The national average cost for a home warranty is around $60 per month, which comes out to $720 annually. However, depending on the company you choose, the items you want covered and the length of your contract, you could pay anywhere from around $27 up to $125 per month, which brings your annual total to between $324 and $1,500.
Key takeaways
Combination plans tend to be the best deal, but can also be the most expensive with monthly premiums that cost up to $130 per month.
The average cost of a home warranty is $60 per month.
A service call fee will be added when you make a claim. The average service call fee is $96.
Be wary of home warranty plans with low monthly premiums as they may offer less coverage, have lower coverage limits or have more exclusions.
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Cost per month by popular home warranty providers
We looked at the cost of the 10 best home warranty companies according to our research to find the average home warranty cost. The table below provides some average pricing for some of the top home warranty companies in the United States:
|
Monthly cost
|
Annual cost
|
Service fee
|
Available monthly add-on coverage
|
|
|---|---|---|---|---|
| 2-10 Home Warranty | $35 - $69 |
$420 - $828 |
$65 - $100 |
$4 - $30 |
| America’s First Choice Home Club | $46.67 - $102.25 |
$387 - $1,227* |
$75 - $125 |
$25 - $150 |
| American Home Shield | $79.99 - $139.99 |
$959.88 – $1,679.88 |
$100 - $125 |
$5 - $33.99 |
| Cinch Home Services | $72.99 - $105.99 |
$875.88 - $1,271.88 |
$100 - $150 |
$4.58 - $22 |
| Select Home Warranty | $60.42 - $63.75 |
$725.04 - $765 |
$75 - $100 |
$3.33 - $8.33 |
All sample costs in this article were quotes received from the above providers for a 3-bedroom, 2,500-square-foot home in Minneapolis, Minnesota in August 2024. Prices do not include discounted rates.
Your annual total could be higher if you choose add-on products, which are additional covered items not included in the base coverage that you can add for a monthly or annual fee. Some companies also offer discounts for their plans, usually when you pay annually or for multiple years. For example, Liberty Home Guard offers up to six months free if you sign a five-year contract.
You should also keep in mind that your base price doesn’t include service calls, which average around $96 but are usually between $50 and $150. Making multiple service calls per year will drive up your all-in annual costs.
What is a home warranty?
A home warranty is a contract you can enter as a homeowner, paying a monthly or annual fee. In exchange, the home warranty provider agrees to cover repairs and replacements for your home’s most essential appliances and systems. Some plans cover both home appliances and systems, and some cover one or the other.
Most home warranty contracts require you to pay a flat rate per service, known as a service call fee.. When a covered item fails or needs repair, you call for assistance, pay the service fee and your home warranty company takes care of the repair or replacement.
Unlike homeowners insurance, home warranties aren’t required when you buy your home, although they can provide peace of mind when you don’t know exactly what condition your new appliances and home systems are in.
What’s included in home warranty costs?
Most home warranties cover appliances, home systems or a combination.
Appliance plans
As the name implies, appliance plans include coverage for the appliances in your home. If you just want appliances covered in your home, you can expect to pay an average of $45 per month, and most companies include these plans for between $30 and $80 per month. Most plans include the following major appliances:
- Built-in microwave
- Clothes dryer
- Clothes washer
- Cooktop/oven
- Dishwasher
- Refrigerator
Many also cover minor appliances and additional major ones, including:
- Exhaust fans
- Garbage disposal
- Garage door openers
- Ice maker
- Second fridge
- Water softener
- Water dispensers
Systems plans
Systems plans provide protection for the system in your home rather than appliances. Plans that just cover your home systems usually sit around $45 per month, and monthly costs typically fall between $40 and $80. These commonly include the following:
- Electrical system
- Heating and cooling system
- Plumbing system
Some systems plans include comprehensive coverage, while others may only provide protection for the main components and require add-on coverage for the following:
- HVAC ductwork
- Light fixtures
- Plumbing fixtures
- Septic system
- Sprinkler system
- Sump pump
- Water heater
- Well pump
Combination plans
Combination plans are plans that cover both appliances and home systems. They cost an average of $60 per month, making them the best value, in most cases. Prices usually range from $40 up to $130 per month. Some home warranty providers have multiple combination plans, each with more comprehensive coverage in both areas. The most expensive plans typically include all major appliances and home systems.
Optional coverage add-ons
Most home warranty companies have add-on options you can tack on to the base coverage. These can be for various items in your home, but some of the common coverages are listed below. We’ll also include some average add-on pricing, but keep in mind that these prices vary quite a bit among providers.
- Central vacuum systems: $6/month
- Pools and spas: $18/month
- Roof leaks: $8/month
- Second refrigerator: $5/month
- Septic tank pumping: $8/month
- Sump pump: $7/month
- Well pump: $10/month
Some companies charge monthly per add-on, and some charge annually. Just be sure you know what you’re signing up for before you sign a contract.
Factors influencing home warranty costs
pro tip
- Review your contract carefully to read what is and isn’t included so that you get an affordable plan that serves you well through the contract term and covers what you need to be protected.
The monthly or annual home warranty price you pay is just one part of the puzzle. You’ll need to consider why some plans are more affordable, add-on coverages, service fees and more to ensure you get the best coverage possible.
Coverage limits
The most important thing to consider when choosing a home warranty plan cost that fits into your budget is the coverage. Some plans are half the price of others, but they usually have lower coverage limits, cover fewer items in your home or have more exclusions.
Unlike a homeowners insurance policy, most home warranty companies don’t have deductibles. Instead, they have payout limits, which tell you the maximum amount the company will pay for a specific item before the burden falls on you. The table below includes some coverage limits for popular home warranty companies:
|
Per appliance covered
|
Per system covered
|
Total limit
|
|
|---|---|---|---|
| 2-10 Home Warranty | $2,000 |
$500 – $1,500 |
$25,000 |
| America’s First Choice Home Club | $3,000 |
$150 – $1,000 |
$10,000 |
| American Home Shield | $2,000 |
$5,000 |
$50,000 |
| Cinch Home Services | $2,000 |
$2,000 |
$10,000 |
| Select Home Warranty | $500 |
$500 – $3,000 |
Unspecified |
The higher the coverage limit, the more you’re protected, but your monthly cost is likely to be higher.
Service fees
Another key factor is the service fee you choose. All home warranty companies also have service fees, which are single charges you’ll be responsible for each time you file a claim and have a service contractor out to your property to assess or fix an issue.
Many companies let you choose a service fee within a range, with higher service fees usually leaving you with lower monthly plan costs. The average service fee cost is $96 according to our research, but expect to pay anywhere from $50 per visit to $150.
Additional fees and considerations
Lastly, you should consider any additional fees charged by a provider.
Some companies add a monthly fee to their base charges just for holding the contract, while others charge processing fees. For example, Choice Home Warranty charges $2.50 monthly as a service fee, and Liberty Home Guard charges around $5 as a one-time processing and administration fee.
In some cases, your home size also plays a role in your pricing. For instance, if your home is more than 5,000 square feet, you might need to pay an added monthly fee for square footage. For example, Liberty Home Guard charges around $20 extra per month if your home is over that square footage, and Choice Home Warranty charges an additional $25 per month.
Home warranty vs. home insurance: What’s the difference?
Home warranties and home insurance policies are similar but have some key differences. The table below sums up those differences.
Home warranty
- Covers appliances and home systems
- Covers damage caused by wear and tear
- You pay a fee per service call
- Low deductibles per covered item
- Usually up to a $3,000 payout
- Optional but helpful
Homeowners insurance policy
- Covers structures, belongings and personal injury
- Covers damage caused by catastrophes and accidents
- No service fee
- High deductibles per policy
- Covers hundreds of thousands in damage in some cases
- Usually required if you have a mortgage
How to compare home warranty providers
There are dozens of home warranty providers and no single best company for everyone. We recommend you consider the following key points when choosing a provider for your home warranty contract:
- The monthly and annual cost of the contract
- The service fees and add-on coverages available
- The items covered and the exclusions outlined for those items
- Whether or not you can choose your own repair technician
- Whether or not you can decide on what materials or new appliances your tech uses during the repair or replacement
- The general sentiment toward the company in online reviews
- The company’s Better Business Bureau (BBB) rating
- The experience in the home warranty industry
Additionally, you should read through your contract before signing it to look for special language regarding limitations or requirements for coverage. Some companies won’t cover preexisting issues, problems that develop because of neglect on your part, or appliances and systems that don’t have documented service in the recent past.
Finally, look into the company’s average response time to claims. Some companies get service techs out within hours in the case of an emergency, while others can take up to two days. This could factor into your long-term coverage costs if you have to hire a repair technician in an emergency, which could lead to an out-of-pocket repair, even though you’re paying monthly for a home warranty.
How to get the most value from your home warranty
Home warranties aren’t expensive compared to the repair costs you can avoid with them, but you can do a few things to get more value out of your contract.
- Contact your provider first. If you find an issue with a covered appliance or system, contact your service provider rather than a repair technician directly. Try to use your coverage first.
- Choose your service fee carefully. A lower service fee usually means a higher monthly price for coverage. If you have to make many calls, paying more monthly for a lower service fee could help you get more value overall.
- Read your contract. All home warranty contracts have exclusions, even for covered items. Ensure you understand exactly what is and isn’t covered so you know when to pay a service fee and when to call for a repair on your own.
- Don’t duplicate coverage. According to the Federal Trade Commission, one common issue homeowners run into is that coverage from a home warranty is unnecessary if they have a builder’s warranty or another homeowner warranty in place. Make sure you’re not duplicating protection you already have.
Additionally, many home warranty companies offer specific coverage packages for home buyers and sellers. According to Rebecca Cohen, a real estate broker with Real Broker NY in New York, buyers and sellers can often benefit most from home warranties: “I do believe that buyers get value from these warranties, and I would love to see them used more frequently … it is more than just a perceived value.”
Cohen noted that home warranties are the standard in some parts of the country and would be helpful in other areas. “I believe that, at the very least, more homeowners should be looking into purchasing a home warranty for themselves upon closing, or even asking for one as part of inspection negotiations.”
If you’re buying or selling a property, a home warranty can be especially valuable, both for use in negotiations and to maintain peace of mind while listing or after purchasing a home.
