How Much Does a Home Warranty Cost in 2025?

This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.

On average, homeowners spend around $1,049 per year on a home warranty, with prices ranging from $80 to $8,100 depending on coverage level, home size, and service fees. Investing in a home warranty protects your home and provides peace of mind knowing you're covered when things go awry. Imagine unexpected repairs catching you off guard—like a sudden HVAC breakdown in the middle of summer. A home warranty can save you from surprise expenses by covering the cost of repairs and replacements.

What Is a Home Warranty?

A home warranty is a service contract that covers the repair or replacement of your home's essential appliances and systems when they break down due to normal wear and tear. Depending on your plan, this can include major appliances like your oven, dishwasher, and washing machine and critical systems such as plumbing, electrical, and HVAC. It's a safeguard that keeps your home running smoothly without unexpected costs.

The warranty contract usually runs for a year and then must be renewed. During the contract period, if something covered by the warranty breaks down, requires repair, or wears out, you simply call your warranty provider with the details and pay your deductible to cover the callout cost.

Then, the provider sends a technician to inspect the appliance or problematic system and make repairs. If it’s unrepairable, you usually receive a replacement or a payout to purchase a replacement.

What Does a Home Warranty Cover?

Home warranty plans come in various options that you can tailor to fit your needs. A basic plan covers major appliances you rely on daily—like your oven, washing machine, dishwasher, and dryer—ensuring they're protected when you need them most.

The advanced plans cover built-in systems, like heating, plumbing, HVAC, and electrical. A home warranty plan usually does not cover garage door openers, spas, and central vacuuming systems. Homeowners can purchase add-on coverage that pays for damage and repairs to those items. You can hire a local home inspector to better understand which appliances and systems need protection.

Home Warranty Cost Factors

A home warranty costs an average of $1,049 annually, but prices can range from as low as $80 to as high as $8,100, depending on various factors.

Plan Type

The extent of coverage you choose significantly impacts the cost of your home warranty. Basic plans that cover essential appliances or systems are less expensive, while comprehensive plans that include a broad range of appliances and systems cost more. 

For example, Basic plans that cover essential appliances may start at $222 per year, while comprehensive plans that include a wide range of systems and appliances can cost up to $1,877 or more annually.

Most providers offer several tiers of plans, including:

• Appliance Plans: Covering kitchen and laundry appliances like ovens, dishwashers, and washers/dryers. These plans cost between $300 and $600 per year.

• Systems Plans: Covering major home systems such as plumbing, electrical, and HVAC systems. These plans also range from $300 to $600 per year.

• Combination Plans: Offering comprehensive coverage for both appliances and systems. These more extensive plans cost between $600 and $1,000 per year.

Consider your home's specific needs when selecting your coverage level. Investing in higher coverage may save you money if you have older appliances or systems requiring more frequent repairs.

Service Calls

Every time you request service, you'll pay a service call fee—between $75 and $125. Some providers let you customize this fee: opting for a higher service fee can lower your annual premium, and choosing a lower service fee might increase it. So, if you select a higher service fee, you could reduce your yearly premium by $50 to $100.

Provider

The provider you choose plays a big role in the price, as each company has its own rates and coverage options. Comparing different home warranty companies helps you find the best value for your needs. Look out for promotional discounts or flexible payment plans that make your choice even more affordable.

Add-Ons

You can customize your home warranty with add-on coverage for items like swimming pools, spas, well pumps, or additional appliances. While this can increase your annual cost by $20 to $180 or more, it protects all your important assets. Here's a look at some common home warranty add-ons and their average costs.

Warranty Length

The standard home warranty lasts one year, but there are a few other options. If, for example, you're selling your home and you don't want an annual contract, you can get a month-to-month contract, which works out more costly per month than a yearly plan but less costly overall if you only need the plan for a month or two.

Annual warranties are the standard for most existing properties and tend to cover standard appliances and integral home systems. You may get a better per-year cost by purchasing a multi-year contract, but for existing appliances and home systems, you may not get more than a three- or five-year plan.

New construction, extensive remodels, or home additions can get 10-year warranties that cover the structure rather than appliances and systems. Instead, new construction warranties cover the foundation, walls, framing, roofing, flooring, and similar.

Home Size

The size of your home can affect the cost of your home warranty. Larger homes often have more systems and appliances that may require coverage, potentially increasing the premium. Some providers charge more for homes over 5,000 square feet.

Home Warranty Considerations

When selecting a home warranty, it's essential to understand the specifics of your plan, including what items are covered, coverage limits, and any waiting periods. 

Items Covered

The items covered by your home warranty depend on the type of plan you choose and any add-ons you purchase. Standard plans often fall into three categories.

Appliance plans cover common household appliances like ovens, dishwashers, and refrigerators. Systems plans cover major home systems such as plumbing, electrical, and HVAC. Total protection plans offer coverage for both appliances and systems.

Keep in mind that certain items may not be included in standard plans. For example, plumbing stoppages might require an add-on. Always review your plan details to understand exactly what's covered.

Coverage Limits

Remember that home warranties come with coverage limits—the maximum amount your provider will pay for repairs or replacements. These limits can apply per appliance or system, per service call, or over your contract term. For instance, your plan might offer a $500 limit per appliance or a $2,000 total annual limit.

Additionally, pre-existing conditions are often not covered. If a pre-contract home inspection reveals a fault with an appliance or system, your warranty won't cover any related issues.

Waiting Period

Most home warranties have a waiting period before coverage kicks in—typically 10 to 30 days after purchase. During this time, you can't make any claims. So, if your dishwasher leaks on day 29 of a 30-day waiting period, you'll need to handle that repair yourself, as coverage hasn't started yet.

This waiting period helps prevent fraudulent claims on pre-existing issues. Be sure to plan accordingly when purchasing a home warranty, especially if you have concerns about older appliances or systems.

It's crucial to read the fine print and fully understand your warranty terms to avoid unexpected expenses. Knowing your plan's specifics ensures that you won't be surprised by repair costs for appliances or systems that you thought were covered.

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. We surveyed thousands of real customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.