ContractsCounsel Logo

Residential Service Contract Cost

Updated: August 11, 2023
Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 10,638 reviews
No Upfront Payment Required, Pay Only If You Hire.
Home Blog Residential Service Contract Cost

Jump to Section

What does a residential service contract cost? If you are a homeowner who wants to protect your home’s appliances and systems, you may ask this question. Let’s explore this question and review some general information about residential service contracts and why you may need one.

How Much Does a Residential Service Contract Cost?

A residential service contract, sometimes called a home warranty, or a home service contract, works like an insurance policy and provides financial protection for your home’s appliances and systems when they break due to normal wear and tear.

A homeowner can usually purchase a residential service contract anytime during homeownership.

For those selling a house, including a residential service contract adds value and ensures that if any systems or appliances are included in the sales contract breakdown, you can have them repaired without breaching the purchase and sale contract and putting the deal in jeopardy.

The cost of a residential service contract will depend on the level of coverage, your home location, how payments are made and distributed, the length of the contract, and the service fee. Two costs most often associated with residential service contracts are premiums and service call fees.

  • Premiums. The amount paid every month to keep the contract active. The premium cost will vary based on the amount of coverage you choose.
  • Service call fees. Every time you claim and require a covered item to be repaired under the residential service contract, you incur a service fee for the technician to come to your home and fix it. The average service fee is between $75-$125. However, this may change based on the company providing warranties and location.

Before signing a residential service contract, you should have a real estate lawyer review it to ensure that it includes everything you need for your home.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a residential service contract is $574.07.

What’s Included in a Residential Service Contract

Residential service contracts cover appliances in your home's major systems and have the option for add-ons. Many contracts require homeowners to pay extra for the add-ons. Commonly covered items include:

  • Refrigerator
  • Washer and dryer
  • Dishwasher
  • Garbage disposal
  • Oven
  • Air conditioning
  • Heating system
  • Electrical system
  • Plumbing
  • Ductwork
  • Water heater

Add-ons commonly include:

  • Pool
  • Roof leaks
  • Septic tank
  • Alarm system

While the coverage seems very comprehensive, it is important to understand what appliances, systems, and parts of the house will not be covered by a residential service contract.

A new residential service contract will not cover any pre-existing or known issues with the home or the systems. In addition, the following common items and issues will also not be covered:

  • Design flaws
  • Foundations
  • Intentional damage
  • Commercial properties or appliances
  • Things that break due to manufacturer defect
  • Structural issues

While a residential service contract doesn’t cover these issues and items, your homeowner's insurance covers some issues like foundations or structural issues.

Meet some lawyers on our platform

Ryenne S.

605 projects on CC
CC verified
View Profile

Daniel R.

129 projects on CC
CC verified
View Profile

Benjamin W.

79 projects on CC
CC verified
View Profile

Michael M.

584 projects on CC
CC verified
View Profile

Residential Service Contract Projects

Residential Service Contract Review

Residential service contracts are provided by the company selling the home warranty. These contracts can be complicated documents. It may be difficult to understand what is covered, what is not, and how premiums and service fees work.

Like any contract, if you are unsure about the terms and your obligations, it is recommended to hire an attorney to assist you.

A contract lawyer can review the terms of your residential service contract and make sure that it is fair, provides sufficient protection, understands the terms of the agreement, and is legally enforceable.

Your lawyer will be able to explain the contract to you so you are fully aware of all your obligations.

Residential Service Contract Review Cost

If you choose to hire an attorney to review your residential service contract, it will come with legal fees. A lawyer will charge for their time reviewing the contract, providing advice, meetings, and any work done by their support staff, like paralegals.

ContractsCounsel’s marketplace data shows that the average cost to review a residential service contract is $574.07 across all states.

How Do Lawyers Charge for a Residential Service Contract?

Contract lawyers can charge clients for services in several ways. The two most popular fee agreements are hourly rates and flat fee rates.

Hourly Rates for Residential Service Contracts

Hourly rate fee structures are common for contract lawyers to bill clients. Under this fee agreement, the lawyer will keep track of their time working on the project and then bill the client for the total number of hours at a predetermined hourly rate.

This fee structure ensures that the lawyer is paid for their time even if the case takes longer than expected.

Clients should maintain contact with their lawyers and ask for monthly billing statements. This avoids a surprisingly large bill at the end of legal services.

ContractsCounsel’s marketplace data shows that the average hourly rate for a contract lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Residential Service Contracts

When a lawyer is hired for a specific project, like reviewing a residential service contract, they may forego hourly rates and charge a simple flat fee.

Under this fee structure, the lawyer will provide their client with a flat fee quote for all legal services involved in the task or project. The client is typically required to pay this fee upfront and usually will not incur any additional fees.

Clients tend to like this billing structure because they know the amount legal services will cost before agreeing to hire a lawyer. However, clients should always understand what the flat rate fee covers. Additional services like negotiations or extra meetings with the attorney could cost more.

ContractsCounsel’s marketplace data shows that the average flat fee for reviewing a residential service contract is $574.07.

Get Help with a Residential Service Contract

Do you need help with a residential service contract project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from contract lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

Need help with a Residential Service Contract?

Create a free project posting

Meet some of our Lawyers

Vicki P. on ContractsCounsel
View Vicki
5.0 (4)
Member Since:
June 30, 2023

Vicki P.

Free Consultation
Danville, Pennsylvania
25 Yrs Experience
Licensed in PA, WI
Regent University School of Law

Vicki graduated from Regent University School of Law in Virginia Beach, Virginia in 1996. She is a licensed attorney. She has been admitted to Wisconsin since 1998 and Pennsylvania since 1999.

Ryenne S. on ContractsCounsel
View Ryenne
4.9 (370)
Member Since:
October 11, 2022

Ryenne S.

Principal Attorney
Free Consultation
Chicago, IL
14 Yrs Experience
Licensed in IL
DePaul University College of Law

My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.

Faryal A. on ContractsCounsel
View Faryal
4.9 (98)
Member Since:
February 23, 2023

Faryal A.

Free Consultation
2 Yrs Experience
Licensed in TX
University of Houston

Ms. Ayub is an attorney licensed to practice in Texas. Before moving to the US, she has a number of years of experience in contract review, analysis and drafting. Ms. Ayub is available to help you with your legal problems, as well as filling LLC and other business entity formation documents. To know more about her practice, please visit

Howard B. on ContractsCounsel
View Howard
5.0 (1)
Member Since:
July 29, 2022

Howard B.

Managing Member
Free Consultation
Tulsa, Ok
11 Yrs Experience
Licensed in OK
University of Tulsa

Berkson is a dedicated, practical, and detail-oriented attorney licensed to practice in every state court of Oklahoma and the United States Northern and Eastern District Courts. He graduated from the University of Tulsa College of Law with Honors. While there, he received awards for highest grade in trial practice, legal research, and civil procedure. He was also the Executive Notes and Comments Editor for the Energy Law Journal, the official journal of the Energy Bar Association in Washington, D.C. The Energy Law Journal is one of the few peer-reviewed journals in the legal profession. Prior to becoming an attorney, Howard Berkson held executive positions involving a wide range of business and human resources management functions. He has in-depth knowledge of both business and HR practices. During his business career, Berkson negotiated, wrote, red-lined, and disputed contracts. He has answered charges, handled inspections, and supervised audits involving numerous agencies including the Department of Labor, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, and various state agencies. Berkson honed his analytical and writing skills while earning his Bachelor of Arts degree in Philosophy from the University of Washington. He went on to obtain a Master of Arts in Labor and Industrial Relations from the University of Illinois. Berkson’s work can be found in such publications as The Energy Law Journal, Human Resource Management Review and Personnel Psychology. He is a member of Phi Alpha Delta law fraternity and of Phi Kappa Phi honor society.

Gill D. on ContractsCounsel
View Gill
5.0 (32)
Member Since:
July 31, 2022

Gill D.

Free Consultation
15 Yrs Experience
Licensed in FL
Stetson University College of Law

Erik has been a practicing attorney in Florida for over a decade. He specializes in employment and real estate contracts. He has represented clients big and small and can assist with any contract issue.

Marc S. on ContractsCounsel
View Marc
Member Since:
July 29, 2022

Marc S.

Free Consultation
Henderson, Nevada
43 Yrs Experience
Licensed in NV
Southwestern University

Have been practicing real property and business law in Nevada for over 40 years. No longer handling any litigation, transactional matters only.

Find the best lawyer for your project

Browse Lawyers Now

Need help with a Residential Service Contract?

Create a free project posting
See All Real Estate Lawyers
Learn About Contracts
See More Contracts
other helpful articles

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a Residential Service Contract?

Create a free project posting

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city