Home Warranties: What They Cover, What They Cost and How to Compare Plans

A home warranty is a service contract that pays to repair or replace covered home systems and appliances when they break from normal wear and tear. It is not insurance: homeowners insurance covers sudden damage like fire or storms, while a warranty covers things like a furnace, water heater or refrigerator that simply stops working. This hub gathers our guides on how warranties work, what they really cost and how to avoid the fine print that leads to denied claims.

How a home warranty works

• You pay a yearly or monthly premium, commonly estimated at $40 to $80 a month depending on the plan and add-ons.
• When something covered breaks, you file a claim and the company sends a contractor from its network.
• You pay a service call fee (often $75 to $150 per visit) and the plan covers the rest, up to its coverage caps.
• Exclusions, pre-existing conditions, maintenance requirements and per-item caps decide whether a claim is paid, so read the contract sample before you buy.

Is a home warranty worth it?

Warranties tend to make the most sense for buyers of older homes with aging systems, landlords, and anyone who would struggle to cover a surprise $3,000 repair. They make less sense if your systems are new and under manufacturer warranty, or if you have a solid emergency fund. Our comparisons walk through real coverage limits rather than marketing claims.

Comparing plans? Get free home warranty quotes and see coverage side by side.

Latest home warranty guides

• 
  American Home Shield: Plans, Costs and Coverage Explained
  American Home Shield review: how its plan tiers, service fees, coverage limits, add-ons and claim process work, plus what to check in the sample contract first.
• 
  Home Warranty vs Homeowners Insurance: What Each Covers and Why You Might Need Both
  Home warranty vs home insurance: learn what each covers, typical costs, where they differ on wear and tear vs sudden damage, and how they work together.
• 
  Best Home Warranty Companies: How to Compare Plans and Avoid Bad Ones
  Compare the best home warranty companies using a six-point framework: coverage, caps, service fees, contractor choice, claims and cancellation terms.
• 
  What Does a Home Warranty Cover (and What It Doesn’t)?
  What does a home warranty cover? See typical systems and appliances, common exclusions, coverage caps and how to read a sample contract before you buy.
• 
  How Much Does a Home Warranty Cost? Premiums, Service Fees and Add-Ons
  How much is a home warranty? See estimated monthly and annual premiums, service call fees, add-on prices, coverage caps and what drives your cost.
• 
  Is a Home Warranty Worth It? Real Costs, Coverage Limits and Who Benefits
  Is a home warranty worth it? Compare typical premiums and service fees with repair costs, coverage caps and exclusions, and see who should buy or skip.

Browse every home warranty article, or read about the home systems and repairs warranties usually cover.