clock menu more-arrow no yes

How Much Does a Home Warranty Cost?

Home warranties keep you from paying out-of-pocket when your home systems or appliances fail. Keep reading to learn how much a home warranty costs, what it covers, and how to find the best one for your home.

Home Exterior William Geddes

A home warranty contract can prevent you from paying hundreds or thousands of dollars on a broken refrigerator or clothes dryer and provide peace of mind that if an important item were to break down, you’d be covered. As long as you keep your home’s appliances and systems well-maintained, there’s no reason that you should have to pay full price for major repairs or replacements.

We’ve looked at the most popular home warranty companies and boiled down their plans and pricing options for easy comparison. Since home warranty costs vary by provider, we recommend getting quotes from a few different companies to help you find the best home warranty for your budget.

Home Warranty Cost Breakdown

There are two main costs when it comes to home warranties: the monthly premium and the service fee.

  • The monthly premium is the amount you pay every month (or year) for the length of the policy, whether you use it or not.
  • The service fee is more like a co-pay. Every time you need to submit a claim and call a technician to come diagnose a problem, you pay this fee directly to the technician.

Companies like American Home Shield and America’s First Choice Home Club allow you to customize your premium and service fee payments. If you choose to pay a higher service call fee, your premium will be lower, and vice versa. You can make this decision based on the number of claims you see yourself submitting over the length of the policy.

Costs of the Top 5 Home Warranty Companies

Provider Monthly Premium Service Fee
Provider Monthly Premium Service Fee
American Home Shield $39.99–$58.99 $75–$125
Choice Home Warranty $36.17–$43.85 $60–$85
AFC Home Club $43.18–$59.09 $75–$125
Select Home Warranty $35.83–$37.50 $60–$75
First American Home Warranty $28.00–$42.50 $75

Most companies offer multiple plans with varying premiums depending on how comprehensive the coverage is. In general, the average cost of a home warranty premium ranges between $25–$50 a month, or $300–$600 a year. The standard service call fee is between $75–$125. Here’s a quick look at the range of premium costs offered by the most popular companies in the home warranty industry.

If you want to get more in-depth with the pricing of each home warranty company, here’s a more detailed breakdown of each company’s policies, how much they cost, and what they cover.

1. American Home Shield: Best Overall

American Home Shield plans cost on average between $39.99–$58.99 a month. AHS also offers a sliding scale service call fee ranging between $75–$125. A higher service fee means a lower monthly premium and vice versa.

Not only is American Home Shield the oldest and most established company on our list, it offers the most comprehensive and flexible coverage.

You can get a personalized quote from American Home Shield by calling 844-529-9298 or by visiting the company's website and filling out this simple form.

Pros and Cons of American Home Shield

Pros Cons
Pros Cons
✔ In business since 1971 ✘ No coverage for standalone freezers
✔ Personalized service fee/premium costs ✘ Relatively high premiums
✔ Additional benefits like discounts on appliances

AHS Plan Comparison

Systems and Appliances ShieldSilver™ ShieldGold™ ShieldPlatinum™
Systems and Appliances ShieldSilver™ ShieldGold™ ShieldPlatinum™
Price $39.99 $49.99 $64.99
Air Conditioning
Heating System
Ductwork
Electrical
Doorbells
Smoke Detectors
Ceiling Fans
Plumbing and Stoppages
Water Heaters
Water Dispensers
Central Vacuums
Refrigerators -
Ranges, Ovens, and Cooktops -
Clothes Washer -
Clothes Dryers -
Dishwashers -
Built-In Microwave -
Trash Compactors -
Freestanding Ice Maker -
Garage Door Opener -
Built-In Food Centers -
Coverage Boost - -
Roof Leak Coverage - -

2. Choice Home Warranty

Choice Home Warranty (CHW) offers two plans that cost between $36–$44 a month. Both plans come with an $85 service call fee.

CHW Plan Comparison

Coverage Basic Plan Total Plan
Coverage Basic Plan Total Plan
Monthly Premium $36.17 $43.85
Heating System
Electrical System
Plumbing System
Plumbing Stoppages
Water Heater
Whirlpool Bathtub
Oven/Range/Stove
Cooktop
Dishwasher
Built-In Microwave
Garbage Disposal
Ductwork
Garage Door Opener
Ceiling and Exhaust Fans
Air Conditioning System
Clothes Washer/Dryer
Refrigerator

3. AFC Home Club

AFC Home Club has four comprehensive coverage plans that range between $43–$60 a month. This company’s service call fees also range between $75–$125.

AFC Home Club Plan Comparison

Coverage System Plan Silver Plan Gold Plan Platinum Plan
Coverage System Plan Silver Plan Gold Plan Platinum Plan
Monthly Premium $43.18 $43.18 $52.27 $59.09
Air Conditioning
Heating System
Water Heater
Electrical System
Plumbing System
Ductwork
Clothes Washer/Dryer
Kitchen Refrigerator
Oven
Range
Stove/Cooktop
Dishwasher
Garbage Disposal
Garage Door Opener
Plumbing Stoppages
Built-In Microwave
Ice Maker

4. Select Home Warranty

Select Home Warranty has one of the cheapest options for a home warranty plan among some of the top providers in the industry. Select also offers a standard $75 service call fee. Although Select Home Warranty doesn’t offer additional coverage options for a fee, it’s the only provider on our list to provide roof coverage, and it comes at no extra cost.

We recommend Select Home Warranty for the budget shopper. This company offers its Platinum Care plan for only $37.50 a month, which works out to a little more than a dollar a day.

To get a free quote from Select Home Warranty, call 888-370-3956 or fill out this simple form.

Pros and Cons of Select Home Warranty

Pros Cons
Pros Cons
✔ Free roof coverage ✘ Low coverage caps
✔ Generally offers lowest premium prices ✘ Doesn’t have a mobile app
✔ Least expensive full-coverage plan ✘ Only Platinum Care covers plumbing stoppages

SHW Plan Comparison

Coverage Bronze Care Gold Care Platinum Care
Coverage Bronze Care Gold Care Platinum Care
Monthly Premium $35.83 $35.83 $37.50
Clothes Washer/Dryer
Garbage Disposal
Refrigerator
Stove/Oven
Built-in Microwave
Cooktop
Dishwasher
Garage Door Opener
Ceiling Fan
Plumbing Stoppages
Air Conditioning
Heating System
Plumbing System
Electrical System
Water Heater
Ductwork

5. First American Home Warranty

First American Home Warranty offers some of the most affordable coverage compared to other providers, though it leaves out key systems and appliances like electrical and ovens in its most basic plan. Both First American plans come with a service call fee of $75 to $100.

FAHW Plan Comparison

Coverage Basic Plan Premier Plan
Coverage Basic Plan Premier Plan
Monthly Premium $28.00 $42.50
Attic and Exhaust Fans
Ceiling Fans
Clothes Washer/Dryer
Dishwasher
Garbage Disposal
Instant Hot Water Dispenser
Kitchen Refrigerator
Built-In Microwave
Trash Compactor
Central Vacuum System
Ductwork
Electrical
Garage Door Opener
Heating
Oven/Range/Cooktop
Plumbing
Plumbing Stoppage
Water Heaters

What Is a Home Warranty?

A home warranty, also called a home service contract, is a one-year contract that covers repairs or replacements to major appliances or systems in your home that malfunction due to normal wear and tear. It is separate from home insurance, which covers unexpected damage to a house from natural disasters, fire, or theft, and a manufacturer’s warranty, which covers defects in a particular product.

Essentially, a home warranty covers the damage you expect to happen when you use your heating system or refrigerator for its expected lifespan. Parts wear down over time and eventually break from normal usage, and a home warranty provider will usually cover the cost of the part and the labor to fix it. If the damage on your appliance or system is major or the parts are no longer available, the home warranty will typically cover the cost of a replacement.

What Do Home Warranties Cover?

In general, home warranties cover important home appliances and systems and offer additional coverage for outdoor items or related costs.

Appliances Covered

The list of covered appliances differs by company, but here are some of the most common:

  • Kitchen refrigerator
  • Clothes washer and dryer
  • Built-in microwave
  • Dishwasher
  • Garbage disposal
  • Ceiling fan
  • Oven/stove/range/cooktop

The following appliances may also be covered, but you may need to seek out a specialty or premium plan:

  • Standalone freezer
  • Ice maker
  • Central vacuum
  • Garage door opener
  • Smoke detector
  • Exhaust/attic fan
  • Trash compactor
  • Water dispenser
  • Whirlpool bathtub

Systems Covered

The list of systems covered by home warranties is fairly standard, but pay attention to subtleties in wording, like the difference between plumbing systems and plumbing stoppages. In most cases, important systems, like your HVAC system, plumbing, and electrical will be covered.

  • Air conditioning/cooling system
  • Heating system
  • Electrical system
  • Plumbing system
  • Plumbing stoppages
  • Ductwork
  • Water heater

Optional Add-Ons

There are a few items typically not included with standard home warranties, but if you purchase a service contract, you may be able to add them on with an additional fee.

  • Additional refrigerators
  • Pools/spas
  • Well pumps
  • Sump pumps
  • Septic pumps/tanks
  • Septic systems
  • Guest houses

Some home warranty providers may also offer coverage for miscellaneous costs that can be associated with large-scale repair work. Here are a few of those items that may be covered:

  • Building permits
  • Lifting equipment
  • Refrigerant recapture/disposal
  • Haulaway services
  • Code upgrades

What’s Not Covered Under a Home Warranty?

Some items in the home don’t fall under a typical home service contract, such as:

  • Garage doors/door tracks
  • Windows, walls, and doors
  • Sprinkler systems
  • Window air conditioning units
  • Alarm systems/wiring
  • Ornamental fountains

More importantly, there are some types of damage that a home warranty won’t cover. You’ll have to pay for damage that doesn’t fall under “normal wear and tear” yourself. Here are some types of damage or malfunction not typically covered by home warranties:

  • Damage from accidents or misuse
  • Pre-existing conditions (known or unknown)
  • Improper installation or modification
  • Insufficient maintenance

Note: There are exceptions—for example, First American Home Warranty offers an upgrade that includes coverage for improper installation.

How to Get a Quote for Home Warranties

While we’ve given you some pricing from the most popular home warranty providers, the cost of coverage for your house may differ based on the square footage of your house, which coverage plan you choose, and where you live. Contact the above companies to get an accurate price for the cost of coverage for your home.

Frequently Asked Questions

How much should I pay for a home warranty?

The amount you should pay for a home warranty depends on how much coverage you want. If you want coverage for only a few systems or appliances, you’ll probably pay a monthly premium in the range of $25–$30. If you want more comprehensive coverage, you should pay around $45–$60 a month. Either way, expect to spend about $75 per service call whenever you submit a claim.

Are home warranty plans worth it?

If you’re selling your home or if you own an older home, a home warranty can be an ideal asset to have when it comes to ensuring that older systems and appliances are protected. If you still can’t decide whether a home warranty is worth it, look at the age of some of your older appliances or systems, research typical repair costs, and determine if you have enough saved up to cover repairs and replacements.

How much does a home warranty cost per month?

The monthly premium for a typical home warranty contract ranges between $25–$50 a month. The difference between the two prices usually lies in the number of items that the contract covers. Depending on the company, the premium may also vary based on how much you want to spend every time you submit a claim.

Can you buy a home warranty at any time?

Yes, most home warranty providers allow you to purchase a contract at any time during homeownership. In some cases, real estate agents will buy a home warranty for a potential home buyer to sweeten the deal or sellers will transfer their existing home warranty to the new owners.

How do I find the best home warranty?

Before purchasing a home warranty, determine which items in your home you want coverage for and what your budget looks like. Then, call a few different home warranty companies for quotes to compare pricing. The best home warranty will offer comprehensive coverage at an affordable price, provide 24/7 customer service, have an efficient claims process, and establish work guarantees so you know your items are secured by a protection plan.

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.