Rebecca Garland
Rebecca Garland
Business and Education Expert

One of the most significant aspects of having a home is maintenance. If you're thinking about getting a home warranty, it could be a wise strategic decision. Over the last five years, the home warranty industry has grown, reaching $3.9 billion in 2023. 

With unexpected expenses and cost increases, home warranty companies help homeowners fill the gap by providing a preventative service plan against many of the costliest repairs. However, with many businesses competing in the market, choosing the right one can be overwhelming. 

Key Insights

  • Homeowners typically pay $2,500 - $6,000 annually on home repairs without a warranty. In contrast, home warranty policies usually cost between $300 and $600.
  • Home warranty policies often have coverage limitations but might be customizable for certain features like roofs and pools. 
  • To choose the right home warranty company for your needs, consider the cost, coverage options, service provider reputation, and online reviews left by people who have worked with the company before.

We've analyzed customer reviews left on to determine home warranty companies from worst to best. We have also consulted experts to learn about the most common issues consumers face when dealing with home warranty companies and how to choose the right one.

Are Home Warranties Worth It?

Home warranties are designed to help cover the cost of expensive home repairs. You pay for a home warranty, and when you have trouble with your air conditioning or dishwasher, or plumbing, the home warranty company covers the cost of the repairs, if the repairs are covered in your policy.

While home warranties are designed to give customers peace of mind, sometimes they do anything but. After all, they make their money by accepting payments for services that homeowners may or may not need. The less the company spends on providing the services homeowners are expecting, the more the company stands to make in profit. Customers often get frustrated by situations like this and share those experiences in their home warranty company reviews. 

Common home warranty company issues

Customers pay for home warranties to cover issues with appliances, roofs, HVAC, water heaters, and other home elements. While they always hope for the best, common problems still arise with the best and the worst home warranty companies. These issues include:

  • Long delays for repairs
  • Shortage of parts and labor
  • High service fees
  • Arguments over claims
  • Continuous repairs rather than replacement
  • Vendors shortchanging or avoiding repairs

Julie Brittain, an Associate Broker at ΓEA⅃ Broker explains that:

The 2 main issues my clients have when using a home warranty to get an item repaired or replaced in their home are 1) Items not being covered and 2. The time it takes to actually get the service techs to the home.

She goes on to explain that the “biggest misconception” is that “home warranties do NOT cover items that stop working due to age.”

We investigated reviews about great and not-so-successful experiences and what amounts to home improvement scams. We interviewed industry experts to rank home warranty companies worst to best, to help you decide if they are even worth the expense. 

Home Warranty Companies From Worst to Best

Customer experiences and online reviews showcase the following best and worst home warranty companies. 

5. Home Warranty of America: “They Will Drag You Along With the Claims Until You Pay for Repairs Yourself”

Home Warranty of America logo

Home Warranty of America Rating* – 1.3⭐

Home Warranty of America Reviews – 123

Claimed Losses - $65K 

Resolved Issues – 0

Home Warranty of America tops our list of worst to best home warranty companies, and customers have strong feelings about the company. What is the company's rating among other providers based on Home Warranty of America reviews? 

Home Warranty of America rating

The customers gave the company a rating of 1.3 stars out of a possible 5. Only 1% of the ratings left for the provider are positive, and 95% are negative, with a handful of neutral reviews in between. Despite numerous calls to the company discussed in the Home Warranty of America reviews, not a single issue has been resolved.

What are the top concerns highlighted in Home Warranty of America reviews? 

Common complaints about Home Warranty of America include issues with poor customer service, false promises by the company, no-show contractors after making appointments, and the company denying most of the claims placed by customers. 

One customer explained their frustration by stating that they believed that

This company is a SCAM. I have contacted them on over 6 occasions and have given them every opportunity to make this right. They will drag you along with the claims until you pay for repairs yourself

According to a reviewer, they had to make repairs by themselves “out of pocket for the health of my family” “with the 100-degree forecast coming and no A/C.” 

Their sentiments were echoed by another customer in review #5175821 who explained that they made “5 calls to customer service” to set up a repair but they got “5 different answers why this cant be done.” 

Cinch reviews

4. Cinch Home Services: “Service Person Could Have Killed Us with Their Ineptitude”

Cinch Home Services logo

Cinch Home Services Rating* – 1.3⭐

Cinch Home Services Reviews – 106

Claimed Losses - $89K

Resolved Issues – 3

Cinch Home Services offers homeowners specialized home warranty coverage, backed by 45 years of industry experience and more than 1 million yearly service requests. But what is the rating of the company based on Cinch Home Services reviews?

Cinch Home Services rating

While 95% of the Cinch Home Services reviews are negative, 50% of the users would still recommend the company to a friend or colleague. Customers cite the low monthly cost as a positive feature of the plan but have concerns about long waits and poor service in their Cinch Home Services complaints. Fortunately for customers, the provider does seem to be a bit more receptive to contact, with 9% of issues resolved for customers who contact the company via phone. 

What are the top concerns highlighted in Cinch Home Services reviews?

While low cost was praised for the company, the complaints about Cinch Home Services far outweigh that glimmer of hope. Common concerns include poor service by vendors sent by the company, a complete lack of response to attempted claims, and some customers even complain the company lies or scams their subscribers. 

One reviewer explained that after filing a claim about plumbing and paying a $100 deductible, Cinch Home Services sent a repairman who “spent 5 minutes” and “looked at the clean outs” of the plumbing system before the repair man “left and never returned.” When the customer contacted the home warranty company, “Cinch Home Services told me Im sorry.”

Another customer with a plumbing problem“paid 764.00 out of pocket” for a new hot water installation despite having a home warranty with Cinch Home Services. Moreover, as the reviewer stated “service person could have killed us with their ineptitude.” The customer explained that the service man

…left us with duct taped vents, a cut pipe, and other pieces that, "...he wasn't sure where they went". 

After consulting with other plumbers who looked at the pictures, customers were advised “immediately cut the gas and electricity for our own safety.”

Fidelity national Home warranty issues

3. Fidelity National Home Warranty: “Awful Experience with Them”

Fidelity National Home Warranty

Fidelity National Home Warranty Rating* – 1.3⭐

Fidelity National Home Warranty Reviews – 220

Claimed Losses - $67K

Resolved Issues – 4

Fidelity National Home Warranty sits in the middle of the list of worst to best home warranty companies. Customers have shared their experiences with the company online, so what is its rating among other providers based on Fidelity National Home Warranty reviews? 

Fidelity National Home Warranty rating

96% of the Fidelity National Home Warranty complaints are negative, with customers calling the company “disgraceful” and recording losses totaling $67,080. However, despite the volume of negative Fidelity National Home Warranty reviews, of the 402 total calls placed to the company, customers were able to resolve 10% of their issues, continuing an upward trend across this list. 

What are the top concerns highlighted in Fidelity National Home Warranty reviews? 

While some customers rate appliance repairs as a pro for Fidelity National Home Warranty, many others share their frustrations. The common concerns cited for the company in online reviews include poor customer service, slow responses to claims, long delays for repairs, and even fraudulent activity.

One frustrated customer explained that they felt 

This company's business plan appears to prioritize taking money over fulfilling their work commitments.

After submitting a work order, the customer noted that the contractor sent by the warranty company “promptly addressed the toilet issue” but claimed a report “needed to be submitted” before he could address two other issues. After "three months of waiting," the contractor "reported no issues," and the situation was never resolved.

In review #5382183 customers described their experience of waiting "over 5 months" for a repair to be finished in their kitchen. However, unlike the first reviewer, the "company fixed the issue," and this customer was "provided with apology" for the delay. However, they acknowledge they were not given a justification for why it took months to install an oven. 

First American Home Warranty claims

2. First American Home Warranty: “Waited 15 Days for Contractor Appt, and They Were a No Show”

First American Home Warranty logo

First American Home Warranty Rating* – 1.3⭐

First American Home Warranty Reviews – 847

Claimed losses - $898K 

Resolved Issues – 5

As a larger provider on this list, the number of reviews and claimed losses increases, along with the rate of issues resolved by the company. What is the company's rating based on First American Home Warranty reviews?

First American Home Warranty rating

While 97% of the First American Home Warranty reviews were negative, the number of resolved issues also increased. Of the 68 total phone calls to the company’s customer service department, 13% of the problems were ultimately resolved. Despite this, however, almost $900,000 in losses have been claimed by First American Home Warranty customers. 

What are the top concerns highlighted in First American Home Warranty reviews?

Common concerns discussed by customers in First American Home Warranty reviews included issues with selection of contractors and a lack of follow-up. Customers also complained that the provider has poor customer service, seems to have no concern for the issues facing the customers, and demonstrates a lack of competence and credibility in handling claims and issues. 

In one of these home warranty provider reviews, one customer explained that they had three rounds of work done with the company to fix the same problem multiple times.  After the first round of repairs, “the work was done, but the same problems continued.” After each call, a plumber was sent, and the homeowner paid another deductible despite the problem never being fully resolved.

Another reviewer in the First American Home Warranty complaint described an issue with a dishwasher and stated that they were “given an appt 15 days later!!” On the day of the appointment, the “contractor did not show up or call.” After multiple calls and delays, the customer failed to resolve their issue: 

After 7 additional days and 3 phone calls (2 on hold over 40 minutes), I still do not have a contractor appt. Twenty three days with no dishwasher and a crashing washer.

American Home Shield review

1. American Home Shield: “AHS Has Totally Ignored My Issues”

American Home Shield logo

American Home Shield Rating* – 1.4⭐

American Home Shield Reviews – 4.6K

Claimed losses - $2.3M

Resolved Issues – 38

Thousands of customers have an American Home Shield warranty, but situations don’t always get resolved to a customer’s liking. Despite being at the top of our worst to best list, the company has still fielded its share of complaints. What is the American Home Shield rating among other home warranty companies? 

American Home Shield rating

American Home Shield has the highest number of reviews on this list and the highest rating, at 1.4 out of 5 stars. Overall, customers claim to be out $2.3 million with the company. While 94% of the American Home Shield reviews are negative, there have been success stories. Nine percent of the 4,600 phone calls to the company have been resolved, and 19 percent of customers would recommend the home warranty provider to others. 

What are the top concerns highlighted in American Home Shield reviews?

American Home Shield complaints document consumer concerns about poor customer service, slow service scheduling, and terrible contractors. In their online reviews, customers also complain about how hard it can be to find the appropriate contact information for the company and how difficult it is to reach a customer service representative. Many of them feel that the company does not honor the contract.

A customer in Washington had an issue with their water heater and realized the elements in the heater needed to be replaced. American Home Shield sent a contractor who claimed an electrical problem, and then the electrician claimed the whole “water heater needed to be replaced.” The customer “kept getting the runaround” and eventually paid another company to replace the elements, but American Home Shield refused to refund the service cost. In the end, the reviewer warned other potential customers:

…anyone that is considering purchasing an American Home Shield warranty plan best think about it twice of what you might be getting into…There is less than acceptable.

Another customer filed a claim and was told she was “a priority” but never heard from the contractor. She has been told she has to “just wait for the contractor” despite being “without two faucets and a toilet for our 4 months now.”

Not all reviews about the company are negative, however. One customer in review #5366246 left a five-star rating and explained that initially, they “could not find the proper phone number to get to a live person,” but once they did

She [a customer service representative] was polite, professional and solve my issue. Within an hour my order was confirmed and also had the company's name that would be coming out.

How to Choose the Right Home Warranty Company for Your Needs

As the reviews have shown, finding a solid home warranty company can be challenging. Among the top considerations for a home warranty company should be the cost and the coverage options of the warranty product. 

Matt Teifke, the founder and CEO of Teifke Real Estate, believes that another chief concern should be the reputation of the company. This means:

Reading reviews and asking for recommendations from family and friends can help consumers determine which companies have a good track record of customer satisfaction.

Teifke also says to consider that “some home warranty companies charge a service call fee every time a technician is sent out, while others may have a flat rate for the year.”

Another industry expert, Seamus Nally, the CEO at TurboTenant, describes the new trend in the home warranty industry - “the inclusion of energy-efficient appliances and systems in basic coverage plans.” He explains to the customers:

With improving coverage, it encourages homeowners to install sustainable energy sources and appliances. So, homeowners can really benefit by improving the energy efficiency of their homes.

Rely on a Community of Experts

The best way to gauge the effectiveness of home warranty companies is to rely on those who have worked with them previously. With thousands of negative reviews and millions of dollars in losses, customers have plenty to say about the effectiveness of home warranties, and the bad seems to outweigh the good. 

Have your own experiences with home warranty companies? Why not leave a review to share with others? 

*Disclaimer: Ranking and statistics are based on our users’ review texts and Pissed Consumer posters’ reviews. Also, a company’s rating is calculated using a mathematical algorithm that evaluates the information in the profile, including users’ rating, the number of resolved issues, the number of company’s responses, etc. The algorithm is subject to change in the future.

Legal disclaimers:

  1. While every effort has been made to ensure the accuracy of this publication, it is not intended to provide any legal, medical, accounting, investment or any other professional advice as individual cases may vary and should be discussed with a corresponding expert and/or an attorney.
  2. All or some image copyright belongs to the original owner(s). No copyright infringement intended.

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