How Much Does a Home Warranty Cost Per Year?

When it comes to home warranties, there are a lot of things to consider. How much does it cost per year?

What kind of coverage do you need?

What company should you go with? These questions are crucial that need answers. 

In this article, we will explore the cost of home warranties per year and what factors play into that number.


How Much Does a Home Warranty Cost Per Year?

The average cost of a home warranty is $500-$700 per year. However, the cost can be different depending on the type and coverage you need. 

For example, if you have a high-end home with many appliances, you will likely need to pay more for your warranty than someone with a smaller home and fewer appliances. 

On the other hand, if you only need coverage for basic systems and appliances, you can expect to pay much less. 

Read: How Do We Review Home Warranty Companies?

Read: Is Home Warranty Worth It?

What Factors Affect the Cost of a Home Warranty?

Several factors affect the cost of your home warranty. Some of these include:

  • The Size of Your Home: The square foot of your house will affect how much your warranty costs. The larger your home, the more you can expect to pay. 
  • The Age of Your Home: Older homes typically need more repairs than newer ones. As such, home warranties for older homes tend to be more expensive. On the other hand, modern homes with up-to-date appliances may cost less to warranty. 
  • The Number of Appliances: The more appliances you have in your home, the more it will cost to cover them. This is because there is a greater chance of something going wrong and needing to be repaired or replaced. 
  • The Deductible: Deductible is the amount you have to pay out-of-pocket before your home warranty coverage kicks in. A higher deductible means a lower premium but also more risk for you. 
  • The Location of Your Home: The location of your home can affect your home warranty costs. For example, homes in disaster-prone areas (such as those prone to hurricanes or earthquakes) will typically cost more to insure than homes in more stable areas. 

What’s the Best Way to Shop for a Home Warranty?

When it comes to opting for a home warranty, there are a few things you need to keep in mind. 

  • Type of Coverage: First, you must decide what coverage you need. Do you want a basic plan that covers your major appliances, or do you need a more comprehensive plan that covers your home’s systems as well? 
  • Budget: Once you know what coverage you need, you can start shopping around and comparing prices. Make it a point to get quotes from multiple companies to find the best deal. 
  • Reviews: Don’t forget to read reviews before choosing a home warranty company. This will help you eliminate the bad apples and find a reputable company to give you the coverage you need. 

Read: Select Home Warranty Review

Read: American Residential Warranty Review

Bottom Line

In conclusion, the average cost of a home warranty is $500-$700 per year. This is a wide range, so it’s important to shop around and compare prices before choosing a company.

Make sure that the size of your home, the age of your home, the number of appliances, and your location can all affect the cost of your warranty. 

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