What’s the average cost of home warranty coverage per year?

What’s the Average Cost of Home Warranty Coverage Per Year?

he average cost of home warranty coverage per year typically ranges between $300 and $600, depending on the provider, plan type, and level of coverage. Reputable companies like Select Home Warranty, First Premier Home Warranty, Vanguard Home Warranty, First American Home Warranty, and ARW Home offer a variety of plans to fit different budgets and coverage needs. Here’s a breakdown of what factors influence home warranty costs and how you can choose the best plan for your home.

Factors That Influence Home Warranty Costs

1. Type of Plan

Home warranty plans generally fall into two categories:

Appliance Plans: Cover appliances such as refrigerators, dishwashers, and ovens.
Systems Plans: Cover home systems like HVAC, plumbing, and electrical.
Comprehensive plans, which include both systems and appliances, tend to cost more, often closer to the higher end of the $600 range.

2. Location

Prices can vary by region. In areas like Pennsylvania or California, demand for certain coverages may affect pricing. Companies like First Premier Home Warranty and First American Home Warranty tailor plans to suit regional needs.

3. Optional Add-Ons

Providers offer optional add-ons like pool, spa, or second refrigerator coverage. For example, ARW Home allows you to customize your plan with additional features, increasing the overall cost.

How to Save on Home Warranty Costs

Compare Providers

Look at home warranty quotes from multiple providers. For instance, Select Home Warranty is known for its competitive pricing, while Vanguard Home Warranty often includes discounts on multi-year plans.

Check for Promotions

Many companies offer seasonal deals or introductory offers. First Premier Home Warranty and ARW Home frequently advertise discounts for new and renewing customers.

Assess Your Needs

Avoid overpaying by selecting only the coverage you need. Comprehensive plans are ideal for homeowners with older appliances and systems, while basic plans may suffice for newer homes.

Is a Home Warranty Worth the Cost?

With repair costs for major appliances or systems ranging from $200 to $2,000 or more, a home warranty can quickly pay for itself after just one repair. Companies like First American Home Warranty and Select Home Warranty provide affordable peace of mind by covering expensive breakdowns that may otherwise strain your budget.