What is a Home Warranty?

A home warranty is an insurance policy that protects homeowners against costly repairs and replacements of major home systems, appliances, and components. It's usually sold by the manufacturer or a third-party provider and can be purchased for new or existing homes.

Types of Home Warranties

• System warranty: covers repairs to major home systems such as HVAC, plumbing, electrical, and appliances
• Appliance warranty: covers repairs and replacements of individual household appliances
• Building warranty: covers damages to the structure or foundation of the home

Who is Eligible for a Home Warranty?

Typically, homeowners who purchase a home warranty must be homeowners themselves, or have a rental agreement with someone who is. Some warranties may also require proof of residency or property ownership.

Fundamentals and Benefits

A home warranty can help alleviate financial stress caused by unexpected home repairs and replacements. It's especially useful for homeowners in areas prone to natural disasters, where maintenance costs can be high.

• Convenience: eliminates the need to navigate multiple contractors and suppliers
• Cost savings: helps reduce repair and replacement costs
• Predictable expenses: provides a clear understanding of what's covered and when