Home warranty costs

By plan type, per year: appliance protection $400–$500, systems protection $400–$600, basic protection $400–$600, roofing coverage $350–$600, total protection $450–$900. Monthly equivalents run about $25 to $100. A separate product, the 10-year structural warranty on new construction, runs $500 to $1,500.

Add-ons, per month: second refrigerator $2–$4, well pump $8–$10, roof leaks $8–$10, HVAC maintenance $10–$15, electronics $15–$20, pool/spa $20–$40, guest units $25–$30. Pool and spa coverage at $20 to $40 a month is $240 to $480 a year on its own — price that against what pool repairs actually cost you.

The number people forget is the service fee. At $75 to $125 per dispatch, three service visits in a year adds $225 to $375 to a $400 to $900 premium. And you generally pay it whether or not the claim is approved, which is why the fee, the exclusions, and the caps have to be read together rather than separately.

Total realistic annual cost for a combined plan with a couple of add-ons and two or three service visits lands well above the headline premium. Write out your own number — premium plus expected add-ons plus two service fees — and compare it to what you'd put in a repair savings account instead.

How to choose

Quote the total, not the monthly

$25 to $100 a month sounds small. Annualize it, add add-ons, add two or three service fees at $75 to $125.

Check the cap before the price

A cheaper plan with a low per-item cap can be worse value than a dearer one. The cap is what you actually bought.

Price add-ons against actual repair history

Pool/spa at $20 to $40 a month is $240 to $480 a year. Do you spend that on pool repairs?

Ask what happens at renewal

Introductory pricing and renewal pricing are different things. Get the renewal terms in writing before the first payment.

Confirm the service fee is charged even on denials

Most contracts charge for the dispatch regardless of outcome. Verify yours and factor it in.