How Much Does a Home Warranty Cost? (July 2024)
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A home warranty plan can provide valuable financial protection and save you hundreds of dollars in repair bills in the event of an appliance or system breakdown. Home warranties also offer the peace of mind that your important home items will be repaired or replaced quickly by vetted technicians if they fail.
To help you find the home warranty that fits your budget, we’ve reviewed every major provider on the market. We’ve secret-shopped their quotes, read customer reviews on independent review sites, and analyzed their available plans. We gathered 120 quotes from our top providers using 2,000-square-foot homes located in more than 20 states. We also surveyed 1,000 home warranty customers to help you find the best home warranty company for your needs and budget.
Key Takeaways
Home Warranty Cost Breakdown
The primary cost of a home warranty plan is its premium, which is the bill you pay for your policy protection. The monthly average cost for a home warranty premium is $54 to $61, and the average price of an annual plan is $644 to $737.
The next cost associated with a home warranty is the service fee. These are essentially deductibles you pay during each repair. Each home warranty provider has a different service fee policy that will affect how its fees are applied. For example, most home warranty companies require you to pay a service fee even if the repair can’t be completed on that visit. The national average cost for service fees is between $65 and $125. Typically, a lower service fee will reflect a higher monthly premium and vice versa.
The last factor that affects your home warranty’s price is your choice of add-ons. These are additional services or protections you can opt to add when signing up for your plan. Add-ons help homeowners customize their plans to protect every essential item in their home. Add-on prices vary among providers and can range from a few dollars to more than $30 per month.
Review the table below for a breakdown of monthly premiums, service fees, and annual costs per provider. Request a quote for an estimate personalized to your home and location.
| Star Rating | Monthly Cost* | Service Fee | Annual Cost | Coverage Caps | Link | ||
|---|---|---|---|---|---|---|---|
| Liberty Home Guard | | $49.99–$59.99 | $65–$125 | $499–$599 | $500–$2,000 | VISIT SITE | |
| American Home Shield | | $29.99–$89.99 | $100–$125 | $348–$1,068 | $2,000–$5,000 | VISIT SITE | |
| Elite Home Warranty |  | $44–$58 | $70 | $528–$696 | Varies per item | VISIT SITE | |
| Select Home Warranty |  | $44–$47 | $60–$75 | $479–$524 | $500–$3,000 | VISIT SITE |
| Liberty Home Guard | |
|---|---|
| Logo |
|
| Star Rating | |
| Monthly Cost* | $49.99–$59.99 |
| Service Fee | $65–$125 |
| Annual Cost | $499–$599 |
| Coverage Caps | $500–$2,000 |
| American Home Shield | |
|---|---|
| Logo |
 |
| Star Rating | |
| Monthly Cost* | $29.99–$89.99 |
| Service Fee | $100–$125 |
| Annual Cost | $348–$1,068 |
| Coverage Caps | $2,000–$5,000 |
| Elite Home Warranty | |
|---|---|
| Logo |
|
| Star Rating | |
| Monthly Cost* | $44–$58 |
| Service Fee | $70 |
| Annual Cost | $528–$696 |
| Coverage Caps | Varies per item |
| Select Home Warranty | |
|---|---|
| Logo |
|
| Star Rating | |
| Monthly Cost* | $44–$47 |
| Service Fee | $60–$75 |
| Annual Cost | $479–$524 |
| Coverage Caps | $500–$3,000 |
| Company | BBB Rating | Monthly Cost | Service Fee | Annual Cost | Coverage Caps | Visit Site |
|---|---|---|---|---|---|---|
| NR | $49–$59 | $65–$125 | $499–$599 | $500–$2,000 | VISIT SITE | |
| B | $29–$89 | $100–$125 | $348–$1,068 | $2,000–$5,000 | VISIT SITE | |
| A+ | $44–$58 | $70 | $528–$696 | Varies per item | VISIT SITE | |
| B- | $44–$47 | $60–$75 | $479–$524 | $500–$3,000 | VISIT SITE |
*We based the pricing information in this table and throughout the article on sample quotes we obtained for a 2,000-square-foot, single-family home in Tempe, Arizona. Your pricing may vary depending on your home’s location, size, type, and plan selections.
Which Home Warranties Have the Lowest Premiums?
Select Home Warranty is the home warranty provider with the lowest average monthly premiums. Select offers premiums of $44–$47. Most other home warranty companies charge between $50 and $60 per month, with some charging as high as $90.
Low premiums don’t always equate to the best value. Select’s cheaper premiums are offset by its lower coverage caps. A coverage cap is the maximum amount of money a policy will pay for repairs or replacements for a specific item. That means you’re responsible for paying the cost of any repairs and replacements beyond the coverage cap. Select keeps the majority of its caps at $500. Most home warranty companies have coverage caps ranging from $500 to $2,000 for individual items, with some even offering unlimited coverage caps for major systems.
Most companies offer multiple plans with varying monthly costs depending on how comprehensive the coverage is. The graph above highlights estimated provider pricing based on a quote we pulled for a 2,138-square-foot, single-family home in Tempe, Arizona. Your monthly premium may vary based on your coverage and your home size, type, and location.
Note: We used the same home in Tempe, Arizona, to pull pricing information for each recommended provider in this article. Your costs may vary.
Which Home Warranties Have the Lowest Service Fees?
Elite Home Warranty and Select Home Warranty have the lowest average service fees. Elite charges a flat $70 service fee in each of its plans, and Select charges fees ranging from $60 to $75 for an average of $68. Some companies offer lower base service fees, such as Liberty Home Guard’s $65 fee. However, these companies charge much higher premium rates and have a steeper average service fee rate when considering the higher end of the range.
What Are the Cheapest Home Warranties?
The cheapest home warranty plan available from our top recommended providers is the ShieldSilver policy by American Home Shield. It has the lowest monthly premium at $30, less than half of most other plans. The plan also provides great value for homeowners because its coverage cap is $5,000 for appliances and unlimited for systems. The downside is that it has one of the highest service fees of $125.
What Is a Home Warranty?
A home warranty, also called a home service contract, is a one-year contract that covers repairs or replacements to appliances or systems in your home that malfunction due to normal wear and tear. To understand the concept of a home warranty, it’s important to note that it’s different from homeowners insurance, which covers unexpected damage to a house due to natural disasters, fire, or theft.
Home warranties and home insurance policies provide homeowners with financial protection and peace of mind. The key difference between the two is what they cover and the conditions of their coverage. Homeowners insurance protects your home, its structural components and systems, and your possessions from unforeseen incidents (known as “perils” in policies and plans). These incidents include fires, acts of vandalism, and theft.
A home warranty protects your home’s major systems and appliances from breakdowns caused by standard wear and tear. Functionally, home warranties fill in the gaps in homeowners insurance plans. A home warranty wouldn’t protect your systems in a house fire, but homeowners insurance would. Homeowners insurance wouldn’t cover the breakdown of your HVAC system’s coils, but a home warranty would (depending on your plan coverage). Home warranties are often paired with homeowners insurance for complete home protection.
Home warranties and homeowners insurance are also legally distinct. A home warranty isn’t an insurance policy, even though it may function like one. It’s a service contract with its own rules and regulations. For example, you’ll never be required to purchase a home warranty, but you may be required to purchase homeowners insurance when buying a home.
You can get a quote from a home warranty company by using its customer claim portal, calling its listed phone number, or filling out an online form. Most home warranty providers have a 24/7 customer support line you can call to file a claim. Here’s an overview of the general claim filing process:
- Claim submission: You can file a claim by calling the company’s phone number, filling out an online form, or using the website’s customer portal. You’ll select the broken appliance or system and schedule a time for a repair professional to arrive at your home.
- Confirmation and appointment scheduling: Your home warranty company will assign a contractor to your claim, who will contact you to confirm the date and time of your appointment. Most home warranty companies assign and schedule contractors within two to 48 hours. Nearly a quarter of our survey respondents (22%) said it took four to eight hours for their claim to be approved. Some home warranty companies allow you to choose your own contractor if no in-network technicians are available in your area.
- Repair complement: The technician will arrive at your home on the appointment date. The technician will either repair the item or need to order a part. You’ll have to pay your service fee regardless. You may have to pay additional fees if your repairs are scheduled outside of normal business hours.
Basic home warranty plans generally cover important home appliances and systems. Premium plans often extend coverage to luxury items and supporting systems or carry other benefits, such as code updates.
The appliances covered by a policy differ by company and plan. However, the most common appliances included in a home warranty plan are the following:
- Built-in microwaves
- Ceiling fans
- Clothes washer and dryers
- Dishwashers
- Garbage disposals
- Kitchen refrigerators
- Oven/stove/range/cooktops
Home warranty plans typically cover essential home systems, including the following:
- Air conditioning/cooling system
- Central vacuum
- Electrical system
- Ductwork
- Heating system
- Plumbing stoppages
- Plumbing system
- Water heater
Exclusions are anything not covered in a home warranty contract. Exclusions can apply to specific parts, items, or even types of damage.
Most home warranty contracts outline specific parts excluded from each covered item. Excluded parts are typically those not required for the functionality of the item, such as glass, knobs, or paint. Most plans include a list of items that aren’t covered or are only available as add-ons. Commonly excluded items include the following:
- Alarm systems/wiring
- Garage doors/door tracks
- Ornamental fountains
- Sprinkler systems
- Window air conditioning units
- Windows, walls, and doors
General exclusions are types of damage that a home warranty won’t cover. These exclusions are mostly universal across home warranty companies. Common home warranty exclusions include the following:
- Anything already covered by homeowners insurance or manufacturer’s warranty
- Damage from accidents or misuse
- Improper installation or modification
- Insufficient maintenance
- Preexisting conditions (known or unknown)
Most home warranty companies make obtaining a quote easy. The simplest way to get a home warranty quote is by entering your information in a provider's online form. You’ll typically need to provide basic information such as your name, address, phone number, and email. The provider will either generate a quote through a customer portal or email you one. Home warranty quotes are typically free, and no reputable home warranty company will ever ask for banking information to receive a free quote.
We recommend getting at least three free quotes before buying a home warranty plan and deciding on a provider. Shopping for quotes allows you to compare plan coverage, find the add-ons you need, and pick the best home warranty plan for the most reasonable price.
Home Warranty Cost Calculator
Our team created a calculator to break down the estimated annual cost of owning a home warranty.
To calculate your projected annual cost, use the following steps:
- Enter your monthly premium.
- Enter your service call fee.
- Enter your estimated number of claims.
It’s best to request a quote directly from one of our recommended providers, as annual costs and service fees vary between them.
Use the table below to review the average cost to repair and replace common appliances.
| Appliance | Average Repair Cost | Average Replacement Cost |
|---|---|---|
|
Dehumidifier |
$50–$200 |
$1,300–$2,800 |
|
Microwave |
$50–$400 |
$60–$2,000 |
|
Dishwasher |
$50–$500 |
$400–$3,000 |
|
Exhaust fans |
$16–$300 |
$250–$950 |
|
Electric range |
$100–$500 |
$230–$3,000 |
|
Gas range |
$100–$500 |
$230–$3,000 |
|
Dryer |
$100–$400 |
$450–$2,300 |
|
Oven |
$100–$430 |
$400–$3,000 |
|
Washer |
$50–$450 |
$400–$2,300 |
|
Freezer |
$90–$500 |
$160–$2,900 |
|
Refrigerator |
$40–$350 |
$200–$5,000 |
*Life span, repair, and replacement cost data sourced from InterNACHI and The Home Depot
Best Home Warranty Companies: Plans and Pricing
Below is a detailed overview of the top home warranty providers we analyzed and a breakdown of their plan costs, service fees, and coverage caps.
Liberty Home Guard
Best Overall
American Home Shield
Best for Comprehensive Coverage
Select Home Warranty
Best Value
Elite Home Warranty
Best for Flexible Coverage
How We Rated Home Warranty Companies
We rate each company using our unbiased review methodology. We assess companies based on categories homeowners find most important. Companies earn points in each category based on their performance, up to a total of 100. This point total is used to determine its overall 5-star rating. The categories we use to score home warranty providers are the following:
- Coverage: Companies with more robust appliance and system coverage earn more points in this category. Companies also earn points by offering more comprehensive optional add-ons.
- Value: Companies earn points by offering affordable plans, generous coverage caps, and flexible service fees.
- Trustworthiness and transparency: Companies lose points if they have lower average reviews on independent review sites such as BBB and Trustpilot, have inflexible plan change policies, and don’t provide sample contracts. Companies with generous workmanship guarantees earn more points.
- Availability and service: Companies with quick claim response times, multiple means of claim processing, and service flexibility earn more points in this category.
We thoroughly research each company and assess it through our review standards. We read each company's plans, analyze sample warranties, comb through customer reviews, and obtain quotes. We also surveyed 1,000 home warranty customers.
What To Consider When Buying a Home Warranty
We recommend taking the following steps when shopping for a home warranty to ensure you pick the best protection for your home:
- Assess your coverage needs: Consider your appliances and systems that need to be covered. Assess which items will most likely need to be repaired in the next year, have preexisting conditions, or are nearing the end of their life spans.
- Find home warranty companies that fulfill your coverage needs: Look at each company's plans, add-on coverage, and exclusions. Pick several companies that have plans that would be a good fit for your home’s unique coverage needs.
- Obtain free quotes: We recommend requesting at least three sample quotes from reliable home warranty companies. By shopping for sample quotes, you can find the best plan for the most reasonable price.
- Read sample contracts: It's important to read each company’s sample contract. These contracts explicitly outline policy details. Carefully read the homeowner obligations, exclusions, and technician policy sections.
FAQs About Home Warranty Cost
How are home warranties regulated?
Home warranties are not federally regulated. Each state assigns a governing body to oversee the regulation and licensing of home warranty companies. The Department of Insurance or Commerce often oversees home warranties.
Are home warranty plans worth it?
A home warranty can provide value if you want to protect older systems and appliances. Home warranties provide more peace of mind because they could save you from paying expensive out-of-pocket repair or replacement costs in the event of a breakdown. However, they may not be worth it if you just moved to a new-construction home in which your new appliances and systems are covered by manufacturer warranties.
How much does a home warranty cost per month?
A home warranty costs between $54 to $61 per month on average. This pricing is based on 120 quotes we requested from top home warranty providers using 2,000-square-foot homes located in more than 20 states.
Are you legally required to buy a home warranty?
No, you aren’t legally required to buy a home warranty. However, your mortgage lender may require you to have homeowners insurance to purchase a home.
Related Resources
We’ve compiled several easy-to-digest guides based on our extensive home warranty coverage. Learn more below.
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