How Much Does a Home Warranty Cost?

How much is a home warranty?

The average cost of a home warranty typically falls between $350 and $900 per year. There are other costs to think about, though. Home warranty companies charge service call fees each time a contracted technician is sent to your home. Think about a service call fee like a deductible or a copay. We’ve seen service fees range from $50 to $150, but most are around $100.

Home warranty cost breakdown

When considering the cost of your home warranty, factor in your monthly or annual payment as well as the service call fee.

• Total plan cost: $350 to $900 per year
• Typical monthly payment: $30 to $90
• Service call fee: $50 to $150 per visit

Home warranty cost factors

Depending on where your home falls on these factors, you may see higher quotes when researching coverage options.

• Type of coverage
• Service fees
• Add-on coverage
• Home size
• Home location
• Home type (single-family, townhouse/condo, mobile home)

Home warranty prices by plan type

When you’re picking the right home warranty service plan for you, cost is a big factor. The chart below presents some average figures to consider.

Average cost for popular add-on coverage

You can often choose additional coverage for specific items like pools, spas or additional appliances. Tailoring a plan ensures you only pay for the coverage you need, potentially saving you some money.

• Septic tank: $5.34 per month
• Pool and/or spa: $20 per month
• Well pump: $8.75 per month
• Roof leak: $8.54 per month

Home warranty price comparison by provider

We recently got quotes from several home warranty companies to understand average costs in 2026. The estimates below are based on a three-bedroom, two-bathroom house in Albuquerque, New Mexico.

How much do home warranties cost in different states?

The cost of home warranty coverage can vary significantly depending on where you live. Factors such as local labor rates, the average age of housing stock and regional climate conditions influence how much providers charge.

For instance, American Home Shield quoted us $69.99 per month for its most comprehensive plan, ShieldPlatinum, in Phoenix, Arizona. That same plan cost $139.99 in Bridgeport, Connecticut. Choice Home Warranty prices, however, were generally consistent from state to state.

Average home warranty costs by state

The map below highlights the average monthly cost of a home warranty across the United States. The average home warranty plan costs are based on quotes we received for a three-bed, two-bath house in each state’s most populous city. Quotes vary by provider and city, so we gathered pricing from multiple locations nationwide.

Home warranty coverage limits

Home warranty contracts have exclusions and coverage limits for individual items. That means you have to pay for repairs if you’ve reached the maximum coverage limit of your policy.

“When purchasing any product, it is always important for consumers to look at the coverage limitations and exclusions,” said Tom Keepers, executive director of the Service Contract Industry Council, an industry trade group. “For example, home service contracts typically exclude coverage for preexisting conditions, so the consumer should be aware of their home’s condition prior to purchasing a plan.”

Real-world scenario

Your refrigerator breaks down. It costs $2,000 to replace it, but your home warranty has a $1,500 coverage limit for refrigerator repair or replacement.

In this case, the home warranty provider pays the contractor $1,500, and you’re responsible for the remaining $500. Sometimes the company may pay you $1,500 directly and require proof of the appliance being replaced.

Coverage for older or high‑end appliances

Luxury or aging appliances often exceed standard home warranty limits. Here’s what to consider:

• Higher replacement costs: Professional-grade or older units (e.g., 12-year-old refrigerators) can cost over $2,000 to replace, surpassing typical payout caps.
• Out-of-pocket expenses: If replacement costs exceed your policy’s limit, you’ll be responsible for the difference — especially as smart tech and premium features drive up prices.
• Specialized repairs: High-efficiency or specialty models may require proprietary parts, certified technicians and have increased service fees.
• Energy-efficient upgrades: Products like heat pumps, induction cooktops and heat-pump dryers carry higher installation and repair costs.

Pro tip

Before choosing a plan, compare your appliances’ value and age against coverage limits. Ask about per-item payout caps and whether a surcharge applies to “luxury” appliances. These details can help you decide if a more comprehensive — and potentially pricier — plan is worth the added peace of mind.

» COMPARE: Best home warranty providers

Are home warranties worth the cost?

A home warranty can be worth it for homeowners who want financial protection from costly repairs. Plans may pay for themselves after one major replacement or several smaller fixes.

Contracts usually last 12 months, and most providers allow monthly or annual payments.

But there are a lot of complaints in the industry. A reviewer in Arizona noted that while he saved money on repairs, the process was inefficient. Unhappy customers also tell us about denied claims and low reimbursements.

Some homeowners still face high out-of-pocket costs. A reviewer in Minnesota paid about $5,000 over five years, but when his air conditioning needed replacement, he covered most of the expense himself. He spent around $4,500, compared with roughly $6,000 without the warranty.

Home warranty contracts are also complex, and coverage gaps are common. A reviewer in Texas discovered essential garage door components weren’t covered, leaving her to pay full price. Similarly, a reviewer in California had a slab leak claim denied over a technicality and paid about $4,500 out of pocket.

Key takeaway

Before you sign a contract, determine which systems and appliances you want covered so you don’t end up paying for home warranty coverage you don’t need.

» COMPARE: Select Home Warranty vs. American Home Shield

How much can a home warranty save you 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). Here are some steps to follow:

1. Make a list of your appliances and systems. Include how old they are, if they’re still under manufacturer warranty and their current condition. (If an item is more than 2 years old, it’s probably no longer under a standard warranty.)
2. Determine which appliances and systems are at risk of a breakdown and would hurt your wallet to replace. Generally, these are appliances or systems not under a manufacturer’s warranty and are:
   • Older appliances (over eight years old)
   • Expensive to replace (e.g., the price to replace an HVAC system is usually at least $5,000)
   • Necessary to live comfortably (like a water heater)
3. Estimate the cost of repair or replacement of all your at-risk items using the chart below. Compare these costs with the cost of a home warranty plan.

Typical repair and replacement costs

The difference between the cost of repairs and replacements and the cost of a plan is the amount of money you can potentially save. A home warranty can be a worthwhile investment if you don’t have the savings to cover these types of expenses. Just don’t forget to factor in coverage limits and service call fees.

Home warranty pros and cons

The most obvious benefit of a home warranty is the potential to save hundreds of dollars on repairs and replacements. Home warranties also provide convenience; when a covered item breaks down, just go online or call to file a claim, and then the company finds a licensed contractor to send to your home.

Many companies guarantee the quality of the repairs.

But it’s also important to consider the limitations and exclusions of the warranty contract, including payout caps and excluded components of covered items. A home warranty company will deny a claim if the breakdown isn’t covered under the terms of the contract. And keep in mind that you can’t pick your own contractor to make repairs (though some companies offer exceptions to this rule).