How Much Does a Home Warranty Cost?

10 June, 2025
By Brenda Wilson

A home warranty offers peace of mind when it comes to unexpected repairs, but how much does it actually cost in 2025? Whether you're a new homeowner, real estate investor, or simply looking to protect your appliances and systems, understanding home warranty pricing is key to making the right decision.

Let’s break down everything you need to know—from average monthly and annual rates to what influences cost and how to choose the best plan for your needs.

Average Home Warranty Cost in 2025

On average, a home warranty in 2025 costs $45–$75 per month or $500–$900 per year depending on the provider, level of coverage, and your location. Additionally, service fees per claim typically range from $60 to $125.

Plan Type	Monthly Cost Range	Annual Cost Range
Basic Appliance Plan	$35 – $55	$420 – $660
Systems-Only Plan	$40 – $60	$480 – $720
Combo/Comprehensive Plan	$55 – $75+	$660 – $900+

? Tip: Many providers offer discounts when paying annually instead of monthly.

What’s Included in the Cost?

1. Monthly or Annual Premium

This is the main cost of maintaining your home warranty coverage. It depends on your provider, home size, and the plan you select.

2. Service Call Fee (Per Visit)

Each time you file a claim and a technician visits your home, you’ll pay a service fee, also called a trade call fee, usually between $60 and $125.

3. Add-On Coverage Fees

Extra protection for things like pools, spas, septic systems, and additional refrigerators can increase your premium by $5–$15 per item monthly.

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Factors That Affect Home Warranty Cost

1. Location

Costs vary by region due to local labor rates, climate-related wear, and provider availability.

2. Home Size and Age

Larger or older homes with more appliances or aging systems usually cost more to cover.

3. Type of Coverage

Plans covering only appliances are generally cheaper than those covering both appliances and home systems.

4. Service Fee Selection

Many companies allow you to choose a lower monthly premium in exchange for a higher service fee—or vice versa.

5. Plan Customization

Adding optional coverage items or premium upgrades will raise the overall cost.

Home Warranty Cost Comparison by Provider

Here’s a snapshot of average pricing among top-rated providers in 2025:

Provider	Monthly Cost	Service Fee	Notable Features
Liberty Home Guard	$49 – $69	$65 – $125	Highly customizable, 24/7 service
American Home Shield	$50 – $80	$100	Covers undetectable pre-existing conditions
Choice Home Warranty	$46 – $70	$85	Frequent discounts and promotions
Select Home Warranty	$44 – $62	$75	Free roof coverage with most plans

? Note: Prices fluctuate seasonally and may vary based on promotions or multi-year plans.

Is a Home Warranty Worth the Cost?

Pros:

Predictable repair costs
Coverage for expensive systems like HVAC or electrical
24/7 claim support with many providers
Ideal for older homes with aging appliances

Cons:

Service fees apply for each claim
Coverage limits may leave you paying out of pocket
Not all damages or conditions are covered

If you're facing the risk of sudden repair costs or want to budget better over time, a home warranty can easily pay for itself within one or two major claims.

How to Save on a Home Warranty

Shop around: Get quotes from 3–5 top providers
Bundle add-ons: Some providers offer discounts when you add multiple extra items
Negotiate: Many companies offer deals if you call directly or purchase a multi-year plan
Watch for promotions: Holidays and year-end sales can drop prices by 10–20%

Final Thoughts: How Much Should You Pay?

So, how much does a home warranty cost? For most homeowners, expect to pay $600–$750 annually for comprehensive coverage and around $85 per service call. But the best value comes from tailoring the plan to your needs and choosing a reputable provider with transparent terms.

Before you commit, read the fine print, compare coverage caps, and make sure the math makes sense based on your home’s age, condition, and appliances.