Table of Contents
- Key Takeaways
- Average Home Warranty Costs
- Home Warranty Costs by Company
- Factors That Affect Costs Of A Home Warranty
- Find Home Warranty Companies In Your State
- Are Home Warranties Worth It?
- Home Warranty Fine Print to Consider
- What Is a Home Warranty?
- How to Save Money on a Home Warranty
- Frequently Asked Questions (FAQs)
Being a homeowner comes with many responsibilities and unexpected costs. When your refrigerator stops cooling or your hot water heater isn’t so hot, you may be glad you have a home warranty plan to help you cover the unexpected repair costs.
Home warranty plans can vary widely in cost depending on the company and plan you choose, but generally, costs range from $27 to $100 monthly with an average premium cost of $57 per month. This cost does not include any add-ons you choose or the service fee. Still, if your home’s systems or appliances need frequent repair, these plans can come in handy.
Below, we’ll go over how much you could pay for a home warranty plan, cost factors that may affect your final bill and how to help determine if a home warranty is right for you.
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Key Takeaways
- Home warranty plans typically cost $684 annually on average, or $57 per month. In our research, the lowest cost is $27 monthly and the highest plan is roughly $100 monthly.
- Home warranties can increase in cost thanks to things like your home size, location, age of your home and what you want to cover.
- In a recent Forbes home warranty survey, more than 65% of people found their home warranty to be worth the cost.
Average Home Warranty Costs
| AVERAGE HOME WARRANTY COSTS (MONTHLY) | |
|---|---|
| Average Cost | $57 |
| Lowest Cost | $27 |
| Highest Cost | $100 |
Breaking Down Home Warranty Costs
Home warranties break down into a few fees and understanding how they work is key to seeing the full scope of home warranty costs
- Premium: Consider this your subscription fee for enrolling in a home warranty plan. It typically recurs monthly, but you can sometimes save money by paying for a year upfront. Depending on your plan, this cost will typically range from $27 to $100 monthly.
- Service fees: Besides monthly fees, you’ll pay a fee every time you call a service pro to come to your home to fix or replace an item. This cost typically ranges from $65 to $150. It can be called a deductible, call fee or other terms, so clarify exactly how it works with your chosen company. You will likely also pay this fee every time a pro visits, even if it’s multiple times to finish one project. Also, you’ll typically have a choice of service fee, and by choosing a more expensive one, you can often lower your monthly premium.
- Add-on costs: You’ll typically have a chance to add covered items to your chosen plan, but each will come with an additional fee. You’ll typically pay this monthly as it gets lumped in with your premium, but keep an eye on these as you choose a plan, as they can add up quickly. You’ll typically see add-ons for $5 to $30 per month, but they can be lower or even exceed that range.
Home Warranty Costs by Company
The company you choose and the individual plan you opt for will determine how much you pay per month and visit. The costs below reflect the sample estimates we received from the companies on our best home warranty companies list. However, costs can vary depending on your location, home size and other factors, so we always recommend seeking individual quotes from several companies when deciding.
| PROVIDER | PLANS | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|---|
| Liberty Home Guard | 3 | $49.99 - $59.99 | $65 - $125 |
| 2-10 Home Buyers Warranty | 3 | $27.00 - $69.00 | $65 - $100 |
| Home Warranty Of America (HWA) | 2 | $46.08 - $59.92 | $75 - $100 |
| American Home Shield | 3 | $29.99 - $79.99 | $100 - $125 |
| ARW Home | 3 | $39.99 - $74.99 | $65 |
It’s also worth noting that things can change quickly in the home warranty industry and these costs were current at the time of writing and do not reflect promotions. “Starting at” prices typically reflect rates for the highest service fee available and, thus, the lowest premiums we could find for those companies.
Liberty Home Guard
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Appliance Guard | $49.99 | $65.00 - $125.00 |
| Systems Guard | $54.99 | $65.00 - $125.00 |
| Total Home Guard | $59.99 | $65.00 - $125.00 |
Liberty Home Guard offers three home warranty plan options: Appliance Guard covers appliances like your fridge and oven, Systems Guard covers systems like your AC and heating and Total Home Guard combines the two for a more comprehensive plan.
The Home Service Club
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Standard | $51.25 | $65.00 - $125.00 |
| Comprehensive | $62.50 | $65.00 - $125.00 |
The Home Service Club offers two plans. The first, the Standard plan, covers 18 systems and appliances in your home, including HVAC, water heaters and refrigerators. The Comprehensive plan covers 33 systems and appliances, including smoke detectors and ductwork.
ARW Home
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Kitchen Plus | $39.99 | Inquire with company |
| Platinum | $64.99 | Inquire with company |
| Platinum Premier | $79.99 | Inquire with company |
ARW Home has three plans. The first (Kitchen Plus) focuses on kitchen appliances like fridges, ovens and built-in microwaves. The second (Platinum) focuses on systems like central AC and heat and water heaters. The third (Platinum Premier) combines the two.
The company does not list service fees on its website, so we recommend getting a custom quote and inquiring about service fee options.
2-10 Home Buyers Warranty
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Simply Kitchen | Starts at $27 | $65.00 - $100.00 |
| Complete Home | Starts at $46 | $65.00 - $100.00 |
| Pinnacle Home | Starts at $60 | $65.00 - $100.00 |
Another provider with three plans, 2-10 Home Buyers Warranty, starts off with the Simply Kitchen plan, which focuses on kitchen appliances like your fridge and dishwasher. The Complete Home plan covers those appliances, such as heating, cooling, plumbing and electrical. The Pinnacle Home plan covers all of the above, plus electrical and some upgrades to certain home repairs, like covering haul-away fees in some instances.
AFC Home Warranty
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Silver | Inquire with company | $75.00 - $125.00 |
| Gold | Starts at $59.92 | $75.00 - $125.00 |
| Platinum | Starts at $61.17 | $75.00 - $125.00 |
| Diamond | Starts at $92.08 | $75.00 - $125.00 |
AFC Home Warranty has the most plans on our list with four. Its Silver plan wasn’t offered when we obtained several quotes, but the website notes the nine things it covers, including dryers and garbage disposals. The Gold plan offers additional coverage for 15 items, including electrical and plumbing systems. The Platinum plan adds more coverage for 19 things including faucets and plumbing stoppages. The Diamond plan is its most comprehensive, covering 22 systems and appliances, including exterior sewer and water lines.
Cinch Home Services
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Home Appliance | Starts at $35.99 | $100.00 - $150.00 |
| Built-in Systems | Starts at $35.99 | $100.00 - $150.00 |
| Complete Home | Starts at $44.99 | $100.00 - $150.00 |
Cinch Home Service’s first two plans are fairly self-explanatory. Its Home Appliances plan covers things like dryers, cooktops, and fridges. Its Built-in Systems plan focuses on things like electrical systems and plumbing, and the Complete Home plan combines the two.
Home Warranty of America
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Premier | Starts at $46.08 | $75.00 - $100.00 |
| Premier Plus | Starts at $59.92 | $75.00 - $100.00 |
You can choose between two plans from Home Warranty of America. The first, its Premier plan, gives “basic” coverage for things like your heating system and dishwasher and covers items like your doorbell and permanent sump pump. The Premier Plus plan offers “premium coverage” for certain items covered in the former plan and covers additional items like your washer and dryer.
American Home Shield
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| ShieldSilver | $29.99 - $39.99 | $100.00 - $125.00 |
| ShieldGold | $49.99 - $59.99 | $100.00 - $125.00 |
| ShieldPlatinum | $79.99 - $89.99 | $100.00 - $125.00 |
American Home Shield offers three plans: ShieldSilver, which focuses on 14 home systems; ShieldGold, which adds some appliances for a total of 23 items; and ShieldPlatinum, which adds roof leak repair coverage and other member perks.
Choice Home Warranty
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Basic | $46.67 | $100.00 |
| Total | $55.00 | $100 |
Choice Home Warranty clarifies the differences between its Basic and Total plans with their names—one provides more coverage than the other. With the Basic plan, you’ll get coverage for some systems, like heating and electrical, and appliances like cooktops and dishwashers. The Total plan adds on things like AC coverage and washers and dryers.
First American Home Warranty
| PLAN | MONTHLY PREMIUM | SERVICE FEE |
|---|---|---|
| Starter | Starts at $42.00 | $100 - $125 |
| Essential | Starts at $57.00 | $100 - $125 |
| Premium | Starts at $77.00 | $100 - $125 |
You can choose between First American Home Warranty’s Starter, Essential, and Premium plans. The first covers plumbing, electrical, and heating systems; the second adds washers and dryers and AC and the last plan has luxury appliance coverage and faucet coverage.
Factors That Affect Costs Of A Home Warranty
As you’ll notice above, your chosen company and plan will decide your final home warranty bill. However, many factors can affect each company’s final bill, so keep these in mind when seeking quotes.
Home Size and Type
Home size may play a role in your home warranty plan quote, especially if your home is above 5,000 square feet. Similarly, costs can vary based on the type of home you have, with smaller townhomes and condos often costing less and larger homes or homes with multiple units costing more.
Location
Coverage may cost more in some locations, even within the same state or city. Factors like the cost of living, the number of providers and the types of homes in your location may affect home warranty costs.
Home Systems and Appliances Covered
Home warranty plans covering more appliances and systems tend to cost more. However, more coverage means more peace of mind, which may justify the cost for many people.
Add-Ons
Each company’s add-ons will vary, but each can add to your final cost in big and small ways. For example, adding an in-fridge ice maker with Liberty Home Guard will cost $3.99 per month, but saltwater pool coverage with the company will cost $23.99 monthly. Each item will have a different add-on cost, and add-ons will vary from company to company, so shopping around can be helpful.
Payment or Contract Schedule
Most home warranty customers pay monthly but are on a yearly contract. However, some companies offer discounts for paying the year upfront or committing to a longer-term contract. These can also have downsides, including steep cancellation fees, so weigh the benefits carefully.
How Often You Use It
It may seem like a catch-22, but since you need to pay a service fee each time you file a claim for a repair, using your home warranty frequently can increase your annual spending. However, if these repairs are necessary and covered by your plan, it can help you save money in the long run.
Find Home Warranty Companies In Your State
Want to find a reputable home warranty plan in your state? Select your state below to see what companies we recommend in your area.
Best Home Warranty Companies By State
Are Home Warranties Worth It?
In a recent Forbes home warranty survey, 67% of homeowners with home warranties said they believe it is worth the cost. Whether or not home warranties are worth it for you is an individual consideration, though. While home warranties can add to your monthly bills, they can also help you save money on repairs for items that frequently run into issues.
Home warranties may also be better for certain homeowners than others. If you’re in a new home or one that you recently renovated, your appliances may still be under the manufacturer’s warranty, and a home warranty may not be worth it. However, if your home is older, home warranties can save you money on repairs, especially if you’re not particularly handy (no judgment here!).
Most people in our home warranty survey said they have between two and three home items that need repairs yearly. The most common repair was to dishwashers, which can have an average repair cost of $250 and a replacement cost of $970. Refrigerators were next, also with an average repair cost of $250 and a $1,500 average replacement cost. If your home warranty plan covers these repairs, that can make it worth its cost if these things happen to break.
The Federal Consumer Trade Commission recommends considering several factors when deciding if a home warranty plan is right for you. These include all costs, such as premiums and service fees, any limitations, and thoroughly vetting any company you consider.
Are More Expensive Home Warranty Plans Worth It?
The most expensive home warranty plans may not be worth it unless your home has all of the items listed in the plan and you want to ensure they’re covered. Chances are all of these items aren’t going to break, and the cost of the plan and service fees may end up being more than you’d pay for repairs.
That being said if you have many older systems and appliances and want that extra peace of mind, a more expensive plan may be worth it. However, you should carefully consider all plans, mulling over what they cover and their price. Whether it’s a low-cost plan or the most expensive plan on the market, we recommend doing your research and making the choice that’s best for you and your home.
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Home Warranty Fine Print to Consider
Home warranties can be difficult to understand, especially for first-time home buyers or those who haven’t used one before. Pay attention to the fine print, do some research, and read contracts thoroughly to ensure you fully understand your home warranty coverage.
- Coverage caps: Home warranty companies often include coverage caps that limit how much they will pay toward certain items or repairs overall. Once you hit this limit, the home warranty will no longer cover that system or appliance for the remainder of your contract term. Marcus Hill, a Forbes Home Advisory Board member with two decades of experience as a home appraiser and real estate investor, cautions that “If the coverage limits are too low, you may end up paying out-of-pocket for repairs that exceed the warranty’s maximum coverage.” He recommends checking the policy for per-claim and annual limits to avoid surprises.
- Limitations: Just because a home warranty contract covers an item does not mean that it will cover repair or replacement for everything that happens to it. Home warranties generally cover regular repairs and replacements due to wear and tear, so even if you have garbage disposal coverage, it may not cover damage after accidentally dropping a chicken bone down there, for instance. We recommend reading your contract for coverage limitations so you’re not unhappily surprised when you seek help.
- Technician choice: Typically home warranty companies will have you submit a claim through their website and they will pair you with an approved technician in your area. However, if you’re interested in working with technicians that you choose, you’ll need to ensure that will still be covered by your home warranty company of choice. Ask your home warranty if this is typically allowed and review any necessary documentation or approvals they’ll need to make.
- Denials: Claim denials can happen, but understanding what to do if you feel like a home warranty claim has been denied unfairly is essential. Review the appeals process before signing onto a company so you know how to handle it if this occurs. It may also be worth investigating through customer reviews if a company appears to have a high rate of claim denials.
What Is a Home Warranty?
A home warranty is an optional plan you can buy for your home to cover routine repairs and even replacements for covered home systems and appliances. Terms can vary, but usually, these plans are designed to help cover the cost of fixes when things break due to normal wear and tear.
You’ll pay a monthly premium and a service fee each time a professional comes to your home to fix or replace a covered item or system. Often, you’ll need to work with a professional from the company’s chosen network to perform the repair. What each home warranty covers will vary based on the company you choose and the plan you opt for, so doing thorough research to pick the right one for you is imperative.
What Home Warranties Typically Cover
Again, what home warranties cover will vary depending on the plan you choose but some common coverage items include:
- Kitchen appliances (refrigerators, ovens, cooktops, dishwashers)
- HVAC items (air conditioning, heat)
- Electrical systems
- Plumbing systems
- Washers and dryers
- Garage door openers
- Water heaters
- Ceiling and exhaust fans
What Home Warranties Typically Don’t Cover
Home warranties won’t cover anything not specifically stated in your plan, and these types of items and situations are rarely, if ever, covered by home warranties:
- Damage caused by natural disasters and other home emergencies
- Most home structures like beams, walls and foundations
- Repairs and replacements that go above coverage limits
How to Save Money on a Home Warranty
Home warranties can be an additional monthly expense, so getting the best rate for you is important. Follow these tips to help get the best deal you can:
- Only cover the essentials. You may think that more coverage is automatically better, but shopping around for a plan that covers only what you need is essential to saving money. Compare plans between companies and look to add-ons to keep costs low while covering the systems and appliances you need.
- Compare quotes. Quotes can vary based on many different factors, and with all the different types of plans floating around, we recommend seeking out multiple estimates from companies. Then, you can comparison shop and get the whole picture of each quote. Remember to weigh every aspect, including premium, service fee and coverage.
- Ask about discounts. While most home warranty prices are fairly set in stone, you can occasionally ask about discounts or take advantage of promotions. For instance, some companies will give you several months free during certain times of the year, or may even knock some money off if you pay upfront. However, read any terms and conditions carefully to determine if this is a good deal.
Frequently Asked Questions (FAQs)
What is the difference between a home warranty and homeowner’s insurance?
Home warranties are optional plans designed to cover the cost of routine repairs and replacements to your home appliances and systems due to wear and tear. Homeowner’s insurance is typically required for a mortgage and protects your home and the belongings inside of it from damage in the event of certain covered incidents.
What your insurance and warranty covers will depend on your chosen plans, so be sure to check your covered items and limitations.
What is the biggest benefit of a home warranty?
The biggest benefit to a home warranty is often saving money on common home repairs. You’ll typically only have to pay for the service fee for covered repairs (in addition to your monthly premium), which can be far less than what you’d pay without a home warranty. Some also consider the peace of mind that many items in their home are covered if they need repair as a big benefit.
What are the cons of a home warranty?
Home warranties generally add another home expense and if you don’t use your plan, you’ll be paying for a service with no benefit. Home warranties can also have service limits and coverage caps and some companies may also deny coverage for certain homes based on the age of the home.
Who pays for a home warranty at closing?
Typically, if a home warranty is offered as an incentive during a home sale, the home seller will pay for it for a period of time, but this can vary. We recommend reading the fine print before and during your closing, and if you’re interested in including a home warranty, you should discuss it with the relevant parties in the transaction.
