Properly protecting a rental property can sometimes feel like you’re layering up for Winter:

You’ve got so many layers on, but really it’s just enough to properly protect you from all potential issues.

From liability insurance to umbrella insurance, a lot of different elements are necessary to properly protect your property.

As a landlord, a home warranty can be another useful layer of protection, particularly for its ability to cover the cost of replacing old systems and appliances. 

With that said, you might be wondering…

Home warranty for rental properties

Before we get to the best home warranties for rental property, let’s talk about whether you should consider getting a warranty for your properties. 

A home warranty is essentially a service contract that covers the cost of replacing old appliances and HVAC systems.

There are many layers of protection you can purchase for your rental property such as insurance, but none typically cover normal wear-and-tear of systems or appliances. 

That’s exactly what a home warranty does, however, making it an important part of any complete property protection plan.

A home warranty is especially useful for properties with older systems and appliances. Fortunately home warranties don’t quite work the same way as appliances do, as most home warranty companies will cover your property no matter the age of the appliances. 

Here are some more of the benefits:

Keep your property in good shape

The primary reason to get a home warranty is to keep the property in good condition.

When an important system or appliance breaks down, it can mean a laundry list of bad things.

Such as:

  • An unhappy tenant
  • An unsafe tenant
  • Or no tenants at all if the property is vacant and you’re looking for someone to move in, but they won’t take the unit without the equipment being fixed first. 

Regardless of the situation, provided it’s due to normal wear and tear, a warranty can have you covered.

Hiring and working with a repairman is taken care of (fast)

In addition to covering the cost of the equipment itself, a warranty also typically covers the cost of sourcing the professional as the warranty company handles it. 

So no need to make any deals or schedule any calls, as the whole process is handled. Plus, it’s typically done very quickly, so no need to worry about a tenant without heat or any other tricky situation. 

Your home warranty is tax-deductible

In most states, the premium payments and associated fees of a home warranty are tax-deductible. 

So, while a home warranty is generally considered to be pretty affordable, it technically costs you even less come tax season.

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5 Best home warranties

Below are five of the best home warranties for landlords looking to protect their rental property. 

Each is slightly different, but every one of the options below is comparable and worth a look.

Here are five of the best home warranties for rental property: 

1. First American Home Warranty

First American home warranty for rental property

First American Home Warranty offers a highly affordable home warranty with more coverage than the average warranty.

It’s particularly well-suited for those who want or need a large amount of cover for their HVAC systems.

They have a particularly useful First Class Upgrade option that adds an extra layer of coverage for things like improperly maintained or installed systems or appliances, making it perfect for rental property.


First American Home Warranty offers two basic plans, one- their Basic plan– which covers appliances and another– their Premier plan– which covers appliances and systems. 

Monthly premiums for each plan are:

  • Basic: $25.00
  • Premier: $39.50

They have a standard $75 service fee alongside the monthly premium.

2. American Home Shield

American home shield home warranty

American Home Shield (AHS) is a long-time contender with good customizable pricing options.

In addition, they cover damages that many of their contenders won’t handle such as:

  • Rust
  • Corrosion
  • Sediment 

In all, this makes them an especially safe and effective option.


American Home Shield offers three main plans, alongside a flexible $75, $100, or $125 service fee. The higher the service fee you select, the more you reduce your monthly premium.

Pricing for plans with the basic $75 service fee are:

  • Silver: $39.99
  • Gold: $49.99
  • Platinum: $64.99

3. Select Home Warranty

Select home warranty

Select Home Warranty offers several highly affordable monthly premiums.

They have a unique rook-leak protection service that is included in their normal warranty plans, something unique in the industry.


Select Home Warranty has three pricing plans. Bronze covers appliances, Gold covers systems, which Platinum is their combo package covering both.

Monthly plans come in at:

  • Bronze: $40.67
  • Gold: $40.67
  • Platinum: $46.08

They also have a standard $75 setup fee in addition to the monthly premium. 

4. Liberty Home Guard

Liberty home guard

Liberty Home Guard is a newer entry, but it’s quickly made waves as one of the top-rated in the industry. 

It boasts a lower service fee than its competitors as well as a low service call fee. Along with affordable payment plans, it’s one of the most affordable options on the list. 


Liberty Home Guard has three plans broken down in much the same way as their older competitors. The Appliance Guard plan covers appliances as its namesake suggests, while System Guard covers systems.

The combo plan Total Guard covers both appliances and systems.

Monthly plans are:

  • Appliance: $39.99
  • System: $49.99
  • Total: $59.99

5. Cinch Home Services

Cinch home warranty for rental property

Cinch Home Services sets itself apart with a few unique bells and whistles.

It has a homeowners insurance “rebate” plan that reimburses customers on their top-tier plan up to $1,000 if they make a single homeowners insurance claim during the life of their warranty contract. 

Like American Home Shield, they’ll also cover unique conditions such as:

  • Rush
  • And corrosion


Cinch Home Services has three monthly payment plans that range in price depending on the service call fee you choose (also like American Home Shield)– $100, $125, or $150. 

Monthly plans for their basic $100 service call fee come in at:

  • Appliances: $81.99
  • Systems: $87.99
  • Complete Home: $102.99


Q: Is a home warranty on a rental property tax deductible?

A home warranty on a rental property can be deductible in some cases, particularly when it comes to the services fees and premium payments. 

However, make sure to check with a tax professional to confirm whether you can deduct your home warranty-related payments in your state.

Q: What should I consider when getting a home warranty for my rental property?

When considering the purchase of a home warranty for a rental property, think about:

  • The age of the appliances and systems in the property
  • And how many rentals you have

The older your property’s appliances and systems, the more it needs a warranty. And the more rentals you have, the more useful a home warranty can be. 

Q: Why do I need a home warranty if I already have insurance? 

Typically, insurance covers certain types of damages and protects you from liability. It does not, however, cover the cost of replacing an appliance or home system such as an AC. 

With a home warranty, you can cover the cost of replacing all appliances and HVAC systems in your rental property.

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David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.