What is the purpose of a home warranty?

The home warranty covers the service, repair, or replacement of major home systems and appliances. It provides a financial margin in the event that an expensive item doesn't work properly and can extend the protection of manufacturers' warranties once they expire.

Home warranties

are designed to protect your home appliances and systems from breakdowns caused by normal wear and tear. Home insurance pays for damage and losses caused by unexpected events, such as fire and weather damage, but it won't do any good if the washing machine breaks down.

Learn more about home warranties compared to a home warranty is a contract that covers the service, repair, or replacement of major home systems and appliances. Think of a home warranty as a guarantee for when things go wrong with your home appliances and systems. A home warranty plan allows you to make a phone call or make a request instead of taking the time and effort to find local contractors for home repairs. A home warranty or homeowner's guarantee is an annual contract.

You pay a fixed fee and, in return, the warranty company is committed to helping pay for certain home repairs or replacement items.