How much does a home warranty cost?
$420 – $720 average annual cost (standard plan)
$750 – $1,300 average annual cost (premier plan)
$75 – $125 average service visit fee
Average home warranty cost
A home warranty costs $420 to $720 per year or $35 to $60 per month for standard coverage, depending on a home's size and age. Higher-level plans cost $50 to $110 monthly and cover more appliances and systems. The average home warranty service visit fee is $75 to $125.
|Plan level||Average monthly cost||Coverage details*|
|Silver / Standard plan||$35 – $60||
|Gold / Essential plan||$50 – $75||
All of the above, plus:
|Platinum / Premier plan||$65 – $110||
All of the above, plus:
|Add-on plan||$10 – $30||
Optional coverage for:
*Plans and coverage vary by company. Confirm your coverage details before purchasing a plan.
Some home warranty companies also offer an Appliance Plan or Systems Plan that exclusively covers your appliances or your home's systems—such as the heating and cooling, plumbing, and electrical systems—instead of the whole home. An Appliance Plan or Systems Plan costs $40 to $70 per month on average.
Home warranty cost breakdown
A home warranty policy includes a monthly premium and a service visit fee:
The monthly premium varies depending on the plan type and coverage. Most companies offer a discount or a free month of coverage if you pay for the full year up front instead of in monthly payments.
The service visit fee is like an insurance deductible. For each claim, you'll pay a predetermined fee of $75 to $125 on average. Plans with higher service fees typically have lower monthly premiums.
Other factors also affect the cost of a home warranty:
House size – Home warranties cost more for houses bigger than 4,000 square feet.
House age – Older houses typically have more problems, particularly with outdated electrical and plumbing systems that are costly to repair or replace. Warranty plans for old houses may cost more.
Plan type & coverage – Plans that cover only your appliances or specific systems cost less than whole-home coverage.
Home warranty prices by company
The table below shows the monthly cost and service visit fee for popular home warranty companies. Each company offers a variety of plans with coverage for appliances only, systems only, or the whole home, along with add-on plans to expand the coverage.
|Company||Average monthly cost||Average service fee per visit|
|American Home Shield||$35 – $110||$100 – $125|
|America's 1st Choice Home Club (AFC)||$45 – $65||$75 – $125|
|Choice Home Warranty||$45 – $55||$75 – $125|
|Cinch Home Services||$35 – $65||$100 – $150|
|First American Home Warranty||$40 – $90||$75 – $125|
|Home Warranty of America (HWA)||$45 – $60||$75 – $100|
|Liberty Home Guard||$50 – $85||$75 – $125|
|Select Home Warranty||$45 – $65||$75 – $100|
What is a home warranty, and how does it work?
A home warranty is a contract covering the cost to repair or replace a home's systems and appliances when they break due to general wear and tear. Home warranty plans typically include a fixed service call fee and an annual limit for coverage.
When a system or appliance needs repairs, homeowners can file a claim with the home warranty company and pay only the predetermined service fee. This fee is typically far less than the standard repair or replacement cost and protects homeowners from expensive out-of-pocket payments.
What does a home warranty cover?
A home warranty covers various repairs depending on the plan you choose.
Most plans can cover the following systems and appliances:
Heating and air conditioning system
Doorbell and garage door opener
Most home warranty plans only cover interior systems. However, companies typically offer optional add-on coverage for exterior systems such as a well pump, septic system, or pool and spa equipment.
What is not covered by a home warranty?
A home warranty typically does not cover the following items:
Foundation or structural issues
Window and door repairs
Damaged garage door and tracks
Any repairs to remedy building code violations
Damage covered by homeowners insurance
Cosmetic defects to appliances, such as dents or scratches
Problems caused by neglect or improper maintenance
Some home warranty companies offer an add-on plan to cover roof leaks. However, the warranty will only cover new leaks that develop while the plan is active and won't cover secondary problems caused by the leak, such as mold or drywall damage.
Home warranty FAQs
Are home warranties worth it?
A home warranty is worth it if you're purchasing an older home or making your home more appealing to potential buyers. Some home warranties also include extra perks, such as discounts on new appliances and services.
A warranty may also be worth it if you are a first-time homebuyer and don't want to worry about expensive repairs to your home's major systems and appliances.
Do I need a home warranty if I have homeowners insurance?
You need a home warranty if you have expensive damages that homeowners insurance won't cover. While homeowners insurance only covers damage caused by theft or events like a fire or storm, a home warranty covers appliances and systems that fail due to old age or standard wear and tear.
Who pays for a home warranty, the buyer or the seller?
The buyer or seller can pay for a home warranty plan during a real estate transaction:
The seller may purchase a home warranty plan to make the house more appealing to buyers. A seller might also offer a home warranty to encourage buyers to skip the home inspection.
The buyer may ask the seller to pay for a home warranty as a negotiating tactic. However, the buyer may purchase a home warranty if the seller refuses or if the buyer prefers to select a policy with better coverage than what the seller offers.
How long do home warranties last?
Most home warranty plans last 1 year. However, some companies offer a discount for 3-year or 5-year contracts.
Tips for purchasing a home warranty plan
Before paying for a home warranty plan, review the policy closely to understand exactly what it includes.
Be sure to confirm these details:
Service visit fee and amount of coverage per repair
Deductible and total annual coverage cap
All systems and appliances the policy covers
System and appliances the policy doesn't cover
Available add-on policies
Conditions that void the warranty
Limits on the number of service visits per month or year
Plan renewal process
Questions to ask a home warranty company
Ask these important questions before buying a home warranty to find the best plan for your needs:
What does this warranty plan cover?
Which types of repairs aren't part of the home warranty coverage?
Do you offer add-on plans for appliances or systems not covered by the standard plan?
What is the service visit fee?
Is there a limit on the number of annual service visits?
If there's a standard deductible per visit, how much is it?
What is the annual coverage limit?
Do you offer discounts if I pay for the full year up front?
Are any other perks or benefits in this plan?