A home warranty is often misunderstood but can be a powerful tool for protecting your home and finances. Whether you’re buying your first home or have lived in the same house for years, understanding how home warranties work is essential.

What is a Home Warranty?
A home warranty is a service contract that covers the cost of repairing or replacing certain home systems and appliances that break down over time due to normal wear and tear. It’s not the same as homeowners insurance, which covers events like fire, theft, or weather damage.

What Does it Cover?
Most standard home warranty plans cover:

Appliances: Refrigerators, ovens, dishwashers, washing machines, and dryers.

Systems: HVAC, electrical, plumbing, water heaters.

Add-ons: Pools, spas, well pumps, and septic systems can be added for extra cost.

Always read the contract carefully—coverage varies by provider and plan.

Who Should Get a Home Warranty?
First-time buyers who want protection and peace of mind.

Owners of older homes with aging appliances or systems.

Sellers who offer warranties as an incentive for buyers.

Pros and Cons
Pros:

Saves money on costly repairs.

Offers convenience and reduced stress.

One phone call can connect you with qualified service providers.

Cons:

Not all repairs are covered.

Service call fees apply.

Claims may be denied due to maintenance issues or exclusions.

Conclusion
A home warranty isn’t a perfect solution for everyone, but for many, it offers a valuable safety net. If you have older equipment and want help managing surprise breakdowns, a home warranty may be a smart investment.