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.
Popular Home Warranty Companies and Prices
Remember that home warranty costs often depend on the provider and the packages they have available. Keep in mind that most home warranty companies have a pricing model that includes both a monthly premium and a service request fee when it comes time to submit a request.
There are countless home warranty companies on the market to choose from. For this reason, it is wise to compare multiple companies to understand their plans, coverages, costs and how well they meet your needs.
To make homeowners’ lives easier, Modernize created this list of the 10 Best Home Warranty Companies in 2021. We recommend looking into each company’s costs, coverage inclusions and exclusions, response times, and service areas to ensure the company is right for you.
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.
