What is a home warranty?

A home warranty is primarily a service contract that provides coverage for the repair or replacement of major home systems and appliances. This typically includes items like HVAC systems, plumbing, electrical systems, and kitchen appliances, which can be costly to repair or replace when they malfunction.

By having a home warranty, homeowners can gain peace of mind knowing that if a covered item fails, they can call the warranty company to handle the repair or replacement process at a reduced cost, often only needing to pay a service fee. This can make homeownership more manageable and less financially burdensome, especially when unexpected repairs arise.

The references to loan guarantees, property ownership documents, and insurance policies for defects address different aspects of home buying and ownership and do not capture the essence of what a home warranty is designed to offer. Home warranties specifically focus on the functionality of systems and appliances within the home after purchase, thereby providing an essential service for homeowners.