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Updated Oct 28, 2026 · By Michael Gonzales · Prices from This Old House, SafeWise and Forbes Advisor; settlement record from the Arizona Attorney General
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Short answer: A home warranty costs about $47 to $82 a month in 2026, or $56 on average, plus a $75 to $125 service fee each time a technician comes out, per This Old House. Choice Home Warranty quoted $46.67 to $55 a month with a $100 fee. Most plans cap what they pay per item.
Compare local HVAC companies and plumbers for out of warranty repairs, or let us match you with pros.
A home warranty typically costs about $47 to $82 per month in 2026, or $56 on average, plus a service fee of about $75 to $125 each time a technician is sent out, per This Old House.
Choice Home Warranty, one of the largest providers, quoted $46.67 per month for its Basic Plan and $55 per month for its Total Plan in a 2026 SafeWise quote.
Whether a plan is worth that cost depends on the age of your systems and appliances, the coverage caps in the contract, and how many covered repairs you are likely to need in a year.
A home warranty is not insurance and it is not a manufacturer warranty. It is a service contract.
You pay a monthly or annual premium, and when a covered system or appliance breaks down from normal wear and tear, the company sends a contractor from its network and pays part or all of the repair or replacement cost, up to the limits in your contract.
The facts below are the numbers that decide whether that trade makes sense for a given house.
How much does a home warranty cost in 2026?
| Cost item | Typical range, 2026 | Choice Home Warranty figure |
|---|---|---|
| Monthly premium, all plans | $47 to $82 per month, $56 average | Basic $46.67 per month ($560 a year), Total $55 per month ($660 a year) in a SafeWise quote |
| Service fee per claim | $75 to $125 | $100 flat on both plans |
| Optional add ons | Priced per item | Pool and spa, well pump, sump pump, septic, limited roof leak and more |
| Coverage cap per item | Varies by provider and item | Up to $3,000 per item for most items |
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Sources for the table: This Old House, best home warranty companies, SafeWise, Choice Home Warranty review and Forbes Advisor, Choice Home Warranty review, checked October 2026. Premiums vary by state, home size and promotions, so the figure in a specific contract can sit outside these ranges.
This Old House's own sample quotes for Choice averaged higher, at $60 to $68 per month, which is a good example of why one quote is not a price list.
Two points in the table matter more than the headline premium. First, the service fee is charged per claim visit, so a year with three separate breakdowns adds about $225 to $375 on top of the premium. Second, the coverage cap decides the largest repair the plan will actually fund.
A cap of $3,000 per item covers most single appliance replacements, but a full central air system replacement can cost well above that, a point we return to below.
What does a home warranty cover?
Coverage is defined item by item in the contract, not by category in general. For Choice Home Warranty, plan summaries published by CNBC Select and Forbes Advisor in 2026 list the split this way:
| Item | Basic Plan | Total Plan |
|---|---|---|
| Heating system | Covered | Covered |
| Electrical system | Covered | Covered |
| Plumbing system | Covered | Covered |
| Water heater | Covered | Covered |
| Oven, range and cooktop | Covered | Covered |
| Dishwasher | Covered | Covered |
| Built in microwave | Covered | Covered |
| Garbage disposal | Covered | Covered |
| Garage door opener | Covered | Covered |
| Air conditioning system | Not covered | Covered |
| Refrigerator | Not covered | Covered |
| Clothes washer | Not covered | Covered |
| Clothes dryer | Not covered | Covered |
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Optional add ons, priced per month, extend the list to items such as a pool and spa, a well pump, a sump pump, a septic system, a second refrigerator and limited roof leak coverage. Choice Home Warranty publishes its current plan and add on list on its own site, and the contract for your state is the document that controls, since home warranty terms are regulated and filed state by state.
For cost context on the items in the table, our guide to water heater replacement cost puts a standard tank replacement at $600 to $3,100 installed as of October 2026. That is the kind of single repair a plan is designed to absorb.
What does a home warranty not cover?
Exclusions are where most claim disputes start. Across the industry, and in Choice Home Warranty contracts as described in 2026 reviews, the common exclusions are:
- Pre existing conditions, meaning a fault that existed before the contract started, whether or not you knew about it.
- Damage from misuse, accidents, pests, or weather events. Those belong to homeowners insurance, not a service contract.
- Items that were installed incorrectly or not maintained to the manufacturer's standard.
- Cosmetic damage that does not stop the item working.
- Costs above the per item or per term cap in the contract. You pay the difference.
- Secondary damage. A plan may pay to repair a leaking water heater but not to repair the floor the leak damaged.
Coverage also normally begins after a waiting period, commonly 30 days from purchase, so a breakdown in the first month is usually not covered.
Claim handling is the part of a plan that price tables don't show. In February 2026 the Arizona Attorney General announced an $11.8 million settlement with Choice Home Warranty over complaints that sales calls did not disclose exclusions and limits.
The judgment requires clearer disclosure before sale. Choice denied the allegations and admitted no wrongdoing. Whichever provider you pick, read the contract and the exclusions before you pay, and check recent complaint records with your state attorney general and the BBB.
Read the cap and exclusion pages before you rely on a plan for a specific aging appliance, because a named item can still be limited by an internal sub limit for parts such as compressors or control boards in some contracts.
Is a home warranty worth it?
The arithmetic is straightforward, and you can run it with your own repair history. Take a Total Plan at $660 per year. Add two service fees at $100 each and the year costs $860. The plan breaks even in cash terms if it pays for covered repairs that would have cost you more than $860 out of pocket in that year, after caps.
That points to the situations where the data tends to favor a plan:
- The house has several systems and appliances in the 10 to 15 year range at the same time, so two or more breakdowns in one year are plausible rather than unlucky.
- You have no repair reserve and a single $1,500 to $3,000 repair would be a financial problem. A plan converts an uneven cost into a fixed monthly one, even if the long run expected value favors self insuring.
- The property was just purchased and the age and maintenance history of its systems are unknown to you.
The data tends to favor self insuring, meaning you set the premium amount aside in a repair fund instead, when the house is new or recently renovated, when major systems are still under manufacturer warranties, or when you can absorb a $3,000 repair without strain.
Over a long period with few claims, a repair fund keeps the money you did not spend, while premiums are gone either way.
One further fact belongs in the decision. Warranty companies pay their network contractors negotiated rates and decide whether to repair or replace. You do not choose the contractor, and a replacement is usually like kind in features, not an upgrade.
Homeowners who want a specific contractor or a higher efficiency replacement often find the cash route fits better. Our HVAC listings show the local contractor base for planned replacements, which is a different job from a warranty claim visit.
How do the major providers compare on price?
Published 2026 comparison tables put the large national providers in a fairly tight premium band, with the differences sitting in service fees, caps and contract terms rather than headline price:
| Provider | Monthly plan cost range, published 2026 | Service fee |
|---|---|---|
| American Home Shield | $36 to $100 | $100 to $125 |
| Choice Home Warranty | $60 to $68 in This Old House quotes, $46.67 to $55 in a SafeWise quote | $100 |
| First American Home Warranty | $77 to $130 | $100 to $125 |
| Liberty Home Guard | $57 to $68 | $65 to $125 |
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Source: This Old House provider comparison, checked October 2026. The two different Choice Home Warranty ranges in that table and in sample quotes illustrate why a single headline price is not reliable for any provider.
Price depends on the home, the state and current promotions, so compare the full contract, the cap per item and the service fee, not only the monthly figure. Choice Home Warranty is the provider 1-800Deals has an affiliate relationship with, which is why its plan structure is detailed above.
How does a home warranty interact with rebates and tax credits?
It largely does not, and keeping the two separate avoids a common budgeting error. A home warranty pays toward repair or replacement of a failed item under contract. Home energy rebates pay toward the cost of a qualifying new, efficient upgrade, and they follow program rules that have nothing to do with warranty status.
If a covered heat pump or water heater fails and you replace it, check the rebate side before you choose the replacement model.
Our home energy rebates by ZIP code finder shows your state's HOMES and HEAR status and utility rebate lookups, and our heat pump rebates guide sets out the HEAR cap of up to $8,000 for a heat pump for income eligible households in states that are open, as of October 2026.
A warranty payout and a rebate can sometimes apply to the same project, but each program sets its own stacking rules, so confirm both before you sign a contract.
Frequently asked questions
How much does a home warranty cost per month in 2026? This Old House puts typical plans at about $47 to $82 per month, $56 on average, plus a service fee of about $75 to $125 per claim visit. Choice Home Warranty pricing in a 2026 SafeWise quote was $46.67 per month for the Basic Plan and $55 per month for the Total Plan, with a $100 service fee.
What is the difference between a home warranty and homeowners insurance? A home warranty is a service contract covering breakdowns of named systems and appliances from normal wear and tear. Homeowners insurance covers damage from events such as fire, storms and theft, and liability.
A leaking roof from a storm is an insurance matter. A furnace that stops working from age is a warranty matter, if the item is named in the contract.
Does a home warranty cover pre existing problems? Generally no. Faults that existed before the contract start date are a standard exclusion across providers, whether or not the homeowner knew about them. Coverage also usually starts after a waiting period of about 30 days.
Can a home warranty claim be denied? Yes. Common reasons in published consumer guidance are pre existing conditions, lack of maintenance, incorrect installation, and costs above the contract cap. Keeping maintenance records for your furnace, air conditioner and water heater is the practical step that supports a claim if one is questioned.
Is a home warranty worth it for a house with new appliances? On the numbers, usually less so. New appliances are typically under manufacturer warranties, and the chance of two large covered breakdowns in one year is low. The case for a plan strengthens as several systems and appliances move into the 10 to 15 year range at the same time.
Sources
- This Old House: Best home warranty companies of 2026, checked October 2026
- SafeWise: Choice Home Warranty review 2026, checked October 2026
- Forbes Advisor: Choice Home Warranty review 2026, checked October 2026
- CNBC Select: Choice Home Warranty review, checked October 2026
- Arizona Attorney General: $11.8 million settlement with Choice Home Warranty, February 10, 2026