4 Cheapest Home Warranties of 2026

Our 4 picks for cheap home warranties

1. Our pick for cheapest combo plan: First American Home Warranty
2. Our pick for low service fee: ARW Home
3. Our pick for affordable roof coverage: Choice Home Warranty
4. Our pick for overall value: American Home Shield

Cheapest home warranties buyers guide

Finding a cheap home warranty plan doesn't mean sacrificing peace of mind — it means knowing where to look and what to look for. This guide is here to help you understand how to spot affordable options that still provide reliable coverage.

With the right information, you can compare costs, evaluate features and avoid common pitfalls that lead to overspending. From monthly premiums to service fees, we'll break down what contributes to a home warranty’s total cost and how to keep costs low.

How a home warranty works

A home warranty works by helping homeowners pay for the repair or replacement of covered appliances and systems that break down due to normal wear and tear. It acts as a financial safety net for unexpected issues with essential household items, such as HVAC systems, water heaters, refrigerators and more.

When a covered item fails, a homeowner will submit a claim to the warranty provider. The provider will then send a contractor from its network to assess the problem. If the issue is approved under the warranty's terms, the provider will pay for the repair or replacement, minus any applicable service fee.

You’ll generally pay a service fee each time you make a claim and a contractor comes to your home. Service fees tend to vary between home warranty companies, and some companies offer multiple service fee options.

How much does a home warranty cost?

A home warranty costs around $30 to $50 per month for a basic plan. It costs $50 per month on average for comprehensive coverage, which protects both systems and appliances. Average annual costs range from $350 to $900.

In addition to the monthly or annual plan cost, you’ll pay a service fee any time a technician is sent to your home. Most service fees range from $75 to $150.

Factors that influence home warranty costs

Some factors that influence home warranty costs include:

• Plan type: You’ll pay more for higher-tier plans with coverage for more items than lower-tier plans.
• Service call fee: You can usually choose to pay a lower monthly fee in exchange for a higher service call fee.
• Availability: If you live in a city where contractors charge more, the price of your plan is likely going to be higher.
• Home size and age: The larger or older your home, the more coverage you’ll typically need, which means your coverage will cost more.
• Plan caps and limitations: Many home warranty plans only cover repairs or replacements up to a certain dollar amount, so you may need to pay for some repairs or replacements out of pocket.

Here are some typical replacement costs for different home appliances and systems:

» LEARN: What does a home warranty cover?

Pros and cons of cheaper home warranties

Compare the pros and cons of home warranties:

What to look for in a home warranty besides cost

There are many factors to look for in a home warranty besides cost. Here are some factors to consider:

Service plans and coverage

Service plans and coverage vary from provider to provider. If you have something specific you want to be covered, be sure it's in the plan you select. This is especially important if it's something that not all companies cover in their standard plans, like roof leaks. Always check the fine print for parts and components that are excluded from coverage. If you're not sure, ask a representative.

How to submit a claim

Most home warranty companies let you submit a claim online, through an app or by calling. Before purchasing a plan, you should know how to submit a claim and make sure it’s convenient for you.

Customer service access

It’s best to look for a company that gives you the customer service access you need. If an appliance or system breaks down and you can't get someone on the phone, it can add to your frustration.

“Look fоr cоmpanies that оffer customizable cоverage options, cleаr communication, аnd a strоng trаck recоrd оf сustomer satisfaction,” advised Shri Ganeshram, former CEO of Awning, a real estate investment platform. “Remember, investing in a solid hоme wаrrаnty cаn be thе diffеrеncе bеtwееn a minor inсonvenienсe аnd a majоr finаnciаl sеtback.

How to save money on a home warranty

Here are some ways to save money on a home warranty without sacrificing the coverage you need:

Compare multiple companies

Compare multiple companies based on pricing and coverage. Pricing can vary significantly between providers, even for similar coverage. Getting quotes can help you find the most competitive monthly premium.

Choose a higher service fee

Many companies allow you to choose a higher service fee, which will typically lower your monthly premium. This can reduce your overall cost if you don’t expect to file many claims.

Skip unnecessary add-ons

It’s best to skip unnecessary add-ons for items like pools, spas and additional refrigerators if you don’t actually need the coverage.

Look for discounts or promotions

Many home warranty companies offer discounts and promotions for new customers. Some companies also offer discounts for military members and veterans.

Pay annually instead of monthly

Some providers offer a lower overall cost if you pay annually instead of monthly.

How to avoid bad home warranty companies

Before you purchase a home warranty, it’s important to know how you can avoid bad home warranty companies, including home warranty scams.

Read online reviews

Read online reviews and look out for warning signs like a slow claims process or limited service network. Previous and current customers can tell you a lot about a company. If there’s a large number of reviews that mention difficulty with filing claims, denied claims, poor repairs or bad customer service, you should look elsewhere.

Research the company

Research any home warranty company you’re considering. Learn more about where it’s based, how to contact customer service and how to file a claim. If there isn't a clear and convenient way to make a claim for service, cross the company off your list.

Check the contractor network

Make sure the company has a process to check contractor licensing and insurance. Then ask how many contractors are in your area. If the company doesn’t have enough contractors near where you live, it could be difficult to schedule repairs, leading to longer waiting times for repairs.

Understand the fine print

Understand the fine print in your home warranty contract so you know the limits and exclusions of your contract and coverage. Also, look for cancellation and transfer terms.

Questions to ask before buying a home warranty

Here are some of the questions to ask before buying a home warranty:

What are the repair limits?

All home warranty companies have dollar limits for repairs. This means there is a maximum amount of money the company will pay per term or per repair for an individual system or appliance. You will usually have to pay for any costs that go above the limit. Most companies also limit what parts or components of a system or appliance are covered.

What is the replacement policy?

If an appliance or system can’t be repaired, the home warranty company should offer a replacement. If a replacement is required, there is a limit on the amount the company pays and the effort it makes to match your existing item.

What is the time frame for repairs?

Many companies state that they’ll aim to have a technician arrive within 48 hours. However, it can help to read customer reviews since customers may note if wait times are actually longer.

» MORE: Questions to ask a home warranty company

Are home warranties worth it?

Home warranties can often be worth it if you live in an older home or have aging appliances that are more likely to break down. The cost of a single repair or replacement for major appliances such as water heaters or HVAC systems can be high, sometimes exceeding the annual cost of a home warranty policy.

A home warranty can also be worth it for peace of mind. Knowing that you're protected against surprise repair bills can reduce stress and help with budgeting, especially for first-time homeowners or those unfamiliar with managing home maintenance. It can also simplify the repair process, as warranty providers typically have a network of prevetted service professionals ready to respond to claims.

How much value you’ll get from a home warranty usually depends on how often you’ll need to use it. If your home is new or your appliances are still under a manufacturer’s warranty, you typically won’t get much use from it.

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