over the phone, you could wait a few days or weeks for service. First, the company checks that your item has coverage, and then they’ll schedule a service call. You have to pay the service fee in full before they’ll send details about your service technician, which could be a problem if you’ve had an issue with a local contractor in their network.
After First American approves your service request, you’ll be waiting for the service provider to contact you to schedule an appointment directly. This could be both good and bad: you don’t know when they’ll call or have availability for an appointment, but you’re also not at the mercy of First American’s scheduling department.
First American’s contract clearly says that services will commence within 48 hours of filing a claim. That only means First American will have started calling technicians; it doesn’t mean that the service technician will have performed the service. If you have an urgent repair, this could be an issue.
On their website, First American’s sample contract is only available online after you apply for a quote, and other information is quite basic. However, if you’re a first-time buyer, it’s a big plus that they cover unknown conditions, including rust, corrosion, sediment, and problems resulting from lack of maintenance. Unless you were lucky, the previous homeowners likely didn’t provide you with any maintenance records.
Exclusions
All of First American’s plans have the following exclusions:
- Crane rentals are needed to move appliances or systems
- Geothermal heating systems
- Haul-away services
- Light fixtures
- Code violations
- Appliances and systems not properly maintained
Editor’s Note: While this article highlights certain exclusions, readers should review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
First American won’t approve repairs on items that weren’t in safe working order the day you bought your policy, so make sure that you keep your home inspection and records of any repairs and maintenance. Some items in their policies have further exclusions in terms of parts and components. For example, within a heating unit they exclude filters, fuel storage tanks, and more.
If you buy a policy with First American, you won’t have any flexibility to choose a service provider. Unlike Liberty Home Guard, you can’t get pre-approval from your home warranty company and then call a technician you know to repair something. If the company sends out a local technician who previously screwed up a past repair or who was unprofessional at your house, you wouldn’t have a choice. Customers could only pick their own technician if First American didn’t have someone in-network nearby.
American Home Shield
4.3
Our Rating
If you want high coverage limits, many competitors force you to buy an add-on package. But not with American Home Shield. Their standard plans include some of the highest coverage limits in the business. You can get up to $4,000 of coverage for appliances, $5,000 for HVAC, and $1,000 of roof leak coverage with an AHS plan. What’s more, homeowners can pick a high service fee that leads to lower monthly premiums if they need to fit a policy into their budget.
Unfortunately, frequent complaints online about customer service and unqualified technicians somewhat offset the benefit of high coverage limits. Breakdowns that existed before you bought your policy or that you could have reasonably known about won’t have coverage under their plans. However, if you couldn’t see or discover it prior to the breakdown, it’s covered. Be forewarned that AHS may request a copy of your home inspection, proof of past repairs, receipts, or invoices before approving service.
Hands down, my favorite thing about American Home Shield is that they offer stellar heat pump coverage for under $10 per month. AHS has $5,000 coverage caps for HVAC systems on every plan — even the ShieldSilver plan ($7.49 a month). If your main priority is getting coverage for your heat pump and you don’t c
Go shopping on any Big Box home improvement retailer’s website, and you’ll quickly realize that $2,000 doesn’t get you a lot. Many home warranty companies cap their coverage at $2,000 an item, which might only pay for a basic replacement if your broken washer and dryer can’t be fixed. If you bought a policy with AHS, you’d have less of a concern.
AHS covers up to $4,000 for appliances and $5,000 for HVAC, versus coverage of $2,000 an item at Liberty Home Guard. What’s more, the company doesn’t ask for maintenance records when you place a service request. Normal wear and tear that resulted in a breakdown has coverage, which is great if you bought an older home.
If you can afford the most expensive plan AHS sells, the ShieldPlatinum plan, you’ll get the highest coverage limits and roof leak coverage of up to $1,000 per contract term. Plus, they pay for a free HVAC tune-up to keep your furnace in top shape. This could prevent more expensive fixes down the road. AHS lets you pick between a $100 or $125 service fee, which raises or lowers your monthly premiums.
are about the rest of the systems in your house, you won’t find a better deal than this anywhere else. Additionally, AHS has a policy that if they can’t repair an item, they’ll replace it, which essentially means there are no predetermined coverage limits for replacements. There’s still plenty of room for loopholes with this policy, but it’s nice to know that you have the leverage to request a free replacement if they can’t repair your heat pump.
While AHS brags about its large network of 17,4500 contractors and 4,500 service technicians, quantity doesn’t always equal quality. Online reviews mention that technicians didn’t have the necessary skills and couldn’t get the job done the first time they came out. Even though you can choose one or two service fees with American Home Shield, both are higher than some competitors. A service fee between $100 and $125 could become expensive if you end up paying multiple times for the same repair.
AHS’ shorter workmanship guarantee could become an issue in older homes with original systems and older appliances. Both older home systems and older appliances tend to break down more, but AHS only guarantees work for 30 days after a completed repair, meaning youl could pay twice for the same dishwasher breakdown. For comparison’s sake, Liberty Home Guard has a 60-day workmanship guarantee.
AHS’ customer service ranks lower, too, and it doesn’t have great ratings online. I’ve had variable experiences when calling for quotes; representatives either get pushy when trying to sell or can’t answer all my questions.
AHS sells three plans that cover either your appliances, systems, or both, with monthly pricing that ranges from $29.99 to $89.99.
Their first plan, ShieldSilver, costs $29.99 or $39.99 a month and protects home systems such as heating, air conditioning, plumbing, and electrical systems. If you bought new appliances with manufacturer’s warranties or service plans when you moved in, then systems coverage could protect the rest of your new home.
If you do need some appliance coverage, the ShieldGold Plan adds kitchen and laundry appliances to ShieldSilver’s plan. Unlike many competitors, AHS doesn’t sell any plans that only cover appliances. The most expensive plan, ShieldPlatinum, only adds on roof coverage and a free HVAC tune-up to ShieldPlatinum’s coverage.
However, with the ShieldPlatinum plan AHS will pay for $250 of the costs to fix a code violation, pull a permit, or otherwise modify your home. If you bought an older home, your home inspector might have told you that the city grandfathered in items not up to code, but once it needs a repair, it could have to be made code-compliant.
Coverage limits for HVAC are $5,000 per system on every plan, but appliances have different coverage depending on your plan. With the ShieldGold plan, you’ll have coverage up to $2,000, but this coverage increases to $4,000 if you pay for the ShieldPlatinum plan. That’s where ShieldPlatinum has its value, not in additional covered items, but increased coverage limits.
If you’re on a strict monthly budget, you have the option to choose a higher service fee to lower your monthly fees. Selecting the $125 fee on the ShieldPlatinum plan lowers the monthly premiums from $89.99 to $79.99.
| Plan | Monthly Cost | Service Fee* | Available Discounts |
| ShieldSilver | $39.99 – $29.99 | $100 – $125* | No current discount |
| ShieldGold | $59.99 – $49.99 | $100 – $125* | 40% off on the website |
| ShieldPlatinum | $89.99 – $79.99 | $100 – $125* | No current discount |
*If you choose the lower service fee of $100, you pay the higher monthly premium. For example, the $89.99 with the Platinum Plan pairs with the $100 service fee.
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Charleston, West Virginia. The cost data presented was accurate at the time of writing.
Available Add-Ons
American Home Shield only gives homeowners six add-ons to choose from, which are:
- Roof leak repair: $10/month
- Electronics protection plan: $14/month
- Pool & built-in-spa equipment: $24/month
- Guest unit: $26.99/month
- Septic pump: $5/month
- Well pump: $8/month
American Home Shield has higher monthly premiums and coverage caps than many competitors. A similar plan might cost $15 less with competitors, depending on their discounts, but you’d also get lower coverage limits. AHS does give you fewer options for a service fee than competitors like 2-10 or First American, but if you need service at night or on the weekends, you won’t pay more.
Some competitors either don’t make coverage available in-network after business hours or charge a higher service fee. Coverage limits are per term and reset annually. If your HVAC needs a $4,500 repair the second month you have your policy and a $3,000 repair six months later, AHS only covers $500 of that second repair.
If you go to American Home Shield’s website, you can get a quote within minutes. Add and subtract coverage options to see how they’d impact your final monthly cost. Customer service varies over the phone, sometimes helpful and sometimes a little pushy.
Customer service representatives often struggle to answer questions that don’t come from a script. They don’t ask why you’re calling, or what you’re looking for in coverage. Sometimes they’re pushy and want you to sign up immediately, and if you don’t purchase a policy when you first contact them, they’ll buy you for months.
If you decide to buy one of their policies, I recommend getting a quote online before calling. When I applied online, the website offered me a 40% off ShieldGold discount. However, when I called, two representatives tried to charge me full price until I told them I’d seen it online.
Unfortunately, many customers online mention difficulties with customer service. Despite a decent Better Business Bureau rating of B, many complaints say that they had a hard time communicating with customer service, particularly when they called to cancel. Others have had issues finding qualified technicians in their area.
American Home Shield’s ratings are all over the board, a 2.1 out of 5 stars on Trustpilot but 4.5 out of 5 stars on Google. Some reviewers thought that AHS denied claims that they thought had coverage because of lack of maintenance. However, AHS’ contract doesn’t say that they’ll exclude coverage because of a lack of maintenance records.
AHS did replace refrigerators, air conditioning units, and clothes dryers for some homeowners who were happy with their service.
| Rating Site | Rating | Number of Reviews |
| BBB | B2.1 / 5 stars | 10,738 |
| Trustpilot | 2.1 / 5 stars | 5,446 |
| 4.5 / 5 stars | 33,553 | |
| Yelp | 1.1 / 5 stars | 1,300 |
Editor’s Note: The ratings provided were accurate at the time of writing.
American Home Shield has a looser guarantee for claims service. While they will set up a service appointment within 24 to 48 hours, they don’t say anything about when the technician will be at your house. In contract, Liberty Home Guard promises a 24 to 48-hour turnaround on claims, or you can call for someone on your own.
This lowers AHS’ score for its claims process, particularly since many customers weren’t happy with how fast someone was able to get to their house for the repair. Some customers waited weeks for an item to get fixed. Other reviews mention having to call multiple times to get service and that more than one service technician came to their house before the repair was complete.
To file a claim you can do it online or over the phone. After a completed repair, their workmanship guarantee covers you for the next 30 days. If the same item breaks down during this time, you don’t have to pay a second service fee.
You can read through American Home Shield’s contract online if you’re worried about a certain item or appliance in your home. It’s easy to find their exclusions before you buy a policy. They cover unknown preexisting conditions, so as long as an issue didn’t appear on your home inspection, you’re good.
Exclusions
American Home Shield has a standard list of exclusions that gives the company a lot of wiggle room for denying claims.
- Construction or carpentry costs
- Restoration of walls
- Flues, chimneys, venting, and exhaust lines
- Repairs or replacements due to cosmetic defects
- Repairs due to mold
- Appliances not covered under the ShieldSilver plan
- Natural disasters
Editor’s Note: While this article highlights certain exclusions, it’s imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
With AHS, homeowners don’t have many options when choosing a service provider. Even if you’d like to use a recommended technician, AHS doesn’t let you select a service provider. The only time you can pick your own technician is when there isn’t a qualified technician in your area to perform the repair.
Liberty Home Guard
4.6
Our Rating
Liberty Home Guard has an excellent reputation in the industry, with extremely high online ratings and positive reviews. They operate with a high level of transparency: calling before they renew a policy, providing a sample contract online, and taking the time to answer any questions when you call. If you’re a nervous first-time homebuyer, they’ll hold your hand through the nerve-wracking first year.
As long as it was working when you bought the house and you kept your home inspection, your broken hot water heater has coverage under Liberty Home Guard. The company does exclude preexisting conditions, but they do have flexibility if the issue wasn’t found during the inspection. However, they could request a copy of the home inspection report before approving the claim.
If you’ve bought any new appliances or replaced any major systems, Liberty could also ask for purchase and installation records. They want to verify that the company installing your new item had the proper qualifications, which is yet another reason to reconsider a do-it-yourself project.
Between coverage options and great customer service, they’re an excellent choice for a home warranty provider.
Do you want it all? Or at least coverage for it all? Liberty Home Guard sells 42 options for additional coverage, the most add-ons of any competitor. If you don’t care about monthly premiums and want coverage for everything, they’re your home warranty provider. This is particularly helpful if you bought a home with a basement freezer or central vacuum, items that most policies don’t cover in standard plans.
Liberty says that they’ll respond within 24 to 48 hours of when you place a claim. That means a service technician could arrive at your house before the extra food in your basement freezer goes bad. If they can’t get a service technician out to your home within their promised turnaround time (or if you have an existing relationship with a provider), you can set up a service call with a licensed and insured company yourself.
I love that Liberty Home Guard has an app, which is rare in the business. Not only can you place service requests on the app, if you’re waiting for someone to arrive to fix the broken dishwasher, their app shows the technician’s progress.
Despite Liberty’s customers’ positive online reviews, the Better Business Bureau recently changed its rating to “Not Rated.” They did this after noticing a pattern of complaints regarding the claims process and sales tactics. However, when Today’s Homeowner reached out, Liberty responded promptly and politely to our request for more information.
Also, you might not need all that extra coverage, and it could be overwhelming trying to decide what to add to your policy. Monthly fees for add-ons can be higher than those of competitors, too. Pool and spa coverage costs $1.99 a month less with American Home Shield than with Liberty. That may not sound like a lot, but it adds up to $23.88 a year. Since there’s no guarantee you’ll use that extra coverage, you could end up overpaying for your policy.
Higher service fees could also price Liberty off your list of potential home warranty companies. Their standard $125 fee per service call is quite high when compared to $75 to $100 with competitors. Coverage caps of just $2,000 per covered item mean that you should probably have some savings left for potentially expensive repairs, too.
Liberty sells three plans and has a massive list of add-ons, the most of any home warranty provider on this list. Their plans have a 30-day waiting period before coverage begins. Coverage limits are just $2,000 per covered item on every plan.
The Systems Guard plan covers all major home systems like air conditioning, heating, plumbing, electrical, and water heaters. If you bought new appliances at the same time you purchased your house, and they have warranties, this plan rounds out your coverage.
Appliance Guard protects your clothes washer and dryer, refrigerator, range, oven, cooktop, dishwasher, and built-in microwave oven. It also includes stuff that you might not think of as appliances — like your garbage disposal, garage door opener, and ceiling and exhaust fans. Liberty’s most expensive plan, Total Home Guard, combines the lower-tier coverage into one comprehensive plan.
While many home warranty plans give you options, Liberty Home Guard is one of the few that lets you pay monthly instead of the entire year up-front. However, if you can afford to pay for a year at once, they give you two months free. Liberty charges a $125 service fee per request, which is higher than competitors. However, when I talked to a representative, he offered to reduce it to $85 if I signed up that day.
| Plan | Monthly Cost | Service Fee | Available Discounts |
| Appliance Guard | $49.99 | $125 | One year paid in advance $499.99 (2 months free) |
| Systems Guard | $54.99 | $125 | One year paid in advance $549.99 (2 months free) |
| Total Home Guard | $59.99 | $125 | One year paid in advance $599.99 (2 months free) online, $575 (2 months free) over the phone |
Editor’s Note: The cost data mentioned in this article was sourced for a single-family, two-bedroom home under 5,000 square feet in Buffalo, NY. The cost data presented was accurate at the time of writing.
Available Add-Ons
Homeowners can pick from 42 options for additional coverage with Liberty Home Guard. Options include:
- Pool and spa: $19.99/month
- Additional spa: $9.99/month
- Lawn sprinkler system: $9.99/month
- Saltwater pool: $23.99/month
- Generator: $19.99/month
- Casita guest unit: $35.99/month
- Sump pump: $8.99/month
- Well pump: $12.99/month
- Septic system pumping: $12.99/month
- Ejector pump: $14.99/month
- Grinder pump: $14.99/month
- Limited roof leak: $11.99/month
- Re-Key: $9.99/month
- Gutter cleaning: $14.99/month
- Pest control: $14.99/month
- Carpet cleaning: $19.99/month
- Window washing/cleaning: $19.99/month
- Power washing (exterior flooring): $19.99/month
- Central vacuum: $8.99/month
- Stand-alone freezer: $5.99/month
- Water softener: $13.99/month
- Swamp cooler: $14.99/month
- Second refrigerator: $7.99/month
- Trash compactor: $7.49/month
- Ice maker (in-fridge): $3.99/month
- Freestanding ice maker: $14.99/month
- Wine cooler/fridge: $11,99/month
- Water dispenser water line: $4.99/month
- Instant hot water dispenser: $9.99/month
- Reverse osmosis water filter system: $14.99/month
- Lighting fixtures: $7.99/month
- Plumbing fixtures: $7.99/month
- Electronics protection: $19.99/month
- TV mounting (up to 65-inch TVs): $14.99/month
- TV mounting (up to 85-inch TVs): $19.99/month
- Pro-Series Refrigerator: $14.99/month
- Pro-Series Stand Alone Freezer: $14.99/month
- Pro-Series Range/Oven/Cooktop: $12.99/month
- Pro-Series Dishwasher: $7.99/month
- Pro-Series Microwave: $4.99/month
- Pro-Series Washing Machine: $4.99/month
- Pro-Series Clothes Dryer: $4.99/month
Suppose you need coverage for an item that you don’t see included in their plans or sold as an add-on. In that case, Liberty suggests that you contact them with the make and model of the item you want to be covered and promises to try to provide you with specialized coverage.
If you can’t choose from the list of add-ons to those you might find most useful, Liberty helps you make the decision. After you apply for a quote, the website will show you the most popular options in your zip code. It’s helpful to see what other homeowners near you thought they needed to add on when deciding what you need.
Liberty has a higher service fee and charges a cancellation fee if you want to discontinue service, both of which cost them some points on affordability. Unless you’re lucky enough to get a discount, you’ll pay a $125 fee per service call, higher than American Home Shield and AFC Home Club.
While you can cancel at any time, you’ll only receive a prorated refund and have to pay a $50 cancellation fee. Additional coverage options cost more than competitor’s options, too. Select Home Warranty only charges $3.33 a month for a sump pump; Liberty charges $8.99 a month extra. It doesn’t sound like much, but it adds up to $67.92 a year more.
Regular plan pricing falls within the normal range for home warranties. And if the customer service representative offers a lower service fee, you could pay less overall. To get the best deals, pick up the phone instead of buying a plan online.
If you’re curious about pricing or how add-ons could impact your monthly fees, it’s easy to apply for a quote online with Liberty. After inputting a few personal details, they give you local pricing. You can add coverage, then subtract it, playing around with options to compare your eventual payments.
When I’ve called, customer service representatives have always been pleasant and no-pressure. They’ll ask why you’re shopping for a home warranty, answer questions easily, and explore the best plan for your home. But if you prefer to handle things online, you can find a sample contract to explore.
I really like that they’ll call and check if you want to renew 60 days before your policy expires rather than auto-renewing. This gives you the chance to adjust coverage if, for example, you didn’t use coverage for an add-on. It also means that you won’t receive surprise charges to your credit card.
Liberty does lose points for its multiple points of contact after you apply for a free quote. They call, text, and email for weeks unless you unsubscribe.
Liberty Home Guard has fantastic customer reviews, though the Better Business Bureau recently changed their rating to “Not Rated.” The BBB indicated that there has been a pattern of increasing complaints. The company has only been in business since 2017, so more complaints could be partially from growth and length of time in business.
Customers praise Liberty Home Guard’s customer service and claims resolution, and many mention helpful technicians who went above and beyond. They also say that urgent repairs had a quick and expedited claims process, which is just what you want if your basement freezer goes on the fritz after a big grocery trip.
Even though online reviews indicate that it might be rare if a service technician’s work isn’t great, Liberty guarantees all workmanship for 60 days. If an earlier repair breaks down again within that 60 days, you won’t pay two service fees.
There are many options in the home warranty industry, so it’s worth noting that some reviewers had been with a competitor home warranty company in the past and were much happier with Liberty’s service.
| Rating Site | Rating | Number of Reviews |
| BBB | NR4.45/ 5 stars | 2,567 |
| Trustpilot | 4.7 / 5 stars | 3,156 |
| 4.7 / 5 stars | 12,122 | |
| Yelp | 1.3 / 5 stars | 86 |
Editor’s Note: The ratings provided were accurate at the time of writing.
*Note (as of 7/31/24): Recently, the Better Business Bureau shifted LHG’s A+ rating to “NR” (Not Rated). We reached out to a representative from LHG for comment, and they shared this statement: “Despite the BBB’s alert, our customer satisfaction levels remain by far the highest relative to our scale. Last month, we had the lowest percentage of customer cancellation requests in our entire history. On the BBB’s own platform, Liberty Home Guard has achieved a star rating of 4.5 out of 5 from nearly 2,500 reviews. For added context, the approximately 480 resolved complaints on Liberty Home Guard’s BBB profile equate to an extremely low fraction of a percentage relative to the size and scale of our total customer base. As we navigate this situation, which we believe will be resolved in time, we want to assure you that we remain committed to our customers and their satisfaction; they are the key stakeholders we orient all our efforts around.”
Liberty’s customers leave positive online reviews when they mention the claims process. They’re often grateful that service technicians were friendly and professional. Customer service over the phone also received high praise.
If you have a policy with Liberty, you can file claims 24/7/365 over the phone, online, or through the app. On the app, you can see what’s happening with your claim and track the technician’s progress to your house, which is amazing visibility even if you’re sitting in the dark waiting for them to arrive.
Fees that stay the same, day, night, or weekend, also boost Liberty’s score. Whereas some competitors raise their service fee at night or on the weekends or don’t even have in-network service available, Liberty’s fee is always the same. The company’s recent announcement of a partnership with Progressive Insurance increased its technician network to allow it to continue to respond quickly to claims.
When you’ve just a home, you’re walking into an unknown history. You have no idea how often the previous homeowner had maintenance done or if they took care of their appliances, and sometimes, you might not know the age of some items.
Liberty’s coverage extends to anything you couldn’t have reasonably known about when you closed on the house, problems that weren’t visible, and items not found on a home inspection. They also don’t exclude items like a refrigerator based on age.
If you’re worried about what might be hiding in the fine print in Liberty’s contracts, they have a sample contract online where you can explore coverage. Their website clearly explains every plan, and its FAQs answer most basic questions.
Exclusions
Exclusions are common in home warranty contracts. If a contract lists an item or a reason for a breakdown within its exclusions list, the home warranty company won’t pay for the repair. Liberty Home Guard’s plans exclusions include:
- Flues, vents, chimneys, and exhaust lines
- Electronics, computerized, “smart,” or Internet/enabled components and parts
- Filters associated with any covered items
- Remote receiving and transmitting devices
- Radon and other leak detection monitoring systems
- Fire sprinkler systems
- Lighting
- Solar systems and applications
- Cosmetic defects
- Disposal of appliances, systems, or components
- Cranes or other specialty vehicles required to install, remove, or access your appliances or home systems
- Glass parts
- Noise
Editor’s Note: While this article highlights certain exclusions, it’s imperative for readers to review their contracts as the mentioned exclusions are not exhaustive, and additional exclusions may apply.
Did your new neighbor recommend a great local plumber? If you’d like to pick your own service provider, Liberty Home Guard gives you that option. As long as the provider is licensed and insured, Liberty lets you pick your provider, so we gave them a 10/10 in this category. All you have to do is call and check their qualifications with Liberty Home Guard before you make an appointment.
Calculate the Cost of a Home Warranty for First Time Buyers
Use our home warranty cost calculator to help determine your annual cost for a new home warranty plan. Just type in your monthly premium, the number of service visits you expect in a year, and the service call fee, then the tool will output your complete yearly cost.
| Appliance | Average Repair Cost | Average Replacement Cost |
|---|---|---|
| Dehumidifier | $50–$200 | $1,300–$2,800 |
| Microwave | $50–$400 | $60–$2,000 |
| Dishwasher | $50–$500 | $400–$3,000 |
| Exhaust Fans | $16–$300 | $250–$950 |
| Electric Range | $100–$500 | $230–$3,000 |
| Gas Range | $100–$500 | $230–$3,000 |
| Dryer | $100–$400 | $450–$2,300 |
| Oven | $100–$430 | $400–$3,000 |
| Washer | $50–$450 | $400–$2,300 |
| Freezer | $90–$500 | $160–$2,900 |
| Refrigerator | $40–$350 | $200–$5,000 |
Frequently Asked Questions
Do You Need a Home Warranty if You’re a First-Time Buyer?
Owning a home for the first time can be completely overwhelming. When something breaks, you might not know who to call and could worry about the repair’s cost. With a home warranty, you know what you’ll pay for a service fee, and the company vetted the service technicians on your behalf.
How Much Does a Home Warranty Cost for First-Time Buyers?
The average cost of a home warranty for first-time homebuyers is $76.44. With some providers, your price will vary depending on the number of add-ons you select and if you pick a higher or lower service fee.
How To Save Money When Shopping for Home Warranties for First-Time Buyers?
When you’re pricing out home warranties, look at the overall cost. Do you really need that add-on for the pool if the home inspection was good and it’s brand new? Could you save money on your monthly premiums by paying a higher service fee when you do need to file a claim? By carefully considering your home’s needs and optional coverage, you can ultimately save money.
Is a Home Warranty Worth It for First-Time Buyers?
A home warranty is worth it for first-time buyers because it takes the guesswork out of finding qualified technicians for repairs, ensures you’re paying a fair price, and saves you money. Home warranties can be cost-effective and worth it if you’re on a budget, particularly right after buying a home.
Other Warranty Resources for Homeowners
- Best Home Warranty Companies
- Best Home Warranty Companies for Seniors
- Best Home Warranty for Garage Doors
- Best Home Warranty Companies for Heat Pumps
- Best Sewer Line Warranty
- Best Home Warranty Companies for a Rental Property
- Best Home Warranty Companies for Electrical Systems
- Best Home Warranty Companies for Pre-Existing Conditions
- Best Home Warranties With No Deductible
- Best Home Warranty Companies for Luxury Homes
- Best Pool Warranty Companies
- Best Home Warranty Companies for Duplexes
- Best Home Warranty Companies for HVAC Coverage
- Best Home Warranty Companies for Plumbing
- Best Home Warranty for Sellers
- Best Home Warranty Companies for Septic Warranty
- Best Home Warranty Companies for Roof Coverage
- Best Home Warranty Companies for High-End Appliances
- Best Home Warranty Companies for Plumbing
- Best Options for a Dishwasher Warranty
