Home Warranty Cost Calculator

Home warranty cost factors

Home warranty cost estimates include specific factors from both homeowners and home warranty providers. Before you compare home warranty plans, gather information about your home, consider your monthly budget and determine which appliances or systems you want covered at minimum. From there, adjust corresponding warranty terms to fit your needs.

Plan type and coverage level

Start by listing the specific home appliances and systems you want covered by a home warranty policy. Divide your list into the bare minimum, nice-to-haves and ultimate coverage.

Buying appliance-only or systems-only coverage typically costs less than a more comprehensive plan. However, combining appliance and system coverage can offer more value if your list includes both elements.

For example, consider the three combination plans offered by Cinch Home Services: Repair Only, Repair + Replace, and Repair + Replace Premier. If your appliances are older and have had past repairs, the middle tier can help cover replacement costs if an appliance becomes irreparable. However, appliance-only coverage through a lower-cost plan may be a better fit.

» MORE: Home warranty vs. appliance warranty

Home type and square footage

Your home type and its square footage directly influence home warranty costs. The same correlation affects homeowners insurance costs, among other factors.

Larger homes need broader coverage, especially single-family homes with independent systems. In contrast, townhomes may rely on shared systems or a homeowners association (HOA) to offset the financial burden of repairs or replacements.

Location and local labor rates

Home warranty companies use your geographical location and regional labor rates to determine final pricing. While you cannot control these factors, they can help explain why the same home warranty plan costs homeowners more or less in different states.

For example, consider the average monthly cost of a home warranty on a typical three-bedroom, two-bathroom house in Nevada ($54.64) versus Connecticut ($89.86). Homeowners in Connecticut likely pay more than $30 more per month than those in Nevada because of higher local labor rates, often driven by a higher cost of living.

Add-ons and optional coverage

Think of add-ons as a la carte coverage that builds out a standard home warranty policy to protect non-standard appliances or systems. Additional coverage increases warranty costs, but the exact amount depends on which add-ons you select.

For example, this sample plan agreement from American Home Shield includes additional coverage for the septic system, as well as the pool and spa equipment. Without these add-ons, you would pay less for warranty coverage but be financially responsible for repairs if these items break.

Service fee and payment term

You don’t pay a service fee unless you make a claim on a covered appliance or system and your home warranty provider sends a technician to diagnose the problem. Some home warranty providers let you choose from multiple service fee amounts, while others only offer one option. Committing to a higher service fee can lower your premium.

Home warranty companies typically offer monthly and annual payment terms. Look for discounts for paying your annual premium in full, provided you can manage the higher upfront cost. Alternatively, Liberty Home Guard offers a month-to-month option for greater flexibility.

Home warranty cost breakdown

The total cost of a home warranty can be broken down into several components, including:

Warranty coverage caps and exclusions can also force homeowners to pay out of pocket for certain expenses. A coverage cap limits how much the provider will pay out per covered item before you’re responsible for the remainder. Appliance coverage typically caps at $1,500 to $3,000, while system coverage may cap at $2,000 to $5,000.

Common home warranty exclusions include pre-existing conditions and improper installation or home maintenance. Warranty providers will review your home inspection (if they require one before offering coverage) and any observations from service technicians to determine when repairs are covered.

Home warranty costs also include various fees and taxes. Exact amounts depend on where you live and which provider you choose.

Average home warranty costs by plan

Home warranty coverage costs an average of $30 to $90 per month, and $350 to $900 annually. Appliance-only plans tend to cost less because they’re limited to components within a single unit versus the multiple parts of a more complex home system. Comprehensive plans cost more because they offer broader coverage and average $60 per month.

Here’s an example of how home warranty coverage and pricing through Liberty Home Guard breaks down by plan type:

• Appliance-only: $30 to $55
• Systems-only: $40 to $60
• Combination: $50 to $75

When totaling up home warranty plan costs, don’t forget to incorporate add-ons and service call fees. Add-ons can bump your monthly bill by up to $25 per item. For example, adding your pool or spa can increase your monthly bill by $20. Service call fees range from $75 to $150 but average $100.

When comprehensive home warranties are worth the extra cost

Paying a lower premium to cover your clothes washer can save you money and help you avoid hundreds of dollars in repair or replacement costs if it breaks. If that same washer clogs and backs up your sewer system, it’s worth paying more for comprehensive coverage to avoid the steep costs of this worst-case scenario.

» MORE: Pros and cons of a home warranty

Compare home warranty quotes accurately

Ensure you’re comparing quotes accurately by matching coverage and add-ons across like plans. Refer to your list of critical needs, a more robust policy and comprehensive coverage, and obtain quotes for all three scenarios. Pay attention to areas where a home warranty provider delivers extra value, like waiving the home inspection requirement.

Evaluate home warranty value beyond the numbers

Focusing solely on cost can also draw your attention away from other important aspects of a home warranty, including waiting periods, making a claim, the provider’s contractor network and renewal or cancellation terms. For example, shorter waiting periods and a streamlined claims process simplify using your coverage, which can be worth paying a little extra.

Some home warranty companies maintain and use a specific contractor network, while others allow you to choose a technician. Look ahead to see how the provider also handles renewing your coverage or canceling it, including important deadlines and penalties. Understand exactly what you’re paying for before you sign.

FAQ

Bottom line

Plan type, coverage level, home size and location, add-ons, and service fees determine your home warranty total cost. Use a calculator or quote comparison tool to find the best value for your risk tolerance and your home’s age and existing systems. Remember, home warranty coverage, exclusions and the claims process matter just as much as price.