Rental Warranty Calculator Formula

Our calculator makes it easy to accurately calculate your estimated cost for a home warranty for your rental property, based on the following formula:

• Estimated Annual Premium based on average industry standard premiums.
• Service Fee Claim Price based on average industry standard service fees.
• Expected Claims Per Year based on your estimated usage.

This formula can help you get a great idea of the the expected cost of a home warranty protection plan for your investment property over the course of a year.

Estimated Home Warranty Cost = Annual Premium x (Service Fee x Average Claims Per Year)

FAQ About the Rental Warranty Calclulator

We evaluated 7+ top rental warranty policies using a range of critical factors, including:

How does the calculator determine if a warranty is worth it?

The calculator compares your total annual warranty costs (premium + service fees × expected claims) against average repair expenses for similar rental properties. If your warranty costs are lower than typical repair bills, the warranty offers potential savings.

How man claims is average to file per year"?

Most rental properties average 2-4 warranty claims annually, depending on property age and appliance condition. Older properties (15+ years) typically see 3-4 claims, while newer properties (under 10 years) average 1-2 claims per year.

Are service fees charged for every repair call?

Yes, you pay the service fee each time a technician visits, regardless of whether they complete a repair, replace an item, or determine the issue isn't covered. This is why tracking expected claims is crucial for accurate cost calculations.

Does this calculator account for uncovered repairs?

No, the calculator assumes all claims are covered. In reality, warranties typically deny 10-20% of claims due to pre-existing conditions, normal wear and tear, or coverage exclusions, which would increase your actual costs.