Home Warranty Cost and Claims Statistics: 2026 Report
Last updated . All data pieces · Methodology
A broken air conditioner in the first summer after closing, or a water heater that fails just after the builder's warranty ends, is often what sends a buyer or new owner looking for the price of a home warranty. Sellers price these plans when they want to offer coverage at closing. What you pay depends on the plan tier, the service-call fee, where the house sits, what the contract covers, and the per-item payout caps. A single average monthly price hides the service fee on every visit, the gap between appliance-only and combo plans, and the difference between a quote study and a regulator complaint count.
We compiled these figures from seven source groups covering roughly the most recent 12 to 24 months of published data as of October 2026: NerdWallet's 2026 cost analysis, This Old House's 2026 quote averages and policyholder survey, USA Today's 2026 quote roundup, four years of Texas Department of Licensing and Regulation (TDLR) Service Contract Provider complaint statistics, California Department of Insurance home-protection materials, Federal Reserve Bank of Philadelphia repair-cost estimates built on the American Housing Survey and RSMeans, and a National Home Service Contract Association (NHSCA) member claims figure. Quote-study averages for monthly plan cost run from $56 to $73, or about $672 to $876 a year. Published monthly quote ranges stretch from about $28 to $191. Service-call fees average $108.45 in NerdWallet's data, with a common published band near $65 to $125. Company and editorial quote figures below are as reported by those publishers and were not independently audited against carrier filings.
Average Home Warranty Plan Cost and Service Fees, 2026
This table answers the main question: what a U.S. home warranty costs for the annual plan and the per-visit service-call fee, as published ranges and averages from live 2026 sources.
| Cost component | Figure | Scope and notes | Source |
|---|---|---|---|
| Average monthly plan cost | $56 | National average from quotes on a set of national providers reviewed by that publisher; also stated as a $47–$82 monthly band | This Old House |
| Average monthly plan cost | $73 ($876/year) | NerdWallet analysis; monthly quotes from 19 companies across multiple states and ZIP codes | NerdWallet |
| Monthly plan cost range | $28–$191 | Lowest to highest quotes in NerdWallet's sample | NerdWallet |
| Monthly plan cost range | $33–$140 | Quotes gathered from 20 providers | USA Today |
| Average service call fee | $108.45 | Per visit when a technician is dispatched | NerdWallet |
| Typical service call fee range | $65–$125 | Common published range across editorial roundups; some plans offer $0 fees with higher premiums, and some quotes reach about $150–$200 | USA Today; This Old House; NerdWallet |
Sources: NerdWallet, How Much Does a Home Warranty Cost in 2026?, updated March 2, 2026 (quotes without discounts collected in September 2025 and June 2025); This Old House, Best Home Warranty Companies of 2026, updated October 13, 2026; USA Today, Home warranty costs explained, updated September 21, 2026 (published August 26, 2026). Editorial quote averages measure different samples and are not interchangeable.
NerdWallet's $73 monthly average annualizes to $876. This Old House's $56 average annualizes to $672. USA Today's roundup, based on quotes from 20 providers, places most plans around $50 to $60 a month inside its $33 to $140 band. Service fees are separate from the premium: most contracts charge them even when a claim is denied or no repair is completed on the first visit. A home warranty is not homeowners insurance. Insurance typically addresses sudden covered perils such as fire or wind; a residential service contract targets wear-and-tear failures of listed systems and appliances. For what buyers and owners pay for HO-3 coverage itself, see our homeowners insurance costs by state data.
Home Warranty Cost by Plan Type and Provider, 2026
Plan design and the provider you quote both change the price. The first table uses USA Today's published 2026 plan bands. The second is one editorial quote study's monthly ranges by provider, listed alphabetically so every company gets the same treatment.
| Plan type | What it typically covers | Monthly cost band |
|---|---|---|
| Appliance-only or systems-only | Kitchen and laundry appliances, or HVAC/plumbing/electrical systems | About $30–$50 |
| Full coverage combination | Appliances and systems together | Often $65–$100 |
| Wider published quote range | All plan tiers across 20 providers in that roundup | $33–$140 |
Source: USA Today, Home warranty costs explained, updated September 21, 2026. Bands are as reported by USA Today from its 20-provider quote set.
Provider quote ranges from This Old House appear next. They are sample averages, not audited premiums, and prices change by ZIP code, home size, plan tier, and the service fee you select.
| Provider | Monthly cost (quote average range) | Service fee |
|---|---|---|
| AFC Home Warranty | $44–$82 | $75–$125 |
| American Home Shield | $36–$100 | $100–$125 |
| Choice Home Warranty | $60–$68 | $100 |
| Cinch Home Services | $51–$68 | $100–$150 |
| First American Home Warranty | $77–$130 | $100–$125 |
| Liberty Home Guard | $57–$68 | $65–$125 |
Source: This Old House, Best Home Warranty Companies of 2026, updated October 13, 2026. Pricing note on that page: sample quotes from all 50 states for single-family homes over and under 5,000 square feet, averaged into typical ranges. Figures are as reported by This Old House and were not independently verified.
In California, home warranties are regulated as home protection contracts by the California Department of Insurance. The department's December 1, 2025 assigned-company list names 16 licensed home protection companies. Texas regulates residential service contracts and other service contracts through TDLR's Service Contract Provider program after the program moved from the Texas Real Estate Commission in 2021. Florida's Office of Insurance Regulation also regulates service-warranty associations and publishes an unauthorized-entities list; Lifetime Home Warranty, LLC appears there with a final order executed October 23, 2024. Sellers and buyers who price a plan at closing often fold it into the same cash conversation as average closing costs by state and mortgage closing costs by state.
Home Warranty Complaints and Claims Outcomes, 2022 to 2026
Complaint counts are not the same as claim denial rates. The Texas regulator series shows how often Service Contract Provider matters were opened and closed. A separate 2026 policyholder survey reports how recent claims were decided. TDLR's SCP category includes residential service contracts (home warranties) along with other service contracts the program covers.
- FY 2022933
- FY 20231,110
- FY 20241,077
- FY 2025755
Sources: TDLR Service Contract Providers Complaint Statistics FY 2022; FY 2023; FY 2024; FY 2025. Texas fiscal years run September 1 through August 31. Government data. Values as shown in the table below the chart.
| Texas fiscal year | Complaints received | Consumer complaints | Cases opened | Cases closed | Share of closed cases with disciplinary action | Consumer restitution recorded |
|---|---|---|---|---|---|---|
| FY 2022 | 933 | 903 | 380 | 104 | 1.92% | $72,917.31 |
| FY 2023 | 1,110 | 1,064 | 446 | 359 | 0.00% | $46,508.59 |
| FY 2024 | 1,077 | 1,041 | 499 | 272 | 1.10% | $119,442.26 |
| FY 2025 | 755 | 711 | 373 | 459 | 3.70% | $183,357.71 |
Sources: TDLR Service Contract Providers Complaint Statistics FY 2022; FY 2023; FY 2024; FY 2025. Texas fiscal years run September 1 through August 31. Government data.
Total SCP complaints received peaked at 1,110 in FY 2023 and fell to 755 in FY 2025. Consumer restitution recorded in the SCP program rose from $46,508.59 in FY 2023 to $183,357.71 in FY 2025. Average time to close lengthened from 244.06 days in FY 2022 to 465.00 days in FY 2025. In FY 2025, TDLR counted 533 SCP licensees. The most common alleged violation at case opening in FY 2024 and FY 2025 was failure to meet financial or contractual responsibility (425 openings in FY 2024; 329 in FY 2025).
On the industry side, an NHSCA page states that member companies spent over $1.7 billion in claim payments in 2023. The association's site also lists about 130,000 households served and, in its FAQ, a service-call fee range of approximately $35 to $100 depending on the area. Those figures are as reported by NHSCA and were not independently verified.
National claim-approval rates are rarely published by regulators as a single denial percentage. One 2026 survey of current policyholders reports how recent claims were decided. This Old House (Dotdash Meredith Reviews) surveyed 2,000 home warranty policyholders across all 50 U.S. states in 2026 about provider choice, claims, and satisfaction; the survey is editorial first-party research sponsored and published by This Old House, not a regulator census of all claims.
| Survey result | Share of respondents |
|---|---|
| Most recent claim approved | 90% |
| Most recent claim denied | 4% |
| Still waiting on a decision | 6% |
| Satisfied or very satisfied with current plan | 83% |
| Plan to renew coverage | 88% |
| Chose coverage as the top purchase priority (vs. 23% who ranked price first) | 52% |
Source: This Old House, Best Home Warranty Companies of 2026, updated October 13, 2026. Method: This Old House (Dotdash Meredith Reviews) survey of 2,000 current home warranty policyholders across all 50 states in 2026; self-reported outcomes. Not a regulator census.
Among respondents whose most recent claim was denied, This Old House reports the most common stated reasons as a preexisting condition or an item outside the plan (29% each), a repair above the payout limit (20%), and improper maintenance (13%). An approved claim still leaves the service fee and any amount above the contract's coverage cap with the homeowner.
Repair Costs vs. Plan Cost, 2026
Whether the numbers work for a household depends on what fails, whether the claim is approved, the coverage cap, and how many service visits occur. The table below uses Federal Reserve Bank of Philadelphia estimates of average repair costs for occupied housing units with reported problems, built from the 2023 American Housing Survey Public Use File and 2024 RSMeans cost data from Gordian. These are housing-quality repair scenarios, not home-warranty claim payouts, and they sit next to plan prices only to show order of magnitude. The table is cost data only; it is not a recommendation to buy or skip a plan.
| Repair category | Average estimated cost (2024 dollars) | Households reporting need (2023 American Housing Survey, millions) |
|---|---|---|
| Heating | $1,249 | 7.4 |
| Electrical | $1,595 | 7.7 |
| Plumbing | $1,841 | 5.4 |
| Cooling | $2,170 | 7.9 |
Source: Federal Reserve Bank of Philadelphia, Updated Estimates and New Measures of Cooling Needs (home repair costs brief). Method: author analysis of the 2023 American Housing Survey Public Use File and 2024 RSMeans data from Gordian. Cooling average applies to households reporting cooling needs. Across all noncooling categories combined, the average estimated cost was $3,937 for 46.0 million households. Aggregate estimated cost of addressing repair needs in occupied units: $198.4 billion in 2024 dollars. Government research.
This table repeats the four category averages from the table above for the chart that follows.
- Heating$1,249
- Electrical$1,595
- Plumbing$1,841
- Cooling$2,170
Source: Federal Reserve Bank of Philadelphia, Updated Estimates and New Measures of Cooling Needs (home repair costs brief). Method: author analysis of the 2023 American Housing Survey Public Use File and 2024 RSMeans data from Gordian. Rows copied unchanged from the table above. Values as shown in the table below the chart.
| Repair category | Average estimated cost (2024 dollars) |
|---|---|
| Heating | $1,249 |
| Electrical | $1,595 |
| Plumbing | $1,841 |
| Cooling | $2,170 |
Source: Federal Reserve Bank of Philadelphia, Updated Estimates and New Measures of Cooling Needs (home repair costs brief). Method: author analysis of the 2023 American Housing Survey Public Use File and 2024 RSMeans data from Gordian. Rows copied unchanged from the table above.
Illustrative comparison formula
The following examples are labeled calculations, not observed market averages of homeowner savings.
Formula: Difference = Covered payout − (Annual plan cost + Service call fees for the claims in that year)
Covered payout = the lesser of the retail repair or replacement cost and the contract's per-item coverage limit, and only if the claim is approved under the contract.
| Input | Value | Source / assumption |
|---|---|---|
| Annual plan cost | $876 | NerdWallet average monthly cost of $73 × 12 |
| Service call fee | $108.45 | NerdWallet average, one visit |
| Per-item coverage limit (assumed) | $3,000 | Midpoint of the $1,000–$3,000 per-item band USA Today cites as common; not a universal industry cap |
| Claim outcome | Approved | Assumption for the examples only |
| Scenario | Assumed retail cost | Assumed covered payout | Annual plan + one service fee | Difference (payout − plan − fee) |
|---|---|---|---|---|
| One heating repair at Fed average | $1,249 | $1,249 | $984.45 | $264.55 |
| One electrical repair at Fed average | $1,595 | $1,595 | $984.45 | $610.55 |
| One plumbing repair at Fed average | $1,841 | $1,841 | $984.45 | $856.55 |
| One cooling repair at Fed average | $2,170 | $2,170 | $984.45 | $1,185.55 |
| All noncooling repair needs for one household at Fed combined average | $3,937 | $3,000 (hit assumed cap) | $984.45 | $2,015.55 |
Calculation notes: Annual plan + fee = $876 + $108.45 = $984.45. The $3,937 retail input is the Philadelphia Fed average estimated cost of all noncooling repair needs per affected household, treated here as one claim to show the cap (already in the repair table note above); the assumed $3,000 per-item cap limits the covered payout, so $937 of that retail cost would remain with the homeowner on top of the plan and fee. Philadelphia Fed category averages describe American Housing Survey / RSMeans scenarios for reported housing problems, not warranty claim invoices. Real contracts use different caps, exclusions, depreciation rules, and waiting periods. Changing the annual plan input to This Old House's $672 ($56 × 12) changes every difference line by the same dollar gap in plan cost.
A plan that covers one claim up to the assumed cap can more than offset the year's premium in these examples. A year with only small repairs below the combined premium and fees does not. Sellers who buy a one-year policy as a closing concession are pricing that tradeoff into the same timeline that shapes how long it takes to sell a house.
What These Figures Mean for Cost and Claims
Plan price alone does not settle the cost question. The service fee, the coverage caps, and whether a claim is approved sit next to the premium. The same dollar average also describes different products when one source averages quotes and another estimates repair needs from the American Housing Survey. Watch the next round of TDLR SCP statistics and the next editorial quote studies for whether complaint volume and monthly premiums keep moving in the same direction.
Sources
- NerdWallet. "How Much Does a Home Warranty Cost in 2026?" Updated March 2, 2026. https://www.nerdwallet.com/home-ownership/home-warranty/learn/home-warranty-cost
- This Old House. "Best Home Warranty Companies of 2026: Pricing, Plans, & Expert Insights." Updated October 13, 2026. https://www.thisoldhouse.com/home-finances/best-home-warranty-companies
- USA Today. "Home warranty costs explained: What you'll really pay." Updated September 21, 2026. https://www.usatoday.com/story/money/money-management/home-services/home-warranty-cost/87833102007/
- Texas Department of Licensing and Regulation. "Service Contract Providers Complaint Statistics FY 2022." February 6, 2023. https://www.tdlr.texas.gov/enforcement/complaint-stats/2022/SCP%20Complaint%20Statistics%20-%20FY22.pdf
- Texas Department of Licensing and Regulation. "Service Contract Providers Complaint Statistics FY 2023." February 14, 2024. https://www.tdlr.texas.gov/enforcement/complaint-stats/2023/SCPComplaintStatisticsFY23.pdf
- Texas Department of Licensing and Regulation. "Service Contract Providers Complaint Statistics FY 2024." November 13, 2024. https://www.tdlr.texas.gov/enforcement/complaint-stats/2024/SCP-Complaint-Statistics-FY24.pdf
- Texas Department of Licensing and Regulation. "Service Contract Providers Complaint Statistics FY 2025." November 19, 2025. https://www.tdlr.texas.gov/enforcement/complaint-stats/2025/scp-complaint-statistics-fy25.pdf
- California Department of Insurance. "Home Protection Contracts." Accessed October 27, 2026. https://www.insurance.ca.gov/01-consumers/105-type/Home-Protection-Contracts.cfm
- California Department of Insurance. "List of Home Protection Assigned CA Company Codes." December 1, 2025. https://www.insurance.ca.gov/0250-insurers/0300-insurers/0100-applications/financial-filing-notices-forms/forms/upload/HP-Company-List-12-01-2025.pdf
- Florida Office of Insurance Regulation. "Unauthorized Entities." Accessed October 27, 2026. https://floir.gov/industry/unauthorized-entities
- Federal Reserve Bank of Philadelphia. "Updated Estimates and New Measures of Cooling Needs" (home repair costs brief). https://www.philadelphiafed.org/-/media/FRBP/Assets/Community-Development/Briefs/home-repair-costs-2025/home-repair-costs.pdf
- National Home Service Contract Association (page by Jim Mullery). "Are Home Warranties Worth It? A Homeowner's Guide to Home Warranty Coverage." October 25, 2024. https://homeservicecontract.org/are-home-warranties-worth-it-a-homeowners-guide-to-home-warranty-coverage/
- National Home Service Contract Association. Home page / FAQ. Accessed October 27, 2026. https://homeservicecontract.org/
Figures are shown as published by the sources named under each table. How we source and correct: editorial and corrections policy. Spotted an error? Contact us.
Release dates for these sources: Data release calendar.