Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> appliances babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business weddings
CostHelper > Personal Finance  > Real Estate > Home Warranty

Home Warranty Cost


How Much Does a Home Warranty Cost?

 
 average costMedium: Policies Generally Run $250-$600 
post E-mail post Post  

Also called a home service contract or a home service warranty, a home warranty is not an insurance policy, but rather a contract to service, repair or replace specifically listed household systems (such as plumbing or heating) and appliances -- the kinds of mechanical breakdowns not covered by homeowner's insurance. In some areas it may be customary for the seller and buyer to split the cost of a home warranty, but most often a warranty is paid for by the seller or real estate agent, to make the property more attractive to potential buyers and to avoid calls about problems after the home is sold.

Typical costs:

  • A one-year home service warranty can run anywhere from $250-$600, depending on what's covered and the deductible charged for each service call (which can vary from $30-$100). Less-expensive home warranties strictly limit the systems and appliances covered; and it costs more for a warranty covering items such as air conditioning, a pool, a spa, the roof or a well pump.
Related articles: Homeowner's Insurance, Selling a Home, Unclogging a Toilet, Replacing a Toilet, Replacing a Water Heater

What should be included:
  • It's important to remember that a home service warranty does not cover damage to your home; it only provides repair service to specifically covered systems and appliances, and nothing else. If any home system (such as a water pipe) or covered appliance breaks or stops working while your home warranty is in effect, you call the home warranty company, which sends out a repair provider it has under contract. You pay the deductible (and any other fees specifically excluded under your warranty), and the warranty company pays all other repair costs. However, a warranty may cover the cost of repairing a leaky pipe, but not any water damage caused by the leak. The National Home Service Contract Association answers frequently asked questions about home warranties and cautions against unlicensed or unscrupulous companies.
  • After you call the warranty company, it can take an average of 3-5 days before a repair person shows up at your home. Plus, repair claims under a home warranty might be entirely denied because of improper maintenance, code violations, unusual wear and tear, or improper installation. Because home warranties are contracts and not insurance, they are not regulated closely in most states. Homeowners' reviews are mixed. A Maryland house seller[1] is glad he bought a home warranty while his house was on the market; when the furnace died he only had to pay $50 (instead of $3,000) to have it replaced. and a Georgia homeowner had his claim completely denied. If you got the warranty when buying your home and a claim is denied, some experts recommend asking your real estate agent to assist in resolving the dispute.
  • An Ohio real estate agent who describes himself as a "buyer's advocate" discusses the pros and cons[2] of home warranties, and says that although he has recommended them to sellers in the past, he is seriously rethinking the value of home warranties.
Additional costs:
  • Many home warranties start when the house is sold. There could be an extra charge of $50-$100 or more for a warranty covering both the seller (while the home is on the market) and the eventual buyer.
  • Read the fine print: many home warranties do not include the cost of removing and hauling away old equipment (such as a furnace), or the cost of building permits if needed. Spas and pools are typically not included unless specifically requested.
Shopping for a home warranty:
  • The National Home Service Contract Association, which represents several large companies, provides a list of its member companies. Your real estate agent may recommend a particular home warranty company, but be aware that some agents receive a small commission (usually $50-$75) for every home warranty sold.
  • Ask to see a sample copy of an agreement before buying a home warranty and read the fine print to be sure you understand exactly what is and isn't covered. Check whether the company has any complaints on file with the Better Business Bureau[3] , which also provides a list of cautionary steps[4] to take before buying a home service warranty.
post E-mail post Post  
CostHelper News


10 Key Ways to Prepare for Extreme Snow
Forecasters are predicting a true nor'easter will hit the eastern and central states with rain, thunderstorms, ice, snow and high winds over the Thanksgiving weekend. It's crucial to plan ahead, before bad weather hits. || Posted November 26 2013


10 Most Popular Cosmetic Procedures Before the Holidays
With reunions and other get-togethers scheduled during the holiday season, most people want to look their best at this time of year. For some, that means filling in those wrinkles with a bit of botox, or having a nip and tuck down here and there. || Posted November 23 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With a Home Warranty
 
Subject:  *
Amount Spent:  * per year
Provider:   
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.baltimoresun.com/business/real-estate/bal-re.warranty25jan25,0,3333532.story
  2.  mybuyerbrokerblog.com/2007/09/13/home-warranty-pros-cons/
  3.  www.bbb.org/us/consumers/check-out-a-business-or-charity/
  4.  www.bbb.org/Alerts/article.asp?ID=232
More Personal Finance Topics
Check Out All Costs for Personal Finance How Much Do Tax Returns Cost? How Much Does Closing a Home Cost? How Much Does a Traffic Ticket Attorney Cost?

Search Thousands of Topics on CostHelper.com

 


Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
PFT Cost Dallas
Paid: 2568.00
My regular doctor wanted me to see a specialist since he didn't like my spirometry results. I reluctantly agreed since I never have problems. Two doctor visits later and I'm out $2568... [more]
-CHRIS REED
Pulmonary Function Test Cost
WHEEL ALIGNMENT
Paid: 85.59
GAVE ME A PAPERSHOWING RED AND GREEN ALIGNMENT, RED MEANING IT NEEDS TO BE FIXED. WHEN IT WAS DONE THEIR WAS STILL RED SHOWING IMPROPER ALIGNMENT, HE SAID WE CANT FIX THAT UNLESS I PAY ANOTHER $119.00...WHAT A BUNCH OF CROOKS..... [more]
-JAMES DENOS
Wheel Alignment Cost
Crazy Expensive for a 250 gal tank in San Diego
Paid: 4.43
We have a rental property that had an AmeriGas tank on it that's used for the outdoors (pool/spa and fire pit)... [more]
-jessmeagan
Propane Cost
Am I paying too much
Paid: 1800.00
I have a small auto repair shop. He prepared my tax return in 2016. I do my own 941, wage report and monthly taxes. He does the rest and I still get charged 1800.00... [more]
-Martín Duran
Business Tax Preparation Cost
Tsh t3 and t4
Paid: 2500.00
Any ideas what to do? I do not want to pay this... [more]
-Thisbillistohigh
Thyroid Test Cost
Teeth Cleaning
Paid: 0.00
in order to prefer cleaning, $149 for blood work, chest X-rays and an ekg another $375 and then he brings in a specialist to sedate, X-ray and clean, scale and polish for $809 and then extra if anything is wrong... [more]
-breaking the bank
Dog Teeth Cleaning Cost