How Much Does It Cost For A Home Warranty?

A home warranty plan can protect you from the high cost of repairs on your appliances and your home’s systems, but how much does a home warranty cost? Unfortunately, there’s no easy answer to this question. Home warranties are priced based on several factors, such as the provider, your area, and the overall value of your home. Read on to learn more about figuring out how much it cost of a home warranty plan based on your needs.

What is a home warranty, anyway?

A home warranty plan is exactly what it sounds like: A guarantee that your appliances and other household goods will remain operational. The most basic plans cover just major appliances, like your dishwasher or clothes washer and dryer, but can also extend to include items such as garbage disposals, air conditioners, or furnaces. It’s like an insurance policy, except without all of those extra fees you don’t understand. And since you pay for your plan upfront in monthly instalments, it costs less than traditional homeowner’s insurance policies.

What costs are involved with a home warranty plan?

The cost of a home warranty plan will vary based on where you live and how many warranties you want to buy. In general, most plans cost around $40 to $60 per month plus an additional $200 to $400 for each service call. This may sound like a lot, but compared to what you pay in repairs over time (plus countless hours of your own time), that’s actually not too bad of an investment. The more expensive policies may also cover some costs associated with window replacements, skylights, pool equipment and more. While these all depend on your coverage, planning ahead can help save you from unexpected expenses down the road.

Why have home warranty insurance in the first place?

Home warranties cover all sorts of items, from central air conditioning systems to your water heater. Depending on how often you use an item and its cost to replace, having that protection can pay off over time. Also, if something goes wrong with your homeowner’s insurance deductible (the amount you have to pay before your insurance kicks in), a home warranty plan could save you a bundle on those repair costs. 

The bottom line on costs

It’s important to keep in mind that costs vary widely depending on where you live, what kind of house you want to buy and how comprehensive your plan is. In most cases, paying an annual premium of less than $300 will cover repairs of all kinds—even if they result from problems with your appliances, electrical system or plumbing—for up to five years after purchase. Prices generally drop as policies become more extensive; for example, some extended plans may cover roof replacement and other major structural repairs during their first five years after purchase.


A quality home warranty program costs between 0.5 percent and 1 percent of your overall home’s purchase price. For instance, if you spent $150,000 on your new residence, you can expect to pay anywhere from $750 to $1,500 annually. Consider this expense as an investment in your property: A solid plan will help ensure that major system components are repaired or replaced without breaking your budget (or causing you financial stress).

Ellen Hollington

Ellen Hollington is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.