How much does it cost to purchase a home warranty in Texas?

Reviewed by Adam Graham remodeling expert. Written by Fixr.com.

Home warranties are a great way to cut unexpected repair costs in your Texas home. A home warranty can cover things like your appliances, home systems, including your HVAC and plumbing, and things like your pool or outdoor kitchen. Warranties offset costs for repairs, helping you budget better. They come in many types and coverage periods, making it possible to choose the best for your home.

The state average cost for home warranties in Texas is $450 to $850, with most homeowners paying $625 for a combined systems and appliances plan. This service’s low cost is $350 for a 2-year combined service plan on a new house. The high cost is $1,100 for a platinum-level combined plan covering all systems and appliances in an existing house.

Cost of Home Warranty in Texas

Average Cost of a Home Warranty in Texas by Time Period

Home warranties come with different limits, periods, and payment plan options. Most plans cover a single year, but new homes may be eligible for longer plans. Many standard home warranties are priced by the month. Some companies offer a slight discount when paying up front rather than monthly payments.

In addition to regular home warranties, which cover a year at a time, new homes may also be eligible for structural warranties. These are different because they do not cover the appliances or systems, just the home’s structure, often including the foundation. These plans are for roughly 10 years and must be entered into at the house completion.

Most people in Texas opt for standard plans, which are available as monthly or yearly payments, depending on the company. New home 10-year warranties may be offered if you are building a new home, but paying yearly is usually the most cost-effective for existing homes. Below are the average monthly and yearly costs for typical home warranties and the average cost for a 10-year plan in Texas.

Home Warranty Plans Cost in Texas

Texas homes have many needs that make a home warranty a good idea. For example, the state can see extreme temperatures, meaning you run your AC or HVAC unit frequently. Getting a systems protection plan that covers the HVAC, electricity, and plumbing can ensure you do not get stuck without cool air on a hot day.

Many areas of Texas see hail storms, leading to roof leaks. Having a roofing-specific plan can help you get regular repairs to prevent further damage to your home caused by a leaking roof. Most companies also offer warranties for appliances, including washers and dryers, refrigerators, and ovens. This excludes hard-wired appliances like dishwashers, often covered under a systems protection plan.

Most companies also offer different tiers or levels of plans, including basic and total protection. These are often labeled as Bronze, Silver, Gold, or Platinum. Basic plans may cover fewer systems and appliances than total plans. Because your AC is so important in the Texas heat, it is a good idea to ensure that the plan or level covers this. Many lower-tier plans only cover the furnace rather than the entire HVAC system.

Extended warranties may be available for many appliances. These are not the same as an appliance protection plan but an extension of the warranty that comes with the appliance. This means if the appliance has a 1-year warranty, you may be able to extend it by 1 or more years. Each plan can have a wide range of costs depending on the level of the plan. Below are the average monthly and yearly costs for each plan in Texas.

Home Warranty Cost in Texas by Type of House

There are many types of homes and residences in Texas. Each may have its own set of costs for home warranties. This is partly because smaller homes, such as mobile homes and condos, do not have as many systems or appliances as larger single-family homes. Condos, for example, often have shared walls and systems that lay outside of what a warranty may cover, so these spaces tend to have lower warranty costs.

Duplexes often have higher costs because they cover two residences in one building. Likewise, apartment buildings of up to four units can often be covered with a single home warranty, which has higher-than-average costs.

Modular homes can also have a structural warranty separate from standard home warranties. This is because a modular home is built in a factory under strict conditions, often using extra material. For this reason, you can get a 10-year structural warranty on a modular home that you cannot get on a standard home. However, you need standard home warranties for the interior systems like in other single-family homes. Below are the average yearly costs for most residences in Texas and the cost of a 10-year structural warranty for modular homes.

Home Warranty Companies Cost in Texas

Many good home warranty companies in Texas offer various plans. Most companies offer individual plans for appliances or systems and a range of basic and total protection plans. Some companies may offer different basic and total protection plans, while others offer various choices.

When choosing your company, pay attention to the cost per month and other factors, including the cost of service calls, coverage limits, and available add-ons. Many companies offer additional coverage for pools or guest houses, so compare some to get the best fit for your property. Texas has many companies offering home warranty plans, often meaning costs are competitive and giving you a chance to shop and compare. Below are the average costs per month for some of the most popular companies in Texas.

Home Warranty Deductible in Texas

Many home warranties have deductibles or service fees that must be met before the plan covers expenses. Deductible costs range from $75 to $150 per service, depending on the plan. Some companies do not have deductibles, but they have service fees. These have the same costs per visit, but some plans have sliding service fee scales. You can choose a plan with a higher service fee, which gives you better coverage for a lower monthly cost. Deductibles and service fees are per service call. If you make three separate calls about three different issues over the year, you pay three deductible or service call fees.

Home Warranty Additional Coverage Cost in Texas

In addition to basic appliances and systems, your Texas home may have other features that can be covered. These include roof leaks, electronics, pools, guest houses, well pumps, gas lines, outdoor kitchens, and outdoor plumbing. Texas is well known for its heat and inclement weather. This means many homeowners have pools, outdoor plumbing and kitchens, and potential damage to these areas and other sensitive items like electronics. Homes in rural areas may also have wells and other features that may need protection. Homeowners with air conditioners may want to include HVAC maintenance coverage, keeping costs down for yearly service fees while ensuring your unit runs during the hottest months. Below are the average yearly costs for home warranty add-ons for these areas in Texas.

Additional Considerations and Costs

• ​Warranty for home sellers. Home sellers can purchase warranties on the home before sale, which transfers to the buyer, making the property more attractive.
• Timing. Warranties should be purchased before things go wrong. Home warranties do not cover pre-existing issues.
• Inspections. Many companies schedule an inspection before offering you a contract. This is to ensure there is no pre-existing damage they cannot cover.
• Inventory. Take inventory of your home and the systems you want covered before calling to choose the plan that fits you.
• Regulations. All home warranty companies in Texas must be licensed by the Texas Real Estate Commission. Make sure that the company you choose is licensed to ensure they are a valid company.
• Workmanship guarantee. Most companies have a workmanship guarantee on their labor. This can be from 90 to 180 days and helps ensure that they do not need to make repeat visits to make a repair.
• Coverage limits. Most companies have limits on what they cover each year. This can be a monetary amount, or it may be the number of times they come out for one item. Ask your company what its limits are.
• Size. While your home size does not directly impact the cost of your home warranty, larger homes have more appliances and larger systems than smaller homes. This means you may need more protection for a larger home.
• Location. Your location can impact the cost of your plan. Homes in major cities may have higher costs than those in rural areas.