Home Warranty Cost

How much does a home warranty cost?

One of the most interesting aspects of home ownership that has become the norm of late is the home warranty. Rather than being a bona fide insurance this is actually an agreement for servicing of essential aspects of a home and, as a result, makes great financial sense. As we indulge in more and more home comforts that involve maintenance – heating, air conditioning, plumbing and any number of exquisite appliances – so we find, more and more often that our basic home insurance does not cover us for breakdowns on such machinery. A home warranty does just that and can apply to a few or a great many items, hence the massive variety in price.

General Cost

• With cases being considerably different there is a difficulty in determining how much a home warranty will cost.
• You need to discuss with the warranty provider which items and systems are to be covered, as great differences in price can result from very varied policies.
• In general, a single year simple home warranty agreement will cost anywhere between $100 and $1000 with the variation relating to the items and services covered.
• Bear in mind that cheaper policies will cover only very limited devices and systems.
• Air conditioning systems, complex heating systems, swimming pools, roofing and any external pumps and boilers tend to be the most expensive items to cover.
• Costs will vary from company to company and from place to place, and also from the type of cover and the depth of attention needed.

Extra Cost

• One type of home warranty comes into effect when selling a house – in some cases the seller is responsible for paying the first years warranty in order to give the buyer added peace of mind.
• In many cases the removal of old and out of commission machinery and items is at the cost of the homeowner.


• There is plenty of information on the subject on the internet – check www.homeservicecontract.org/faq.htm for some very useful information.
• Make sure you get the full details of your warranty in easy to understand terms – it can be confusing reading the jargon associated with such things.


• Get a number of quotes from different providers and discuss these with them to get the best deal.
• Visit www.homeservicecontract.org/contact2.htm for information and advice on providers.
• Check the many websites dealing with such services for customer feedback.
• Check the Better Business Bureau for recommended providers.

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