8 Best Home Warranties for New Construction for 2023

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Buying a newly constructed home comes with lots of perks. You’re in the driver’s seat when it comes to many features of your home, from the ceramic tile in your bathrooms to the color of the walls in your family room. With any luck, things won’t go wrong in your newly constructed home for a long time. And when something does, your builder’s warranty or the manufacturer warranties that cover your home appliances should pay for any necessary repairs.

Let’s go over the difference between builder’s warranties and manufacturer warranties because it’s a little confusing. Builder’s warranties normally cover the structural elements of your home and certain major systems like your HVAC, plumbing and electrical system. The average length of a builder’s warranty is ten years, but some systems may be covered for just two years.

Builder’s warranties don’t generally cover appliances. But the appliances a builder installs when you build a new home are covered by manufacturer warranties. Unless you purchase extended coverage, appliance warranties typically last one year.

So in practice, you don’t really need a separate home warranty until a year has elapsed since the purchase of your home. After that, purchasing a home warranty can be a smart investment. Let’s take a look at the best home warranty companies in the industry today and learn how a home warranty can protect you when your appliance and builder warranties have expired.

Our Top Picks for New Construction Home Warranties

• Liberty Home Guard
• Choice Home Warranty
• American Home Shield
• Select Home Warranty
• America’s 1st Choice
• Cinch Home Services
• ServicePlus Home Warranty
• First American Home Warranty

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Home warranty prices can vary depending on your location. For the purposes of this review, prices are quoted for a single-family home under 5,000 square feet in Biloxi, Mississippi.

Liberty Home Guard

Once your builder’s warranty on systems and your appliance warranties expire, you can choose one of three Liberty Home Guards’s customizable plans. One year after you purchase your home, you might choose to purchase Liberty Home Guard’s Appliance Guard plan. Later on, when your builder’s system warranty ends, you may want to step up to the company’s Total Home Guard plan, which offers coverage for both systems and appliances.

Liberty Home Guard’s Appliance Guard plan covers the most common appliances in your home, including clothes washers, dryers and built-in microwaves. It also covers less expensive but very common home features like garage door openers, garbage disposals and ceiling fans.

Liberty Home Guard’s Total Home Guard plan offers coverage for everything in its appliance plan and adds in coverage for major systems, including air conditioning and heating systems, electrical systems and plumbing systems.

Liberty Home Guard offers modest premiums, but its standard service call fee, at $125, is pretty steep. Unlike some home warranty companies, Liberty Home Guard doesn’t allow homeowners to customize deductibles (service call fees).

Pricing and Reputation

Choice Home Warranty

Choice Home Warranty offers two combination systems-and-appliances plans — Basic and Total. As the owner of a newly constructed home, you may not want to pay for systems coverage for a couple of years, since your builder’s warranty offers such protection. But if you choose one of the company’s combo plans, here’s what you’ll get.

• Under the company’s basic plan, you’ll get coverage for some but not all appliances. Covered items under the company’s Basic plan are cooktops, ovens and built-in microwaves, dishwashers, and garbage disposals. Refrigerators, clothes washers and dryers are not covered. The Basic Plan also covers your heating, electrical, and plumbing systems and your water heater.

• If you select the company’s Total plan, you’ll get coverage for your fridge, washer and dryer. The Total plan also offers more systems coverage, including your air conditioner and duct work.

Choice Home Warranty allows you to beef up your coverage with optional items that include central vacuuming systems, stand-alone freezers, second refrigerators and sump pumps.

Overall, Choice Home Warranty’s Basic plan doesn’t offer as comprehensive a slate of appliance coverages as some competitive appliance-only plans. And the premiums associated with that plan are fairly high. On the other hand, its Total plan offers comprehensive coverage for a reasonable price.

Pricing and Reputation

American Home Shield

American Home Shield has some gray hair on its head. AHS has been in business since 1971 and, in 1989, the company was acquired by a 100-year-old company, Service Master. So when it comes to home warranty experience, American Home Shield beats most other home warranty companies.

American Home Shield is distinguished for having fewer exclusions than other home warranty companies. It will cover appliances that have been neglected — not that you’d ever do that, but still. It also has very high coverage limits on appliance replacement: $3,000 or $6,000 depending on the plan you choose. Appliances are expensive these days. So if you have a gourmet kitchen that’s equipped with top-of-the-line appliances, American Home Shield has you covered.

One of the drawbacks of the company’s plan line-up is that it doesn’t include an appliances-only plan. We were surprised by that because the company does offer a systems-only plan. So if you purchase one of American Home Shield’s combination plans, you may find yourself with duplicate coverage while your builder’s warranty is still in force.

The ShieldGold plan covers refrigerators, ranges, cooktops, ovens and built-in microwaves, washers and dryers, garbage disposals and instant hot water dispensers.

The ShieldPlatinum plan is one of the most interesting total home plans we’ve seen by virtue of its systems coverage limits. The company offers unlimited coverage for systems. It also offers coverage for limited roof leaks, AC refrigerant refilling, free HVAC tune-ups, and coverage for repairs made necessary by code violations.

Pricing and Reputation

Select Home Warranty

Select Home Warranty has been operating since 2012. The company offers three plans — Bronze Care, Gold Care and Platinum Care — giving homeowners a choice of systems-only, appliances-only and combination coverage. For newly-constructed homeowners, the company’s Bronze Care plan makes the most sense initially, because it covers appliances only. These include refrigerators, clothes washers and dryers, stoves, ovens, and cooktops, dishwashers, and built-in microwave ovens.

Once you’re ready to add coverage for your home’s built-in systems — when the systems part of your builder’s warranty has expired — the company’s Platinum Care plan adds in coverage for your heating and air conditioning systems (including ductwork), your plumbing system (including plumbing stoppages), your water heater, your garbage disposal, ceiling fans and garage door openers.

Select Home Warranty also allows homeowners to customize their plans with add-on coverage to include pools and spas, lawn sprinklers, septic systems, and more.

Pricing and Reputation

America’s 1st Choice Home Club (AFC Home Club)

AFC Home Club offers owners of newly constructed homes four plan options, one of which is an appliances-only plan. For appliances-only coverage, the company charges a low fee of $37.17. That’s among the most affordably priced appliances plans we’ve come upon. Coverage under the plan is pretty comprehensive and includes clothes washers and dryers, kitchen refrigerators, dishwashers, ovens, ranges, cooktops, garbage disposals, and garage door openers. Notably absent, however, is coverage for built-in microwaves, which is an industry standard in basic appliance plans.

To get coverage for your built-in microwave, you’ll have to step up to the company’s most expensive Platinum plan. That plan covers up to 18 home systems and appliances, which, at the beginning of your home owning journey may represent a bit of overkill.

AFC Home Club is one home warranty company that affords customers the chance to choose their own deductibles. It gives you the option of selecting a service call fee of $75, $100 or $125. That’s one way homeowners can control their own destiny and find coverage that works within their budget. AFC Home Club also offers, for an additional fee, coverage for inground pools and spas, double ovens, stand-alone freezers, central vacuums, septic systems, home electronics and more.

Pricing and Reputation

Cinch Home Services

Cinch Home Services offers three plans for homeowners to choose from: a systems-only plan, an appliances-only plan and a combination plan. Its combination plan is very competitively priced.

Cinch Home Services may not be the best for customizing coverage. It offers fewer add-on coverage options than some home warranty companies. With Cinch, your optional coverage choices include pools and spas, septic tanks, well pumps, and repairs due to code violations.

Cinch Home Services does offer homeowners the opportunity to customize their deductibles, But its service fees are on the high side, starting at $100. In practice, that adds to the overall cost of coverage.

Cinch offers one unique feature. Claims for covered items often result from the kind of damage covered by homeowner’s insurance. Should you have to make a homeowner’s insurance claim related to a home warranty, Cinch will reimburse you for up to $500 for your homeowner’s insurance deductible. That savings alone can cover the cost of your home warranty.

Pricing and Reputation

ServicePlus Home Warranty

Unfortunately, Service Plus Home Warranty doesn’t offer an appliances-only plan, which makes the most sense for homes with appliances that are no longer covered under manufacturer warranty. Instead, the company offers two combination complete home, systems-and-appliances plans. These plans are quite close in price. When it comes to appliances, the company’s lower priced Gold Plan skimps on some appliances. It doesn’t include coverage for washers, dryers or refrigerators. So the company’s top-of-the-line Platinum plan is probably the best value for owners of newly constructed homes. It includes coverage for heating systems and air conditioning, to give you full coverage for your major home systems.

ServicePlus Home Warranty offers 18 optional coverages. That makes it easy for customers to craft a customized plan that reflects its home features.

One bit of information that’s lacking from ServicePlus Home Warranty’s website is clarification of its deductible costs. It mentions a limited time offer that lowers its deductible to $75 but does not quote the normal price. We called the company directly and the phone representative we spoke with was able to answer our question quickly and politely.

Prices and Reputation

First American Home Warranty

First American Home Warranty provides coverage in 35 states. The company offers homeowners a choice of three plans, all of which cover a combination of systems and appliances.

Coverage under the company’s Starter Plan is pretty spare. It doesn’t include coverage for popular appliances like washers and dryers. Some major systems are covered under the Starter plan, including heating, plumbing, and electrical systems and hot water heaters. But air conditioning is not. If your home features a mini-split ductless heating/air conditioning system, note that the Starter plan does not offer protection for this increasingly popular HVAC solution.

But if you step up to either First Home’s Essential or Premium plans, air conditioning and mini-split coverage is included. So is coverage for washers and dryers.

First America offers a respectable eight optional coverages, including septic systems, pools and spas, well pumps and more.

Pricing and Reputation

First American Home Warranty does not offer coverage in Mississippi, the state that we used to get quotes from other companies we reviewed. Rates quoted are for a First American plan in Toledo, Ohio.

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Guide to the Best Home Warranties for New Construction

Main things to know before purchasing a new construction home warranty

The main thing owners of newly-constructed homes need to understand about buying a home warranty is that they don’t need one immediately. Your newly-constructed home already offers warranty protection, in the form of a builder’s warranty, which typically covers major home systems for two years and one-year manufacturer warranties for the appliances installed in the home.

What does a new construction home warranty cover? 

Pretty much the same things as a warranty for an older home. Every company’s plans differ in what they cover, so you’ll have to compare plans side by side, including exclusions and coverage limits, to determine which home warranty plan best suits your home and represents the best value for your money.

How much does a new construction home warranty cost?

Whether your home is newly constructed or built twenty years ago, costs are the same. Your price will depend on other factors, though, including your home’s size, location, the breadth of coverage your plan offers, the coverage limits of the plan you choose, your deductible, and more.

How does a home warranty work?

A home warranty is a service contract between a homeowner and a home warranty company that provides coverage for the repair or replacement of certain systems and appliances in a home, usually for a one-year period. Home warranties are designed to provide homeowners with peace of mind, knowing that if unexpected home repairs come up, they’ll have help covering the costs.

When you have a problem with a system or appliance, you report it to the home warranty company (file a claim). The company will then arrange for a pre-screened service provider to diagnose and repair the issue. If the issue is covered by the home warranty, you pay a service fee (deductible) and the home warranty company pays for the repairs or replacement. Not every system and appliance in a home are covered by home warranties and all have exclusions or limits on coverage. It’s important to review the terms and conditions of any plan you’re considering before signing the contract.

How long do home warranties last?

Home warranties usually have a term of one year. Home warranty companies allow homeowners to pay their premiums monthly, but if you pay for a full year of coverage up front, you may be entitled to a discount.

How We Picked the Best Home Warranties

During the course of selecting our home warranty reviews, we considered a wide range of factors. In our methodology, we favored those companies that offer appliances-only plans because appliances in newly-constructed homes are typically covered for only one year by the manufacturer. Appliance coverage is the first type of protection that owners of newly constructed homes will need. We considered the plans offered by a warranty provider for breadth of coverage. For example, we favored appliance plans that covered all major appliances, including washers, dryers, and refrigerators.

We looked for systems plans that cover all major systems, and then some. Systems plans that covered septic system and sewer line issues, for example, rated highly with us.

We also searched for companies that offer a wide range of optional coverages and permitted homeowners to customize their plans. Customizable deductibles were another feature we found attractive. We evaluated the reputation of the companies we reviewed by checking consumer ratings with the Better Business Bureau, Trustpilot and Google. Finally, we considered monthly costs, deductibles and coverage limits to determine which represented the best value.

Summary of Our Guide to Best New Construction Home Warranties

• Newly-constructed homes come with builder’s warranties that cover major structural defects and systems and appliance warranties. During the first year or two of homeownership, additional home warranties are likely unnecessary. Afterwards, many home repairs are not covered under a builder’s warranty.

• Home warranty coverage and coverage limits, premiums and deductibles vary widely among plans. To determine whether a home warranty offers good value for your money, you should consider all three elements.

• Optional coverage for less common home features like septic systems may be important to you. For example, about a quarter of all homes in the US rely on septic systems. If yours is one of them, you’ll want that coverage. By the same token, there are about 10 million homes that feature pools and spas. If you’re one of the lucky ones, optional pool and spa coverage may be important to you.

• It’s critical that homeowners read the fine print of their contracts before purchasing a home warranty. Don’t assume everything you want protection for is covered when you buy a home warranty. Many home warranty plans exclude coverage for repairs that are not due to normal wear and tear. Others distinguish between plumbing stoppages and other plumbing problems. These details matter when evaluating competitive plans.