Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports 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 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.The Better Business Bureau provides a list of cautionary steps[3] to take before buying a home service warranty.
post Post    
CostHelper News


10 Quick and Inexpensive Home Makeover Projects To Do While At Home
You may not be able to host the large family gathering for the holidays, but there are still many ways to pick up items curbside to spruce up your indoor space for your everyday enjoyment and to bring a more festive spirit. || Posted December 30 2020


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

‣ 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/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
Radiologist Fee
Paid: 350.00
Any radiologist reading your mammogram will be at least $350. They have 11-13 years of training after high school before they begin work. If they are not board certified, watch out. Most are and it beats getting cancer... [more]
-Lowes Fan
Mammogram Cost
DIY Ceiling
Paid: 50.00
We bought a house with a cheap paint job. The ceilings were sprayed the same color as the walls. During COVID I painted the ceilings and a bathroom. A 120 square foot room took me about 4 hours (2 coats)... [more]
-Lowes Fan
Painting an Interior Cost
DIY vs Installed Small Deck
Paid: 3000.00
We paid $1300 for materials and $1700 for labor on a 100 square foot composite deck plus a redwood gate. It took 30 hours, done last year. My husband built a 100 sf heart redwood deck for about $1000 in materials in 2019... [more]
-Lowe's Fan
Redwood Deck Cost
Colposcopy with biopsy
Paid: 756.00
This service was wayy to expensive in my opinion. For a 20-25 minute total visit I had to pay out of pocked 756 - 187 to OBGYN, 229 to pathologist, then 340$ for facility fee or the hospital. I don't even know what that charge was for... [more]
-D S
Colposcopy Cost
Bilateral Diagnostic Mammogram and Third Mammogram
Paid: 1389.66
My 2021 bill, still in shock! Weill Cornell, in-network provider, billed my insurance $908 for a bilateral diagnostic mammogram, and $712 for a third mammogram one breast... [more]
-GinaF
Mammogram Cost
shoulder mri
Paid: 8000.00
Seriously, 8K for an MRI before all the secret insurance kicks in. I was stuck with a 1200 bill and my insurance is pretty good. This is insane for a 20 minute procedure with no nurse assistance... [more]
-stevej45
MRI Cost