Home warranties cover the cost of repairing or replacing major home systems and appliances, helping you avoid unexpected repair bills. Here's a detailed breakdown of the costs and benefits.

Average Costs

| Expense | Cost Range |
|---------------------|-------------------------|
| Annual Premium | $200–$1,800/year |
| Service Call Fee | $75–$125 per visit |
| Add-Ons | $2–$35/month |

Most homeowners pay $600–$1,000 annually, depending on the plan type and coverage.

Home Warranty Plan Types

| Plan Type | Cost (Per Year) | Coverage |
|---------------------|--------------------------|--------------|
| Appliance Plan | $360–$540 | Covers kitchen & laundry appliances.
| System Plan | $360–$540 | Covers HVAC, plumbing, electrical, etc.
| Combination Plan | $545–$1,425 | Covers both appliances & systems.

Tip: Combination plans offer the most comprehensive coverage but come at a higher price.

Additional Costs

• Deductibles (Service Call Fees):
• $75–$125 per claim.

• Higher premiums often come with lower deductibles.

• Add-Ons: Optional upgrades to cover extra items like pools, spas, and septic systems.

| Add-On Item | Cost (Per Month) |
|--------------------------|----------------------|
| Additional Refrigerators | $2 |
| Pool/Spa Coverage | $20 |
| Saltwater Pool Coverage | $35 |
| Roof Leak Repair | $8 |

Geographic Price Differences

Home warranty prices vary by location:

| City | Cost Range (Annual) |
|-------------------|-------------------------|
| Las Vegas, NV | $135–$725 |
| Chicago, IL | $205–$1,525 |
| San Francisco | $635–$5,750 |
| Orlando, FL | $105–$1,645 |

Tip: Costs are typically higher in areas with expensive home systems or frequent service needs.

Common Repairs Covered

| Appliance/System | Repair Cost (Without Warranty) |
|-----------------------|-----------------------------------|
| Refrigerator | $200–$400 |
| Washer/Dryer | $80–$500 |
| HVAC System | $160–$530 |
| Water Heater | $200–$900 |

A home warranty significantly reduces these costs by covering most repair expenses.

Key Considerations

• Coverage Limits:
• Plans often cap payouts (e.g., $2,000 per system).

• Premium upgrades can increase these limits.

• Exclusions:

• Pre-existing issues and improper maintenance are not covered.

• Service Providers:

• Some companies let you choose your contractor, while others assign one from their network.

When to Get a Home Warranty

• Older Homes:

• Ideal for homes with aging systems and appliances.

• Tight Budgets:

• Protect against costly, unexpected repairs.

• Home Sellers:

• Offering a warranty can make your property more attractive to buyers.

• New Buyers:

• Peace of mind when inheriting older appliances or systems.

Tips to Save Money

• Compare Plans:

• Get quotes from multiple companies to find the best price and coverage.

• Bundle Services:

• Combine appliance and system plans for discounts.

• Understand Coverage:

• Avoid overpaying for coverage you don’t need (e.g., excluding pool coverage if you don’t have one).

With proper research, a home warranty can be a cost-effective solution for peace of mind and financial protection.

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