How Much Does a Home Warranty Cost? (December 2024)
A home warranty plan can provide valuable financial protection and save you hundreds of dollars in repair bills in the event of an appliance or system breakdown. Home warranties also offer the peace of mind that your important home items will be repaired or replaced quickly by vetted technicians if they fail.
To help you find the home warranty that fits your budget, we’ve reviewed every major provider on the market. We’ve secret-shopped their quotes, read customer reviews on independent review sites, and analyzed their available plans. We gathered 120 quotes from our top providers using 2,000-square-foot homes located in more than 20 states. We also surveyed 1,000 home warranty customers to help you find the best home warranty company for your needs and budget.
Key Takeaways
- The best home warranty companies are Liberty Home Guard and American Home Shield, based on our extensive research of 13 home warranty providers.
- A home warranty costs $690 annually on average, or $54-$61 per month, depending on your plan and coverage.
- Our home warranty survey revealed that 92.7% of policyholders were satisfied with their home warranty plan, while less than 1% were dissatisfied.
Did You Know?
- In the last 30 days, more than 2,500 people bought home warranties from the above providers. Liberty Home Guard is our most popular provider, with 55% of buyers choosing to cover their homes with an LHG plan.
Home Warranty Cost Breakdown
The primary cost of a home warranty plan is its premium, which is the bill you pay for your policy protection. The monthly average cost for a home warranty premium is $54 to $61, and the average price of an annual plan is $644 to $737.
The next cost associated with a home warranty is the service fee. These are essentially deductibles you pay during each repair. Each home warranty provider has a different service fee policy that will affect how its fees are applied. For example, most home warranty companies require you to pay a service fee even if the repair can’t be completed on that visit. The national average cost for service fees is between $65 and $125. Typically, a lower service fee will reflect a higher monthly premium and vice versa.
The last factor that affects your home warranty’s price is your choice of add-ons. These are additional services or protections you can opt to add when signing up for your plan. Add-ons help homeowners customize their plans to protect every essential item in their home. Add-on prices vary among providers and can range from a few dollars to more than $30 per month.
Did You Know?
- According to our survey of 1,000 home warranty customers, the most popular add-on is roof-leak coverage (56% of respondents).
Review the table below for a breakdown of monthly premiums, service fees, and annual costs per provider. Request a quote for an estimate personalized to your home and location.
| Company | BBB Rating | Monthly Cost | Service Fee | Annual Cost | Coverage Caps | Visit Site |
|---|---|---|---|---|---|---|
| NR** | $49–$59 | $65–$125 | $499–$599 | $500–$2,000 | VISIT SITE | |
| B | $29–$89 | $100–$125 | $348–$1,068 | $2,000–$5,000 | VISIT SITE | |
| B+ | $44–$58 | $70 | $528–$696 | Varies per item | VISIT SITE | |
| B- | $44–$47 | $60–$75 | $479–$524 | $500–$3,000 | VISIT SITE |
*We based the pricing information in this table and throughout the article on sample quotes we obtained for a 2,000-square-foot, single-family home in Tempe, Arizona. Your pricing may vary depending on your home’s location, size, type, and plan selections.
Which Home Warranties Have the Lowest Premiums?
Select Home Warranty is the home warranty provider with the lowest average monthly premiums. Select offers premiums of $44–$47. Most other home warranty companies charge between $50 and $60 per month, with some charging as high as $90.
Low premiums don’t always equate to the best value. Select’s cheaper premiums are offset by its lower coverage caps. A coverage cap is the maximum amount of money a policy will pay for repairs or replacements for a specific item. That means you’re responsible for paying the cost of any repairs and replacements beyond the coverage cap. Select keeps the majority of its caps at $500. Most home warranty companies have coverage caps ranging from $500 to $2,000 for individual items, with some even offering unlimited coverage caps for major systems.
Most companies offer multiple plans with varying monthly costs depending on how comprehensive the coverage is. The graph above highlights estimated provider pricing based on a quote we pulled for a 2,138-square-foot, single-family home in Tempe, Arizona. Your monthly premium may vary based on your coverage and your home size, type, and location.
Note: We used the same home in Tempe, Arizona, to pull pricing information for each recommended provider in this article. Your costs may vary.
Which Home Warranties Have the Lowest Service Fees?
Elite Home Warranty and Select Home Warranty have the lowest average service fees. Elite charges a flat $70 service fee in each of its plans, and Select charges fees ranging from $60 to $75 for an average of $68. Some companies offer lower base service fees, such as Liberty Home Guard’s $65 fee. However, these companies charge much higher premium rates and have a steeper average service fee rate when considering the higher end of the range.
What Are the Cheapest Home Warranties?
The cheapest home warranty plan available from our top recommended providers is the ShieldSilver policy by American Home Shield. It has the lowest monthly premium at $30, less than half of most other plans. The plan also provides great value for homeowners because its coverage cap is $5,000 for appliances and unlimited for systems. The downside is that it has one of the highest service fees of $125.
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 appliances or systems in your home that malfunction due to normal wear and tear. To understand the concept of a home warranty, it’s important to note that it’s different from homeowners insurance, which covers unexpected damage to a house due to natural disasters, fire, or theft.
What’s the Difference Between a Home Warranty and Homeowners Insurance?
Home warranties and home insurance policies provide homeowners with financial protection and peace of mind. The key difference between the two is what they cover and the conditions of their coverage. Homeowners insurance protects your home, its structural components and systems, and your possessions from unforeseen incidents (known as “perils” in policies and plans). These incidents include fires, acts of vandalism, and theft.
A home warranty protects your home’s major systems and appliances from breakdowns caused by standard wear and tear. Functionally, home warranties fill in the gaps in homeowners insurance plans. A home warranty wouldn’t protect your systems in a house fire, but homeowners insurance would. Homeowners insurance wouldn’t cover the breakdown of your HVAC system’s coils, but a home warranty would (depending on your plan coverage). Home warranties are often paired with homeowners insurance for complete home protection.
Home warranties and homeowners insurance are also legally distinct. A home warranty isn’t an insurance policy, even though it may function like one. It’s a service contract with its own rules and regulations. For example, you’ll never be required to purchase a home warranty, but you may be required to purchase homeowners insurance when buying a home.
How do Home Warranties Work?
You can get a quote from a home warranty company by using its customer claim portal, calling its listed phone number, or filling out an online form. Most home warranty providers have a 24/7 customer support line you can call to file a claim. Here’s an overview of the general claim filing process:
- Claim submission: You can file a claim by calling the company’s phone number, filling out an online form, or using the website’s customer portal. You’ll select the broken appliance or system and schedule a time for a repair professional to arrive at your home.
- Confirmation and appointment scheduling: Your home warranty company will assign a contractor to your claim, who will contact you to confirm the date and time of your appointment. Most home warranty companies assign and schedule contractors within two to 48 hours. Nearly a quarter of our survey respondents (22%) said it took four to eight hours for their claim to be approved. Some home warranty companies allow you to choose your own contractor if no in-network technicians are available in your area.
- Repair complement: The technician will arrive at your home on the appointment date. The technician will either repair the item or need to order a part. You’ll have to pay your service fee regardless. You may have to pay additional fees if your repairs are scheduled outside of normal business hours.
What Does a Home Warranty Cover?
Basic home warranty plans generally cover important home appliances and systems. Premium plans often extend coverage to luxury items and supporting systems or carry other benefits, such as code updates.
Commonly Covered Appliances
- Built-in microwaves
- Ceiling fans
- Clothes washer and dryers
- Dishwashers
- Garbage disposals
- Kitchen refrigerators
- Oven/stove/range/cooktops
Commonly Covered Home Systems
- Air conditioning/cooling system
- Central vacuum
- Electrical system
- Ductwork
- Heating system
- Plumbing stoppages
- Plumbing system
- Water heater
What are Exclusions?
Exclusions are anything not covered in a home warranty contract. Exclusions can apply to specific parts, items, or even types of damage.
Most home warranty contracts outline specific parts excluded from each covered item. Excluded parts are typically those not required for the functionality of the item, such as glass, knobs, or paint. Most plans include a list of items that aren’t covered or are only available as add-ons. Commonly excluded items include the following:
- Alarm systems/wiring
- Garage doors/door tracks
- Ornamental fountains
- Sprinkler systems
- Window air conditioning units
- Windows, walls, and doors
General exclusions are types of damage that a home warranty won’t cover. These exclusions are mostly universal across home warranty companies. Common home warranty exclusions include the following:
- Anything already covered by homeowners insurance or manufacturer’s warranty
- Damage from accidents or misuse
- Improper installation or modification
- Insufficient maintenance
- Preexisting conditions (known or unknown)
How do you get a quote for a home warranty?
Most home warranty companies make obtaining a quote easy. The simplest way to get a home warranty quote is by entering your information in a provider's online form. You’ll typically need to provide basic information such as your name, address, phone number, and email. The provider will either generate a quote through a customer portal or email you one. Home warranty quotes are typically free, and no reputable home warranty company will ever ask for banking information to receive a free quote.
We recommend getting at least three free quotes before buying a home warranty plan and deciding on a provider. Shopping for quotes allows you to compare plan coverage, find the add-ons you need, and pick the best home warranty plan for the most reasonable price.
Best Home Warranty Companies: Plans and Pricing
Below is a detailed overview of the top home warranty providers we analyzed and a breakdown of their plan costs, service fees, and coverage caps.
Annual cost: $499–$599
We recommend Liberty Home Guard for homeowners who want comprehensive plans or need coverage for specific items. LHG offers plans that cover essential home systems alongside more than 40 add-ons for reasonable prices.
Plans and Cost
Liberty Home Guard provides three plans: Appliance Guard, Systems Guard, and Total Home Guard. The Appliance Guard plan covers major appliances, such as clothes washers and dryers, refrigerators, and cooktops. The Systems Guard plan covers major systems, including air conditioning, ductwork, and plumbing. Total Home Guard is Liberty Home Guard’s most comprehensive plan and includes everything in the systems and appliance plans. After reading LHG’s sample contract, we learned all items have a coverage cap of $2,000, except for electrical and plumbing systems with caps of $500.
Here’s a more detailed overview of Liberty Home Guard’s plans:
- Appliance Guard: Covers nine major appliances, such as dishwashers, refrigerators, cooktops, and garbage disposals
- Systems Guard: Covers six essential built-in systems, such as electrical, HVAC, ductwork, and water heaters
- Total Home Guard: Covers everything in the Appliance Guard and Systems Guard plans
The following table summarizes LHG’s plans and associated costs.
| Plan | Monthly Cost | Service Fee | Coverage Cap |
| Appliance Guard | $49.99 | $65–$125 | $2,000 |
| Systems Guard | $54.99 | $65–$125 | $2,000 (Plumbing & electrical: $500) |
| Total Home Guard | $59.99 | $65–$125 | Coverage caps remain the same |
Liberty Home Guard has among the most comprehensive add-on coverage in the industry at 42 options. Due to its large variety of add-ons, Liberty Home Guard provides a lower coverage limit per item. LHG’s add-ons include the following:
- Ejector pump
- Electronics protection
- Grinder pump
- Gutter cleaning
- Lawn sprinkler system
- Lighting fixtures
- Limited roof leak
- Pest control
- Sump pump
- Swamp cooler
How We Scored Liberty Home Guard
Liberty Home Guard earned 4.5 out of 5 stars when assessed against our review standards. Here’s how LHG performed in key categories:
- Coverage (4.7 out of 5): LHG’s extensive list of add-ons and comprehensive plan coverage earned it nearly full points in this category.
- Value (4.25 out of 5): We docked LHG some points due to its unclear and strict service fee policy.
- Trustworthiness and transparency (4.8 out of 5): LHG’s strong customer review scores on the Better Business Bureau (BBB) and Trustpilot earned it nearly full points in this category.
- Availability and service (4.3 out of 5): LHG’s strict service contractor policy resulted in some loss of points in this category.
Pros and Cons
Pros
- Offers a $2,000 coverage cap per covered item
- Provides more than 40 unique add-on coverage options
- Includes 24/7 live chat on its website to connect you with a representative quickly
Cons
- Lacks transparency with service call fee pricing when pulling a quote
- Doesn’t provide the monthly premium flexibility other providers offer
- Has low plumbing and electric system coverage caps
Our Experience With Liberty Home Guard
We attempted to contact a customer service associate through LHG’s online chat system. The online chat feature functioned as expected but only allowed us to communicate with a rudimentary bot. We had to ask for an agent twice before the system would connect us with a live representative. When speaking with them, we learned that if there isn’t a technician in your service area, LHG will let you choose an out-of-network home service provider at its discretion.
Annual cost: $348–$1,068
We recommend American Home Shield (AHS) because of its flexible home protection and exceptionally high coverage caps. We also recommend AHS for older homes due to its coverage of rust, corrosion, and sediment damage.
Plans and Cost
American Home Shield provides three home warranty coverage options. The ShieldSilver plan covers major systems, while the ShieldGold plan offers coverage for home appliances. ShieldPlatinum covers systems and appliances and includes a discount for HVAC tuning, roof leaks, and code violations coverage.
After reading its sample contract, we discovered American Home Shield offers a $5,000 coverage cap for major systems. It covers up to $2,000 for major appliances in its ShieldGold plan. It doubles appliance coverage limits to $4,000 for the ShieldPlatinum plan.
Here is a more detailed overview of American Home Shield’s plan costs:
- ShieldSilver: Covers five major home systems, such as HVAC, plumbing, and electrical
- ShieldGold: Covers all systems within ShieldSilver, along with nine appliances, including garbage disposals, refrigerators, and cooktops
- ShieldPlatinum: Covers everything within ShieldGold coverage plus additional items, such as roof-leak repairs and HVAC tune-ups
The following table breaks down AHS’s plans and pricing.
| Plan | Monthly Cost | Service Fee | Coverage Cap |
| ShieldSilver | $29.99–$39.99 | $100–$125 | $5,000 |
| ShieldGold | $49.99–$59.99 | $100–$125 | Systems: $5,000Appliances: $2,000 |
| ShieldPlatinum | $79.99–$89.99 | $100–$125 | Systems: $5,000Appliances: $4,000 |
American Home Shield offers add-on options alongside its standard plans. American Home Shield provides limited add-ons compared to other home warranty companies. Here are all the add-ons offered by AHS:
- Electronics protection
- Guest unit
- Pool and spa
- Septic pump
- Well pump
How We Scored American Home Shield
We scored AHS 4.4 out of 5 stars in our review standards. Here’s how we rated it in key categories:
- Coverage (4.7 out of 5): AHS scored higher for its comprehensive plan coverage, which includes persistent conditions.
- Value (4 out of 5): The company lost points for its premium costs, which are higher for comprehensive coverage than other reviewed providers.
- Trustworthiness and transparency (4.25 out of 5): We deducted points for its lower customer review scores on third-party review sites.
- Availability and service (4.7 out of 5): AHS received higher points for its efficient online claims process, which took less than 24 hours during our testing.
Pros and Cons
Pros
- Provides generous coverage limits for home systems and appliances
- Includes guest unit protection as an add-on
- Covers items with preexisting conditions and rust, corrosion, or sediment damage
Cons
- Offers limited additional coverage options
- Charges more for its comprehensive plan compared to other providers
- Has lower-than-average customer reviews
Our Experience With American Home Shield
We tested the AHS claims process and found it quick and pleasant. Our team member who completed the testing received a text and email confirmation immediately after submitting his online claim. The service technician connected with him within five minutes and scheduled an appointment for the following day. Repairs took a few hours, and he only paid the service call fee. Read our comprehensive American Home Shield review to learn more.
Annual cost: $479–$524
We recommend Select Home Warranty for its affordable monthly premiums and low service fees. This home warranty company provides great value—its monthly plans all cost less than $50, and each service call fee is $75.
Plans and Cost
Select Home Warranty provides three coverage plans: Bronze Care, Gold Care, and Platinum Care. The Bronze Care plan covers home appliances, while the Gold Care plan protects home systems. The Platinum Care plan combines both systems and appliance coverage.
After reading Select’s sample contract, we discovered that its plans have a $3,000 coverage limit for cooling and heating systems. We found that most of its coverage caps for appliances and systems are $500.
Select lowers coverage caps even more for its add-ons. These coverage caps are far below that of other home warranty companies. However, its service call fees are only $75. This price range makes Select a good home warranty plan for homeowners on a budget.
Here is a more detailed overview of Select Home Warranty’s plans:
- Bronze Care: Covers eight essential home appliances, such as refrigerators, clothes washers and dryers, garbage disposals, built-in microwaves, and cooktops
- Gold Care: Covers six major home systems, including ductwork, air conditioning, heating, electric, plumbing, and water heater
- Platinum Care: Covers all inclusions in the Bronze and Gold Care plans alongside additional items such as plumbing stoppages, garage door openers, and ceiling fans
The following table provides a comprehensive breakdown of Select’s prices.
| Plan | Monthly Cost | Service Fee | Coverage Cap |
| Bronze Care | $44.42 | $60–$75 | $500 |
| Gold Care | $44.42 | $60–$75 | $500 (HVAC: $3,000) |
| Platinum Care | $47.75 | $60–$75 | Coverage caps remain the same |
Select Home Warranty offers nine add-on options for additional coverage. Select’s coverage for each add-on is up to $400 per item. Select’s full list of add-ons includes the following:
- Central vacuum
- Lawn sprinkler system
- Pool
- Septic system
- Spa
- Stand-alone freezer
- Sump pump
- Well pump
How We Scored Select
We awarded Select Home Warranty 4.3 out of 5 stars. Here’s how it performed in key categories:
- Coverage (3.7 out of 5): We docked a significant number of points due to Select’s below-industry-standard coverage caps.
- Value (5 out of 5): Select’s low-cost premiums and service fees earned it a perfect score.
- Trustworthiness and Transparency (4.5 out of 5): Select lost some points in this category for its mixed reviews across websites such as the BBB and Trustpilot.
- Availability and Service (4.3 out of 5): We penalized Select in this category due to its long claims processing times.
Pros and Cons
Pros
- Includes $400 roof-leak protection in each plan
- Provides solid air conditioner and heating system coverage
- Allows you to file a claim within three days of discovering an issue
Cons
- Charges multiple service call fees if you request back-to-back service
- Limits coverage caps for all appliances, add-ons, and select systems
- Has lower-than-average coverage caps
Our Experience With Select Home Warranty
We spoke with a Select customer service representative. The representative was polite and knowledgeable. They informed us that Select chooses a service technician from its network of contractors when processing a claim. If no in-network technician is available, the company will let you select one for yourself. However, Select maintains the final right to approve the technician before the repair process begins.
Annual cost: $528–$696
We recommend Elite Home Warranty for its flexible premiums, comprehensive add-on selection, and 90-day workmanship guarantee. Elite offers an affordable $70 service call fee and 27 add-ons.
Plans and Cost
Elite Home Warranty has three plans: Elite Appliances, Elite Systems, and Elite Complete. Elite Appliances covers eight essential appliances, while the Elite Systems plan covers eight home systems. The Elite Complete plan covers all items of the Elite Appliance and Systems plan items.
After reading Elite Home Warranty’s sample contract, we discovered that its plans all have an annual $15,000 coverage cap. Its Elite Appliance plan has a combined $7,000 coverage cap for appliances and an $8,000 cap for systems. The coverage for each item within these plans varies. For example, air conditioning systems have an individual item cap of $4,000, and electrical systems have a cap of $2,000.
Here is a more detailed breakdown of Elite’s plans:
- Elite Appliances: Covers eight major appliances, including refrigerators, clothes washers and dryers, and cooktops
- Elite Systems: Covers eight home systems, such as air conditioning, ductwork, and electrical systems
- Elite Complete: Covers all items with the Elite Appliances and Elite Systems plans
The following table outlines the costs of Elite’s home warranty policies.
| Plan | Monthly Cost | Service Fee | Coverage Cap |
| Elite Appliances | $44.49 | $70 | $500–$3,000 |
| Elite Systems | $49.99 | $70 | $750–$4,000 |
| Elite Complete | $58.99 | $70 | Coverage caps remain the same |
Elite has a selection of 27 add-ons to choose from. This range of options is one of the most comprehensive we’ve seen. The coverage cap for each item varies, such as the inclusions in its standard plans. The highest coverage cap among add-ons is $5,000.
Here are some of our favorite add-ons Elite offers:
- HVAC annual maintenance
- Septic system
- Water softener
How We Scored Elite Home Warranty
Elite Home Warranty earned a total score of 4.6 out of 5 stars when judged against our review standards. Here’s how we scored it in key categories:
- Coverage (4.6 out of 5): Elite’s comprehensive coverage plans and diverse add-on options earned it points in this category.
- Value (4.25 out of 5): Elite lost points in this category due to its restrictive service call fee policy.
- Trustworthiness and transparency (4.8 out of 5): Elite’s high customer review scores on the Better Business Bureau (BBB) and Trustpilot earned it the high points in this category.
- Availability and service (4.5 out of 5): Elite’s lack of an online quote tool resulted in a point deduction.
Pros and Cons
Pros
- Offers a 90-day workmanship guarantee on all plans
- Has high coverage caps for valuable appliances
- Has a 27 add-on catalog
Cons
- Has higher service call fees for high-end appliance repairs
- Doesn’t include out-of-network contractors within its workmanship guarantee
- Doesn’t allow homeowners to obtain quotes through its website
Our Experience with Elite Home Warranty
A team member tested the Elite Home Warranty claim process through its online customer portal. They were contacted by an Elite claims specialist within 30 minutes of filing their claim and given a next-day appointment. The technician inspected the damage, informed our team member that they would require additional parts, scheduled a follow-up appointment, returned the following Monday, and completed the job in one hour.
How We Rated Home Warranty Companies
We rate each company using our unbiased review methodology. We assess companies based on categories homeowners find most important. Companies earn points in each category based on their performance, up to a total of 100. This point total is used to determine its overall 5-star rating. The categories we use to score home warranty providers are the following:
- Coverage: Companies with more robust appliance and system coverage earn more points in this category. Companies also earn points by offering more comprehensive optional add-ons.
- Value: Companies earn points by offering affordable plans, generous coverage caps, and flexible service fees.
- Trustworthiness and transparency: Companies lose points if they have lower average reviews on independent review sites such as BBB and Trustpilot, have inflexible plan change policies, and don’t provide sample contracts. Companies with generous workmanship guarantees earn more points.
- Availability and service: Companies with quick claim response times, multiple means of claim processing, and service flexibility earn more points in this category.
We thoroughly research each company and assess it through our review standards. We read each company's plans, analyze sample warranties, comb through customer reviews, and obtain quotes. We also surveyed 1,000 home warranty customers.
What To Consider When Buying a Home Warranty
We recommend taking the following steps when shopping for a home warranty to ensure you pick the best protection for your home:
- Assess your coverage needs: Consider your appliances and systems that need to be covered. Assess which items will most likely need to be repaired in the next year, have preexisting conditions, or are nearing the end of their life spans.
- Find home warranty companies that fulfill your coverage needs: Look at each company's plans, add-on coverage, and exclusions. Pick several companies that have plans that would be a good fit for your home’s unique coverage needs.
- Obtain free quotes: We recommend requesting at least three sample quotes from reliable home warranty companies. By shopping for sample quotes, you can find the best plan for the most reasonable price.
- Read sample contracts: It's important to read each company’s sample contract. These contracts explicitly outline policy details. Carefully read the homeowner obligations, exclusions, and technician policy sections.
FAQs About Home Warranty Cost
How are home warranties regulated?
Home warranties are not federally regulated. Each state assigns a governing body to oversee the regulation and licensing of home warranty companies. The Department of Insurance or Commerce often oversees home warranties.
Are home warranty plans worth it?
A home warranty can provide value if you want to protect older systems and appliances. Home warranties provide more peace of mind because they could save you from paying expensive out-of-pocket repair or replacement costs in the event of a breakdown. However, they may not be worth it if you just moved to a new-construction home in which your new appliances and systems are covered by manufacturer warranties.
How much does a home warranty cost per month?
A home warranty costs between $54 to $61 per month on average. This pricing is based on 120 quotes we requested from top home warranty providers using 2,000-square-foot homes located in more than 20 states.
Are you legally required to buy a home warranty?
No, you aren’t legally required to buy a home warranty. However, your mortgage lender may require you to have homeowners insurance to purchase a home.
Related Resources
We’ve compiled several easy-to-digest guides based on our extensive home warranty coverage. Learn more below.
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