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Are Home Warranties Worth the Cost? The cost of buying a home warranty is around $300 to $600 a year for a basic plan, with higher prices for more comprehensive plans or if your home is larger than average. In some cases, a home warranty can help you save substantially on expensive home repair services.
A home warranty isn't worth it if: The warranty covers only the least expensive solution to the problem, which could be recurring repairs.
Home warranty cost Another big factor in deciding if a home warranty is worth buying is its cost. Basic coverage can start at about $300 and go up to $600 or more. Some home warranties charge for a service call, such as $75 or so, while others allow unlimited service calls.
Whether the seller pays for the home protection plan and home warranty coverage or the buyer pays for it will depend on your local customs. It's normal for a seller to pay for the coverage in many locales because it's a seller benefit. 1 The buyer won't be calling the seller after closing if something breaks.
A home warranty costs between $350 and $600 on average. According to BankRate.com, most home warranties are around $400 for basic coverage, but cover over $20,000 worth of a home's systems and appliances.
While your average home warranty cost will range between $300 to $600 per year, it typically covers over $20,000 worth of appliances and systems in your home. Spending $25-$50 per month is a fairly inexpensive price to pay for your peace of mind if you have appliances or systems that are at risk of breaking down.
Prices for each home warranty plan aren't available online, but you can request a free quote for each plan on their website. There are many factors that determine the final price for your plan, but multiple consumers were quoted $516 per year ($43 per month) with a $100 service call fee.
Best Overall: American Residential Warranty. American Residential Warranty is our top overall pick because of its clear pricing, low service fees ($55), low costs, and customizable plans. Coverage is available nationwide, and the company has an A+ rating with the Better Business Bureau.
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