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How Much Does A Home Warranty Cost?

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Key Takeaways
Warranty Types: Varying plans from Standard to Premier with different coverage levels.
Annual Costs: Standard plans average $420-$720, while Premier plans range from $750-$1,300 annually.
Service Fees: Expect to pay between $75 and $125 per service visit.
Coverage: Plans can include systems like HVAC, plumbing, electrical, and appliances. Add-ons cover additional items.
Top Providers: Companies like American Home Shield, Choice Home Warranty, and First American Home Warranty offer competitive rates.

$420 – $720 Average Annual Cost (Standard Plan)

For a standard home warranty plan, homeowners can expect to pay an average annual cost ranging from $420 to $720. This typically covers basic systems and appliances within the home.

$750 – $1,300 Average Annual Cost (Premier Plan)

Premier plans on the other hand come with an annual cost between $750 and $1,300. These plans offer broader coverage, including additional services and items not typically included in standard plans.

$75 – $125 Average Service Visit Fee

In addition to the annual cost, service visit fees generally range from $75 to $125. This fee is charged each time a service professional visits to repair or replace a covered item.

Average Home Warranty Cost

The cost of home warranty plans can vary widely depending on the type and level of coverage. Here’s a closer look at average monthly costs and what’s typically included.

Average Home Warranty Plan Cost Per Month
Plan Level

Home Warranty Cost Breakdown

Understanding the breakdown of home warranty costs helps homeowners make informed decisions. The main components to consider are the type of plan, coverage details, and service visit fees.

Home Warranty Cost Breakdown
Plan Cost
Service Fees
Optional Add-ons

Home Warranty Prices By Company

Different companies offer a range of prices for their home warranty plans. Below is a comparison of some of the leading providers and their average costs.

Home Warranty Plan Cost By Company
American Home Shield
America’s 1st Choice Home Club
Choice Home Warranty
Cinch Home Services
First American Home Warranty
Home Warranty of America
Liberty Home Guard
Select Home Warranty

American Home Shield

American Home Shield is a well-known provider offering comprehensive plans with costs ranging from $40 to $90 per month and service fees between $75 and $125 per visit.

Choice Home Warranty

Another popular option, Choice Home Warranty, provides plans costing between $35 and $60 monthly, with service fees ranging from $65 to $100 per visit.

First American Home Warranty

First American Home Warranty offers competitively priced plans at $45 to $65 per month, with service costs of $75 to $125 per visit.

Select Home Warranty

Select Home Warranty offers plans at monthly costs ranging from $40 to $65, with service fees typical between $75 and $100 per visit.

What Is A Home Warranty, And How Does It Work?

A home warranty is a service contract that covers the repair or replacement of important home systems and appliances that break down due to normal wear and tear. It differs from homeowners insurance which covers losses from perils such as fire, theft, and natural disasters.

To use a home warranty, a homeowner pays an annual fee and service fee for each service call. When a covered item breaks down, the warranty provider sends a qualified technician to assess and repair the issue.

What Does A Home Warranty Cover?

Coverage Details

Home warranties typically cover significant home systems and appliances. These include:

  • Home Systems: HVAC systems, plumbing, electrical systems.
  • Appliances: Refrigerators, ovens, dishwashers, washers, dryers.

What Is Not Covered By A Home Warranty?

Certain items and conditions are generally not covered by home warranties:

  • Pre-existing Conditions: Issues that were present before the warranty coverage began.
  • Non-Mechanical Parts: Items like structural features, doors, windows.
  • Cosmetic Damage: Scratches, dents, and similar cosmetic issues.

Home Warranty FAQs

Are Home Warranties Worth It?

Whether a home warranty is worth it depends on several factors. For those with older systems and appliances, warranties can offer peace of mind and financial protection against unexpected repair costs.

Do I Need A Home Warranty If I Have Homeowners Insurance?

Homeowners insurance and home warranties serve different purposes. While homeowners insurance covers damage from perils like fire or theft, a home warranty covers wear and tear on systems and appliances. Having both can provide comprehensive protection.

Who Pays For A Home Warranty, The Buyer Or The Seller?

Often, home sellers may purchase a home warranty as an incentive for buyers, but buyers can also opt to buy one themselves.

How Long Do Home Warranties Last?

Most home warranties are offered on an annual basis, with the option to renew each year.

Tips For Purchasing A Home Warranty Plan

Questions To Ask A Home Warranty Company

Before purchasing a home warranty, consider asking the following questions:

  1. What Is Covered?
  2. What Are The Service Fees?
  3. Are There Coverage Limits?
  4. Is There An Annual Cap?
  5. How Are Service Providers Chosen?
  6. What Is The Claims Process?

Making an informed decision about home warranties requires understanding your needs and comparing different plans and providers. Consider your home’s age, the condition of existing systems and appliances, and read reviews to find a provider that offers the best value and service for your particular situation.

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