Do All Home Warranties Have Deductibles? | Know The Fees

Many plans charge a per-visit service fee, but some waive it or bundle it into the monthly cost—read the sample contract.

You’re shopping a home warranty and one line keeps popping up: “service fee,” “trade call fee,” “dispatch fee,” “deductible.” It can feel like four names for the same thing. Sometimes it is. Sometimes it isn’t.

This guide explains what those fees mean, when you’ll pay them, and how to compare plans that look similar on price but don’t behave the same once you file a claim.

What People Mean By A “Deductible” In Home Warranties

Most home warranty companies don’t use “deductible” the way health or auto insurance does. In day-to-day talk, “deductible” usually means the flat amount you pay when service is dispatched or a technician arrives.

In the contract, you’ll usually see one of these labels:

• Service call fee (or service fee): a flat amount you pay per service visit.
• Trade call fee: a fee tied to the type of tech sent out, like HVAC vs plumbing.
• Dispatch fee: a fee charged when the company assigns a contractor.

Your real question is simple: “What do I pay out of pocket each time I ask for service?” That’s the practical “deductible.”

Do all plans charge one?

No rule forces every plan to charge a per-claim fee. Many do because it helps control small, frequent claims. Some plans advertise “no service fee,” but the cost can show up elsewhere, like a higher monthly price, stricter limits, or surcharges on certain systems.

Why Home Warranty Companies Charge Service Fees

A home warranty is often sold as a service contract. The fee structure is part of the bargain: you pay the plan price to keep coverage active, then you pay a smaller amount when you use it.

If you want a plain-language overview of how service contracts are sold and what to watch for in sales pitches, the FTC’s “Extended Warranties and Service Contracts” page is a good baseline.

In practice, the service fee does three jobs: it filters tiny requests, shares cost risk on low-dollar repairs, and lets companies offer different price tiers.

Home Warranty Deductibles And Service Fees In Real Contracts

Two companies can both advertise “$75 service fee,” yet your total can swing based on how they define a “claim,” a “visit,” and a “trade.” These are the fee models you’ll see most:

• Per visit: you pay once when the tech comes out. The contract defines what counts as one visit.
• Per trade: you pay per category of work. If one issue needs two trades, you may pay twice.
• Per item: you pay for each covered appliance or system worked on, even on the same day.
• Tiered: one fee for standard items, another for “specialty” items like pools or septic.

When a “no deductible” claim still costs you money

Even if a plan skips a service fee, you can still face out-of-pocket costs when a repair falls outside the contract. Common examples include code upgrades, access work (cutting drywall, pulling a toilet), or damage tied to poor maintenance.

Some states publish consumer guidance on how home protection contracts work and which agency oversees them. California’s page on Home Protection Contracts gives a clear snapshot of that oversight model.

How To Read The Fee Section Without Getting Tripped Up

Don’t start with the marketing page. Start with the contract PDF and hunt the money lines.

Find the trigger sentence

Search the contract for “service fee,” “trade call,” “dispatch,” and “deductible.” Then find the line that says when you must pay it: at claim submission, at dispatch, or at the visit.

Check how often the fee can repeat

Look for wording on repeat visits, multiple trades, and multiple items. A plan can charge once per claim, or it can charge again when the company sends a second trade or schedules a return trip.

Read fees next to coverage caps

A fee that looks small can feel big next to a low payout cap. If a plan caps a refrigerator repair at $300 and you pay a $100 service fee, you’re covering a big slice of the total.

Skim the disclosure section

Federal warranty law puts weight on clear disclosure of terms and conditions for warranties and service contracts. The FTC’s Businessperson’s Guide to Federal Warranty Law explains the disclosure concepts behind that “clear and conspicuous” language.

What You Might Pay: The Charges That Stack Up

Most shoppers focus on plan price and service fee. The real cost is plan price plus claim-time charges plus exclusions that push parts of the job back onto you.

Use the checklist below to compare two plans in a fair way. It turns scattered contract terms into a single scorecard.

Cost Line Item	How It’s Charged	What To Ask Before You Buy
Monthly or annual plan price	Paid up front or monthly	Is the price locked for the term, or can it rise at renewal?
Service fee / dispatch fee	Per claim, per trade, or per visit	Can one issue trigger more than one fee?
Repeat-visit fees	Charged when a tech returns	Do follow-up trips restart the fee?
After-hours fees	Surcharge for nights or weekends	Is there a higher fee outside normal hours?
Denied-claim diagnosis fees	Fee still due when claim is denied	If an item is ruled non-covered, do you still pay?
Access work	Drywall, concrete, roofing, hauling	Which access costs are on you?
Code upgrades or permits	Extra charge when local code requires changes	Is code coverage included, optional, or excluded?
Coverage caps	Max payout per item, claim, or term	What is the cap for HVAC, plumbing, and electrical?

How State Rules Shape Disclosures

Home warranties sit in a patchwork of state rules. Many states treat them as service contracts and focus on registration, financial backing, and contract disclosures.

The National Association of Insurance Commissioners publishes a model act many states borrow when writing service contract rules. You can skim the disclosure and filing structure in the NAIC Service Contracts Model Act (Model 685) PDF. It’s a useful reference point when you’re judging how clear a contract is on fees and duties.

Where to verify fee terms if something feels off

If a plan’s checkout page says one fee and the contract says another, trust the contract. Save a copy of the contract version you bought, plus the price page or quote email that shows the fee you selected. If the company later claims you picked a different tier, those screenshots help.

When you want a neutral answer on who regulates a company in your state, start with your state’s insurance department site and search for “home warranty,” “home service contract,” or “service contract.” Some states handle these products outside the insurance department, so the first page you find may point you to a licensing or consumer affairs office instead.

Before you file a complaint, try one clean escalation step: ask the company to show the exact contract clause that backs the fee they’re charging. If they can’t point to a clause, pause the claim and get the fee clarified in writing.

Table: Claim Scenarios And What You Pay That Day

This table assumes the repair itself is covered. It focuses on the fee mechanics that change your out-of-pocket total.

Scenario	Fee Structure	What You Pay
One appliance repair, one visit	Per visit	One service fee
One appliance repair, two visits for parts	Per visit, fee on each visit	Two service fees
HVAC issue that needs two trades	Per trade	Two fees, one per trade
Plumbing leak plus disposal failure, same day	Per item	Two fees, one per item
Weekend emergency call	After-hours surcharge	Service fee plus after-hours fee
Claim denied after diagnosis	Fee still applies	Service fee, no repair paid

Ways To Keep Fees From Piling Up

These moves stay within the contract and still reduce repeat fees.

• List all related symptoms in one claim. If the plan charges per visit, one trip beats three.
• Ask how the company groups claims. Some group “related” issues, others split by item.
• Keep basic maintenance receipts. They help when a claim turns into a dispute over upkeep.
• Know the top exclusions. Access work and code costs are common pain points.

Red Flags That Point To Surprise Charges

• Vague fee triggers. If the contract won’t say when the fee is charged, expect friction.
• No clarity on repeat visits. If every return trip starts a new fee, costs can jump fast.
• Low caps paired with high fees. A high service fee next to a low cap can make claims feel pointless.
• Thin wording on access work. If access is excluded in broad terms, real repairs may land on you.

A Purchase Checklist Before You Click “Buy”

Run these checks on any plan you’re close to buying. If a rep can’t answer in plain language, skip that plan.

• What is the fee name and dollar amount?
• Is the fee per claim, per visit, per trade, or per item?
• Do follow-up visits restart the fee?
• Is there an after-hours fee?
• What are the caps for HVAC, plumbing, electrical, and refrigeration?
• Which access, permit, and code costs stay on me?
• What happens if the claim is denied after diagnosis?

Most plans do charge a “deductible” in the sense of a service fee. Some don’t. Either way, the contract tells you where the cost lands. Read the fee trigger, the repeat-visit rule, and the caps, and you’ll know what you’re buying before the first breakdown hits.