How Much Does a Home Warranty Cost?

A home warranty is a service contract that helps homeowners cover the costs of repairing or replacing major home systems and appliances when they break down due to normal wear and tear. Unlike homeowners insurance, which typically covers unexpected disasters like fires or theft, a home warranty focuses on protecting essential home components. Home warranty costs vary based on factors like the level of coverage, the size and age of the home, and geographic location. 
 
Homeowners can generally expect to pay between $420 and $720 annually for a standard home warranty plan, which translates to approximately $35 to $60 per month. Comprehensive coverage and add-ons for items like pools or spas can increase these costs. This guide breaks down the factors influencing home warranty costs, as well as different pricing tiers based on the type of coverage you choose. 

Average Home Warranty Cost Per Month

Home warranty providers typically offer several tiers of coverage, allowing homeowners to choose plans based on their needs and budget. Monthly premiums for these plans usually fall within the range of $35 to $100. Basic plans that cover only appliances or home systems tend to be at the lower end, while more comprehensive plans that include both systems and appliances are often at the higher end. 

A standard plan often covers the most essential systems, such as HVAC, plumbing, and electrical, and major appliances like refrigerators, dishwashers, and ovens. For full protection, a comprehensive plan that covers both systems and appliances is recommended, especially for homeowners with older homes or multiple high-use appliances.

Home Warranty Cost by Coverage Type 

Different home warranty plans cater to various needs, depending on whether you want to cover only specific systems, appliances, or both. Here’s a look at typical costs associated with each type of plan: 

• Appliance Plans: These plans cover major household appliances, such as refrigerators, dishwashers, ovens, and washers/dryers. Monthly premiums generally range from $35 to $60, making it an affordable option for homeowners focused primarily on appliance coverage.
• Systems Plans: This option focuses on home systems like HVAC, plumbing, and electrical. Monthly costs for these plans are typically between $40 and $70. Homeowners with older HVAC or plumbing systems may find these plans beneficial.
• Comprehensive Plans: Comprehensive plans offer protection for both systems and appliances, providing the highest level of coverage available. Monthly premiums range from $50 to $100, offering peace of mind that most repairs and replacements will be covered under one contract.

Additional Costs to Consider

Beyond the monthly or annual premiums, homeowners should factor in service call fees and optional add-ons when considering the total cost of a home warranty.

• Service Call Fees: Each time you request service for a repair or replacement, a technician is dispatched, and a fee is charged. These service call fees typically range from $75 to $125 per visit, depending on the provider. Some companies offer lower service fees with higher monthly premiums, so homeowners can choose a plan that suits their budget and repair frequency.
• Optional Add-Ons: Many home warranty providers offer coverage extensions for items like pools, spas, or additional refrigerators. Adding these items to your plan usually costs an extra $10 to $25 per month per item. Homeowners with unique or high-use features may benefit from customizing their coverage in this way. 

Factors Influencing Home Warranty Costs 

Several factors affect the cost of a home warranty, and understanding them can help you select the most cost-effective plan for your needs: 

• Home Size and Age: Larger or older homes tend to incur higher premiums due to the greater likelihood of system or appliance failures. Homes with more appliances or larger HVAC systems generally require more coverage, which can increase costs.
• Location: Geographic location plays a role in pricing, as regional differences in labor and material costs can affect what providers charge. For example, areas with higher living costs may have higher warranty premiums.
• Coverage Limits and Caps: Each home warranty plan typically comes with coverage limits, which determine the maximum amount the warranty provider will pay for a repair or replacement. Plans with higher payout caps or more extensive coverage come with higher premiums, but they offer added peace of mind for costly repairs.
• Level of Customization: Some providers allow homeowners to customize their plans with optional add-ons, affecting the total cost. Customization options may include coverage for specific appliances, pools, hot tubs, or guest houses. Custom plans provide targeted protection but often come at a premium. 

Home Warranty Costs by Brand

When considering home warranty options, some popular brands offer a range of plans with varying costs and features. Here’s a comparison of three top home warranty companies, including their typical cost ranges, standout features, and unique benefits. 

American Home Shield (AHS) 

American Home Shield specializes in flexible, customizable home warranty plans that allow homeowners to select specific systems and appliances for coverage. AHS offers three main plans, with options for additional add-ons to broaden coverage. The typical cost for AHS ranges between $40 to $65 per month. Known for its comprehensive warranties, AHS includes a 30-day workmanship guarantee on repairs, providing added peace of mind. For homeowners seeking tailored coverage, the annual cost typically falls between $480 and $780. 

Explore reviews from real homeowners on American Home Shield's services.

Choice Home Warranty

Choice Home Warranty offers straightforward, affordable plans with essential coverage options. Known for competitive rates, Choice provides both Basic and Total Plans, covering key systems and appliances. Costs for Choice Home Warranty range from $35 to $60 per month. For a plan that includes comprehensive coverage, the typical annual cost is $420 to $720. Each plan includes a 30-day guarantee on repairs, and the company utilizes a network of licensed professionals for servicing.

Explore reviews from real homeowners on Choice Home Warranty's services.

Select Home Warranty

Select Home Warranty stands out for its affordable pricing and additional roof leak coverage, included at no extra charge in its standard plans. The company offers three plan options: Bronze (appliances), Gold (systems), and Platinum (both systems and appliances), allowing homeowners to choose based on their needs. Typical monthly costs for Select Home Warranty range from $36 to $63, with annual expenses around $432 to $756. Select also offers discounts for annual payments, adding extra value to its plans. 

Explore reviews from real homeowners on Choice Home Warranty's services.

Is a Home Warranty Worth the Investment? 

Investing in a home warranty can offer significant peace of mind by reducing unexpected repair and replacement costs. For a relatively low monthly fee, a home warranty can protect you from potentially high out-of-pocket expenses if major appliances or systems break down. However, it’s essential to assess the specific coverage details, exclusions, and limitations of any plan before committing to ensure it aligns with your home’s needs and financial goals. 
 
For homeowners with older homes or high-use appliances, a home warranty can be an excellent investment. Newer homes may not benefit as much, especially if appliances and systems are still under the manufacturer’s warranty. As with any investment, compare quotes from multiple providers and review contract terms carefully to find the best value.

The Bottom Line 

Home warranty costs vary based on the coverage type, plan customizations, and other factors such as home size and location. On average, monthly premiums range from $35 to $100, depending on the plan selected. For most homeowners, a basic plan starts around $420 per year while comprehensive plans can go up to $1,200 annually with added service call fees and optional coverage for unique items like pools or spas. 
 
When evaluating home warranty plans, consider both your budget and the age and condition of your home systems and appliances. Comparing options from top-rated providers and factoring in potential savings on repair costs can help you decide if a home warranty is right for you.