Home warranty service fees are one of the most overlooked costs in a warranty plan.
Most homeowners focus on annual premiums, but every time you file a claim, you must pay a service call fee. Understanding how these fees work is critical when deciding whether a home warranty is financially worthwhile.
What Is a Service Fee?
A service fee is the amount you pay each time a contractor is dispatched to your home.
To compare real pricing and fees instantly, see our Get a Home Warranty Quote in 60 Seconds page.
In 2026, most home warranty providers charge between $75 and $125 per visit.
This fee applies whether the repair is approved or denied.
How Service Fees Affect Total Cost
Even if your annual premium is moderate, multiple claims can increase your out-of-pocket expenses quickly.
For example:
Two service calls at $100 each = $200
Annual premium of $600
Total cost that year = $800
When evaluating the average home warranty cost per year, service fees must be included in the calculation.
Does a Higher Service Fee Lower Your Premium?
Some providers offer plans with higher service fees and lower monthly premiums.
This shifts more risk to the homeowner. If you rarely file claims, this structure may save money. If you file multiple claims, it can become more expensive than expected.
Are Service Fees Refundable?
Service fees are generally non-refundable.
If the contractor determines the issue is not covered under the contract, you still pay the service call fee.
This is one reason some homeowners question whether a home warranty is worth keeping beyond the first year.
Service Fees and Coverage Limits
Service fees are separate from coverage limits.
Even if a repair is approved, payout caps still apply. If the repair exceeds the coverage limit, you pay the difference.
Understanding home warranty coverage limits alongside service fees provides a more accurate picture of total risk.
The Bottom Line
Service fees are not hidden costs. They are written clearly in the contract.
However, many homeowners underestimate their impact on total yearly expenses.
When comparing plans, evaluate:
Annual premium
Service call fee
Coverage limits
Exclusions
Only then can you determine if structured coverage fits your financial situation.