The average cost of a home warranty is $600 a year, though some run as low as $200 and high as $1,100. The wide range in costs is based on the type of warranty you purchase and the systems it covers. There are three basic types of home warranties.
- Systems. Covers the repair and replacement of your electrical and HVAC systems, such as your furnace and air conditioner.
- Appliances. Covers major devices in your home, such as refrigerator, dishwasher, and washing machine.
- Combination. Covers electrical systems, HVAC systems, and home appliances.
While there are no major price differences between system plans and appliance plans, combination plans are more expensive. Depending on the coverage you purchase, expect to pay up to twice as much as you would for the other two.
Warranty costs can be broken down into categories as well. Some are paid regularly, while some are due only at the time of repair.
- Premium. The cost of your home warranty plan is paid in one annual sum or broken down into 12 monthly installments.
- Service Fee. Under most plans, homeowners are required to pay an extra fee when repairmen visit their home, generally $75 – $125. This fee is only paid once, so if the repair requires a second visit, you won’t have to pay it again. Homesential customers never pay a service fee. We cover everything, including parts and labor.
- Add-Ons. Coverage that protects additional items not covered by your base plan, such as pools, hot tubs, and lawn sprinklers. Bundling coverage usually increases your premiums, though, in the case of Homesential, it lowers them. Combining Homesential plans is cheaper than purchasing them individually and the more you bundle, the less you pay!
How Much Can You Save with a Home Warranty?
The average cost of a home warranty is low compared to the cost of the average home repair. Home electricians charge $50-$100 an hour, while HVAC technicians charge $100-$150. On top of that, you’re also responsible for replacement parts. For example, a new AC compressor costs roughly $1,200. Purchasing a new motor blower for your furnace costs $400-600. A new thermostat can cost as much as $250. And there are dozens more.
The average cost of a home warranty from Homesential is less than what you spend buying a cup of coffee every day. But it saves far more in the long run. No matter how well you look after your home systems, they all experience wear and tear. Eventually, they’ll break down. So make sure you’re protected. Contact Homesential and get covered today!