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What is a Home Warranty?

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What is a Home Warranty?

Oct 21, 2021 | Home Warranty

What is a Home Warranty?

Peri Elgrot

Home Warranty Editor

A lot of people have this question, what is a home warranty?

To put it simply, a home warranty is a yearly service contract that will protect specific home systems and appliances. Imagine you discover water leaking out of your dishwasher. If you got a home warranty that includes coverage for your dishwasher, the warranty can cover its repair or replacement.

Normally, home warranties can cover heating, air conditioning systems, and plumbing. Appliances covered can include the dishwasher, oven, and washer/dryer. When one of those things breaks and is in the contract, the home warranty company can fix them or replace them.

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The reason homeowners need a home warranty

If you own a home currently, ask yourself when was the last time you had an appliance, heating system, or air conditioning break down? If you happen to be like a lot of homeowners, the answer will either be last year, this year or maybe even last week. Everyone knows appliances and home systems will eventually break. A home warranty provides some protection against the inevitable wear and tear of the things that are covered.

First-time homeowners can also benefit from home warranty coverage. A lot of times, extra funds are in short supply throughout the first few years of homeownership. Surprise expenses can potentially derail dreams of updating or improving the newly-bought home.

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Why homeowners and sellers need to have a home warranty

If you happen to be buying or selling a home, a home warranty can help protect your budget.

For buyers, the home warranty protects them from expensive repairs when a covered appliance or system fails.

For sellers, the home warranty protects them from unexpected repairs that can be needed while the home is listed. Maybe you’re selling a home and looking to buy another. You wouldn’t want the sale to be postponed or derailed if a covered item happens to break down in the middle of negotiations.

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