How Much Do Home Warranty Plans Cost in 2024?
Are you curious about the price tag on home warranty plans and whether they’re a good investment? Homeownership comes with financial responsibilities, especially when fixing household appliances and systems. One solution to consider is a home warranty plan designed to protect your investments by covering specific components in your home. In this article, learn about the costs of home warranty plans and help you weigh whether they are a valuable choice for homeowners.
How much does a home warranty plan cost?
Before we dive into the cost of home warranty plans and whether they’re worth it, let’s first get a clearer picture of what these plans entail. A home warranty is an annual contract to cover the repair or replacement of specific home systems and major appliances. This typically includes critical systems like HVAC and electrical systems and major appliances such as washers, dryers, water heaters, and refrigerators.
Let’s address the burning question: “How much do home warranty plans cost?” These plans can be paid monthly or annually, with average monthly fees ranging from $35 to $80, averaging around $50. You’ll typically be responsible for a separate service fee per warranty service call, which varies but generally falls between approximately $75 to $125, depending on the company and the specific issue.
Home warranty costs by coverage
To determine whether a home warranty is worth it, investigate what these warranties encompass and exclude. Different home warranty companies provide a range of plans, each offering distinct levels of coverage. Here are the primary types you should consider:
System plan
Specific systems within your home
It may not cover individual items like space heaters, portable air conditioners, or ceiling fans.
System plans tend to come at a higher monthly cost than appliances due to their broader coverage of complex home systems.
Appliance plan
Safeguards appliances in your home.
Appliances include ranges, garbage disposals, refrigerators, washing machines, dryers, and built-in microwaves.
You only need to pay the service fee, even if an appliance requires replacement.
Combination plan
A combination plan, or a whole home warranty plan, offers coverage for major systems and appliances in your home.
Some companies may provide discounts when you opt for this plan, combining both coverage types into a single policy.
Add-ons
Add-ons extend coverage to pools, hot tubs, and well pumps.
Costs vary depending on the company, typically from $30 to $40 extra per month for each add-on.
Average costs with and without a home warranty
Here are some common home repairs with and without a home warranty policy to provide a clearer picture of the potential savings.
Plumbing issues
Without a home warranty, you can expect to pay anywhere from $75-$4,000 for repairing plumbing issues. By paying a nominal service fee you could be saving $3,900.
Appliances
We all know appliances can get pretty spendy, and repairing appliances can cost you. Average appliances can run up to $500 for repair. But, if you have a Porch home warranty, it costs $100 for the service.
Electrical Issues
Repairing electrical issues in your home can be a light task or a major rewiring. So, let’s just say that you can expect the cost of an electrician to repair one outlet to be worth the home warranty plan. With average costs ranging from $141 to $6,000, one service call is already less expensive.
HVAC Repair and Replacement
Following the trend of saving with a home warranty, HVAC repairs can run you anywhere from $130-$2,000, and replacing the entire system can cost $3,000-$,5000. Even if we break down the annual costs of a whole home warranty plan from Porch, the cost could save you up to $4,100.
Porch home warranty costs
Now that we have given you the averages of how much a home warranty plan costs, we can get into the more specific costs with a Porch Home Warranty Plan. A whole home warranty plan with Porch is $62 per month with a $100 service fee for each warranty service call. Service line warranty coverage starts at $5 per month with a $50 service fee for water lines, sewer lines, and internal plumbing calls.
The whole home warranty can also be individualized with add-ons for your needs. The costs associated with those will vary depending on your selections.
Porch Whole Home Warranty covers:
The benefits of a home warranty
Enrolling in a home warranty plan offers several benefits that may justify the monthly or annual cost, including:
Cost savings: A home warranty can save you money, especially if you live in an older home or have aging appliances prone to breakdowns. Filing just two claims per year can often cover the annual warranty cost, which is typically much cheaper than hiring a service professional for repairs or replacements.
Convenient repairs: When you file a claim, the warranty company typically sends an authorized service provider to your home. This eliminates the need to gather estimates and contact contractors. While some warranties may allow you to choose your service provider, prior approval from the home warranty company is necessary.
Customizable plans: Most home warranties can be tailored to suit your specific needs and budget. You can choose a package that aligns with your requirements and opt for additional services if necessary.
Now that you better understand home warranty costs, you can determine if it’s the right choice. Remember, a home warranty covers essential systems and appliances that could otherwise result in significant out-of-pocket expenses for repairs or replacements. Use the information provided in this guide to assess whether a system, appliance, or combination home warranty policy aligns with your needs.
