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Interested in getting a shiny new home warranty but wondering what it’ll cost you? We’ll help you budget for your home warranty expenses so you know what to expect. Read on to learn about the different costs associated with a home warranty plan.
How Much Does a Home Warranty Cost?
There are a couple of cost related items you’ll want to know about regarding your home appliance insurance.
The first is the monthly premium. This can vary based on your personal information, geographical location, etc. It typically ranges anywhere from $30-$60 per month depending on which of the home warranty plans you choose. Sometimes companies give discounts on the first year of service, so it may be even less. The monthly premium is paid every month to keep your home warranty in service. You can also sometimes get a discount if you are willing to pay an annual premium upfront for the entire year instead of monthly installments so be sure to ask if this may be a possibility for you.
Service Call Fee
The other primary cost is the service call fee or deductible. This is what you pay when a service professional comes to your home and inspects your appliance/system in consideration for repair or replacement. The service fee will generally be one set fee and the higher the service call fee or deductible, the lower the price you should expect to pay for your monthly premium. Service call fees average in the $60-$125 range, but can be more or less. The service call fee is only paid when you file a claim and a repair person visits your home to consider the repair or replacement. At that time, you pay the service call fee and the rest of the repair/replacement is covered – whichever they deem necessary.
Although we’ve only discussed these two fees, please be aware that each company is different and there could be other fees associated with your home warranty plan. So again, please read your contract carefully.
And, if they have to come for multiple repairs season after season due to the repair companies less than stellar work, then that’ll cost you more too. Be sure your company is recommending a technician who is capable of properly diagnosing the problem and fixing it.
What’s the Best Home Warranty Plan?
The best home warranty plan will vary based on your home and location. Further, the optimal plan for you will depend on what appliances and systems you want covered. If you’re trying to decide on the top home warranty companies in your town, check out our article on the best home warranty plans. If you have more questions, check out our home warranty guide.
Have you ever had to use your home warranty?