Short answer
Your total yearly cost is the plan price (paid monthly or annually), plus any add-ons, plus a service fee for each request you make, plus anything a repair costs above the plan's limits or outside its coverage. The plan price alone isn't the full cost. Compare plans on estimated total yearly cost, using quotes for your own home.
Why we don’t publish a single “average” price
Home warranty prices depend on the provider, the plan tier, your home’s size and type, where you live, the add-ons you choose, and the service fee level you pick. Providers also change prices and run promotions. A single national “average” can easily mislead, so this guide shows you how to work out your likely cost instead.
When we publish specific prices elsewhere on the site, we label them as provider-advertised, estimated, or our own example, with the date we checked. See how we review.
The parts of a home warranty’s cost
1. Plan price
This is the price for the contract itself, usually quoted monthly or annually. Some providers charge slightly more in total for monthly billing than for paying the full year up front. Check whether the advertised price is an introductory rate and what renewal is likely to cost.
2. Add-ons
Optional coverage, such as pools, wells, septic systems, extra refrigerators, or limited roof leak coverage, usually costs extra. See what home warranties cover.
3. Service fees
You usually pay a fixed service fee each time a contractor is sent. The more often you file, the more this adds up.
4. Costs above limits
If a repair or replacement costs more than the plan’s coverage limit, you usually pay the difference.
5. Costs outside coverage
Excluded parts, code upgrades, permits, access work, and other exclusions can add to what you pay, even on an approved claim.
A simple formula for total yearly cost
You can estimate a plan’s total yearly cost with this formula:
Total yearly cost = Plan price for the year + Add-ons + (Service fee × Expected number of requests) + Expected costs above limits or outside coverage
Hypothetical example — placeholder values only
The letters below are placeholders, not real prices. Replace them with figures from your own quotes.
| Item | Plan A (hypothetical) | Plan B (hypothetical) |
|---|---|---|
| Plan price for the year | PA | PB |
| Add-ons you need | DA | DB |
| Service fee per request | FA | FB |
| Expected requests per year | N | N |
| Expected costs above limits / outside coverage | XA | XB |
| Estimated total | PA + DA + (FA × N) + XA | PB + DB + (FB × N) + XB |
A few points about this comparison:
- Try more than one value for N. Work out the total for a quiet year (zero or one request) and a busy year (several requests). A plan with a lower price but a higher service fee may cost less in a quiet year and more in a busy one.
- Estimate X honestly. If your major systems would cost far more to replace than the plan’s caps, X could be large in a year with a major failure.
- Compare with what you’d save. It helps to compare the total against what you’d have if you saved the same plan price in a repair fund instead.
What tends to move the price
Factors that commonly affect what a provider charges include:
- Plan tier (appliances, systems, or both)
- Home size, type (single-family, condo, multi-unit), and sometimes age
- Location
- Service fee level
- Add-ons and higher coverage limits
- Billing frequency and promotions
Reading a quote
A quote or checkout page should show the plan name, price, billing frequency, service fee, and selected add-ons. Before you pay, also find the sample contract for that exact plan and check the limits and exclusions. A quote doesn’t guarantee that any particular repair will be covered.
Next steps
- Get quotes for your address from the plans you’re considering, and fill in the table above.
- Decide whether the total makes sense for you with is a home warranty worth it?
- Use our plan comparison checklist to line up quotes side by side.
This page is general education, not legal, financial, or insurance advice. Home warranty terms vary by provider, plan, and state; the contract you sign controls what is covered. Spotted an error? Request a correction.
