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Jesus Sanchez Garcia is a senior writer for USA TODAY Homefront. His expertise focuses on home warranties, with over 50 hours spent reviewing provider sample contracts to understand their benefits. He also regularly performs consumer research, such as surveys and customer interviews with an eye on incorporating data into his writing. Jesus has a bachelor’s in business administration from California State University, Stanislaus, and is still located within California’s vibrant Central Valley. When he is not researching or writing, he enjoys supporting his favorite sports teams, spending time with loved ones and chasing new adventures outdoors.
Home warranties cost an average of $93.75 monthly or $1,032.75 for annual premiums.
Coverage level, service fees, geographic location and a home’s square footage affect home warranty cost.
You can save significantly on a home warranty by choosing the correct coverage level for your needs and taking advantage of discounts.
Our research shows that, on average, home warranties cost $93.75 per month and $1,032.75 per year. We obtained our averages via our November 2023 survey of 1,000 homeowners.
We also requested quotes from many of the home warranty companies we’ve reviewed to calculate national averages, although this yielded different results — $58.55 per month and $702.57 per year.
Our survey average is what homeowners report actually paying, including add-ons and any applicable discounts. The average we obtained from provider quotes represents the average cost of home warranty premiums across available plan options from the top nine home warranty providers in the U.S.
To get started, compare home warranties in the table below.
Our survey asked 1,000 homeowners nationwide how much they paid for their home warranty premiums. Since companies offer the choice between monthly and annual premiums, we included two cost questions that accounted for respondents who paid monthly and annually.
The survey highlights “real-world” pricing data, as respondents live in various locations and have different home sizes and plan selections. Respondents reported that their average home warranty cost was $93.75 monthly and $1,032.75 annually.
The bar charts below display the average cost that respondents paid by provider.
Our national average calculations based on direct quotes tell a slightly different story. The prices listed in our national average data focus on a specific home size and ZIP code within each state. We also excluded add-ons from our quotes.
To obtain our national average data, we requested quotes using a 2,000-square-foot, single-family home in each state that the providers service. We selected three ZIP codes in each serviced state to obtain more generalizable pricing data. Then, we calculated individual provider averages and a total average across all providers — $58.55 per month and $702.57 per year.
The bar charts below show the average cost figures for top home warranty providers. We obtained the cost data averages in January 2024.
Multiple factors affect the cost of a home warranty plan. We break down each factor below.
The coverage level you choose directly affects the price of your home warranty plan. For instance, a basic appliance-only plan that covers seven appliances typically costs less than a comprehensive plan covering 15-plus systems and appliances.
For example, some home warranties cover roofs, but it’s typically an add-on. Roof leak protection covers repairs for a leak — usually caused by damage including normal wear and tear — whereas homeowners insurance covers the damage resulting from the leak.
We calculated the average costs of a basic plan and a comprehensive coverage plan. Expect a monthly average of $40.91 for a basic home warranty plan and $77.05 for comprehensive home protection. Annually, you’ll pay between $563.62 and $927.43.
Additional coverage options also affect the cost of a home warranty by increasing it based on the add-on type and number of add-ons purchased. Larger, more complex add-ons have a higher monthly cost than smaller, simpler add-ons. For example, depending on the item, 2-10 Home Buyers Warranty lists add-ons that cost between $3 and $30. Based on this range in add-on pricing and the pricing averages we obtained from our survey results, we understand that add-ons can play a significant role in the total cost of a home warranty.
You can get an estimate for your home by requesting an online quote:
In the know
Over 150 homeowners have bought a home warranty plan from one of the above companies in the last 30 days.
Service call fees also affect home warranty costs for some providers. Companies that offer multiple service call fees will raise or lower your plan premium depending on the chosen service fee.
For instance, American Home Shield (AHS) offers $100 and $125 service fees. The company charges a higher premium if you choose the $100 fee and a lower one if you choose the $125 fee.
The bar chart below shows the average service call fees that each home warranty company charges.
The location of your home can also determine how much a home warranty plan costs. Our research shows that providers typically charge more for coverage plans if the home is in or near a metropolitan area.
For example, the average cost of an AHS plan in Bellevue, Washington, is $108.32. Bellevue is a neighboring city to Seattle with a population of 151,854, according to the U.S. Census Bureau.
In Wheatland, Wyoming, an AHS plan costs an average of $58.32. Wheatland is a rural town with a population of 3,588.
A home’s square footage also affects home warranty costs. Our research shows that companies charge a higher premium for homes over 4,000 square feet.
For instance, I requested a quote from Liberty Home Guard for a 5,622-square-foot, single-family home in Raleigh, North Carolina, and found it charges an average of $69.99 per month. This amount is 27% higher than the average monthly premium of $54.99 for a 2,000-square-foot, single-family home in the same ZIP code.
There are ways to save when purchasing a home warranty. Our research found that the most applicable discounts apply to new sign-ups. Below are several tips to help keep your home warranty purchase within budget.
In our experience, most sales representatives default to the company’s comprehensive plan when requesting quotes over the phone because it covers major home systems and appliances, such as HVAC systems, electrical systems, water heaters, washers/dryers and garage door openers.
However, you may not need appliance coverage if you own home appliances under their manufacturer’s warranty. We recommend carefully considering your coverage needs first. There’s no reason to overpay for a comprehensive plan if you don’t need the extra coverage.
Another way to reduce the cost of a home warranty is by limiting the number of add-ons you purchase. Add-ons cover supplemental items such as lawn sprinkler systems, septic tank pumping and water softeners. These additional coverage options add an extra $3–$25 each to your plan premium, based on quotes we pulled from service providers.
Think about your home warranty coverage needs. Avoid purchasing add-ons if you don’t require protection for those items.
Take advantage of a company’s discounts. Many providers only offer policy discounts for annual plans. Others discount their annual plans by including additional months of coverage free of charge.
While technically not a discount, choosing a home warranty with flexible service fees is another option. These providers charge lower rates when you select the highest service call fee. Note that if you opt for a higher service fee, you will pay extra each time you file a claim.
Home warranties are an option to help reduce the repair costs or replacement costs of your home’s major systems and appliances. Based on our research, the cost of a home warranty can vary widely depending on your home’s location and size, as well as your plan and add-on coverage.
Annually, home warranties cost roughly the same as purchasing a new major appliance, so we recommend them to homeowners who own aged appliances, systems or items with unknown or expired manufacturer’s warranties.
The value of a home warranty shines when more than one appliance or system breaks down within the same year. Home warranties can save you money on repairing or replacing each broken item, providing you with peace of mind for your budget.
Editorial note: The name “Homefront” refers to the alliance between USA TODAY and Home Solutions that publishes review, comparison, and informational articles designed to help USA TODAY readers make smarter purchasing and investment decisions about their home. Under the alliance, Homefront provides and publishes research and articles about home service and home improvement topics.
Homefront has an affiliate disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Homefront editorial staff alone (see About Homefront). Homefront adheres to strict editorial integrity standards. The information is believed to be accurate as of the publish date, but always check the provider’s website for the most current information.
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