If you’re a homeowner or planning to buy a home, you might have heard of home warranties. A home warranty is a type of insurance that covers repair or replacement costs of certain appliances and systems in your home.
In this blog, we’ll discuss everything you need to know about home warranty cost, including what it is, how much it costs, and what factors can affect the cost.
What is a Home Warranty?
A home warranty is a type of insurance that covers the cost of repairing or replacing appliances and systems in your home. Home warranty insurance can cover a variety of things, such as HVAC systems, plumbing, electrical, and even appliances like refrigerators and washing machines.
Home warranties are often confused with homeowners’ insurance policies, but they are different. Homeowners’ insurance typically covers damage to your home and personal property due to events like fire, theft, or natural disasters.
On the other hand, a house warranty covers the cost of repairing or replacing covered appliances and systems that fail due to normal wear and tear.
How Much Does a Home Warranty Cost?
The cost of a home warranty can vary depending on several factors, including the level of coverage, the location of your house, and the provider you choose. The cost can range from around $300 to $1,000 or more per year.
Additionally, on average, the cost is around $500-$700 per year. This cost can be paid in monthly, quarterly, or annual payments. Some providers offer a discount if you pay for the full year upfront.
Factors That Affect Home Warranty Cost
Several factors can affect the cost of a house warranty, including:
- Coverage Level: The more appliances and systems that are covered under your house warranty, the higher the cost will be.
- Location: Home warranty costs can vary depending on where you live. The cost may be higher in areas with higher repair costs or where there is a higher risk of damage due to weather or other factors.
- Provider: Home warranty providers have different pricing structures, so it’s essential to compare costs from multiple providers to find the best value.
- Deductible: Some home warranty plans may have a deductible that you need to pay before coverage begins. The higher the deductible, the lower the cost of the plan.
- Age of Home: The age of your home can also affect the cost of a home warranty. Older homes may have more wear and tear on appliances and systems, making them more expensive to cover.
- Additional Coverage: Some home warranty providers offer additional coverage for things like pools, spas, and well pumps. Adding this coverage can increase the overall cost of the plan.
Average Home Warranty Cost
Altogether the average cost of a house warranty is around $500-$700 per year. However, the cost can vary depending on the factors mentioned above. It’s essential to compare costs and coverage from multiple providers to find the best value for your needs.
Home Warranty Cost per Year
The cost of a house warranty can be paid in monthly, quarterly, or annual payments. Basically if you choose to pay for the full year upfront, some providers offer a discount. The average cost of a house warranty per year is around $500-$700.
Home Warranty Cost per Month
If you choose to pay for your home warranty on a monthly basis, the cost can range from around $25-$80 per month, depending on the level of coverage and other factors.
One Year Home Warranty Cost
The cost of a one-year home warranty can vary depending on several factors, including the coverage level and location of your home. The average cost of a one-year home warranty is around $500-$700.
Extended Home Warranty Cost
You can purchase an extended home warranty to extend the coverage of your home warranty beyond the initial one-year term.
The cost of an extended warranty will depend on several factors, including the length of the extension and the coverage level. Some providers may offer discounts if you purchase an extended home warranty upfront.
How to Buy a Home Warranty
If you’re interested in buying a home warranty, there are several steps you can take to find the right plan for you:
- Research Providers: Start by researching home warranty providers in your area. Look for providers with good reviews and ratings from customers.
- Compare Plans: Look at the different plans offered by each provider and compare the coverage levels and costs. Make sure you understand what is and isn’t covered under each plan.
- Get Quotes: Contact several providers and ask for quotes on the plans you’re interested in. Compare the quotes to find the best value.
- Read the Fine Print: Make sure you read the terms and conditions of the plan before purchasing. Pay attention to any exclusions or limitations on coverage.
- Choose a Provider: Once you’ve compared plans and gotten quotes, choose the provider and plan that best meets your needs.
A home warranty can provide valuable coverage for homeowners by protecting them from unexpected repair costs for appliances and systems in their home.
The cost of a home warranty can vary depending on several factors, including coverage level, location, provider, deductible, and age of the home. To find the best value, it’s essential to compare plans and providers and read the fine print before purchasing.
Frequently Asked Questions
Am I required to have a home warranty?
No, you are not required to have a home warranty. It is optional, and the decision to purchase one depends on your personal preference and budget.
How much does a home warranty cost per month?
The cost of a home warranty per month typically ranges from $25 to $80, but can vary depending on several factors such as coverage level, provider, and location of the home.
How does $500 in home warranty work?
It's unclear what is meant by "$500 in home warranty." Generally, a home warranty covers the repair or replacement of specific appliances and systems in your home for a certain period of time in exchange for a fee or premium.