Home Warranty Cost: What You Need to Know

Homeowners considering a home warranty need to know what a home warranty costs before they can decide whether it is worth it to protect their home’s systems and appliances. In this article, we discuss the different types of home warranty plans, what a home warranty typically costs per month and whether it is worth the price. 

In this article:

  • What Are the Types of Home Warranty Costs?
  • How Much Does a Home Warranty Cost Per Month?
  • Is a Home Warranty Cost Worth the Price?
  • How Much Does a Choice Home Warranty Cost?
  • Frequently Asked Questions

What Are the Types of Home Warranty Costs?

There are two primary types of home warranty costs: a monthly premium and a service fee. A monthly premium is paid every month by a homeowner, while a service fee is paid every time a homeowner needs a covered repair or replacement. A service fee is sometimes called a deductible because of its similarity to an insurance deductible.

Optional add-ons

A third type of home warranty cost is an optional add-on cost. An optional add-on is an item in a home that is not covered within a home warranty company’s pre-packaged plans but can be purchased separately. Choice Home Warranty offers nine optional add-ons for its plans, including septic system coverage, well pump coverage and more.

How Much Does a Home Warranty Cost Per Month?

The amount that a homeowner pays for their home warranty coverage every month varies depending on many different factors, including the number of repairs they need to their items, the plan they purchased and more.

The standard home warranty cost is about $25 to $60 per month for a monthly premium and between $75 and $125 for a service fee. Home warranty plans that cover more items or pricier items will have higher premiums than plans that cover fewer items or less expensive items.

Considering these costs together, if a homeowner needs one covered repair visit every month and does not purchase any optional add-ons for their plan, then their home warranty cost would likely be about $100 to $185 per month. 

Choice Home Warranty helps minimize the impact of service fees on homeowners’ monthly costs by providing a service guarantee. Choice Home Warranty’s service fee provides a 90-day guarantee on parts and a 30-day guarantee on labor such that homeowners don’t have to pay repeat service fees for any needed follow-up visits on an item within these timeframes.

Is a Home Warranty Cost Worth the Price?

The value of a home warranty is in the peace of mind and budget protection it provides for millions of homeowners. The appliances and systems contained within a home are expensive and complex, needing repairs and breaking down completely over time. Many of these systems and appliances will cost at least a few thousand dollars to replace, and significant items such as an air conditioning system or water heater commonly break down without warning.

Homeowners that have a home warranty don’t have to worry about unexpected repairs caused by wear and tear if their plan covers the needed repairs and replacements. Instead, they simply pay their service fee and let a fully insured, licensed contractor fix their item or replace it with a new item.

Because of the benefits a home warranty provides, the cost is worth it to most homeowners who purchase one. Even if a homeowners’ systems and appliances work well for months with no issues, a home warranty plan is a lifesaver when a major, unexpected repair is inevitably needed.

How Much Does a Choice Home Warranty Cost?

A Choice Home Warranty plan costs as little as $1 a day, and service fees fall on the lower end of standard industry costs. New customers may be eligible to get one month free and $50 off with a single-payment plan. Our plans are cheaper than American Home Shield and provide a free second opinion on repairs* and a dedicated team of two to three representatives involved in your claim. 

Get a Free Quote

Want to learn more about Choice Home Warranty and our home warranty cost? Call us at 732-907-4902 or fill out our free quote form. We are happy to answer any questions you may have about our home warranty plans.

Frequently Asked Questions

How much should I pay for a home warranty?

Since a monthly premium (without optional add-ons) usually costs about $25 to $60 per month and a service fee costs between $75 and $125, paying more than the high range for both of these figures is not advised. You should also consider the price you can afford to pay for your premium and service fee every month. To do this, consider a month when you needed three home repairs — what would be the highest premium and service fee you could afford?

Do home warranties cover HVAC replacement?

Some home warranty plans repair and replace HVAC systems, and some do not. Choice Home Warranty’s Total plan provides covered repairs* and replacements*** of HVAC systems for just the cost of our service fee.

* Terms and conditions apply. Click Here to view complete limits of liability and any exclusions. CHW offers service contracts which are not warranties.

*** CHW reserves the right to offer cash back in lieu of repair or replacement in the amount of CHW’s actual cost (which at times may be less than retail) to repair or replace any covered system, component or appliance.