How Much Does a Home Warranty Cost?

Written by: Staff

A home warranty, similar to any other warranty available, is going to protect you from unnecessary expenses inside your home.  So for example, if your air conditioner or refrigerator breaks down, there is a good chance that your home warranty is going to cover the necessary expenses as long as the warranty is active.

A home warranty is different from home insurance.  Insurance usually only covers things such as flood damage, fire damage, or a burglary, for example, whereas a home warranty covers things inside the home such as appliances, the air conditioner and just about anything that may fail.

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 How much does a home warranty cost?

Depending on what needs to be covered and the size of a home, the typical home warranty plan is going to cost anywhere from $200 to as much as $600 or more per year.  This will really depend on the coverage you choose and the company you sign up with.

According to the website, a homeowner should be expected to pay anywhere from $250 to $400 for a home warranty policy. claims that the average home warranty is going to cost $250 to $400, depending on the coverage.

Liberty Home Protection offers a variety of plans that range anywhere from as little as $55 a month to as much as $559 per year.  Their charts show you exactly what you can get in terms of coverage and deductibles.

Refer to our table below to see what the most popular home warranty companies will cost you per year.  We scoured the Internet to see what customers were paying for a premium from these particular brands.

Home Warranty CompanyPremium Average
2-10 Home Warranty Company$300 to $600
365 Home Warranty$350 to $500
America's Preferred Home Warranty$499
American Home Guardian$350 to $550
American Home Shield (AHS)$250 to $500
Americas First Choice Home Warranty$400 to $500
Choice Home Warranty$350 to $500
Fidelity National Home Warranty$350 to $450
First American Home Warranty$300 to $500
HMS Home Warranty$350 to $500
Home Service Club$100 to $150
Home Warranty of America$275 to $550
Landmark Home Warranty$400 to $650
Old Republic Home Warranty$250 to $500
OneGuard Home Warranty$350 to $600
Select Home Warranty$300 to $500
Total Protect Home Warranty$250 to $600

Factors that affect the price:

Most of the time, the square footage of the home does not affect the price.  Unless the home is larger than 4,000 square feet, most homes will have a similar policy.

The type of home that you own will help to determine the price of your home warranty.  Whether it is a single-family, townhome, duplex or condo, each policy can be different.

The age of the home can also affect the price.  The older the home is with its appliances, the more you may pay for a policy.

The type of policy you choose will be the main determinant of the total price.  Some policies can be basic, while others can be considered “premiums.”

Home warranty overview

Most home warranty companies are going to bundle their plans and cover certain items within the home.  For instance, one policy may cover all appliances and systems but nothing related to the pool.  On average, though, most policies are going to cover all major appliances such as the refrigerator, dishwasher, dryer, washer, oven and even garage door openers.  As for the systems, the air conditioner, electrical, plumbing, water heaters, disposals and smoke detectors will all be covered.  A warranty, basically, will cover everything insurance companies won’t cover.

Home warranties have to be paid in full for the upcoming year.  Once the year expires, you will have your chance to renew.

Most warranties will have a small deductible per claim made, similar to an insurance policy.

What are the extra costs?

For most warranties, there will be additional add-ons that include the pool, spa, water softener, well pump and anything related to a septic system.

For an additional fee, many home warranty companies will cover any pre-existing conditions.

Every time a service call is made, a service call fee will be applied.  This service call can range from $40 to $70 per call.  This charge is to pay for the initial consultation, drive time to your home, and paperwork to be filled out.

Tips to know:

With most warranties, you will not get your repairs done for free.  Instead, there will usually be a small repair fee that you can customize to your plan, similar to a health insurance plan and its deductible.  Most repair costs will be anywhere from $75 to $300.

Before choosing a policy, make sure that you compare at least three to five different brands.  Like health insurance and any other service that offers coverage, it is so important to know what you are getting with your money.  Check for pre-existing condition clauses and read the fine print closely.

Most warranty companies will deny claims due to lack of maintenance.  If you do not take care of your belongings, you may find yourself getting denied.  For example, if you have never had your septic tank flushed and cleaned, the home warranty may deny your claim.

In the future, if you want to transfer this warranty to a different house or to the new owner of the existing house, make sure that you can do so because some do have exclusions.

Always read the reviews before committing to see what other homeowners are saying.  Be sure to know how fast an item can be replaced if it were to break down.

How can I save money?

It is best to compare at least three different warranty companies.  They are all going to vary.  Most of the time, you can get a quote over the phone or even online.

Keep your eyes peeled for specials or discount policies.

Take a step back and really ask yourself if the policy is worth the cost.  For example, if you just purchase a new home and your policy is going to cost $500, will it really be worth it?  Keep in mind that a deductible will apply, too.  If your appliances are new, they will most likely come with a warranty from the manufacturer.  If these warranties are still good on most of your appliances, you may not need a home warranty.

If you recently purchased a new home from a builder, see how the home warranty works.  Oftentimes, the warranty will be built into the price of the home, and on average, a builder can cover up to 10 years of structural defects and at least two years of coverage on the HVAC system, plumbing and electrical.

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