Cost Savers and Budgeting Tips

How Much is a 1-Year Home Warranty?

If you're buying or selling a house, you might be in the market for a 1-year home warranty. Learn how it can help and how much you should expect to spend.


When you’re buying a new house, unexpected issues or repairs after closing are a huge concern. Once you sign the paperwork and have the keys in hand, anything that goes wrong with the house is your problem — and your responsibility. Having a home warranty can mitigate some of those concerns because it can help defray the costs of home system and appliance breakdowns. 

As a seller, having a home warranty during the listing period can also be a good way to protect your budget from the costs of unexpected breakdowns, especially those that might happen while the house is empty. Selling a house is stressful enough as it is, and if you’re paying two mortgage payments while you wait for your listed house to sell, you don’t have any wiggle room in your budget to pay for unexpected repair and replacement costs. Having a home warranty keeps your house marketable during the listing period and makes buyers feel more confident about making an offer on your home.

What Does a Home Warranty Cover?

But what does a home warranty cover, and perhaps more importantly, how much is a home warranty? Well, coverage and costs for home warranties can vary a lot, depending on the specific appliances and home systems you choose to cover. A basic home warranty policy costs between $350 to $600 a year. You can expect to pay anywhere from $100 to $500 more a year for additional coverage, like add-ons for septic tanks, well pumps, pool pumps and spas. 

When you purchase a home warranty from American Home Shield®, you can choose from the Systems Plan, which covers 11 home systems like electrical and plumbing; the Appliances Plan, which covers 10 major home appliances, like the refrigerator and range; or the Combo Plan, which combines both the Systems and the Appliances Plans for maximum coverage — 21 home systems and appliances

American Home Shield also offers Real Estate Plans for home buyers and sellers looking for peace of mind as they make an offer on a property or list a home for sale. Electronics Plan coverage protects all of your home electronics, like TVs and game consoles, laptops, and tablets, no matter how old they are. And you can choose from a range of add-ons to extend your coverage to a guest unit, a septic pump, a pool pump and spa, or a well pump.

How Do Home Warranties Work?

When you buy home warranty coverage from American Home Shield, you can start requesting service after you’ve had your plan for 30 days. When a covered home system or appliance breaks down, you can request service online, or pick up the phone and give us a call. We work with a nationwide network of service professionals, so we can send a qualified, local technician to take a look at your issue and make a diagnosis. You’ll pay a trade service call fee that’s determined by the coverage you choose. When you buy your home warranty, you’ll select from different fee tiers, so you’ll be able to fit your plan costs into your budget and you’ll know exactly how much you can expect to pay when a service technician visits your home. Trade service call fees range from $75 to $125 per service call.

If the technician we send thinks your home system or appliance can be repaired, American Home Shield will cover the cost of repair, up to your plan limits. If the technician thinks that your appliance or home system needs to be replaced, we’ll cover the costs of a new one, up to plan limits. In many cases, we’ll cover the whole cost of replacing your home appliance or system, but even if we don’t, we can help significantly defray the costs of an expensive replacement, like a new HVAC. You’ll have access to discounts on major home appliances through the American Home Shield® Appliance Discount Plan, so you can get a new appliance that’s just as good or better than the one that broke down. You’ll also enjoy perks like discounted HVAC filters, spring and fall HVAC tune-ups, referral bonuses, and discounts on additional home warranty plans for additional properties. 

Home repairs and replacements are almost never cheap, but there’s a way to fit unexpected breakdowns into your budget and manage home maintenance costs when you buy a home warranty. Protect your budget with an American Home Shield® home warranty today.

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