Home Warranty Cost Guide – How Much Should You Be Paying?

Cost is one of the most important factors for homeowners when considering whether they should purchase a home warranty. In this article, we take a closer look at the costs of a home warranty and whether their value is worth the price.

Using our jump link table of contents to find what you’re most interested to learn regarding home warranty prices.

Jump To:

  1. How Much Do Home Warranties Cost?
  2. What Affects the Cost of Home Warranties?
  3. Home Warranty Monthly Premiums and Service Fees
  4. Tips to Save Money When Buying a Home Warranty
  5. FAQ

How Much Do Home Warranties Cost?

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.

costs of home warranty companies

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

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.

Home Warranty Resources

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. 

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

FAQ: 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.


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