How Much Do Home Warranty Plans Cost and Are They Worth It?


Being a homeowner is expensive as you’ll constantly be faced with unforeseen expenses to pay for malfunctioning home systems or broken appliances. Each time this happens, you need to go into your pocket and this, in the long run, ends up being very expensive. Fortunately, you can avoid all this altogether by getting a home owners warranty. As a result, you enjoy peace of mind as you don’t have to constantly worry about any of your home appliances from the clothes dryer, refrigerator, or dishwasher breaking down. 

When planning to take out a home warranty plan, you must be asking yourself how much money you’ll need to spend. In addition to this and even more important is the question, is paying for the home warranty worth it? If you want answers to this, you’re in luck as this guide is an overview highlighting essential details about the home warranty you need to know. 

What’s A Home Warranty? 

The home warranty differs from the homeowner’s insurance. It doesn’t cover major hazards such as property crimes, hail, fire, and certain kinds of water damage that destroy personal property and the building’s structure. Instead, the home warranty is an annual service contract that pays for replacing or repairing home systems and appliances. The items to be covered include; 

  • Water heaters
  • HVAC
  • Electrical systems 
  • Plumbing systems 
  • Whirlpool tubs 
  • In-built microwaves  
  • Furnace 
  • Washers 
  • Refrigerators
  • Dryers 
  • Hot water storage tank
  • Stoves 

You can also cover more items such as the garage door opening system or swimming pool. With the home warranty, you enjoy peace of mind if any covered items get destroyed through normal wear and tear. For the contract to remain valid, you’ll need to keep on paying the monthly premiums. 

With that said, you also need to know of the common items that usually aren’t covered in your home warranty include; 

  • Pre-existing conditions 
  • Structural issues in the flooring, walls, foundations, and paint 
  • Zoning and building code violation 
  • Sediment, rust, and corrosion issues 
  • Commercial-grade systems or equipment 
  •  Normal wear and tear 

How Much Does A Home Warranty Cost? 

Home warranties are contracts that are usually valid for 12 months and will cost you between $300 to $600. You can choose to pay for this cover monthly which usually averages between $25 to or once each year. In addition, you should factor in the standard service call fee, which falls between $60 to $12, with this dependent on your contract. Many home warranty providers will offer you a repair guarantee to ensure you don’t end up paying more than once if the contractor needs to get back or the repair wasn’t successful for the specified time. Carefully read over the contract to see the period’s length, typically 30 to 60 days. 

Are Home Warranties Worth It? 

As a homeowner, you might be on the fence on whether to invest in a home warranty. If so, you’re not alone, as it’s a situation many homeowners find themselves in. Getting a home warranty is undoubtedly a worthwhile investment as it offers you financial security in the event any appliances need to be repaired or replaced. Without this cover, you would have been required to pay for any damage that happens to your home systems, such as the water heater, refrigerator, and air conditioner, which no longer have a valid manufacturer warranty. 

But before taking a home warranty, you need to first assess the various appliances in your home to determine whether they’re close to their lifespan. If your home is previously owned, it would be wise to have a home warranty from a reliable company. As you’re taking out the cover, make sure also to familiarize yourself with several details such as; 

  • The home warranty’s terms and conditions
  • What in your home is covered and what isn’t?
  • The duration of the cover lasts 

However, you might get a home warranty and end up not using it, which will seem like a waste of your hard-earned money. To avoid this from happening, you need to get a home warranty plan which suits your needs. In addition, make sure to read over the home warranty cover carefully to understand all the details before proceeding with the purchase. 

If you overlook reading over the fine print, you’ll only have yourself to blame later on in case a system or appliance breakdown and being told it isn’t covered. Therefore, ensure to know all the exclusions of your home warranty to know what exactly the systems and appliances covered as well as under which circumstances. Other companies also consider lack of proper maintenance a reason to decline to pay to repair or replace the destroyed system or appliance.

About Author

LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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stephan shulz
stephan shulz
2 years ago