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How Much Does A Home Warranty Cost Annually?

Average cost: $300 - $800

Low End
$300
Average
$550
High End
$800

A typical home warranty package will cost between $300 – $800 per year. While the average annual cost for a home warranty package is typically below $600, keep in mind that adding extended coverage or customizing a plan can add $100 – $300 or more to that annual figure, depending on the type(s) of coverage you choose. Some companies also implement service fees when homeowners submit a claim, which can range from $50 – $100 per instance. Homeowners can typically choose to pay premiums for their home warranty on a monthly or annual basis.

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Home Warranty Prices


When it is time to purchase a new home, one of the many expenses to consider is a home warranty. Different from home insurance — which covers the home itself — home warranties center around things inside the home, including appliances, electrical systems, plumbing and more. Luckily, the cost of a home warranty is fairly affordable and can help you to avoid stressful payments down the road.

The right home warranty package can protect a homeowner from having to spend large amounts of money out-of-pocket when something goes wrong. Still, there are different packages and options depending on your needs, and with those options come different price tags. Understanding home warranty basics will help you make an informed decision when it comes to choosing your best option. 

How Much Does A Home Warranty Cost? 

Home warranties typically range in price between $300 – $600 per year, depending on if you opt for basic or premium coverage, as well as additional factors like where you live. Opting for additional coverage to your plan may add $100 or more to the annual cost.

Annual and Monthly Costs

The annual and monthly cost of a home warranty plan is dictated by the kind of plan you opt for. Typically, the lowest costing plans are the systems protection plans starting at about $300 a year, followed by a comprehensive combination plan, which typically costs about $400 annually. Again, remember that additional coverage items can result in $100s more to your premium annually.

Though they are renewed annually in most cases, home warranties are usually charged on a monthly basis, meaning the average monthly cost ranges between $25 and $50. 

Service Fees

Along with the cost of the plan itself, there is usually a home service fee whenever an issue is claimed and someone is sent to your home. This is comparable to paying an insurance deductible or co-pay when visiting a doctor. This service fee ranges in cost between $50 and $100 each instance, depending on the job. 

Appliance Protection Plans and Customizable Coverage

Appliance protection plans start at around $35 per month depending on the type of plan. Finally, combination plans with add-on and customizable coverage tends to be more expensive, hitting upwards of $800 annually.

Remember that home warranty costs often depend on the provider and the packages they have available. There are countless home warranty companies on the market to choose from, and it’s wise to speak with multiple to understand their plans, coverages, costs and how well they meet your needs. 

Here are some of the top-ranking home warranty companies for 2020:

Amazon Home Warranty

  • Pros
    • Can select own service technician
    • Robust selection of coverage add-ons
    • No charge caps on most appliances and high charge limit on HVAC
  • Cons
    • Many exclusions and a $500 charge limit for roof coverage
    • No coverage for commercial-grade appliances or systems
    • Only one service fee option
  • Cost
    • Service fee: $75
    • Base premium: $52/month

AFC Home Club

  • Pros
    • Can select own service technician
    • Low cost and service fees compared to competitors
    • Wide-range of plans and add-ons
    • Up to three-year work guarantee
  • Cons
    • Limited roof leak option
    • Limited HVAC service coverage
    • Slower turnaround time
  • Cost
    • Service fee: $75–$125
    • Base premium: $50/month

Choice Home Warranty

  • Pros
    • 90-day repair guarantee
    • Multiple customer services representatives on each claim
    • Optional roof leak coverage with no charge limit on repair
  • Cons
    • All covered items have exceptions
    • Not available in every state
  • Cost
    • Service fee: $85
    • Base premium: $50/month

American Home Shield

  • Pros
    • Build-your-plan warranty plans
    • Low-cost options
    • Comprehensive coverage with robust add-ons
  • Cons
    • Low annual limits on some applications and systems
    • Need approval to use your own technician
    • Limited coverage for roof damage or leaks
  • Cost
    • Service fee: $75–$125
    • Base premium: $40/month

First American

  • Pros
    • 24/7 repairs available
    • Unlimited service calls allowed
    • Custom plan options
  • Cons
    • Limited roof leak coverage
    • Not available in over one dozen states
  • Cost
    • Service fee: $75–$100
    • Base premium: $45.50/month

Next steps

Understanding home warranty costs and finding the best plan for your home and needs requires some research. Modernize recommends multi-sourcing by looking at online reviews for the companies that offer home warranties, speaking to neighbors, friends and family about their own experiences and looking to contractors who might be able to vouch for good (and bad) experiences with companies. 

When comparing home warranties, make sure to ask the right questions to decide whether a package is right for you.

From there, Modernize can help connect you to a trusted warranty provider in your area based on your specific needs and expectations. 

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