How Much Does a Home Warranty Cost?

When you’re budgeting for homeownership, one of the smartest moves you can make is protecting your appliances and systems from expensive breakdowns. That’s where a home warranty—or Home Service Plan—comes in. 

At 2-10 Home Buyers Warranty (2-10), we want to help you understand what coverage costs, what it includes, and how it compares to the cost of doing nothing. If you’re asking, “How much is a home warranty for a year?”—you’re in the right place. 

So, what is the average price of a home warranty? 

On average, the typical home warranty cost ranges between $300 and $1,000 per year, depending on the level of coverage you choose and any optional add-ons you include. 

 Here’s a breakdown of 2-10’s three core plan types: 

You can also add extras like Roof Leak Coverage for added peace of mind. That’s why when people ask, “What is the average cost of a home warranty?”, we say it depends—but it’s often less than the cost of one major repair. 

What would a repair cost without a home service plan? 

Let’s look at some average out-of-pocket costs for repairs and replacements without a home warranty: 

• Furnace Repair: $425 

• Furnace Replacement: $3,755 

• Water Heater Repair: $435 

• Water Heater Replacement: $1,665 

• Refrigerator Repair: $340 

• Refrigerator Replacement: $1,370 

Compare those costs to an average price of a home warranty at $600 per year, and it’s easy to see how a couple of covered repairs or a single replacement can help your plan pay for itself. 

Why do I need a home warranty if I have homeowners insurance? 

It’s a common question: Why get both? 

Here’s the difference between a home warranty and homeowners insurance: 

• A home warranty covers repairs or replacements of systems and appliances due to normal wear and tear—the kind that happens when your AC stops blowing cold or your dishwasher gives up after a decade of use. 

• Homeowners insurance covers damage caused by external events like fires, storms, or theft. 

So, if your water heater rusts out over time, homeowners insurance won’t help—but your home service plan will. 

Having both gives you well-rounded protection for both the unexpected and the inevitable. 

Is a home warranty like a manufacturer’s warranty? 

Not quite. Here’s how the two compare: 

With a home service plan, you're not limited to just one item or one brand. You get broad coverage, including systems and appliances from different manufacturers—all under one plan. 

Real-World Example: What You Could Save 

Let’s say you buy the Complete Home Plan for around $600 a year. Midway through the year: 

• Your refrigerator motor fails ($900 repair) 

• Your HVAC blower stops working ($600 repair) 

That’s $1,500 in potential repair costs—but you only paid $600 for your home warranty plan, plus a small service fee per visit.  

That’s $900 in savings, not to mention the time saved hunting down contractors. 

Final Thoughts: Is a home warranty worth it? 

If you’ve ever asked, “What is the average cost of a home warranty?” or “How much is a home warranty for a year?”, the answer is: Not as much as you might think—and a lot less than an emergency repair. 

To recap: 

• Average cost for home warranty: $300–$1,000/year 

• Service fees: $65–$100 per service call 

• Savings: Potentially thousands per year 

• Peace of mind: Priceless 

At 2-10, we offer flexible plans that fit your home, your budget, and your lifestyle. Whether you want to protect your kitchen, your whole house, or everything in between, we’ve got a home warranty cost option that works for you. 

FAQ 

What is the average cost of a home warranty?  

The average home warranty costs between $30 and $90 per month. 
 

How much is a home warranty for a year? 

The average home warranty costs between $300 and $1,000 per year.
 

Is a home warranty worth it?  

Yes, a home warranty can help you save hundreds of dollars over the course of a year.