Home Warranty Education

What Your Home Repairs Cost With And Without A Home Warranty

Learn what the average repair costs are for your home's systems and appliances with and without a home warranty plan.

Owning your own home is a rewarding experience, full of independence and responsibility. Not only are you building equity when you pay your mortgage every month, but you’re also working to improve the home’s value by taking good care of its foundation and internal systems. Although the exact cost depends on many factors, most experts agree that the average homeowner will pay up to 4% of their home’s value in repairs and maintenance over the course of a year. If you purchased a home for $300,000, that means you could be looking at up to $12,000 a year in repairs and maintenance. Now, sometimes that number can be as low as 1% (or $3,000 a year on average for the homeowners above), but smart homeowners will make sure to budget in home repairs when they’re purchasing a house. 

Unfortunately, a home’s systems and appliances have lifespans and they won’t last forever! That’s why many homeowners opt to purchase a home warranty when they buy a home. That way, when a system or appliance does fail after it has reached its lifespan, the cost to repair or replace it is reduced significantly. A home warranty’s premium (the fee a homeowner pays yearly) is generally between $300 and $600. When something fails in the home, a homeowner will pay a flat rate (between $60 and $100 depending on the plan a homeowner purchases) to have a contractor diagnose the problem. If the failure of the system or appliance is covered in the home warranty contract, that’s all the homeowner will have to pay! The rest is covered by the home warranty company. You can see how a home warranty could save a homeowner a lot of money over the years, especially if their home would otherwise have cost them around 4% on average for repairs and maintenance. Let’s take a look at what the average cost a homeowner would pay to repair or replace their home’s systems and appliances with and without a home warranty plan.

Average repair costs for home repairs with a home warranty plan and without a home warranty plan.

Heating and Cooling Systems

A home’s heating and cooling systems are generally the most important part of a home in the cold of winter and the heat of summer. Having them working helps keep your house a pleasant temperature, and when they’re not working it’s easy to tell! A home’s air conditioner and furnace’s lifespan is around 15-20 years. If your home is over 15 years old and has never had the air conditioner or furnace replaced, you may be looking at a replacement in your near future, or at the very least a large repair bill.

When your air conditioner isn’t working in the summer months, it can be hard to sleep, cook, or feel comfortable inside of your own home. Air conditioner repairs, on average, cost between $163 - $520, and if the entire system has to be replaced, that costs homeowners between $3,733 - $7,161 on average, according to HomeAdvisor’s True Cost Guide.

Average repair costs for HVAC system repairs both with a home warranty plan and without a home warranty plan.

In the winter, having a failed furnace could mean extremely uncomfortable temperatures. A mere repair can cost a homeowner between $132 - $454, and if the furnace needs to be completely replaced, homeowners generally pay an average of $2,519 - $6,058.

Even repairing a thermostat can be a costly expense to homeowners, with Home Advisor’s True Cost Guide estimating an average of $107-$250 to repair your thermostat.

A Landmark home warranty covers a home’s air conditioning and heating systems when they have been properly maintained and fail from normal wear and tear. As long as the failure was covered in the homeowner’s warranty contract, all the homeowner would have to pay (besides their yearly premium) is a service call fee between $60 and $100 – even to replace the entire system! Compare a $350 yearly premium and a $70 service call fee to the complete replacement of an air conditioner at $7,000 and you can see how much a homeowner would be saving with a home warranty plan – especially when you realize that $350 covers an unlimited number of repairs and replacements over the course of the year. The homeowner just has to pay a service call fee to diagnose the problem and see if the home warranty plan covers the failure.

Electrical System

A homeowner can save money by having a home warranty plan on their home’s electrical system. On average, a homeowner pays $1,100 to repair or replace an electrical panel and wiring and switches inside of a home can cost an average of $537-$2,029 to repair or replace. If a homeowner has to do a simple repair for a lighting fixture, the average cost is between $108-$270.

Electrical repair costs for your home with and without a home warranty.

A home warranty through Landmark covers a home’s electrical system, including electrical panels, wiring, and switches. All of this is covered for the yearly premium, and if something does fail from normal wear and tear and within the bounds of the home warranty plan, it will be repaired and replaced for $60-$100. Compared to the thousands of dollars it can cost on average to repair and electrical system, a homeowner can truly see where a home warranty could save them a significant amount of money.

Plumbing System

When the components of a home’s plumbing system break down, it can end up being a stressful repair for homeowners. Whether it’s a toilet that needs fixing or a water heater that is no longer warming a shower, having a working plumbing system is vital to a comfortable home. A toilet repair will generally set a homeowner back about $133-$285 on average. A water heater can last around 10-20 years, depending on the type and size of the tank. When the tank fails, a repair will fetch between $207 - $855 while a complete replacement will often cost a homeowner $731 - $1,332.

The average plumbing repair costs both with and without a home warranty.

A home warranty with Landmark covers all parts of a home’s plumbing systems, including toilets, pipes, and water heaters. A majority of a home’s plumbing system is covered by the yearly home warranty premium, and all it costs for a homeowner to repair or replace a part of the covered plumbing system is the flat-rate service call fee for $60-$100 (depending on the plan). If a water heater has failed due to something covered in the contract, like sediment damage, a homeowner will still be able to get their water heater replaced. Instead of paying $1,000, they will just pay that flat-rate service call fee.


A home isn’t just made up of the structural systems that provide light, warmth, and water. It also includes appliances that are necessary for modern living. Having a refrigerator, oven, washing machine, or dryer go out may not make it so your home is hard to live in, but it is inconvenient and can be expensive. According to Home Advisor’s True Cost Guide, fridge repair can cost between $200-$400 on average, while a washing machine costs $120 and $500 on average, and a dryer can cost a homeowner between $100 and $400 to repair. Repairing either a dishwasher or an oven will cost a homeowner around $100-$200 per repair.

The average cost to repair your appliances are very different depending on if you have a home warranty protecting them or not.

Many home warranty plans through Landmark cover a variety of large household appliances, including refrigerators, ovens, dishwashers, microwaves, washers, and dryers. As stated previously, these repairs and replacements will only cost the amount of the home warranty’s service call fee, between $60 and $100, if they’ve failed from something covered in the home warranty contract. Comparing that to the $400 to simply repair a fridge or dryer, a homeowner can save a lot of money in the long run by purchasing a home warranty.

When a home buyer purchases a home, they know that they won’t only pay that mortgage payment every month. They’re also responsible for the upkeep, maintenance, and replacement of their home’s systems and appliances when they fail. Those costs can be expensive, depending on the type of home! A home warranty is an excellent way to keep the inevitable home repair and maintenance costs down. For more information about home warranties, or to get a quote for your home, go to www.landmarkhw.com#quote.

Home Warranty Education

Everything you need to know about what a home warranty is, how it works and what it covers. Real estate professionals: use these articles to help your clients!

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