{"id":302772,"date":"2024-11-23T03:32:59","date_gmt":"2024-11-23T08:32:59","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=302772"},"modified":"2025-07-23T02:33:25","modified_gmt":"2025-07-23T06:33:25","slug":"home-warranty-cost","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/home-warranty-cost\/","title":{"rendered":"Home Warranty Cost: Everything You Need to Know"},"content":{"rendered":"\n<p>The average home warranty cost falls around $500. A home warranty is an annual contract that covers major system and appliances repair and replacement costs. Because of this, the cost may vary according to the coverage. <\/p>\n\n\n\n<p>It is an additional service that secures your appliances. However, <a href=\"https:\/\/www.lansingstatejournal.com\/story\/marketplace\/real-estate\/2015\/11\/13\/buy-home-warranty\/75588598\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">3% to 4%<\/a> of homes in America opt for a home warranty. Where <a href=\"https:\/\/www.usnews.com\/360-reviews\/services\/home-warranty\/buyers-vs-sellers-incentives\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">two-thirds<\/a> of home warranties are sold in conjunction, which provides long-term benefits to the buyer. <\/p>\n\n\n\n<div class=\"block-takeaways\" style=\"margin-top:20px !important\"><p class=\"topHead\"><\/p><p class=\"headKeytake\"><b> \ud83d\udd0d Home Warranty Cost overview<\/b><\/p>\n<ul>\n<li>The most expensive plan can range up to $1,400 and lowest you can avail it for <a href=\"https:\/\/www.consumeraffairs.com\/homeowners\/home-warranty-cost.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$300<\/a>.\n<\/li>\n<li>You can save a significant amount on repairs, as home warramty covers most of the basic maintenance costs.\n<\/li>\n<li>If the appliances or systems exceed the repair budget, the expense is not included in the home warranty.\n<\/li>\n<\/ul><\/div>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Home-Warranty-Cost\"><strong><strong>How Much Does a Home Warranty Cost<\/strong>?<\/strong><\/h2>\n\n\n\n<p>A home warranty cost depends on various factors, such as the <a href=\"https:\/\/www.houzeo.com\/blog\/how-old-is-my-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">property&#8217;s age<\/a>, systems covered in the contract, service fee, location, and warranty provider. The average cost of a home warranty is around <a href=\"https:\/\/oag.dc.gov\/consumer-protection\/consumer-alert-home-warranties\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$500<\/a> per year, and can further increase as per the plan.<\/p>\n\n\n\n<p>In addition, you have to pay a service fee whenever the technician visits for the service. The service fees range from $60 to $150, depending on your plan. This is applicable only if you opt for a yearly fee plan.<\/p>\n\n\n\n<p>A home warranty generally covers system repair and maintenance costs. If some part of your home is not covered, you must opt for optional add-ons, which can cost you a few dollars to $40 or more. Here&#8217;s a list of common repair costs.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Common Issues<\/strong><\/td><td><strong>Cost <\/strong><\/td><\/tr><tr><td>Electrical Issues<\/td><td>$200 to $500<\/td><\/tr><tr><td>Leaky Faucet<\/td><td>$270<\/td><\/tr><tr><td>HVAC Issues<\/td><td>$150 to $620<\/td><\/tr><tr><td>Dishwasher Repairs<\/td><td>$200<\/td><\/tr><tr><td>Roof Repairs<\/td><td>$950<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"What-is-Not-Covered-In-the-Home-Warranty?\"><strong><strong>What Is Not Covered in the Home Warranty?<\/strong><\/strong><\/h2>\n\n\n\n<p>Companies maintain a standard that states the eligibility of appliances and systems in the home warranty. Most of the home warranty plans don&#8217;t include: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Windows<\/li><li>Walls<\/li><li>Floors<\/li><li>Sprinkler systems<\/li><li>Property&#8217;s exterior<\/li><li>Old appliances<\/li><li>Poorly maintained appliances <\/li><li>Incorrectly installed systems<\/li><\/ul>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Factors-That-Affect-Home-Warranty-Cost\"><strong>Factors That Affect Home Warranty Cost<\/strong><\/h2>\n\n\n\n<p>Here are the factors that affect home warranty costs: <\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Property Age:<\/strong> Older homes bear more damage and system failure. Because of this, companies provide fewer discounts. Whereas, homes that are less than 10 years old get more discounts.<\/li><li><strong>Location:<\/strong>&nbsp;Warranty costs are higher in rural areas, as companies offer more negotiable rates in <a href=\"https:\/\/www.houzeo.com\/blog\/fastest-growing-cities-in-the-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">large metropolitan areas<\/a>.  <\/li><li><strong>Property Size:<\/strong>&nbsp;Larger homes cost more than smaller ones, and an expensive policy covers all the major parts of the home.<\/li><li><strong>Plan Cost:<\/strong>&nbsp;Companies offer multiple plans, and they will try to sell the most expensive one. The basic plans cover system failures, whereas the expensive ones cover routine maintenance and repairs.<\/li><\/ol>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Average-Cost-of-Top-Home-Warranty-Companies\"><strong><strong>Average Cost of Top Home Warranty Companies<\/strong><\/strong><\/h2>\n\n\n\n<p>Here are the average costs of top home warranty companies:<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Home Warranty Company<\/strong><\/td><td><strong>Cost<\/strong> <strong>Per Month<\/strong><\/td><td><strong>Service Fee<\/strong><\/td><\/tr><tr><td>American Home Shield<\/td><td>$39.99 <\/td><td>$100 to $125<\/td><\/tr><tr><td>Choice Home Warranty<\/td><td>$45<\/td><td>$60 to $85<\/td><\/tr><tr><td>America&#8217;s 1st Choice Home Club<\/td><td>$39.99<\/td><td>$75 to $100<\/td><\/tr><tr><td>First American Home Warranty<\/td><td>$25 to $40<\/td><td>$75 to $100<\/td><\/tr><tr><td>Select Home Warranty<\/td><td>$35 to $60<\/td><td>$60 to $75<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Benefits-of-Home-Warranties\"><strong>\u2705 <strong>Benefits of Home Warranties<\/strong><\/strong><\/h2>\n\n\n\n<p>Here are some benefits of a home warranty: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Savings:<\/strong> The average home warranty cost is between $500 and $600 annually. If you use the service more than twice a year, you might make the most of it. <\/li><li><strong>Streamlined Services:<\/strong> The company is responsible for looking for contractors and repair shops. This makes your task easy and you can avail of their services smoothly.<\/li><li><strong>Customizable Coverage:<\/strong> You can customize the coverage according to your needs, and the budget will be adjusted in the plan. This will give you assurance for most of the appliances and systems.<\/li><\/ul>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Potential-Drawbacks-of-Home-Warranties\"><strong>\u274c <strong>Potential Drawbacks of Home Warranties<\/strong><\/strong><\/h2>\n\n\n\n<p>With many benefits, a home warranty has some drawbacks you should be aware of. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Additional Monthly Bill:<\/strong> Home warranty prices can be expensive if you have a tight budget. The average monthly cost is around $50 and can be heavy on your pocket.<\/li><li><strong>Repair Costs:<\/strong> Most companies have a set margin for repair costs. In conditions where you require a major repair and it exceeds the repair costs, you may have to bear the additional expenses.<\/li><li><strong>Claim Approval:<\/strong> Companies have a fixed set of standards to approve the claim. They may deny your approval if your repairs are beyond the standards, like old, misused, or damaged appliances.<\/li><\/ul>\n\n\n\n<ul class=\"check-minus-content-list\" style=\"background-color: #dff0ff; padding:20px; margin-left:-5px;\"><i>\u270d\ufe0f Note: The homeowner still have to pay service fee, if the claim is denied, as the repairs person visited to assess the claim <\/i><\/ul>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Other-Alternatives-for-Home-Warranty\"><strong><strong>Other Alternatives for Home Warranty<\/strong><\/strong><\/h2>\n\n\n\n<p>If you find home warranties expensive, you can opt for some other options:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Repair It When Needed: <\/strong>You can opt for DIY repairs if there are any minor breakdowns. In case, the appliances or system needs major repair, you can call a specialist for it. <\/li><li><strong>Insurance:<\/strong> Home insurance will mostly cover the damage caused because of theft or natural disasters.<\/li><\/ul>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Extended-Home-Warranty-Cost\"><strong><strong>Bottom Line<\/strong><\/strong><\/h2>\n\n\n\n<p>Home warranty costs can add to your monthly expenses, but they can save a significant amount on major appliances and system repairs. If you are not aware of the condition of your home appliances and systems, you can hire a <a href=\"https:\/\/www.houzeo.com\/blog\/home-inspectors\/\" target=\"_blank\" rel=\"noreferrer noopener\">home inspector<\/a> to prepare a report. <\/p>\n\n\n\n<p>Houzeo can help you with that. With the &#8220;<a href=\"https:\/\/www.houzeo.com\/pros\" target=\"_blank\" rel=\"noreferrer noopener\">pros<\/a>&#8221; feature on Houzeo, you can find the best home inspector in your local area. You can swiftly book an appointment and proceed with your home inspection.<\/p>\n\n\n\n<h2 class=\"margin-top-25 wp-block-heading\"><strong>Find Your Dream Home with Houzeo<\/strong><\/h2>\n\n\n\n<p>With thousands of property listings,\u00a0<a href=\"https:\/\/www.houzeo.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo.com<\/a>\u00a0is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of\u00a0<a href=\"https:\/\/www.houzeo.com\/homes-for-sale\" target=\"_blank\" rel=\"noreferrer noopener\">homes for sale<\/a>\u00a0on Houzeo, America\u2019s best home buying website.<\/p>\n\n\n\n<p><strong>\u00bb Need More Clarity?&nbsp;<\/strong>Read these exclusive&nbsp;<a href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo reviews<\/a>&nbsp;and learn why the platform is the best in America\u2019s competitive housing market.<\/p>\n\n\n\n<div class=\"Savingsblockfinal margin-top-28\">\n<p class=\"headMaintext\">\ud83d\udcde <strong> Need Help? Schedule a FREE Consultation<\/strong><\/p>\n<br>\n<p>A Houzeo expert can answer all your questions regarding the home inspection process.<\/p>\n<br><span class=\"wrapBtn\"><a class=\"btnOrange\" style=\"margin-top: 15px\" href=\"https:\/\/calendly.com\/support-ngy\/houzeo?utm_source=Blog&amp;utm_medium=Home+Warranty+Cost\" target=\"_blank\" rel=\"noopener\">Book a FREE Call<\/a><\/span>\n<\/div>\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"faqs\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tAm I required to have a home warranty?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>No, you are not required to have a home warranty. It is optional, and the decision to <a href=\"#Home-Warranty-Cost\">purchase<\/a> one depends on your personal preference and budget.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tHow much does a home warranty cost per month?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>The <a href=\"#Home-Warranty-Cost\">cost of a home warranty<\/a> per month typically ranges from $25 to $80 but can vary depending on several factors such as coverage level, provider, and home location.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tHow does $500 in home warranty work?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Generally, a home warranty covers the repair or replacement of specific appliances and systems when you <a href=\"https:\/\/www.houzeo.com\/blog\/how-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">buy a home<\/a>.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">A home warranty costs around $500 annually. It depends on various factors like location, home size, appliance and system coverage, and...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">5 mins read<\/span><span class=\"date\">Nov 23, 2024<\/span><\/div>","protected":false},"author":102,"featured_media":428991,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46225],"tags":[32763,32765,32764,32767,32766],"class_list":["post-302772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer","tag-choice-home-warranty-prices","tag-cost-of-home-warranty","tag-home-warranty-insurance","tag-homeowners-warranty-insurance","tag-how-much-is-a-home-warranty"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Home Warranty Cost: Everything You Need to Know<\/title>\n<meta name=\"description\" content=\"A home warranty costs around $500 annually. 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