A home warranty typically costs $300–$600 per year, with basic plans on the lower end and full coverage pushing higher. Most homeowners pay around $50 per month, but the real cost depends on what’s covered, where you live, and which company you choose.
While warranties can cover $20,000+ in home repairs, the fine print is where many homeowners get burned — low coverage limits, exclusions, and high service fees can leave you paying way more than you expected.
So don’t just pick the cheapest plan. A $30/month warranty might sound like a great deal, but if it only covers a small portion of your repair costs, you could still end up with a huge bill. On the other hand, paying over $100 a month for coverage you rarely use isn’t smart either — you might be better off just saving that money for future repairs.
If you’re on a budget, AFC Home Warranty ($30/month) and 2-10 Home Warranty ($17/month) offer some of the lowest prices. But if you want full coverage without as many loopholes, Liberty Home Guard is a strong choice, offering 42 add-ons and solid customer reviews. It’s our top pick for most homeowners.
In this guide, I’ll break down what a home warranty really costs, what affects the price, and how to pick one that actually pays off.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
Regardless of the actual price of your home protection plan, a home warranty is 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.
Average Home Warranty Cost
On average, home warranties cost around $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 Fees
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. Many home warranty companies require the homeowner to pay the service call fee directly to the technician before work can begin.
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. For example, homes in severe weather climates and metropolitan areas are likely to have higher home warranty rates.
Home Warranty Resources
What’s Included in Home Warranty Coverage?
Before you commit to a home warranty company, you should understand what a home warranty is, what’s covered under your plan, how much it costs, how to use it, and your responsibilities as a homeowner.
Appliance-only plans typically cover some or all of the following:
- Built-in microwaves
- Clothes washers and dryers
- Dishwashers
- Garbage disposals
- Refrigerators
- Stoves, ovens, and ranges
System-only plans typically cover some or all of the following:
- Air conditioning
- Ceiling and exhaust fans
- Ductwork
- Faucets
- Garage door openers
- Heating
- Light fixtures
- Outlets
- Toilets
- Water heaters
- Water lines
Most home warranty providers offer plans that combine coverage for a selection of appliances and systems. Comprehensive coverage that includes all appliances and systems often costs more than the basic or mid-tier plans. Still, the added convenience might be worth it if your budget can absorb those additional costs.
Optional Add-Ons
If a home warranty plan does not cover a specific item or system, the provider may offer additional coverage options through add-ons. These components often exist outside the standard classification of indoor appliances and major home systems.
They can range in price from a few dollars to over $25 per month, depending on the item’s complexity.
Common optional add-ons include:
- Appliance color-matching
- HVAC tune-ups
- Ice makers
- Pools and spas
- Roof-leak repair
- Septic pumps
- Sprinkler systems
- Stand-alone freezers
- Sump pumps
- Trash compactors
- Water softeners
Each provider has its own selection of add-on coverage, so if you need protection for a specific item, be sure to browse their list and make sure they include it before purchasing a policy. With 42 add-on options, Liberty Home Guard has the most add-on options in the industry.
Additional Costs
Homeowners must also factor in potential out-of-pocket replacement or repair costs into their overall budget. This comes into play if a certain item or system’s dollar limit, or coverage cap, is less than the usual replacement cost.
Remember that most appliances, HVAC components, plumbing components, and electrical components come with a manufacturer’s warranty of a year or longer that covers breakdowns, improper installation, and other failures. It’s important to know whether your items are still under the manufacturer’s warranty. It also helps to become familiar with the life expectancy of your household appliances and systems.
The chart below lists the average life expectancies and estimated replacement costs of the most commonly covered appliances and system components, according to data from the International Association of Certified Home Inspectors.
| Appliance/System | Life Expectancy | Replacement Cost* |
|---|---|---|
| Central air conditioning | 7–15 years | $1,100–$7,555 |
| Dishwasher | 9 years | $250–$1,900 |
| Dryer | 13 years | $499–$2,099 |
| Electrical fixtures | 40 years | $75–$125 |
| Garbage disposal | 12 years | $65–$350 |
| Microwave | 9 years | $109–$1,029 |
| Range (electric) | 13–15 years | $649–$4,449 |
| Range (gas) | 15–17 years | $479–$3,599 |
| Refrigerator | 9–13 years | $584–$10,929 |
| Sump pump | 7 years | $150–$2,636 |
| Washer | 5–15 years | $499–$2,299 |
*Appliance replacement costs reflect the listed retail prices for five major appliance manufacturers: GE, LG, Maytag, Samsung, and Whirlpool. Replacement costs of system components reflect prices charged by Home Depot.
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 Provider | Monthly Premium | Service 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 Warranty | $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.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
Understanding Sample Contracts
To fully understand the costs of your home warranty policy, we recommend reading your provider’s sample service agreement before signing any contracts. These documents contain a comprehensive list of covered items, exclusions, coverage caps, cancellation policies, state-specific details, and other vital information.
Pay special attention to these sections in a sample service contract:
- Coverage: This section outlines specific items and systems covered by the company’s plans. It may also include the coverage limits for each item, which can directly affect your overall cost. This section should list excluded items related to the appliances or systems covered, such as duplicate appliances, HVAC drain lines, or AC refrigerant.
- Optional add-ons: This section details add-ons that are available for an additional cost. This might include an HVAC tune-up, coverage for lawn sprinklers, or limited repairs for roof leaks.
- FAQ section: This list of frequently asked questions explains the contract’s terms, including term length, how to file a claim, cancellation policies, and service fees.
- Terms of service: This “small print” section explains legal terms about issues such as conflict resolution, uncovered costs and state-specific regulations.
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.
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/Appliance | Potential savings |
| Heating | $1,500 |
| Air conditioner | $1,500 |
| Plumbing | $643–$656 |
| Electrical | $500 |
| Ductwork | $544 |
| Sewer line | $416 |
| Toilets | $656 |
| Exhaust fan/ceiling fan | $500 |
| Water heater | $1,037 |
| Refrigerator | $1,306 |
| Ice maker | $550 |
| Oven/stove | $1,607 |
| Dishwasher | 1,683 |
| Washer/dryer | $1,466–$2,932 |
| Water dispenser | $785 |
| Garage door opener | $916 |
| Garbage disposal | $995 |
| Doorbell | $300 |
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 Warranty | Homeowners Insurance | |
| Cost | $300–$600 per year | $600–2,000 per year |
| Coverage | Most major appliances and systems | Structural damage, property loss, liability, and short-term housing costs |
| Exclusions | Items 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 factors | You’ll have to pay a small service fee when the home warranty company sends a tech to your home to diagnose the issue | The 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.
Coverage Exclusions
Coverage exclusions are any factors that your home warranty provider won’t cover in the event of an accident. Exclusions are important to consider because they could end up costing you more money in the long run. If your home warranty provider excludes your damages and denies your claim, you’ll have to pay out of pocket, adding to your overall home warranty costs. For example, most home warranty providers don’t cover items that were broken or unusable before you signed the contract. These are referred to as “items with preexisting conditions.”
Additionally, many providers restrict claims within the first 30 days of the policy term. Some providers also limit the amount of money they’ll reimburse during an initial waiting period, which can last as long as 90 days.
As a homeowner, you’re responsible for proper item maintenance to ensure coverage. Most home warranty providers include a provision for normal wear and tear in their service agreements, but you’re still responsible for regular maintenance.
Here are some common reasons for home warranty claim rejections:
- Claim filed during the restricted period at the policy’s start
- The broken item isn’t covered in your plan
- Item is found to have a preexisting condition
- Monthly premiums haven’t been paid on time
- Item was not properly maintained
- The homeowner reached their annual coverage limit
- The homeowner did not use the provider’s technician
These are just a few reasons why your home warranty provider may not cover your claim. For a full list of exclusions, be sure to read your provider’s sample contract before buying.
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 the purchase).
Though homeowners insurance may cover some issues faced by homeowners, a home warranty plan provides complete protection over home systems and appliances.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
FAQs about Home Warranty Costs
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.
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.
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.
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.
