How Much Does a Home Warranty Cost? [2025 Data]
A home warranty costs $1,049 per year, on average, but you could pay anywhere between $222 and $1,877 annually, depending on your provider and what you want to be covered.
A home warranty costs around $1,049 annually, but prices can fall anywhere between $80 and $8,100, depending on a few key factors, like the coverage you need, the provider you choose, and more. Most home warranty plans come with annual costs of between $222 and $1,877.
Home Warranty Cost Factors
There are a few important cost factors to consider if you want your home warranty cost estimate to be as accurate as possible.
Covered Items
The items covered in your home warranty plan will have a pretty significant impact on your annual pricing. Most home warranty service providers offer preset plans that include coverage for home appliances, home systems, or both. You can expect to pay less for plans with less coverage because the provider is taking less risk that you’ll need to call on the warranty for repairs or replacements.
| Items Covered | Average Annual Cost |
|---|---|
| Appliances | $630 |
| Systems | $650 |
| Appliances & systems | $740 |
Coverage Caps
Most home warranty plans include limits as to how much the company will pay out for individual claims, as well as total amounts they’ll pay out on all claims combined within the contract term. For individual appliances and systems, you’ll often see coverage caps ranging from $3,000 to $10,000, although some companies have no coverage caps.
As you can imagine, companies that have no limits on their payouts take on more risk because their own out-of-pocket costs are more likely to exceed what their customers pay annually. Home warranties with higher coverage caps—and especially those with no caps—will cost more, but you also get greater peace of mind that you won’t have to pay anything for a repair or replacement.
Home Warranty Provider
Your price will vary based on your home warranty provider, too, in part because some providers have coverage caps and exclusions that reduce their exposure to risk. It’s a good idea to compare providers based on not only the annual home warranty cost but also on the value of the coverage you get.
"Home warranties are a great tool for selling a house, but they won't cover any maintenance or normal wear and tear. What they define as normal wear and tear is up to the administrator of the warranty. Always research the warranty company on the Better Business Bureau to see if they're paying claims."
— Ryan Dossey, Co-Founder at SoldFast
| Home Warranty Company | Average Annual Plan Cost (annual) |
|---|---|
| 2-10 Home Buyer’s Warranty | $640 |
| American Home Shield | $1,240 |
| Choice Home Warranty | $740 |
| Cinch Home Services | $980 |
| First American | $700 |
| Liberty Home Guard | $670 |
| Select Home Warranty | $560 |
Service Fee
Most home warranties require that you pay a service fee each time you need a technician to come to your home to inspect and repair an appliance or home system component. You can think of this as a per-call deductible. The higher the fee you pay per service call, the less your provider will have to pay the technician for the inspection and repair.
Most providers will let you choose a service fee between $75 and $125, with lower service fees leading to higher monthly and annual plan prices.
Service Guarantee
A service guarantee is a promise from your home warranty provider that the service its technicians carry out will solve the issue with your appliance or home system and that the issue won’t return for a certain amount of time. Service guarantees average around 30 days, but some providers guarantee service for the life of your contract, which is usually a year. If the issue returns within that time frame, you’ll often get additional service without having to pay another service fee.
Longer service guarantees often come with higher monthly premiums because your provider is taking on additional risk. However, they add more value for you or for your buyer if you’re selling your home.
Payment Frequency
Many home warranty companies let you pay monthly or annually for coverage. Paying monthly comes with lower up-front costs, but you’ll pay around 10% more per year if you choose to break up your payments by month.
Contract Length
The standard home warranty contract lasts for a year, but some companies offer 2-year, 3-year, or even 5-year contracts. In most cases, the longer you agree to service, the more your provider will discount your annual costs.
Coverage Exclusions
One crucial thing to look for in your home warranty contract is the language regarding coverage exclusions. All home warranty companies have exclusions, and some of the common excluded items include the following:
Pre-existing issues
Intentional damage
Issues caused by a lack of proper maintenance
Appliance color mismatches
Aesthetic issues
Specific types of heating/cooling systems
The more things that are excluded in your contract, the less risk your provider is taking, and the lower your annual costs will be.
Home Size
Many home warranty companies have an upcharge for homes over 4,000 or 5,000 square feet. If you live in a large home, expect to pay between 25% and 50% more per month or per year for your coverage.
Add-On Coverage
Most providers let you customize your protection plan by opting for add-on coverage, which protects items that aren’t included in the base coverage. The availability and pricing for add-on options vary widely by company and base plan options, but the table below includes some standard pricing for common add-ons.
| Add-On Option | Additional Price Per Month |
|---|---|
| Central vacuum | $3 |
| Pool/spa | $15 |
| Roof leak | $6 |
| Second refrigerator | $3 |
| Septic system | $10 |
| Sprinkler system | $7 |
| Standalone freezer | $3 |
| Sump pump | $3 |
| Well pump | $5 |
Cost of Common Home Warranty Add-Ons
Many people, especially first-time home buyers, begin shopping for home warranties when something in their home breaks down and requires repairs, but home warranty coverage often has a waiting period of around 30 days. If you’re looking for home warranty coverage because of an existing issue, you may want to budget for both the initial fix and coverage in the future. Below are a few things you might need to cover the cost of while you wait for coverage to begin.
Oven repair cost: $130 to $310
Refrigerator repair cost: $300 to $1,000
HVAC repair cost: $130 to $2,000
Plumbing repair cost: $180 to 490
Electrical outlet repair cost: $60 to $250
Roof repair cost: $390 to $1,920
How to Save Money On a Home Warranty
Home warranties can be expensive, sometimes costing up to $8,100 per year. You can do a few things to save money on your annual costs, ongoing costs, and long-term repair costs for items covered by your warranty.
Choose your service fee carefully. Annual contract costs for home warranties can be lower when you agree to a higher service fee. If you expect to make a lot of claims, you’ll likely save money with a lower fee. If you have a newer home, a lower service fee will probably be a better option.
Opt for a longer contract term. Home warranty companies will often discount per-year pricing by up to 10% if you choose a longer contract term. Just remember that you’ll be locked into the contract, so choose your provider carefully.
Get only the coverage you need. Look at what home warranties cover and choose a plan that protects only the items you need. Consider an appliance-only or systems-only plan to save on annual costs. Just keep in mind that lower costs and fewer coverages will mean a higher risk of out-of-pocket costs down the road.
Read your contract carefully. Make sure you pay close attention to contract exclusions and coverage caps, both of which determine the quality of the coverage you get. You’ll often pay more for higher coverage caps and fewer exclusions, but you could also be subject to higher repair and replacement costs in the long run.
Shop around. Compare plans from at least three local home warranty companies to find the best deal. Make sure you consider the annual home warranty cost, as well as what’s covered, your service fee, the service guarantee, and more to get the most value.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We extensively research project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We rely on reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
Frequently Asked Questions
Home warranty companies often structure their plans to include major appliances, home systems, or a combination of both. Plans that cover appliances include protection for your refrigerator, oven, stovetop, built-in microwave, and dishwasher, and some will include your clothes washer and dryer. Plans that cover home systems include coverage for your plumbing, electrical, heating, and cooling systems, plus related components, like water heaters. Combination plans include most appliances and home system components, and most providers also offer add-on coverage for other items in your home, like garage door openers, trash compactors, garbage disposals, and more.
A home warranty is like a protection plan for things that insurance wouldn’t normally cover. You pay a monthly or annual fee to maintain coverage, and your home warranty provider will cover the cost of repair or replacement for covered items if something breaks down. The idea of a home warranty is that it provides you with peace of mind that you won’t have unexpected appliance or home system repair costs. They can also make your home more valuable to buyers, as they help ensure they won’t face high repair costs after putting a large down payment on a house.
Most home warranties last for a year, and you pay either for the entire year up front or you agree to pay monthly. Some home warranty providers let you extend the contract term to two, three, four, or even five years, and in some cases, contract terms can go up to ten years.
Either the buyer or the seller can purchase coverage, and who pays for a home warranty depends on the situation. Some sellers buy a year of home warranty coverage to entice buyers to purchase their home, while some buyers purchase coverage to ensure they’re not on the hook for expensive appliance and system repairs shortly after closing on their home.
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