How Much Does a Home Warranty Cost?
The monthly premium is only one part of the cost equation - and not always the most important part. The HVAC cap and service fee structure determine whether a warranty actually saves you money when something expensive breaks.
Monthly Range
$35-$110
in premiums
National Avg
~$50
per month
Service Fee
$75-$125
per claim visit
Annual Cost
$420-$1,320
before claims
The Real Cost of a Home Warranty
There are four cost components to understand before buying.
Monthly premium
$35-$110/month
Varies by company, plan tier, and location. Paid whether or not you file any claims.
Annual cost
$420-$1,320/year
Total premium cost before any service visits. This is the baseline cost of coverage.
Service fee per visit
$75-$125/visit
Paid every time a technician comes out - even if the item cannot be fixed. Applies per trade, not per repair.
The coverage gap
Varies widely
The difference between actual repair costs and what the company pays. HVAC is the largest gap - some plans cap at $1,500 on a $9,000+ replacement.
Cost by Plan Type
| Plan Type | Monthly Range | What's Covered |
|---|---|---|
| Appliances only | $25-$50/mo | Kitchen and laundry appliances; no systems |
| Systems only | $35-$55/mo | HVAC, plumbing, electrical; no appliances |
| Combined (most popular) | $45-$75/mo | Both systems and appliances |
| Premium / comprehensive | $65-$110/mo | Combined plus optional add-ons |
Most homeowners buy a combined plan. The cap limits on specific items matter more than the systems vs. appliances split.
The HVAC Cap: The Most Important Cost Factor
Monthly premium gets all the attention. The HVAC cap is where the real money is.
The average HVAC system replacement in 2026 runs $5,000-$15,000. If your policy has a $1,500 HVAC cap and your system costs $8,000 to replace, the company pays $1,500 - and you pay $6,500 out of pocket, on top of the premiums you already paid. A cheaper monthly premium on a low-cap policy can be wiped out by a single claim.
| Company | HVAC Cap |
|---|---|
| AFC Home Club | No cap |
| Old Republic Home Protection | $6,500/unit |
| 2-10 Home Buyers Warranty | $5,000/unit |
| American Home Shield | $5,000/unit |
| Home Warranty of America | $5,000/unit |
| Armadillo Home Warranty | $3,000/unit |
| Choice Home Warranty | $3,000 combined |
| Liberty Home Guard | $2,000/unit |
| Cinch Home Services | $1,500 combined |
| First American Home Warranty | Unconfirmed |
| HomeServe USA | Unconfirmed |
| HSA Home Warranty | Unconfirmed |
| ARW Home | Unconfirmed |
| Select Home Warranty | Unconfirmed |
| ServicePlus Home Warranty | Unconfirmed |
Caps as of 2026. Verify current terms directly with each company.
Is a Home Warranty Worth the Cost?
It depends on one question: what's your biggest financial exposure?
When it makes sense
HVAC system 10-15 years old in a high-cost market (Dallas, Phoenix, Las Vegas, NYC). A high or no-cap HVAC policy can save $3,000-$12,000 on a single replacement claim.
When it's questionable
Systems under 5 years old. You're paying $500-$800/year for equipment unlikely to fail, and manufacturer warranties may already cover defects.
Cost Guides
Find the Best Value for Your Situation
Company rankings, state-specific guides, and head-to-head comparisons so you can find the highest-cap plan at the best price for your market.
Cost data verified June 2026. Prices vary by location, home size, and plan selection - get quotes directly from companies for your specific situation.
Compare what each company charges
Monthly price, service fee and HVAC cap differ for every company. Compare two companies side by side or read the full ranking.