Question 1

How much does a home warranty cost per year?

Accepted Answer

Most homeowners pay between $350 and $900 a year for the premium alone, plus $75 to $150 per service call when something needs repair.

Question 2

What is a home warranty service fee?

Accepted Answer

A service fee is a fixed amount you pay each time you request a repair, similar in concept to an insurance deductible but charged per visit rather than per claim year. Choosing a higher service fee typically lowers your monthly premium.

Question 3

What's the difference between a home warranty and homeowners insurance?

Accepted Answer

Homeowners insurance covers structural damage, theft, and disasters with a larger deductible per claim. A home warranty covers mechanical failure of systems and appliances with a smaller service fee per repair call.

Question 4

Is a home warranty worth it?

Accepted Answer

It depends on the age and condition of your home's systems and appliances. If you have older equipment likely to need repairs, the math often favors a warranty. If everything is newer and under manufacturer warranty, it may not pay off.

Question 5

What's the difference between Systems Only and Systems + Appliances plans?

Accepted Answer

Systems Only plans cover major home systems like HVAC, plumbing, and electrical. Systems + Appliances plans add kitchen and laundry appliances like refrigerators, ovens, washers, and dryers, typically at a higher premium.

Question 6

Can I choose my own service fee level?

Accepted Answer

Many providers let you pick from a few service fee tiers, often $75, $100, or $125 per visit, with your monthly premium adjusted accordingly.

Question 7

Does a home warranty cover everything that breaks?

Accepted Answer

No. Most plans have per-item coverage caps, exclusions for pre-existing conditions, waiting periods before coverage starts, and requirements that equipment was properly maintained. A repair being 'covered' does not guarantee it is covered in full.

Question 8

What should I check before buying a home warranty?

Accepted Answer

The FTC recommends reviewing the upfront cost, the per-service fee, reimbursement or coverage limits, exclusions, the cancellation policy, how claims are actually processed, and the provider's complaint history before purchasing.

Frequently Asked Questions