Updated On

May 8, 2023

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    The average home warranty cost will vary based on the type of coverage you select, any additional benefits and services you add to your plan, where you live, the size of your home, and the home warranty company you purchase from.

    Regardless of the actual price of your home protection plan, the cost is well worth it when it comes to protecting your major home systems and appliances. Keep reading to learn what you can expect to pay for a home warranty and which home warranty plan is best for your budget.

    How Much Do Home Warranties Cost?

    A one-year home warranty typically costs around $300–$600 a year ($300 for basic coverage and $600 for more comprehensive plans). Most home warranties in this price range can cover over $20,000 worth of a home’s systems and appliances.

    On average, home warranties cost $50 per month. Almost all of our home warranty providers — except Select Home Warranty — offer at least one warranty plan in this price range. Some providers, such as Cinch Home Warranty, have multiple plans in the $50 range, while others offer plans at a higher rate.

    In general, the more appliances and systems that are covered by a home warranty, the more expensive your monthly premium will be. Home warranties with lower service claim fees also tend to have higher monthly costs since you pay less per claim. So this factor can also affect the monthly cost of your home warranty.

    In the chart below, you can see how the rates of our top home warranty providers compare to the national average of $50 per month. We factored in the average rates of each provider to determine the average cost of its monthly warranty plan.

    What Affects the Cost of Home Warranties?

    Although most home warranties fall within the same price range, your total cost will depend on several factors. The monthly cost of your home warranty is affected by:

    • The number of items covered
    • Cost of your service fee
    • Add-on coverage
    • Home square footage
    • Location

    Generally, the more coverage and additional benefits you have and the lower the service fee, the more expensive your home warranty will be.

    Number of Items Covered

    As you have read, home warranty costs can vary widely. While the cheapest home warranties cost less than $50 per month, the more expensive plans can be as high as $100 per month. Monthly premiums depend on the company you choose, but generally, the more expensive plans cover more home systems and appliances.

    Basic warranty plans typically cover major home systems and appliances, such as your heating system, air conditioning, oven, dishwasher and refrigerator. Typically, between 10 to 15 household systems and appliances are covered by basic warranties. For many homeowners, this is enough coverage to not have to worry about spending thousands of dollars if a major system breaks.

    However, if you want to cover more home systems, you can opt for a more expensive or premium plan.

    Cost of Service Fee

    Another important factor that affects the cost of your home warranty is the service charge. Each time you file a claim with your home warranty company, you must pay a fee to have a technician sent to your home. Some home warranty companies have a flat fee or a sliding fee, while others let you choose what you want to pay each time you file a claim.

    If you choose a lower service fee, you can expect to pay more per month. But if you choose a higher service fee, you will pay less per month. Most home warranty service fees range from $65 to $125 per claim.

    Add-on Coverage

    Adding additional home systems and appliances that are not covered by your base home warranty plan will increase your monthly premium. The cost of additional services varies by home warranty provider, and some additional services are more expensive than others. For example, pools and hot tubs are typically more expensive than well pumps and septic tanks.

    Square Footage of Home Warranty Coverage

    Home size generally doesn’t affect home warranty premiums unless the home exceeds 5,000 square feet. Thoroughly read your policy’s fine print before purchasing to ensure your home size is eligible for coverage. Look for phrasing like this from American Home Shield’s sample policy: “This contract covers single-family homes (including manufactured housing), new construction homes, and condominiums/townhomes/mobile homes under 5,000 square feet unless an alternative dwelling type (i.e., 5,000 square feet up to 10,000 square feet, guest unit, or multiple units) is applied for, and the appropriate fee is paid. Coverage is for owned or rented residential property, not commercial property or premises converted into a business.”

    Location of Home Warranty Coverage

    Your location affects your home warranty premiums because of varying inflation rates and service providers’ availability. According to Futurist Architecture, homes in severe weather climates and metropolitan areas are likely to have higher home warranty rates.

    Home Warranty Resources

    What Are Home Warranty Monthly Premiums and Service Fees?

    Similar to paying for health insurance, a home warranty comes with a monthly premium and a service fee, which is similar to a deductible. The monthly premium is paid every single month, regardless of whether or not you need a repair. A service fee is different — it is only paid when you need a repair or replacement.

    The cost of your monthly premium is dependent on the home warranty provider you select, the plan you select and any optional add-on items you choose to cover. Typically, the cost of a monthly premium ranges from about $45 a month to $60 a month.

    Name of ProviderMonthly PremiumService Fee
    American Home Shield$49.99–$99.99 per month$75.00–$125.00
    Select Home Warranty$60.00–$65.00 per month$60.00–75.00
    Liberty Home Guard$49.99 – $69.99+ per month$65.00 – $125.00
    Choice Home Warranty$46.83 -$54.75 per month$85.00
    AFC Home Club$30.00 – $50.00+ per month$75.00 – $125.00
    2-10 Home Warranty$17.00 – $60.00+ per month$65.00 – $100.00

    While it is important to consider the cost of your monthly premium, you should focus more on the type and amount of coverage you would receive for that price. 

    How Do Home Warranty Costs Vary By State?

    The United States’ inflation rate has nearly quadrupled since 2020. This increase means that consumer goods and housing cost more, and consumers are getting less for their money.

    Skyrocketing inflation rates have pushed some homeowners to put off home repairs for fear of breaking their budgets. Unfortunately, delaying repairs almost always worsens the problem, leading to further damage and more costly repairs down the road. The House Method team retrieved over 1,000 online quotes for different home types nationwide. We’ve compiled a list of average home warranty costs by state, based on annual premiums for single-family homes.

    Map of the average cost of a home warranty across the US

    How Much Money Can You Save With a Home Warranty?

    Repairing or replacing major home appliances and systems without a warranty can seem challenging, especially if you’re in a tight financial spot. Here’s what you could expect to save with a home warranty.

    System/AppliancePotential savings
    Air conditioner$1,500
    Sewer line$416
    Exhaust fan/ceiling fan$500
    Water heater$1,037
    Ice maker$550
    Water dispenser$785
    Garage door opener$916
    Garbage disposal$995

    Cost of a Home Warranty vs Homeowners Insurance

    While a home warranty covers repairs and replacements on major home systems and appliances, homeowners insurance covers the structural foundation of your house and personal belongings in the event of a fire, storm, flood, burglary, or other natural disasters. Home buyers are often required to purchase homeowners insurance in addition to a mortgage, while a home warranty is fully optional.

    Home WarrantyHomeowners Insurance
    Cost$300–$600 per year$600–2,000 per year
    CoverageMost major appliances and systemsStructural damage, property loss, liability, and short-term housing costs
    ExclusionsItems won’t be covered if they haven’t broken down to normal wear and tear or weren’t properly maintained.Coverage is limited to perils—such as natural disasters and theft—named by the insurance policy
    Other factorsYou’ll have to pay a small service fee when the home warranty company sends a tech to your home to diagnose the issueThe lower your deductible, the higher your annual home insurance policy will cost

    Tips to Save Money When Buying a Home Warranty

    As you research the best home warranty companies and gather free quotes online, there are a few things you should keep in mind. Most — if not all — of our top home warranty companies have a plan that is around $50 per month, but if you want the best deal possible, follow these tips:

    • Get multiple quotes. The more quotes you get, the better. This way, you can compare the cost of multiple plans and providers.
    • Review your home insurance policy and manufacturer’s warranty. Sometimes home appliances and systems are covered under their own manufacturer’s warranty, so you don’t need to purchase a second warranty to cover those items.
    • Speak with a representative. Once you have gotten your quote from a provider, you will likely get a call from a customer support representative. Make sure you pick up the phone and talk to them — more likely than not, you will get a discount.
    • Choose a warranty plan with the systems and appliances you need. You may not need the most comprehensive plan with every add-on available. Instead, opt for a basic or mid-tier plan and choose only the add-ons you need.
    how much do home warranties cost
    Photo Credit: Shutterstock © Verena Joy Miljana and Igor Sinkov

    Is a Home Warranty Worth the Cost?

    In our opinion, a home warranty is definitely worth the cost. Not only does this home appliance insurance offer extensive protection for major home systems and appliances, it saves you money in the long run and gives you peace of mind.

    For buyers, it provides reassurance if a major system or appliance breaks down. For sellers, it can help cover repairs and replacements during the listing period and can be included as a sweet deal to lock in the house (oftentimes, sellers will offer to pay for the first year of a home warranty to entice buyers to finalize purchase).

    Though homeowners insurance may cover some issues faced by homeowners, a home warranty plan provides complete protection over home systems and appliances.

    FAQs about Home Warranty Costs

    Are home warranty plans worth it?

    For most homeowners, yes. You will probably pay more money in the long run by owning a home warranty than not having one, but it provides invaluable financial stability when your home’s expensive appliances or systems break down or need repairs.

    How much does a home warranty cost?

    A home warranty typically costs between $45–$60 per month. Every time you need a repair or replacement, you will also need to pay a service fee that is usually between $65–$125.

    Do home warranties cover pre-existing conditions?

    This depends on the specific provider. American Home Shield, for example, covers undetectable, pre-existing conditions that could not have been identified by a simple mechanical test or by a visual inspection for missing or damaged parts.

    What is the difference between a home warranty and homeowners insurance?

    While a home warranty covers the cost of repairs and replacements to expensive appliances and systems in your home, homeowners insurance covers you from property damage caused by natural disasters and burglaries. Insurance may also protect you if someone gets injured on your property.

    Editorial Contributors
    Alora Bopray

    Alora Bopray

    Staff Writer

    Alora Bopray is a digital content producer for the home warranty, HVAC, and plumbing categories at Today's Homeowner. She earned her bachelor's degree in psychology from the University of St. Scholastica and her master's degree from the University of Denver. Before becoming a writer for Today's Homeowner, Alora wrote as a freelance writer for dozens of home improvement clients and informed homeowners about the solar industry as a writer for EcoWatch. When she's not writing, Alora can be found planning her next DIY home improvement project or plotting her next novel.

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    Roxanne Downer


    Roxanne Downer is a commerce editor at Today’s Homeowner, where she tackles everything from foundation repair to solar panel installation. She brings more than 15 years of writing and editing experience to bear in her meticulous approach to ensuring accurate, up-to-date, and engaging content. She’s previously edited for outlets including MSN, Architectural Digest, and Better Homes & Gardens. An alumna of the University of Pennsylvania, Roxanne is now an Oklahoma homeowner, DIY enthusiast, and the proud parent of a playful pug.

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