The Worst Home Warranty Companies of 2023

If you’re in the market for a home warranty, it pays to know which home warranty providers have bad reputations so you can avoid them. A good home warranty provider will offer a clearly worded service contract, provide professional customer service, promptly respond to your service requests and be financially sound.

To avoid a situation where you find yourself stuck with a company that's unlikely to pay out claims, we at the Guides Home Team recommend purchasing a plan from one of the best home warranty providers available. We chose our recommended providers based on review that analyze attributes such as price, coverage options, and customer service.

Savvy homeowners generally know to check the online customer reviews of any company or provider before paying for a good or service. However, this can get complicated when it comes to home warranty companies because of the nature of contracts. Complaint after complaint may say something along the lines of "this company didn't cover my refrigerator repair!" However, the complaining customer may not say (or may not realize) that the particular type of damage to the refrigerator was never actually covered under their contract.

Of course, some disreputable companies will refuse to pay for claims that they genuinely should cover, or they may give customers the run-around in hopes that they will give up on being reimbursed. Pay attention to a company's BBB rating to see how it responds to complaints. Look at the length of time the company has been around. A younger company isn't necessarily bad or untrustworthy, but there's less of a track record to examine. When possible, ask friends or family about their experiences with their home warranty company and how it responded when they filed a claim.

Here are some other warning signs that you may be dealing with one of the worst home warranty companies:

Above all, read your contract before you sign. The best way to keep from getting swindled by the worst home warranty companies is to be an informed consumer. A little reading beforehand could save you frustration and money in the long run.

Each state independently regulates home warranties. According to Tim Meenan, JD, who serves as general counsel for the Service Contract Industry Council (SCIC), more than two-thirds of U.S. states have regulations specific to service contracts. Meenan said, "The state regulation wants to know that these companies are around to pay the claims, which is good for consumers. They regulate the content, make sure that they’re written in clear, understandable print, and have lots of disclosures about what is and isn't covered." If you’re considering a home warranty company, it's a good idea to check your state's insurance or licensing department website to confirm that the provider is licensed to offer service contracts.

We consider the following providers to be the worst home warranty companies in the industry:

*Note: Guides Home Team contacted each of these companies for comment but received no responses.

Based out of Foster City, Calif., American Home Warranty.org tops our list of the worst home warranty companies due to its F rating from the Better Business Bureau (BBB). Although the company does have a website, as specified by the business name, it contains almost no real information. There are no details about services, contracts or policies. The only option is to enter your contact information to "compare home warranty rates today."

According to complaints on the BBB website, American Home Warranty.org uses this information to spam potential customers with emails. The company has failed to respond to these complaints, which earned it an F rating. Additionally, the company claims to be BBB-accredited, even using the organization's logo on its website, but as its profile indicates, it is definitively not accredited. Steer clear of even providing your information to American Home Warranty.org.

With a D- rating from the BBB, the Missouri-based provider US Home Guard fares only slightly better. According to customer complaints, this company has a habit of sending out fraudulent mailers telling homeowners that their home warranty is about to expire. People who were never customers of US Home Guard in the first place have received "final notices" about policies they never purchased. Based on BBB complaints, this appears to have happened as recently as June 2022.

Additionally, US Home Guard's website shows its customers are locked into three-year contracts. Most home warranties last one year, though some companies may provide a discount for a two-year contract. If you’re locked into a three-year plan, you may be stuck paying for a warranty that doesn't cover what you need it to. US Home Guard also doesn't provide a clear pricing structure or information about its service area — you’d need to send them your contact details to find that out.

The BBB features an alert for Like New Home Warranty, reporting "a pattern of consumer complaints alleging misleading sales tactics, misleading sales presentations, failure to cancel contracts after a consumer has requested cancellation, failure to provide refunds and poor customer service." Overall, the BBB gives Like New Home Warranty, also based out of Missouri, an F rating.

Like New Home Warranty does offer three residential service contract plans, but it includes no pricing information on the website. More worryingly, it doesn't provide any information about the terms and conditions of the actual home warranty plans. Most companies offer sample contracts on their websites for potential customers to review when deciding between home warranty companies. Reading these documents carefully before signing is vital to purchasing a home warranty.

While there are some untrustworthy players in the home warranty industry, that shouldn't deter you from purchasing a warranty from a reputable provider. The following companies have proven track records and offer legitimate coverage for your home's most valuable systems and appliances.

Here is a list of our top five home warranty providers:

With more than 50 years in the home warranty business, American Home Shield is a founder of the industry. Its three plans — one for appliances, one for systems and one for both — are fairly comprehensive, and the provider is available in every state except Alaska. Perhaps most importantly, American Home Shield covers certain repair situations that other companies don't, including unknown pre-existing conditions, insufficient maintenance, rust, corrosion, improper installation and mismatched systems.

Here are a few key highlights of AHS’ coverage:

+ Offers generous coverage caps per covered item+ Does not require an inspection for the first 60 days when purchasing add-ons+ Includes coverage for items with preexisting conditions plus rust corrosion and sediment damage

– Charges higher monthly premiums compared to other providers– Requires claims to be filed as soon as breakdown is discovered

American Home Shield's three plans are the ShieldSilver, ShieldGold and ShieldPlatinum. The ShieldSilver plan covers major systems such as HVAC and plumbing. The ShieldGold plan includes everything in the ShieldSilver plan plus appliances, such as garbage disposals. The ShieldPlatinum plan covers every item in its ShieldSilver and ShieldGold plans and includes a higher $6,000 coverage cap for those who want the most comprehensive coverage. American Home Shield offers service call fee flexibility by offering $75, $100 and $125 options. The higher your service call fee, the lower your monthly premium will be.

American Home Shield plans per month with a $100 service call fee are as follows:

Fill out American Home Shield's quote form or call 844-529-9298 to request your free quote.

Liberty Home Guard (LHG) is another top choice for homeowners. LHG offers three plan options: Appliance Guard, Systems Guard and Total Home Guard. Each item is covered for up to $2,000 annually, and all completed repairs are covered by a 60-day workmanship guarantee. A workmanship guarantee is a company's promise to reservice an approved claim if it malfunctions again within the designated period of time.

Review our key pros and cons for Liberty Home Guard coverage:

+ Extends a 60-day workmanship guarantee per completed repairs+ Provides coverage for two air conditioning units without purchasing an add-on+ Includes convenient 24/7 live chat feature on its website

– Lacks service call fee flexibility– Requires claims to be filed as soon as discovered

Liberty Home Guard protects your home via the Appliance Guard, Systems Guard and Total Home Guard plans. Its Appliance Guard protects working home appliances, regardless of age. The Systems Guard protects major systems, and the Total Home Guard combines both protection plans into one comprehensive coverage package. Its service call fee ranges from $65–$125, depending on your home's size, type, and location, plus the plan and add-on options you choose.

Liberty Home Guard's plans per month with a $125 service fee are as follows:

Fill out Liberty Home Guard's quote form or call 866-452-9107 for your personalized quote.

Select Home Warranty is a good choice for homeowners with limited budgets who still want a comprehensive coverage plan. The company's Platinum Plan, which covers key appliances and systems, costs less than $50 per month. With plans available to homeowners in 46 states, Select Home Warranty represents an excellent value for money, even including roof-leak coverage in its plans.

Review our top pros and cons for Select Home Warranty coverage:

+ Includes two months of free coverage when you purchase an annual service contract+ Allows claims to be filed within two days, rather than as soon as discovered+ Charges a low service call fee compared to other providers

– Prevents you from choosing your service provider – Offers low coverage caps ($500 for electrical/plumbing/appliances and $400 for add-ons)

Select Home Warranty covers appliances in its Bronze Care plan. It protects built-in systems in its Gold Care plan, and its Platinum Care plan bundles the plans mentioned above and adds plumbing stoppages and garage door opener coverage. Select offers more value for your money by including roof-leak repair coverage in every plan plus charging a low service call fee of $75 per filed claim.

Select Home Warranty plans per month with its standard $75 service fee are as follows:

Fill out Select Home Warranty's form or call 888-370-3956 to get a quote for one of the company's three plans.

America's First Choice Home Club (AFC Home Club) is a great choice due to its plan flexibility, with four plans and three service call fee options to select for your home protection needs. It also offers a workmanship guarantee that lasts the life of your plan, plus membership perks such as discounted wholesale parts for your home appliances and systems.

Review our list of pros and cons for AFC Home Club coverage:

+ Extends an unlimited workmanship guarantee on completed repairs for the life of your plan+ Offers service call flexibility + Gives you the option to choose your service provider

– Charges a $75 cancellation fee after the first 30 days– Applies a coverage cap equivalent to the depreciated value for all covered items

AFC Home Club offers home systems coverage in its Systems Plan. The Silver Plan protects major appliances, the Gold Plan combines systems and appliance coverage, and the Platinum Plan includes all covered items plus coverage for faucets, ice makers, built-in microwaves and plumbing stoppages. AFC Home Club offers service call fee flexibility; the options are $75, $100 and $125. Similar to American Home Shield, AFC Home Club's higher service call fee selection will lower your monthly premium.

AFC Home Club plans cost $46 to $59 per month with a $125 service fee.

Fill out AFC Home Club's quote form or call 877-755-1115 to request your free quote.

First American Home Warranty is our final recommendation due to its generous $3,500 coverage cap per covered appliance. Its First Class Upgrade add-on boosts appliance and home system coverage by covering miscellaneous items such as door hinges, appliance knobs and dials. First American plans fit easily into your budget, with plans starting at $33 per month.

Review our list of key pros and cons for First American coverage:

+ Covers preexisting conditions and miscellaneous items with First Class Upgrade+ Provides coverage for working systems and appliances regardless of age+ Offers a simple and affordable plan structure

– Offers air conditioning systems coverage as an add-on only– Excludes plumbing, heating and electrical systems in its Basic Plan

First American keeps things simple by providing two coverage plans: the Basic Plan and the Premier Plan. The Basic Plan covers standard home appliances, such as refrigerators. The Premier Plan covers home systems, such as HVAC and electrical systems, and includes appliance coverage. First American pairs its plans with its standard $85 service call fee.

First American Home Warranty plans per month with its $85 service fee are as follows:

Get a quote: Fill out First American Home Warranty's quote form or call 855-435-0489 to request your free quote.

Unfortunately, it can sometimes be difficult to tell which home warranty companies are a bad deal with just a quick glance. Since you’re entrusting the protection of your home to the company you choose, you’ll want to do a bit of research first. Here are some good places to start:

Homeowners insurance and home warranties actually cover different situations. Insurance applies to issues such as catastrophic damage to the structure of your home from events like natural disasters. Home warranties, on the other hand, are residential service contracts that cover repairs to home appliances and systems that break down from normal wear and tear.

If you have a home warranty, you can file a claim and your provider will send a contractor to your home to diagnose the problem. If it falls under the terms of your contract, the technician will repair the problem for the cost of a service fee — usually around $75 per visit. If the appliance or system can't be repaired, most providers will even cover the cost of a replacement.

Many home warranties do indeed cover HVAC systems, which include air conditioning. However, since air conditioners tend to be expensive to fix, some providers will only include these systems in their more expensive plans. If there's a specific home appliance or system you want coverage for, double-check your plan to make sure it's included.

Our team created a comprehensive rating system to rank providers based on objective factors. We researched each company by speaking with company representatives, reading sample contracts, and analyzing and comparing consumer reviews. We deepened our research by gaining homeowner insights through surveys and focus groups.

After collecting data, we scored each provider in the following categories: plan options, cost, trustworthiness, customer service, state availability, additional benefits and coverage specifics.

Rebekah Young is an editor with a decade of experience in educational content and editing. Before joining the Guides Home Team to focus on home services content, she guided content strategy and edited in the insurance, venture capital, financial and health care fields. Rebekah has a bachelor's degree in communication and English.