Category: Costs, Service Fees & Coverage Caps
Last updated: March 2026 • Informational only
Key point: The “real cost” is premium + service fees + any excluded charges + anything above the cap.
The 4 layers of cost
- Premium: monthly or annual plan cost.
- Service fee: paid when a tech comes out (often per claim).
- Coverage cap: max paid per item and/or per term.
- Non-covered costs: items excluded by contract (varies).
Coverage caps (the biggest surprise)
Two plans can look similar until you compare caps for the items you care about most (HVAC, water heater, fridge). A “covered” item can still leave you paying the difference above the cap.
Read next (internal)
- Exclusions, Denials & Fine Print
- Claims Process & Contractor Experience
- Warranty vs Insurance (and Alternatives)
Helpful site links
Disclosures: Affiliate Disclosure