How Much Does a Home Warranty Cost?

Home warranty cost depends on several factors, including your home’s location, which plan you choose, and the plan’s service fee.

Some companies let you customize your premium and service fees based on an estimated number of claims.

To get the best possible plan for the best possible price, shop around and obtain home warranty quotes from multiple reputable companies.

Currently, the national average for the premium alone is just over $900 per year, plus an additional cost for the service provided.

This all comes down to how old your house is and to a large extent, whether you are going to need future repairs on your home and if you actually have existing warranties on your appliances and fixtures.

Premium cost

Most companies offer two or three plans ranging from basic warranty coverage to comprehensive or advanced coverage.

  • A basic plan usually starts at $30 per month or $300 annually
  • A comprehensive plan starts at $50 per month or $450 annually
  • An advanced comprehensive plan may go up to $900 or more annually


Some companies have a standard deductible, while others allow the choice of deductible. The premiums are lower if you opt for a higher deductible.

  • The average standard deductible that you pay per claim is $80
  • If there is a range of deductible prices to choose from, it may be $65-$125

Cash payout

  • The extent of repairs or pro-rated cost of replacement determines the amount of the cash payout. It can vary from $80 to $3000. The maximum possible payout is subject to the coverage cap for the system or appliance.

What does a home warranty cover?

A home warranty does what its name implies.

It covers the cost of service, repair, or replacement for systems inside your home in case of unexpected breakdowns due to a manufacturer’s defect, normal wear, and tear, or some other reason.

Generally, these issues are related to your standard appliances, plumbing, and electrical systems.

What is not covered by a home warranty?

There are different home warranty plans with different coverage options, so choose one that’s right for you. The following are some items that are typically not covered by a home warranty:

  • Pre-existing conditions
  • Failed maintenance
  • Improper installation
  • Cosmetic issues
  • Appliance misuse
  • Any repairs over the coverage limit

Research home warranty companies and plans

To choose the right home warranty, you need to do your research.

There are many home warranty companies in the market that offer attractive plans. They generally offer plans that cover home appliances, systems, or a combination of both.

Some companies even let you customize your coverage plans. Choose one that is right for your home.