Home Warranty Cost Guide

*Updated September 30th, 2025

Home repairs always seem to happen at the worst times. One day, your HVAC system is running smoothly, and the next, you’re stuck with no heat in the middle of winter or a fridge that suddenly stops cooling. That’s where home warranties can help—by covering the repair or replacement costs of major appliances and home systems due to normal wear and tear.

Unlike homeowners insurance, which protects against disasters like fires or floods, a home warranty is a service contract (a warranty is a service contract) that helps cover the cost of a home warranty claim when things fail from everyday use. Whether it’s your plumbing, electrical system, or kitchen appliances, a home warranty plan can save you from out-of-pocket repair cost and the stress of finding a reliable technician.

Before you sign up, it’s smart to understand how much does a home warranty cost and what affects the price. Home warranty costs can vary by coverage options, home size, and provider. This guide breaks down home warranties cost (including typical per month pricing), what home warranty coverage includes, and how to decide if a plan is worth the cost.

What Is a Home Warranty?

A home warranty provides financial protection for home systems and appliances if they break down from normal wear and tear. A home warranty typically covers part of the repair or replacement cost when covered items fail after regular use and proper maintenance.

A home warranty isn’t home insurance. It doesn’t cover accidental damage (fire, weather, vandalism). Instead, it helps with appliances in your home and home systems like HVAC, plumbing, and electrical when they fail due to everyday use. For example, if you maintain your HVAC annually and it stops working, your home warranty may help pay to fix it.

How Home Warranties Work

Each home warranty company (also called a home warranty provider) offers different plans and coverage level choices.

• You pay a monthly premium (or annual premium) for the plan. Some homeowners prefer the monthly cost to spread payments per month.

• When something breaks, you file a claim with the warranty company. The provider sends a vetted technician who comes to your home to diagnose and fix the issue.

• You’ll owe a service fee for each visit; the warranty contract sets the amount and any coverage limit.

• Read the home warranty contract carefully—improper maintenance, pre-existing conditions, or items not listed can be excluded.

(Internal link cue: get a home warranty quote from multiple home warranty companies to compare service fees and limits.)

What Does a Home Warranty Cover?

Home warranty coverage varies by plan, but home warranties are generally designed to help with wear and tear on:

• Appliances and home systems: refrigerators, ovens, dishwashers, built-in microwaves, home system components like HVAC, plumbing, and electrical

• Other components: water heaters, garage door openers, ductwork

Most providers offer coverage options—appliances-only, systems-only, or combo plans. Add-ons (e.g., roof leaks, pool/spa, septic) are available at additional cost.

How Much Does a Home Warranty Cost?

Average home warranty cost (plan cost) typically ranges from $350–$700 per year (about $35–$70 per month per month), depending on the coverage level and provider. Service fees usually run $75–$150 per claim. The price of a home warranty depends on:

• Plan type (appliances, systems, combo)

• Coverage limit and coverage options

• Home size and age of home appliances and systems

• Add-ons (pool/spa, second fridge, well/septic)

• Your market/region

Quick math: Premium + (Expected Claims × Service Fee) ≈ Your total yearly cost.

What Affects Home Warranties Cost?

• Coverage level & limits: Higher limits and broader coverage increase warranty pricing.

• Service fee choice: Lower service fees often mean a higher monthly premium.

• Home size & systems: Larger homes or older home appliances may cost more.

• Provider & plan design: Home warranty companies offer tiered plans; home warranty providers have plans from basic home to premium.

• Add-ons: Each additional coverage item adds to the plan cost.

• Claims history: Some providers adjust pricing based on prior usage.

Is a Home Warranty Worth It?

A home warranty can be worth it if one or two covered repairs in a year offset your premiums and service fees. For many, it’s about convenience: one call, predictable costs, and no scramble for contractors. For others, it’s valuable when purchasing a home or selling a home (it can protect a covered home during the listing period).

Ask yourself:

• Are your major appliances and home systems aging?

• Would a fixed monthly premium and capped risk reduce stress?

• Do you want a provider to coordinate repairs?

When the math pencils out, a home warranty is worth the peace of mind.

How to Choose the Right Home Warranty Plan

1. Compare providers: Shortlist reputable home warranty brands (e.g., American Home Shield, Choice Home Warranty, First American Home Warranty). (Example only; compare details.)

2. Match coverage to risk: Pick the home warranty plan that fits your equipment and risk tolerance.

3. Vet limits & exclusions: Check coverage limit, caps by item, and what’s excluded.

4. Service experience: Read how a technician visits your home, scheduling speed, and claim approvals.

5. Quotes: Get a home warranty quote from at least three providers; find the best balance of cost and coverage.

Real-World Costs & Examples

• Premium for a home warranty: $45–$65 per month (billed monthly) or pay annually to cost less overall.

• Service fee: $85 per claim. Two HVAC calls = $170 + premium.

• If a covered AC repair is $700 and a fridge repair is $350, the plan could pay most of those, subject to your coverage limit and warranty contract terms.

Remember: Home warranty prices and costs can vary by market and plan details.

Reasons to Consider a Home Warranty

1. Protect expensive gear: Premium home appliances and systems carry high repair cost.

2. Uncertain history: If you buy a home with older equipment, a plan can buffer surprises.

3. Time savings: No contractor hunt—the home warranty service dispatches help.

4. Budgeting: A predictable monthly cost and known service fee tame repair volatility.

(Internal link cue: “When to buying a home warranty plan” and how to purchase a home warranty.)

FAQs

How much is a home warranty?
The average home warranty cost is $350–$700 per year (about $35–$70 per month), plus a $75–$150 service fee per claim. Actual pricing depends on coverage level, add-ons, and provider.

What does a home warranty cover?
Typically, home warranty plans cost more as you add coverage options for appliances and home systems (HVAC, plumbing, electrical). See what’s covered by a home warranty in your plan.

Is a home warranty worth the cost?
If one or two repairs would exceed your premium + service fees, a home warranty can be worth it. It’s also valuable for convenience and budgeting.

How do I buy a home warranty?
Compare home warranty providers, review the home warranty policy/warranty contract, and get a home warranty quote from multiple companies. Pick the right home warranty based on your needs.

Which is the best home warranty?
“Best home warranty” depends on your coverage level, caps, and service speed. Compare top brands and read the fine print to find the best fit.

Bottom Line

Home warranties can offer budget protection and convenience—especially if your home systems and appliances are aging. Since home warranty costs can vary, get several quotes, compare coverage limit and exclusions, and choose a plan that fits your home and budget. When chosen wisely, a home warranty can protect you from pricey surprises and save real money on home repairs.

• Does Your Home Warranty Cover Roof Leaks?
• The Top Benefits of a Home Warranty
• Things You Need to Know Before Purchasing a Home Warranty