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How much does a home warranty cost?

Expect to pay around $60 per month for comprehensive coverage

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Written by Kathryn Parkman
Edited by Cassidy McCants

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    The average home warranty plan costs between $36 and $68 per month ($432 to $816 per year), according to our most recent cost analysis. Total yearly costs range between $264 and $1,425 per year, depending on the provider and level of coverage.

    In addition to the cost of the plan, the warranty company charges a service call fee each time you file a claim that results in sending a contracted technician to your home. Service call fees, sometimes called deductibles, range from $55 to $150, depending on your contract.

    Typically, the higher your service call fee, the cheaper your monthly or annual premium will be. Most providers offer a repair guarantee that prevents you from paying a service call fee more than once in a specified time period if a repair isn’t successful and a contractor has to return. Look for language in the contract about the length of this period, which is usually 30 to 90 days.

    Typically, the higher your service call fee, the cheaper your monthly or annual premium will be."

    How much does a home warranty cost per year?

    Plans are typically 12-month contracts, and providers often give you the option of paying monthly or all at once. You may qualify for discounts when you pay for a year upfront.

    When paying a lump sum, the average starting cost for a plan is $413.89 per year. On the high end of the price range, comprehensive coverage averages $799.82 per year.

    How much does a home warranty cost per month?

    When paying monthly, the average starting cost for a basic plan is $36.32 per month. For comprehensive coverage, the average cost is $68.71 per month.

    Monthly costs vary by the home warranty company, the plan, whether you add on optional coverage, where you live, the size of your home and other factors.

    Average monthly costAverage annual cost
    Appliance protection plan$30 to $45$360 to $540
    Systems protection plan$30 to $45$360 to $540
    Comprehensive (combo) plan$49 to $70$546 to $1,425

    Home warranty price comparison

    As of publishing, some of the best-rated home warranty companies on our site include American Home Shield, Select Home Warranty, American Residential Warranty, HomeServe and America’s 1st Choice Home Club.

    The average home warranty plan costs between $36 and $68 per month."

    Below, we compare average monthly premium ranges, average monthly costs for combo plans and service fees (as of publishing).

    Average monthly premiumAverage combo planService feeLearn more
    American Home Shield$29.99 to $69.99$60$75, $100 or $125Read reviews
    Select Home Warranty$57 to $63$63$75 or $100Read reviews
    American Residential Warranty$34.99 to $124.99$60$55Read reviews
    HomeServe$7.99 to $58.33$58.33$100Read reviews
    America’s 1st Choice Home Club$32.08 to $55$55$75, $100 or $125Read reviews

    We didn’t factor any discounts or promotions into the above rates — these might not be available by the time you’re ready to buy. However, home warranty companies often offer deals to help you save money. One reviewer from Newton, Kansas, mentioned that a warranty company’s representative asked “ if I was a senior [or] affiliated with the military to be able to offer any other discounts.”

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      How much can you save on home repair costs?

      To determine how much you can save with a home warranty, estimate the cost of repairing or replacing your appliances and systems and compare that with the annual cost of a home warranty plan (plus the service fee for each claim).

      The typical repair on a major appliance ranges from $105 to $241, according to HomeAdvisor. Below, we compare major systems and appliances on average repair and replacement costs as well as life span.

      Typical repair cost*Replacement cost rangeAverage life span**
      Refrigerator or freezer$200 to $330$430 to $10,60010 to 15 years
      Oven or range$100 to $430$410 to $7,50020 years
      Dishwasher$160 to $300$330 to $1,9009 to 10 years
      Washing machine$100 to $350$445 to $2,30011 to 14 years
      Clothes dryer$180$445 to $2,1008 to 12 years
      Built-in microwave$150$200 to $2,00010 years
      Central air conditioning$170 to $600$3,900 to $7,500Up to 15 years
      Water heater$220 to $955$820 to $1,5958 to 10 years
      Garbage disposal$250$150 to $95010 years

      *According to HomeAdvisor, as of publishing date.

      **Appliance life span varies by make and model. Check with the manufacturer for specific details.

      Pros and cons of home warranties

      The most obvious benefit of a home warranty is the potential to save hundreds of dollars on repairs and replacements. When a covered item breaks down, you go online or call to file a claim, and the company finds a licensed contractor to send to your home.

      However, many people with home warranties end up not using them, which is one potential downside. You should also consider the limitations and exclusions of the warranty contract, including payout caps and excluded components of covered items. If your home appliances or systems are already covered by another warranty (like one from the manufacturer), your home warranty may not be necessary at all.

      It’s important to keep in mind that a home warranty company will deny a claim if the breakdown isn’t covered under the terms of the agreement. Plans may not cover preexisting conditions, and there’s usually a waiting period of 30 days before you can make a claim.

      Pros

      • Save money on major repairs
      • Multiple plans and coverages
      • No need to find a contractor
      • Peace of mind

      Cons

      • Can’t pick your contractor
      • Excluded parts and components
      • Payout caps
      • Might never use the coverage

      Home warranty cost FAQ

      Is a home warranty part of closing costs?

      It depends. If the buyer and seller negotiated a warranty plan into the transaction, then it could be lumped into closing costs. If you get a plan after closing on a house, it’s not included in closing costs.

      Who pays for a home warranty: the buyer or seller?

      It depends. Homebuyers usually pay the bulk of closing costs, but they often negotiate with sellers to cover some of the costs (including the warranty plan). Sometimes, real estate agents provide a home warranty plan as a “thank you” for the transaction, according to Cinch Home Services .

      In many cases, the seller pays for the warranty as an incentive for the buyer. If a warranty isn’t included in the home's purchase, the buyer may choose to purchase a plan on their own or negotiate the inclusion of a home warranty with the seller. A home warranty can be purchased at any time and does not need to be part of a home sale. For more, read about home warranties for sellers vs. buyers .

      Do home warranties have deductibles?

      Home warranties don’t have traditional deductibles (like you would see on an insurance policy), but they do have service fees, which you’ll need to pay when you have a technician out for repairs.

      Service fees generally range from $55 to $150 per visit, but many warranty providers waive their service fees if you’re scheduling another repair for an issue they’ve already tried to fix.

      What is a service call fee?

      Service fees are similar to deductibles for home insurance. You pay this fee each time you make a claim and the home warranty company sends a contractor to your house. Service fees typically range from $55 to $150. The average service fee is $82 in 2021, according to our most recent price analysis.

      Bottom line: Is a home warranty worth it?

      If you don’t want to worry about paying out of pocket when a key household item breaks down, spending around $40 to $70 per month for protection is often worth it. A home warranty might even pay for itself the first time you use it for a major repair.

      If an item is more than two years old, it’s probably no longer under a standard warranty.

      As you decide for yourself, compare the cost of repairing or replacing your items with the cost of a home warranty plan. To estimate how much you could save, make a list of your home appliances and systems and consider which are essential, which are the most at risk of breaking down and which are the most expensive to repair or replace. Make sure to factor in how old your home’s systems and appliances are, if they’re still under warranty from the manufacturer and their current condition.

      If you buy a home warranty, you should know upfront which home systems and appliances you want to include in order to lower the chances of paying for coverage you don't need or won’t use.

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