The Best Home Warranties for Rental Properties 2022

Are you a property owner looking to protect your real estate? Read our review to learn more about the best home warranty coverage for rental properties. | Photo Credit: Adobe Stock

While traditionally thought of as a benefit to homeowners, a home warranty can also be useful for landlords. There are a number of reasons why a home warranty is beneficial to landlords, from providing protection against system and appliance breakdowns to making it easy to schedule an appointment with a vetted and insured technician.

To help you find a comprehensive home warranty plan, we reviewed the best home warranty companies on factors such as coverage plans, pricing and customer reviews. Additionally, to ensure the quoting process was consistent across all providers, we received estimates using the same address for a three-bedroom home in Chapel Hill, North Carolina, with a ZIP code of 27516.

In This Article: 

1. Best Overall: American Home Shield

2. Most Customizable Plan Options: AFC Home Club

3. Best for Value Shoppers: Select Home Warranty

4. Most Comprehensive Claim Coverage: First American Home Warranty

Today’s Homeowner works with an independent reviews team to create evidence-based research that helps our readers make informed decisions. The reviews are always independent. For transparency, we may be compensated if you purchase through a link.

ProviderAverage Monthly CostService FeeBetter Business Bureau (BBB) RatingLearn More
American Home Shield$30–$55$75–$125Bahs.com
Cinch Home Services$35–$62$100–$150Bcinchhomeservices.com
Select Home Warranty$36–$38$60–$75Bselecthomewarranty.com
Liberty Home Guard$40–$60$60Alibertyhomeguard.com
America’s First Choice Home Club$40–$53$75–$125Bafchomeclub.com
2-10 Home Buyers Warranty$22–$60$65–$100B2-10.com
First American Home Warranty$36–$38$75Bhomewarranty.firstam.com
ServicePlus Home Warranty$29–$35$75N/Aserviceplus.com

#1 Best Overall: American Home Shield

American Home Shield (AHS) has been a trusted home warranty provider for more than 50 years, helping homeowners and landlords save money when their essential systems and appliances break due to normal wear and tear. This provider is available in 49 states (all except Alaska) and can process claims online or by phone.

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American Home Shield offers a variety of plans, giving landlords the choice of covering the items they need to protect the most. Additionally, if your rental unit is less than 750 square feet and on the same property as your primary residence, it can be covered under the provider’s Guest Unit add-on.

An American Home Shield plan also prevents you from having to be in your property’s area to schedule service, as the provider will send a trusted local technician to resolve the issue.

Plan & Cost Breakdown

American Home Shield offers three different plan options: ShieldSilver, ShieldGold and ShieldPlatinum. Take a look at the details and cost of each coverage option below.

CoverageShieldSilverShieldGoldShieldPlatinum
Monthly Cost$24.83–$39.83$34.83–$49.83$54.83–$69.83
Roof-leak repairs  
Air conditioner
Heating unit
Ductwork
Built-in exhaust, vent and attic fans
Main breaker and fuse panel box
Doorbells and chimes
Interior electrical lines
Ceiling fans
Garage door openers
Interior plumbing lines
Toilets
Faucets and valves
Whirlpool tub motor and components
Water heater
Refrigerator 
Range/Cooktop 
Oven 
Dishwasher 
Built-in microwave 
Garbage disposal 
Instant hot/cold water dispenser 
Clothes washer 
Clothes dryer 

AHS offers property owners a selection of optional add-ons, which are listed below:

  • Electronics protection plan
  • Pool or spa
  • Guest unit less than 750 square feet
  • Septic pump
  • Well pump

While American Home Shield offers a variety of affordable plans, the cost of your specific coverage will vary depending on your location and selected add-ons. For example, the cost of coverage may be more expensive if you select the ShieldPlatinum plan, add on coverage for a well pump and live in Atlanta, Georgia, than it would be if you chose the ShieldSilver plan and live in Chapel Hill, North Carolina.

Additionally, your monthly plan rate will change based on the service call fee you select, with a lower service fee increasing your monthly payment and a higher service fee decreasing it.

If you’re interested in an American Home Shield plan for your rental property, fill out this quick form or contact a representative at 844-529-9298.


#2 Most Customizable Plan Options: America’s 1st Choice Home Club

America 1st Choice Home Club is available in 48 states, excluding California and Hawaii, and has some of the most customizable coverage, allowing you to protect only the systems and appliances you need. It offers four plans, one that protects systems, one that protects appliances and two combination plans, and it has a flexible service call fee structure that allows you to choose a deductible that fits within your budget.

 

An added benefit for rental property owners is that America’s 1st Choice Home Club guarantees parts and labor for the life of your membership. Additionally, the provider offers 24/7 customer service to ensure that your issue is tended to in a timely manner.

Plan & Cost Breakdown

America’s 1st Choice Home Club offers four different plan options: Systems Plan, Silver Plan, Gold Plan and Platinum Plan. Take a look at each plan’s coverage details and cost below.

CoverageSystems PlanSilver PlanGold PlanPlatinum Plan
Monthly Cost$40.75–$45.50$33.58–$38.33$47.92–$52.75$52.75–$57.50
Air conditioning/cooler 
Heating system 
Water heater 
Electrical system 
Plumbing system 
Plumbing stoppages   
Ductwork 
Clothes dryer 
Clothes washer 
Kitchen refrigerator 
Oven 
Range 
Stove/Cooktop 
Dishwasher 
Garbage disposal 
Garage door opener 
Built-in microwave   
Ice maker   

America’s 1st Choice Home Club also offers a handful of additional coverage options, listed below:

  • Tankless water heater
  • In-ground pool
  • Stand-alone freezer
  • Sump pump
  • Double oven
  • Central vacuum
  • Ice maker
  • Hot water disposal
  • Septic system
  • Well pump
  • Built-in microwave

Your home warranty plan from America’s 1st Choice Home Club will vary in price based on a variety of factors, such as your location and service fee. For example, here’s a look at how the cost of a Platinum Plan fluctuates based on your selected service fee:

Service feeMonthly cost
$75$57.50
$100$55.08
$125$52.75

If you want to learn more about a plan from America’s 1st Choice Home Club, get a free quote by filling out this quick form or by calling 877-755-1115.


#3 Best for Value Shoppers: Select Home Warranty

Select Home Warranty is a great pick for property owners on a budget. The provider offers a variety of affordable plans that don’t sacrifice quality coverage for their price. Select Home Warranty is available in 46 states, excluding Nevada, New York, Washington and Wisconsin, and it’s currently offering new customers two months free when they purchase a 14-month plan.

 

Select Home Warranty offers protection plans for a variety of rental homes, including mobile homes, manufactured homes and condos. Additionally, the provider has one of the lowest service fees at $75, making it affordable to request a repair or replacement.

Plan & Cost Breakdown

Select Home Warranty offers three different plan options: Bronze Care, Gold Care and Platinum Care. Take a closer look at the provider’s affordable coverage options below.

CoverageBronze CareGold CarePlatinum Care
Monthly Cost$44.42$44.42$49.83
Air conditioning and cooling 
Heating system 
Plumbing system 
Electrical system 
Water heater 
Ductwork 
Plumbing stoppages  
Clothes washer 
Garbage disposal 
Refrigerator 
Stove/Oven 
Built-in microwave oven 
Cooktop 
Dishwasher 
Clothes dryer 
Garage door opener  
Ceiling fan  

Select Home Warranty also offers some additional coverage options, listed below:

  • Central vacuum
  • Lawn sprinkler system
  • Pool
  • Roof-leak coverage
  • Septic system
  • Spa
  • Stand-alone freezer
  • Sump pump
  • Well pump

The cost to protect your rental property with a Select Home Warranty plan varies based on your location and add-on coverage selected.

To learn more about coverage from Select Home Warranty, fill out this simple quote form or call a representative at 888-370-3956.


#4: Most Comprehensive Claim Coverage: First American Home Warranty

First American Home Warranty has proved to be a quality home warranty provider with its comprehensive claim coverage. The company doesn’t limit coverage on a system or appliance based on its age, which can help renters who manage older units.

 

First American allows its customers to make unlimited service requests and offers a recall period of 30 days on all of its plans. Additionally, the provider has some of the most unique add-ons in the industry, offering its First Class Upgrade to any customer. This coverage includes limited code updates, building permits, haul-away services and more.

Plan & Cost Breakdown

First American Home Warranty offers two different plan options: Basic Plan and Premier Plan. Take a look at the coverage and pricing for each plan.

CoverageBasic PlanPremier Plan
Monthly Cost$37$49.50
Garbage disposal
Dishwasher
Oven/Range
Cooktop
Microwave
Trash compactor
Refrigerator
Clothes washer and dryer
Plumbing system
Plumbing stoppages 
Water heater 
Heating system 
Ductwork 
Electrical system 
Garage door opener 
Central vacuum system 

First American Home Warranty also offers a handful of additional coverage options, listed below:

  • Central air conditioning (electric)
  • Additional refrigeration
  • Pool and spa equipment
  • Well pump
  • First Class Upgrade
  • Septic tank pumping system
  • HVAC tune-up

While we received a sample quote from the provider, the cost of your plan will be unique to your location and additional coverage selected. It’s also important to note that First American Home Warranty doesn’t allow customers to select their own service fee. However, the provider does offer an affordable $85 service fee.

If you’re interested in coverage from First American Home Warranty, fill out this quick form or contact 800-891-9778. Landlords who are active or retired military can save up to $25 online when using the promo code, MILITARY25.


Final Thoughts

While there are numerous home warranty plans that help landlords protect their systems and appliances, our top choice is American Home Shield. The provider offers a variety of coverage plans to help renters cover important appliances and systems, and its extensive technician network prevents landlords from having to be present at their property for needed repairs or replacements.

While we highly recommend American Home Shield, we ultimately recommend requesting quotes from multiple home warranty providers to compare coverage plans and pricing in your area.


What Is a Home Warranty?

A home warranty is a service contract that covers expensive out-of-pocket costs associated with repairing or replacing damaged systems and appliances that break due to normal wear and tear. While coverage details vary from provider to provider, all home warranty companies operate in a similar way.

When a system or appliance breaks, you can fill out a claim form online or call your home warranty company’s claims center and speak to a representative who will dispatch a service technician to evaluate your problem. When the technician arrives at your home to identify the issue, you’ll be responsible for paying a small service fee.


What Is Covered by a Home Warranty?

Covered systems and appliances will vary based on your home warranty provider, though a home warranty will typically cover the following items:

  • Air conditioning
  • Heating system
  • Electrical system
  • Plumbing system
  • Water heater
  • Refrigerator
  • Oven/Range/Stove
  • Cooktop
  • Dishwasher
  • Built-in microwave
  • Garbage disposal
  • Clothes washer
  • Clothes dryer
  • Garage door opener

How Much Does a Home Warranty Cost?

The cost of a home warranty will depend on a number of factors, including your location, selected plan and additional coverage. Additionally, the cost of your plan is two-fold and includes both your monthly plan rate and your set service fee. Typically, homeowners should budget between $350 and $600 per year for home warranty coverage.


Is a Home Warranty Tax-Deductible for a Rental Property?

Yes. The cost of a home warranty on your rental property, including the annual plan rate and service fee, are considered expenses that can be claimed to reduce your income taxes. However, like most tax-deductible items, you must save your proof of purchase to prove it’s tax deductible.


Should I Get a Home Warranty for My Rental Property?

Unlike homeowners insurance, a home warranty plan isn’t required for your property. However, a quality home warranty plan from a trusted provider can give you peace of mind that your real estate properties are protected from unexpected system and appliance failures. For a small monthly rate, these plans cover expensive repairs and replacements and send trusted and vetted professionals to resolve your issues.


Home Warranty Rating Methodology

To help you find the best home warranty, our reviews team researched numerous home warranty companies, analyzing their coverage plans, pricing and customer service, among other factors:

  • Coverage: Home warranty companies that provide extensive coverage and protect important systems and appliances, including your air conditioning, refrigerator and heating, scored higher than companies with minimal coverage.
  • Plan variety: A provider with more coverage plans allows for more flexibility among customers. In general, most home warranty companies provide an appliances-only plan, systems-only plan and combination plan.
  • Pricing: We scored providers based on their monthly plan prices and service call fees compared to the industry average pricing. Companies with more affordable coverage received more points than companies with more expensive plans.
  • State availability: Where you live will determine what companies are available in your area. Home warranty companies that covered more states received more points than companies with a limited state availability.
  • Trustworthiness: There are some home warranty companies that are scams and don’t follow through on their service agreements. We rated companies based on their years of experience, ratings on the Better Business Bureau (BBB) and customer reviews.

To keep our data current, our team regularly updates the data points for each company to ensure their coverage offerings, pricing and availability are accurate.

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