 TITLE: What Is a Home Warranty Plan? CONTENT: How Much Does a Home Warranty Cost?\n-----------------------------------\nThe price of a home warranty policy varies based on the company you buy from, what your policy covers and where you live. The NHSCA estimates a basic policy costs $400 to $550 annually; American Home Shield, a popular home warranty provider, says its plans cost on average from $500 to $700 per year.\nIs a home warranty worth the price? New systems or appliances may already be covered by a manufacturer's warranty, and you can generally buy extended warranties for new appliances if desired. Some credit cards extend the manufacturer's warranty if you pay with the card (and even if you use your card's rewards to pay). For example, the Chase Sapphire Preferred® Card gives you an extra one-year warranty on products with an eligible original U.S. manufacturer's warranty of three years or less that are purchased with the card.\nBefore buying a home warranty, carefully read the detailed terms and conditions. Understand what appliances and systems are covered and under what conditions. Contact the Better Business Bureau and your state's consumer protection agency to see if there are any complaints against the company.\nEven if you read the home warranty's terms and conditions, it can be difficult to know if the policy will pay out until you have a claim. Instead of spending money on a policy you may never use—or that may never pay out—it could make more financial sense to put the money into an emergency fund or home maintenance account. Then if an appliance or system in your home fails, you can tap your own funds, use a contractor of your choice to fix the item and, if it can't be repaired, purchase the replacement product you want. END