How Much Does a Home Warranty Cost?
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A home warranty plan costs $57.83 per month on average in 2024, but the price you’ll actually pay depends on several factors, including your location and the coverage you choose.
Home warranty costs
A homeowner warranty plan usually comes with a monthly premium and several potential fees.
Premium. A premium is a monthly or annual fee that depends on several factors such as where you live and the coverage you choose. If you pay monthly, the premium is usually the same each month, and you’ll pay it even if you don’t need an item repaired during that month. You’ll pay monthly premiums throughout the term of your home warranty service agreement.
Service fee. Most home warranty companies require customers to pay a service fee, sometimes called a trade fee, every time a technician visits your house in response to a claim. Customers usually have to pay service fees even if they can’t choose their own technicians, the technician can’t repair the item during that visit or the claim is denied because of the technician’s diagnosis.
Additional coverage fees. If you want coverage that isn't part of a plan, such as for roof leaks, some homeowner warranty companies will let you add coverage for an additional monthly fee. This fee is usually added to your monthly premium.
How much is a home warranty?
Monthly premiums
The average monthly premium for a home warranty plan is $57.83, which comes out to $693.96 a year.
During our research we requested quotes from several companies using different ZIP codes in three states, each of which represented a different cost of living. Here are a few key numbers we found in our research:
The cheapest quote was $19.99 per month.
The most expensive quote was $119.90 per month.
The average cost of the cheapest plans was $45.30 per month ($543.60 annually).
The average cost of the most expensive plans was $70.35 per month ($840.20 annually).
Service fees
Service fees may be somewhere in the $65-$150 range.
Some companies have set service fees that every customer pays; others allow you to select the service fee amount when you buy the plan. Generally, the higher the service fee, the lower the monthly premium.
A reputable home warranty provider will tell you what your service fee will be before you purchase a plan, and most of them state the fee in your service agreement.
» MORE: Are home warranties worth it?
Factors affecting home warranty cost
Several factors go into the final price of your home warranty premium, including your location, the plan you choose, your service fee and more.
Location
Some plans charge different prices in different areas. This can vary by state, city and even ZIP code. For example, in Texas, the average monthly cost of basic home warranty plans is $3.18 below the national average for the same plans. However, the price for the same type of plan in Dallas is typically higher than the state and national averages.
Location | Average monthly quote for basic plan | Average monthly quote for premium plan |
|---|---|---|
National | $45.54. | $71.25. |
Texas | $42.36. | $75.48. |
Dallas | $46.15. | $72.42. |
Prices in a major city can vary from area to area as well. Among the quotes we requested from American Home Shield, for example, monthly premiums were $30 more per month for a ZIP code in north Dallas compared to quotes for the same plans for a ZIP code in south Dallas.
Plan coverage
The plan you choose will also affect your monthly premium. The better the coverage, the more expensive the plan. This is true for most home warranty providers.
Provider
Some providers offer cheaper plans all around, while others are known for more expensive premiums. The provider you decide to go with will determine the rate you pay. For example, among the quotes that we gathered for Dallas, American Home Shield offered the cheapest basic plan, and Choice Home Warranty offered the cheapest premium plan.
» MORE: What does a home warranty cover?
Add-on coverage
Adding coverage outside of a plan’s items will increase your premium as well. Optional coverage is often available for things such as pools and spas, water softeners, additional refrigerators, septic systems, well pumps and roof leak repairs. How much each additional item increases your premium depends on the provider.
Service fee
If you have the option to choose your service fee, your selection will affect your monthly premium.
Square footage
Most home warranty plans typically cover primary structures that are 5,000 square feet or fewer. If a plan allows you to cover a house that is larger than its standard size, you might pay more for the additional coverage.
Most home warranty plans have coverage limits. The coverage limit is the maximum total amount the provider will pay to repair or replace a covered item. If a repair or replacement costs more than the coverage limit, you’ll have to pay the difference. So if you’re thinking of getting a home warranty plan, estimate how much you can afford to pay out of pocket if your plan doesn’t cover the full cost of a repair.
How to get a home warranty quote
Home warranty companies generally provide quotes online, but many of them require you to submit your personal contact information. You’ll likely need to provide:
Your name.
The address of the residence for which you want coverage.
The square footage of the home if it’s more than 5,000 square feet.
Which plan you prefer, though some companies provide quotes for all of their plans at once.
Any additional coverage you want, such as for a pool.
Once you provide this information, the home warranty company’s website usually shows you the monthly or annual price of your plan. If you want to go ahead with a contract, you can usually sign up for one at that time.
How to save money on home warranties
Although home warranty providers set their own prices, there are three things you can do to save money on your plan.
Only get the coverage you need. Some home warranty providers have plans that are comprehensive and cover a mix of appliances and home system, such as air conditioners. Others have appliance-only and system-only plans. Pay attention to what’s covered to avoid paying for more coverage than you’ll use.
Ask for discounts. Some home warranty providers offer discounts for certain groups, such as older adults or veterans. When talking with a representative, ask what discounts are available and compare them to other companies' discounts.
Get multiple quotes. Research companies and ask for quotes from several of them to compare your options. Don’t be afraid to be honest with a provider’s representative if you call for a quote — tell them you’re shopping around and want the best price. They might be able to get you a bit more of a discount than you planned.
