A home warranty can offer peace of mind by covering the cost of repairs when your appliances or home systems break down from everyday use. But with so many providers and plans out there, how do you know which one is right for you?

Start by thinking about what you actually want to protect.

Some plans focus on appliances like refrigerators, ovens, and washers. Others cover major systems like plumbing, HVAC, and electrical. You can even find combo plans that include both. Take a quick inventory of your home and note the age and condition of your key systems and appliances. If a few of them are nearing the end of their typical lifespan, that’s a good reason to consider coverage.

Next, look closely at what’s included—and what’s not. Home warranty plans vary a lot in terms of exclusions, coverage limits, and service fees. Some companies limit coverage on older appliances or charge more for optional add-ons like a second refrigerator, well pump, or roof leak protection.

You’ll also want to compare service fees and payout caps. Many providers charge a flat service fee when a technician comes out to diagnose a problem. Make sure you understand how much that is and how often you might be expected to pay it. Also check how much the company will actually pay to repair or replace covered items. Sometimes a low monthly rate can come with low reimbursement caps.
Finally, take time to read customer reviews. Look for feedback on how easy it is to file a claim, how quickly repairs are completed, and whether the provider uses quality service technicians. A company might look great on paper but leave you frustrated when you really need help.