What does a home warranty cover?

A home warranty specifically covers the repair or replacement of major home systems and appliances that may fail due to normal wear and tear during the coverage period. This typically includes items such as HVAC systems, plumbing, electrical systems, water heaters, and major kitchen appliances like ovens, dishwashers, and refrigerators.

Unlike property taxes and insurance, which are ongoing costs associated with homeownership but not directly related to the functionality of home systems, or real estate agent commissions and market value assessments that pertain to transactions and valuations, a home warranty is designed to provide homeowners with peace of mind by protecting them from unexpected repair costs related to essential home components. Therefore, it is a financial safety net for homeowners against costly repairs or replacements of critical systems and appliances.