Neither Prime Minister Netanyahu’s political bloc or the opposition coalition led by Gadi Eisenkot is projected to secure enough seats for a majority in the Knesset.
SUCCESS
BofA sees 80% upside for Seagate stock, but Micron shares look cheaper
Imagine looking at your portfolio after a year when two popular technology stocks have run circles around the S&P 500.
Seagate (STX), best known for hard drives, has gained nearly 142% year to date. Micron (MU), which has blown up due to its AI memory chips, has seen its shares skyrocket by about 240%. Both profited from the tremendous amount of data needed to power AI.
But the celebration has become a lot more complicated.
Seagate has tanked by over 26% in the past month, while Micron has slid roughly 10% as investors question whether the memory and storage boom can continue to deliver extraordinary profits.
Bank of America sees a strong opportunity in the uncertainty.
In an October 28 report shared with me, the bank reiterated its price target for Seagate stock, implying around 80% upside from its most recent closing price. Meanwhile, Micron trades at a much more attractive price-to-earnings multiple based on next year’s projected earnings.
Bank of America sees Seagate rising despite Micron’s lower projected earnings multiple.Bloomberg / Getty Images
Bank of America sees 80% upside for Seagate despite stock selloff
Bank of America analyst Wamsi Mohan (a 5-star analyst rated by Tipranks) sees a massive buying opportunity in a memory stock that investors have been punishing of late.
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In his October 28 report, shared with me, Mohan reaffirmed a Buy rating on Seagate Technology and set a $1,200 price target, implying nearly 80% upside from the October 27 close, following another earnings stunner.
Seagate’s fiscal Q1 sales surged 61% to $4.23 billion. At the same time, adjusted earnings climbed to $7.68 a share from $2.61 a year earlier, while free cash flow reached a record $1.5 billion.
However, those results didn’t move the needle for the stock. Investors were spooked by the company shipping 220 exabytes of hard-drive capacity, including 198 exabytes of nearline storage used by large data centers, a figure that was less than expected and raises concerns that what has seemed a relentless AI storage boom could potentially be losing momentum.
Mohan sees a different explanation.
Seagate is transitioning to higher-capacity drives using heat-assisted magnetic recording, or HAMR, temporarily disrupting shipments. Management expects volumes to improve in the December quarter. More telling, BofA says nearline production is largely allocated into 2028, while customer visibility stretches beyond 2030.
With storage demand outpacing available supply, Seagate has room to raise prices.
Overall, Mohan forecasts fiscal 2027 revenue of $19.3 billion, up 58%, and adjusted earnings of $37.42 per share, up roughly 140%. He also expects free cash flow to more than double to $6.84 billion.
Moreover, Mohan projects gross margins rising from 46.1% in fiscal 2026 to 61.4% in 2027, despite elevated input costs.
Those are impressive estimates, but for investors, Micron stock has been the more popular trade, and compared with Seagate, its stock looks remarkably cheap on next year’s earnings.
Why Micron stock looks cheaper despite its massive AI rally
Seagate’s projected growth is hard to miss, but Micron offers investors a different way to profit from the same AI boom, and its pricing setup raises an interesting question.
As of October 27, Seagate trades at approximately 17.8 times Bank of America’s projected fiscal 2027 earnings. On the flip side, Micron is trading at just 5.3 times Wall Street’s consensus earnings estimate for fiscal 2027, underscoring a substantial valuation gap.
To be clear, BofA is bullish on both companies. Analyst Vivek Arya (another 5-star rated analyst), in a note shared with me, recently reaffirmed his Buy rating and $1,550 price target for Micron, implying 67% upside compared with nearly 80% for Seagate.
That said, part of the answer to why Micron’s cheaper lies in how expensive it is to run its business.
Micron spent approximately $27.37 billion on capital investments in fiscal 2026, equivalent to 20.6% of revenue. Seagate’s corresponding figure was just $569 million, or 4.7%.
Building advanced memory chips requires enormous investments in manufacturing equipment. Seagate, meanwhile, can benefit from higher hard-drive prices and capacity improvements without the same capital intensity.
That helps explain BofA’s expectation that Seagate’s free cash flow could more than double in fiscal 2027. But Micron’s lower earnings multiple is likely to reflect investors’ concerns that the current unusually strong memory cycle won’t last once additional manufacturing capacity arrives.
A cheap-looking stock isn’t necessarily undervalued if its earnings are near a cyclical peak.
Seagate has greater upside to BofA’s target, while Micron trades at a lower projected earnings multiple. The deciding factor may be which company’s profits hold up better when AI spending eventually slows.
What Seagate and Micron investors should watch in 2027
The next year will test whether investors are witnessing a lasting change in storage economics or another boom that fades when supply catches up.
For Seagate, the evidence will come from shipments. Its transition to higher-capacity HAMR drives needs to lift exabytes sold, while contracted orders through 2028 must become revenue without sacrificing the stronger pricing and gross margins BofA expects.
Micron faces a different test. Strong DRAM and high-bandwidth memory prices must withstand new industry capacity, while cash flow must justify the billions spent on factory expansions.
There’s also a hidden assumption behind Seagate’s $1,200 target.
BofA applies a 16x multiple to its projected calendar 2028 earnings of $75.07 per share. That’s twice Seagate’s historical median multiple of eight times. At that older valuation, the same earnings would support a share price near $601, not $1,200.
That helps frame the choice. Seagate offers relatively capital-light storage growth; Micron offers high-performance memory exposure at a lower forward multiple. For both, the question isn’t how cheap shares look against booming earnings. It’s how much of those earnings will endure.
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Skydance gives employees another tough choice
For employees who have grown accustomed to working from home or following a hybrid schedule, returning to the office five days a week can mean major changes to their daily routines.
And for thousands of workers at the newly merged entertainment giant Skydance, the change will come sooner than expected. The company, formed after Paramount completed its $110 billion acquisition of Warner Bros. Discovery earlier this month, is adopting a mandatory five-day in-office policy across its operations.
Skydance is also offering eligible employees voluntary buyouts, giving some workers who do not want to make the transition an opportunity to leave with severance.
The changes were outlined in an internal email from Skydance CEO David Ellison and co-CEO Ynon Kreiz on Oct. 26, first shared on X by journalist Scott Nover.
The move comes as Skydance begins integrating thousands of employees across Paramount, Warner Bros., HBO, CNN, CBS, and other businesses while pursuing billions of dollars in cost savings.
Skydance adopts strict 5-day office policy
The new policy expands a requirement already introduced at Paramount to the broader Skydance workforce.
Paramount employees assigned to offices were previously required to work in person five days a week, while Warner Bros. Discovery employees generally followed a three-day office schedule.
In their memo, Ellison and Kreiz defended the policy, arguing that employees working together in person strengthens collaboration, creativity, and the company’s culture.
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“We believe in-person collaboration is vital to our culture and to the success of our business,” the executives wrote.
They acknowledged that the change could disrupt employees’ established routines.
Skydance plans to implement the requirement in phases by location, rather than setting a single companywide start date. Employees will receive advance notice and support from managers during the transition, according to the memo.
The company has not publicly provided a detailed implementation schedule or clarified whether exceptions will be available.
What Skydance employees can expect from the buyout offer
In addition to the office mandate, Skydance is introducing a one-time voluntary buyout program for qualifying employees.
Eligible workers will receive individual communications outlining their severance terms and the deadline for making a decision.
According to an Oct. 26 Business Insider report, which reviewed a separate HR email, the standard package offers two weeks of severance pay for every year of employment at Paramount or Warner Bros. Discovery.
Some employees may receive different packages, depending on their circumstances. Workers who receive an offer must decide whether to accept it by Nov. 8, 2026, at 11 p.m. EST.
The HR communication described the program as voluntary and said that no additional buyout offers are planned. Employees who do not respond by the deadline will be considered to have declined the offer.
Skydance has not disclosed how many employees qualify for the program or how many departures it expects.
Skydance previously saw 600 workers accept buyouts
This is not the first time Skydance has paired stricter attendance requirements with an employee exit program.
Following the 2025 Paramount-Skydance merger, the company announced a phased return-to-office policy beginning in January 2026.
Employees in New York and Los Angeles at the vice-president level and below were offered voluntary severance if they were unwilling or unable to return to full-time work.
Approximately 600 employees accepted the offer, according to Paramount’s November 2025 SEC-filed shareholder letter.
The company separately eliminated approximately 1,000 positions in October 2025 as part of its restructuring.
Now, after acquiring Warner Bros. Discovery on Oct. 6, Skydance faces another round of workforce integration. In its official merger announcement, the company outlined a goal of generating at least $6 billion in annual run-rate savings within three years.
Executives have said much of the savings will come from areas outside labor, including technology, procurement and real estate, although additional layoffs are also expected.
The merger is already bringing changes for customers. As I previously reported, the combined company plans to eventually bring HBO Max and Paramount+ together as part of its streaming strategy.
Now with the November deadline approaching, Skydance’s latest policy could lead to another wave of employee departures before full workforce integration is complete.
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Landstar stock plunges 17.8% on insurance costs and EPS miss
Landstar System (LSTR) shares tumbled about 17% on Wednesday, October 28, after the freight company missed Wall Street’s third-quarter profit forecast, even as revenue jumped 25%.
Earnings came in at $1.42 a share, well short of the $1.67 analysts expected. The culprit was insurance and claims, which cost $55.3 million, up from $33 million a year earlier.
For investors who own the stock for its steady dividend and buybacks, the selloff stings after a strong run in freight rates. Management says the market is tightening in carriers’ favor, which makes the profit hit look like a bumpy patch rather than a broken story.
How Landstar makes money
Landstar is an asset-light freight company. It moves truckloads for shippers using a network of independent contractors and agents rather than owning a large fleet. That model keeps costs lean and lets profits swing with freight demand.
Revenue from trucking was $1.407 billion in the quarter, up 29%, with van, flatbed-style and power-only freight all growing.
The company ended the quarter with about $351 million in cash and has repurchased about $64 million of stock this year. It pays a $0.44 quarterly dividend, next due Dec. 8.
Shares closed Tuesday at $168.78 before falling after the report. Before this move, Landstar’s market value was around $5.6 billion.
Landstar shares fell as higher insurance and claims costs dented third quarter earnings results.Jon Tetzlaff / Getty Images
Insurance and claims hold back Landstar profits
Third-quarter revenue reached $1.512 billion, up 25.4%, and operating income more than doubled to $65.5 million. Earnings of $1.42 a share compared with $0.56 a year earlier, which included a 66-cent impairment charge.
The problem was cost and margin.
Gross margin slipped to 8.4% from 9.2%. Insurance and claims jumped by $22.3 million, including about $13 million in adverse reserve adjustments and about $8 million to settle two accident claims.
“The highly elevated insurance and claim cost quarter is primarily attributable to: one, approximately $13 million or $0.29 per share of unfavorable actuarial adjustments to insurance and claims reserves as compared to the last actual review conducted as of the fourth quarter of 2025. And two, approximately $8 million or $0.18 per share, resulting from the settlement of two claims during the 2026 third quarter,” said CEO Frank Lonegro on the earnings call.
“It’s no secret — the truck transportation industry has been under attack of late by an incredibly aggressive plaintiff bar, emboldened by the prospect of nuclear verdicts and the Montgomery decision,’ added Lonegro.
In May, the Supreme Court ruled that lawsuits can target logistics companies. Previously, they were viewed as insulated against suits tied to accidents caused by the truckers they hire by the Federal Aviation Administration Authorization Act (FAAAA) of 1994.
Since the ruling has passed, insurance costs have risen alongside claims risk.
Management called the $8 million nonrecurring, but the higher reserves will be carried forward. The CFO suggested that the midpoint of the $35 million to $55 million quarterly range is more realistic.
On the positive side, truck revenue per load rose about 25%, loads rose about 3%, and Landstar added 165 net contractor trucks, its best quarter since 2021.
The company gave no formal guidance. The CEO said freight conditions keep improving, and described the market as shifting toward carriers after nearly four years favoring shippers.
What to watch next at Landstar
On the earnings conference call, analysts from Evercore, JPMorgan and Barclays pressed management on how much of the insurance charge will recur, while others, including Wells Fargo, TD Cowen and Stifel, asked about contractor growth.
Wolfe, UBS and Goldman Sachs asked whether rate strength lasts into 2027. Management said October revenue per load was about 29% above last year.
Truist lowered its Landstar stock price target to $160 from $175 and maintained a hold rating. JP Morgan lowered its target to $172 from $181 and kept its neutral rating.
The key for investors is whether insurance costs settle near the middle of the range, with October’s rate strength carrying through December and into Q4 results in early 2027.
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7 Best Home Warranty Companies of November 2026
Key Takeaways
Our list of best home warranty companies include 2-10 Home Buyers Warranty (Best Enhanced Coverage); AFC Home Warranty (Best Premiums); and American Home Shield (Best for HVAC)
We vetted 22 companies based on four key factors: transparency in services offered, claims processing, cost and quality of customer service.
Unlike homeowners’ insurance, which covers damage from natural disasters, theft, or accidents, home warranties help pay for repairs or replacements of home systems or appliances.
Once a home warranty contract is in effect, you can contact your company and request a service for a covered system or appliance malfunction. You may or may not have to use a specific repair company or in-network technician.
We recommend checking whether a company is a member of a national trade association, such as the Service Contract Industry Council (SCIC) or the National Home Service Contract Association (NHSCA).
How we chose our top picks
We first began reviewing home warranty companies in 2020. Since then, we’ve spent over 1,000 hours researching the top providers in the country and thoroughly vetting 22 companies. Our methodology focuses on four key factors: transparency in services offered, claims processing, cost and quality of customer service.
Read the full methodology for more information.
Our Top Picks for Best Home Warranty Companies
The companies listed below are in alphabetical order.
2-10 Home Buyers Warranty: Best Enhanced Coverage
AFC Home Warranty: Best Premiums
American Home Shield: Best for HVAC
Cinch Home Services: Best Systems Plan
First American Home Warranty: Best Starter Plan
Liberty Home Guard: Best for Optional Add-Ons
Select Home Warranty: Best for Roof Coverage
Pros
Offers up to 65% off in Whirlpool and GE brand appliances
Current promo of 50% off select plans
Wide variety of add-on coverages
Up to $5,000 in repair coverage for HVAC and $2,000 per appliance
Cons
Coverage for garage doors or roof leaks only available as add-ons
Not available in Hawaii and Alaska
No appliance-only plans
Only two plan options
HIGHLIGHTS
Monthly Premiums
$39.99 to $59.99
Available Plans
2
Service Fees
$0 – $350
State Availability
Nationwide, except AK and HI
Response Time
48 hours
BBB Rating
A+
Why we chose this company: 2-10 Home Buyers Warranty’s premium plan covers a wide range of items most home warranty companies don’t, such as turntable platforms, rotisseries, ceramic cooktops and concrete-encased plumbing.
2-10 HBW offers two plans: Systems and Pinnacle. Both plans come with the 2-10 HBW’s Appliance Discounts Program, offering discounts up to 65% on Whirlpool and GE brands. The company will also match your appliance color during replacements and offer a $100 reimbursement if you choose to replace a broken appliance rather than request service.
In addition, 2-10 HBW’s “Even If” Service Fee Guarantee includes a service fee refund if your request is ineligible for service. You also won’t pay another service fee if the same component fails after receiving service. As of September 2026, 2-10 Home Buyers Warranty is owned by Frontdoor, Inc., the same parent company as American Home Shield, Landmark Home Warranty, and OneGuard Home Warranty.
Read the full 2-10 Home Buyers Warranty review.
Pros
Array of additional benefits, from discounts and family emergency services to credit monitoring
Clients can choose their own technicians
Platinum Plan covers microwave ovens, ice makers and plumbing stoppages
Diamond plan covers electronics
Many add-on coverages
Lifetime guarantee on repairs
Cons
One-day period for reporting issues with a system or appliance
$75 plan cancellation fee
System plan unavailable in some areas
HIGHLIGHTS
Monthly Premiums
$40 – $112
Available Plans
4
Service Fees
$75, $100, $125
State Availability
Nationwide, except HI, CA and WA
Response Time
48 hours
BBB Rating
B
Why we chose this company: AFC Home Warranty offers your choice of service contractors, affordable premiums, and four different plan options — including two hybrid plans that cover both systems and appliances.
AFC Home Warranty (America’s First Choice) first caught our attention for its affordable premiums. AFC’s plans include a systems plan, an appliances plan and two hybrid plans covering both systems and appliances. (One even covers electronics, like laptops and smart home devices.) In addition, AFC Home Warranty has one of the strongest service guarantees in the industry: both parts and labor are guaranteed for the life of the contract.
As with other home warranty companies, AFC pricing depends on the service fee selected ($75, $100, or $125). Monthly premiums for one-year contracts range from $40 for the Silver Plan up to $112 for the most comprehensive plan (depending on your location).
Read the full AFC Home Warranty review.
Pros
Largest home warranty service provider in the country
Offers coverage for home electronics
Highly customizable service plans
Current promo of 50% off certain plans
Platinum plan covers roof leaks
Cons
Repairs are only guaranteed for 30 days
Nearly 15,000 BBB complaints in the last three years
Plans unavailable in Alaska, Hawaii and New York City
HIGHLIGHTS
Monthly Premiums
$29.99 to $79.99
Available Plans
3
Service Fees
$100, $125
State Availability
Nationwide, except Hawaii, Alaska and New York City
Response Time
48 hours
BBB Rating
B
Why we chose this company: American Home Shield offers free HVAC tune-ups with its premium plan and fewer coverage restrictions than most competitors.
With American Home Shield, choose from three comprehensive plans and customize them with add-ons for other systems and appliances, including home electronics and entertainment products.
Together, AHS’ comprehensive plans — ShieldSilver, ShieldGold and ShieldPlatinum — cover more than 23 home appliances and systems. In addition, its premium plan, ShieldPlatinum, covers up to $1,000 for roof leak repair, HVAC tune-ups, code violations and AC refrigerant.
One important note: AHS has had nearly 15,000 complaints filed against it with the BBB in just the last three years. It has 1.27 stars (out of 5) on almost 6,000 BBB reviews.
Read the full American Home Shield review.
Pros
Available in 48 states
180-day workmanship guarantee
Covers unknown pre-existing conditions
Current promo for 30% off coverage
24/7 service requests
Cons
Higher deductibles than some competitors, from $100 to $150
Additional coverage options only available while getting a quote
HIGHLIGHTS
Monthly Premiums
$19.99 to $54.59
Available Plans
3
Service Fees
$100, $125, $150
State Availability
48 states, not available in AK, HI
Response Time
48 hours
BBB Rating
A+
Why we chose this company: Cinch Home Services’ system plan includes coverage that other home warranty companies usually offer as an add-on.
Cinch plans stand out for coverage of items other companies typically charge extra for, such as sump pumps, water dispensers and smoke detectors. Cinch’s appliance plan covers freestanding ice makers and built-in food centers, while its system plan covers sump pumps, doorbells, smoke detectors and tankless water heaters. Its highest-tier plan even covers electrical permitting and appliance disposal.
Cinch services are backed by a 180-day workmanship guarantee on the work performed. This is considerably longer than the 30- and 90-day guarantees most companies offer.
Read the full Cinch Home Services review.
Pros
Affordable basic plan options with competitive coverage
Essential and Premium plans cover improper installations and code violations
Premium plan covers all costs related to refrigerant recharging
Current promo of $200 off
Cons
No systems-only plan
Limited list of add-ons
Not available in AK, CT, DE, HI, LA, ME, MN, NH, NY, ND, RI, WI or the US Virgin Islands
Over 2,600 BBB complaints in the last three years
HIGHLIGHTS
Monthly Premiums
Starting at $35
Available Plans
3
Service Fees
$75, $100, $125
State Availability
37 states
Response Time
48 hours
BBB Rating
A-
Why we chose this company: First American Home Warranty’s starter plan offers comprehensive basic coverage for major appliances and systems, at a competitive price.
With First American’s Starter Plan, you get extensive coverage for nine costly-to-repair appliances and systems starting at $35 a month. Customers can choose the Essential or Premium Plans for more coverage.
All plans cover damages caused by lack of maintenance, rust, corrosion and chemical or sedimentary build-up, which may be vital if you’re buying an older home. They also feature limited roof leak coverage, which includes leaks caused by normal wear and tear for tar and gravel, tile, shingle or composition roofs.
The company has high Trustpilot reviews (4 stars out of 5 on over 19,000 reviews), but it also has a very low BBB score and more than 2,600 BBB complaints in the last three years.
Read the full First American Home Warranty review.
Pros
Over 40 items of additional coverage options
365-day workmanship guarantee on repairs
Overwhelmingly positive customer reviews on third-party platforms
Current promo of $300 off + two months of free coverage and free roof leak protection
Strong Trustpilot and BBB reviews
Operates in all 50 states
Cons
Relatively low payout limits
HIGHLIGHTS
Monthly Premiums
$50 – $70
Available Plans
4
Service Fees
$75 – $125
State Availability
50 states
Response Time
48 hours
BBB Rating
D+
Why we chose this company: Liberty Home Guard has the most extensive list of add-ons in the market, including rarely covered items such as gutter cleaning. It’s also one of the few companies that operates in all 50 states.
Liberty Home Guard stands out for its list of possible add-ons. Customers can choose from over 40 items to add to their coverage — one of the most extensive lists of add-ons in the home warranty market.
The list includes items other home warranty companies cover — pools, spas, well pumps, sump pumps, central vacuums — and other, rarely covered items such as limited roof leaks, lock replacement, gutter cleaning, pest control, water softeners, wine fridges, and electronics protection.
Its per-claim service fee ranges from $75 to $125, with a payout limit of $2,000 per covered item.
Read the full Liberty Home Guard review.
Pros
Covers roof leaks at no extra fee
90-day repair guarantee
Discounts for multi-year plans
Current promo of $150 off any plan + roof coverage and two months free
Cons
Unavailable in IA, NV, WA, and WI
Low coverage caps for many home services
HIGHLIGHTS
Monthly Premiums
Starting at $60
Available Plans
3
Service Fees
$75
State Availability
46 states
Response Time
24 hours on average
BBB Rating
C
Why we chose this company: Select Home Warranty plans include roof leak coverage and multiple discount promotions throughout the year.
Select Home Warranty offers notable discounts, including 2 months of free service when you pay for a full year upfront and special discounts when you sign up for more than a year. The company also has occasional promotions that knock off between $100 and $200 for new sign-ups.
Select has three plans: Bronze Care, Gold Care and Platinum Care. Bronze Care covers appliances, while Gold Care focuses on systems. The most expensive plan, Platinum Care, combines both for more comprehensive coverage. The service fee is set at $75. In addition, all three plans cover roof leak repairs.
An important thing to note: Select Home Warranty has had over 4,600 BBB complaints filed in the last three years. It has a BBB review of just 1.82 out of 5 stars.
Read the full Select Home Warranty review.
What You Need to Know About Home Warranty Companies
This guide covers home warranty basics and the types of coverage plans available. It also includes important factors to keep in mind as you’re choosing a plan.
What does a home warranty cover?
A home warranty is a service contract that helps you pay for repairs if and when major household systems or appliances break down.
Unlike homeowners’ insurance, which covers damage from natural disasters, theft, or accidents, home warranties help pay for repairs or replacements of home systems or appliances when specific parts and components fail due to normal wear and tear.
Once a home warranty contract is in effect, you can contact your company and request a service for a covered system or appliance malfunction. If the malfunction is listed in your policy, the company will send a qualified contractor in your area to diagnose and repair the problem. Depending on the situation, some providers may opt to replace your item instead, up to the amount covered under your contract.
Is a home warranty worth it?
The following list can help you determine whether purchasing a home warranty is worth it:
Yes, a home warranty is worth it if:
A home warranty might not be worth it if:
You’re purchasing a previously built home, since systems may be approaching the end of their lifespan (usually 10 to 20 years, depending on the system)
You’re purchasing a newly built home. New construction usually comes with a warranty from the builder for systems for up to 10 years
The appliances in your house are currently working, but weren’t purchased recently
Your appliances are new — new appliances usually come with a manufacturer’s warranty, and some credit cards also offer extended warranties
You don’t know mechanics or contractors in your area, or don’t have good DIY skills
You have established relationships with contractors or maintenance people, or are good at DIY-ing repairs
How much does a home warranty cost?
A home warranty costs between $360 and $1,344 annually, depending on the plan you choose. Typically, systems-only or appliances-only plans cost less than all-inclusive plans.
Before receiving the service, you’re typically required to pay a service fee or a deductible of $75 to $150. The exact amount is decided when you choose a policy and should be listed in your contract.
The most cost-effective plans strike a balance between price, types of items covered, service fee and payout limits.
Factors that influence home warranty costs
Several factors can affect the cost of your policy, including:
Coverage: The more extensive the coverage, the higher the cost. Systems or appliance-only plans generally cost less than comprehensive plans that cover both major systems and appliances. Optional coverage can also increase your premium.
Service call fee: A lower service call fee, or deductible, generally implies higher monthly payments, whereas plans with higher fees cost less per month.
Home size: Some home warranty companies consider the type of property and size of your home — that is, the square footage or number of rooms — in their pricing. Larger homes or homes with unique features generally require more extensive (or customized) coverage, which leads to higher premiums.
Location: Premium costs can vary depending on where you live, mainly due to differences in the cost of living. Companies may also factor in particular environmental conditions that affect the typical wear and tear of home systems in your region.
Home warranty vs. home insurance
Home warranty
Home insurance
A home warranty covers the cost of repairing or replacing systems and appliances after breakdowns, malfunctions and normal wear and tear.
Homeowners insurance covers expenses if your house or personal property are damaged by perils like fires and theft.
A home warranty is optional and is generally paid annually or monthly.
Homeowners insurance is required by lenders as part of the mortgage process and is paid annually.
A home warranty can supplement your homeowners insurance policy and help you find a qualified service contractor in your area to perform repairs and installations.
Home insurance may provide liability coverage for accidents that occur in the property.
Understanding home warranty contracts
Before signing up with a particular provider, take the time to understand the contract. Here are three main points to review:
Check what items are covered: Although most home warranty companies cover similar items, there can be significant variations in their plans. It’s important you read the fine print and confirm that the company provides coverage for the items you want to protect.
Understand coverage caps: Companies generally list coverage caps for particular systems and appliances. These caps are the maximum amount the company will pay to repair or replace a covered item per contract term.
Find what isn’t covered: Keep an eye out for components or events that aren’t covered. Most providers list specific limitations and exclusions on their contracts. For instance, some companies may cover roof repairs but exclude metal roofs and roof-mounted installations from their coverage.
We also recommend checking whether a company is a member of a national trade association, such as the Service Contract Industry Council (SCIC) or the National Home Service Contract Association (NHSCA). These associations support oversight and regulation within the industry, ensuring members remain compliant and up to date with best practices.
Questions to ask your home warranty provider
Be sure to ask the provider any questions that come up while reviewing the contract. Here are some good ones to start with:
What is the service fee (or deductible)?
Is there a waiting period before coverage begins?
Can I customize my coverage after purchase?
Do you cover pre-existing conditions?
Can I choose my own service contractor or technician to perform repairs?
What is the policy on replacements versus repairs?
Is there a limit on how many times I can request a service?
Are there any cancellation fees or penalties?
What are the coverage caps or maximum payouts per item or contract term?
How to file a home warranty claim
The process of filing a home warranty claim can vary from company to company. However, it typically starts with a service request, followed by an appointment with a service technician if the request is approved. Read our step-by-step guide on how to file a home warranty claim for more details.
What to do if your home warranty claim is denied
A denied claim can be frustrating, but before you decide to pay for repairs out of pocket, take the time to understand the reasons for the denial. Here are some steps you can take:
1. Review the denial letter: Your home warranty company should send you a written notification with the reasons for the denial. Identify them and review your contract to confirm whether your claim is indeed covered or not. If you have enough information to believe that your claim should be covered, consider making an appeal.
2. Gather documentation: Home maintenance records, photos and pre-inspection documentation may be helpful to address your denial. You may also request a copy of the company’s inspection report. This way, you know the specifics of the diagnosis and can seek a second opinion from an independent contractor.
3. File an appeal: Once you collect all the relevant documentation, reach out to the company and discuss the denial. Ask for clarification on the reasons behind the decision and on the process for filing an appeal or a new claim. During this process, keep a record of all communications with the company, including names, dates and details of the conversations.
If your efforts to resolve the issue with the company are unsuccessful and your denial appears to violate the terms of your contract, consider filing a complaint with a consumer protection office in your state or with consumer organizations like the Better Business Bureau.
What can void a home warranty?
Each provider has its own rules regarding factors that could void your policy for a specific system or appliance. In some instances, a claim may be denied for the following reasons:
Unauthorized repairs or modifications, whether by using an unapproved contractor (licensed or not) or attempting to do the repairs yourself
Improper maintenance or installation
Home improvement projects
Pre-existing issues
Failing to keep your home up to building codes
Misplacing ownership documentation
The “proper maintenance” gray area
Sometimes home warranty coverage is contingent on the “proper maintenance” of systems and appliances. This means repairs won’t be covered if the malfunction was caused by a failure to follow the manufacturer’s maintenance specifications. However, companies often don’t provide clear guidelines as to what constitutes proper routine maintenance.
Some contracts give concrete examples, such as:
Changing filters
Flushing the water heater
Sanitizing your water filter
Keeping proper refrigerant levels
Cleaning coils
However, coverage will ultimately depend on whether the service technicians determine that proper maintenance was performed.
TIP: If you buy a home warranty, take pictures and document the routine maintenance of the appliances.
How do I cancel my home warranty?
The cancellation process can vary from one company to another; however, there are some general steps you can follow:
Review your contract: Check your contract’s cancellation policy and any fees that may apply. Most companies charge a cancellation fee that can range from $25 to $75 — or 10% of the fees you have yet to pay. This means you may receive a prorated refund. However, companies typically provide a full refund if you cancel within the first 30 days of purchase.
Contact the home warranty company: Call or email your provider directly and let them know you intend to cancel your policy. A company representative may be able to guide you through the specifics. In some cases, you may need to send a written notice of termination, which you should send via registered post or courier, if possible, to facilitate tracking.
Cancel your payment: If your payments are automatically charged to a credit card or bank account, make sure to cancel the automated payment with the corresponding institution.
Follow up: It may be a good idea to request a written confirmation of the cancellation directly from the company.
Keep in mind that even though most home warranty contracts are valid for one year, your plan may auto-renew if you enroll in automated payments. If that’s your case, make sure to cancel the plan and automatic payment at least two weeks before the renewal date.
Methodology
We carefully analyzed sample contracts from our top contenders and evaluated them on criteria such as contract terms, types of malfunctions or failures covered, payout limits, cost-efficiency and service fees. We also analyzed and compared the companies based on the following factors:
Services offered. We compared companies’ offerings and coverage caps to identify those that offered the best value and covered the most systems and appliances.
Claims processing. We preferred companies that offered multiple ways to file a claim and quick response times. Each company we selected has typical response times of 48 hours or less and offers different channels for submitting a claim, such as over the phone or online.
Cost. We contacted companies to obtain quotes whenever prices weren’t openly disclosed on their websites, using New York and California addresses.
Availability: We focused on companies offering nationwide services or that were available in at least 30 states.
Legal actions: To assess their reputation and good standing, we evaluated whether the companies on our list have pending or recent regulatory or legal actions.
Latest News in Home Warranties
Homeowners in West Tennessee have been receiving mail for fraudulent home warranty renewals in recent weeks, accortding to news reports. Local police are urging homeowners to verify these requests and be cautious about providing any personal information.
Choice Home Warranty agreed to an $11.8 million settlement with the Arizona Attorney General’s office (the judgment was entered on January 23, 2026 and announced on February 10, 2026), resolving allegations that it misled customers about what its contracts actually covered. According to the Attorney General’s office, the company advertised coverage for appliances and air conditioning units it then failed to repair or replace, and sales representatives withheld information about exclusions and limitations — or made outright false claims about repair and replacement coverage.
Arizona homeowners had until August 1, 2026, to claim their share of the $11.8 million Choice Home Warranty settlement. Attorney General Kris Mayes opened the restitution process in March 2026, roughly six weeks after announcing the deal, making it the largest home warranty consumer fraud settlement in the state’s history. Eligibility was limited to consumers who purchased a Choice Home Warranty contract over the phone between January 1, 2013, and January 1, 2023, for an Arizona property — a window in which the Attorney General’s office fielded more than 1,500 complaints against the company. Beyond the payout, the judgment requires Choice Home Warranty to reform its sales practices and give consumers meaningful disclosures about exclusions and limitations before a sale closes. That last piece is the part worth watching: it sets a template other state regulators can borrow, and it reinforces why reading the exclusions list before signing matters more than the advertised coverage list.
The Better Business Bureau has had nearly 2,700 reports of home warranty scams between September 2025 and September 2026. In the last five years, it’s been over 5,500. Here’s how one common warranty scam works and how to avoid it.
Best Home Warranty Companies FAQs
When can you buy a home warranty?
You can buy one at pretty much any point, not just when you’re purchasing or selling a home. What changes is when the coverage takes effect. If the warranty is purchased as part of a real estate transaction, coverage will often begin at closing without a waiting period. If you buy a plan separately, there’s typically a waiting period of around 30 days before you can submit a claim.
How soon can you use a home warranty after purchase?
For most plans, you’ll need to wait about 30 days before coverage begins, meaning a breakdown during that first month usually won’t qualify. There are a couple of common exceptions. Warranties purchased as part of a home sale often start at closing, and renewing an existing policy generally allows coverage to continue without an interruption.
Will a home warranty replace my AC unit?
It can. If your AC stops working because of normal wear and tear and the technician determines it can’t reasonably be repaired, your warranty may cover a replacement. Just keep in mind that coverage limits apply. American Home Shield, for instance, caps HVAC coverage at $5,000 per system. With the average AC replacement costing about $5,977 nationwide, you could still be responsible for the difference.
Does a home warranty cover pre-existing conditions?
In most cases, no. Home warranty companies generally expect covered appliances and systems to be working when the policy begins. If a problem was already there, the provider may classify it as a pre-existing condition and deny the claim. There are exceptions, though. Cinch Home Services, for example, covers certain unknown pre-existing conditions that couldn’t have been discovered through a visual inspection or standard mechanical test.
Is there an age limit on appliances a home warranty will cover?
Usually not. Major providers such as American Home Shield, 2-10 Home Buyers Warranty and First American generally don’t exclude an appliance or system simply because it’s old. Its condition matters more than its age. If the item wasn’t working properly when coverage began, the provider may consider the issue pre-existing and refuse the claim.
Is there a limit on how many claims you can file?
Usually, there isn’t a set limit on the number of claims you can submit during the year. Instead, providers restrict how much they’ll pay for individual appliances or systems. American Home Shield, for example, covers up to $5,000 per HVAC system and between $2,000 and $4,000 per appliance, depending on the plan. Liberty Home Guard limits coverage to $2,000 per covered item.
Can you transfer a home warranty when selling a house?
Yes. Most home warranty plans can be transferred to the new homeowner, and the process is usually fairly simple. Some companies charge a transfer fee of around $25 to $75, while others, including Liberty Home Guard, may waive it. It’s a good idea to contact the provider before closing, since some companies require the transfer to be completed within 30 days of the sale.