A home warranty keeps you from paying out-of-pocket when your home appliances or systems fail to work. It is a worthy investment that every homeowner should consider purchasing. Keep on reading to know how much a home warranty cost.
What determines the overall cost of a home warranty?
The cost of a home warranty is determined by factors, such as:
- Type of plan
- The size of the home
- The extent of coverage
- Additional services/benefits
Each of these elements plays a significant role when it comes to determining the price of a home warranty. When you want to purchase a home protection warranty, the company will provide you with a contract that explains in-depth the price of the coverage. It is worth mentioning that American home warranty companies are different and they also have different pricing. However, the lesser the cost of a home warranty, the lesser coverage you will get.
What is a home warranty’s annual cost?
A home warranty generally costs between $300-$600 on average. This amount can be spread across 12 months so that you pay your premium monthly instead of annually. This is because, for some homeowners, the amount can be quite overwhelming to pay once. So, if you want to pay it monthly, you just take your annual premium and divide it by 12. However, some home warranty companies will charge you a $5 processing fee per month if you opt for the monthly payment.
What is a home warranty service call fee?
A service call fee is a flat rate that the homeowner will have to pay every time they request service. It covers the cost of labor for the technician or contractor who will come to diagnose what caused the appliance or system to break down. This is the only amount that the homeowner will have to pay because the home warranty company will cover the cost of repair or replacement [if necessary].
How much is the home warranty service call fee?
The cost of the service call fee varies from one company to another, depending on the plan. However, the price usually ranges between $50-%100, depending on state and policy purchased.
Can a home warranty help homeowners save money?
Definitely! Research shows that homeowners can spend thousands of dollars annually on repairs and replacements. This is a significant amount of money. But with a home warranty, the homeowner will pay at most $800 annually. This is way less compared to the amount of money they can dig out of their pockets repairing or replacing their appliances and systems.
One of the main reasons why homeowners purchase a home warranty is the amount of money they can save on repairs and replacements, especially those that have systems and appliances that are frequently breaking down.
As you can see, the home warranty is very affordable. Any homeowner can afford to purchase it. It is a worthy investment that every homeowner should consider. The peace of mind that comes with it is on another level.