What Is a Home Warranty — and Do You Need One?

Buying or selling a home comes with a lot of moving parts, and one question that often comes up is: What exactly is a home warranty?

If you’ve heard the term but aren’t sure how it works, you’re not alone. Let’s break it down in a simple way.

What Is a Home Warranty?

A home warranty is a service plan that helps pay for the repair or replacement of major home systems and appliances when they stop working due to normal wear and tear.

Unlike insurance, which protects against unexpected disasters, a home warranty steps in when everyday use causes something to break.

What Does a Home Warranty Cover?

Most home warranties typically cover:

• Heating and air conditioning (HVAC)

• Plumbing systems

• Electrical systems

• Water heaters

• Major appliances such as:

  • Refrigerator

  • Stove or oven

  • Dishwasher

  • Washer and dryer

Coverage can vary by provider and plan, so it’s always important to read the fine print or ask questions before selecting a policy.

How Is a Home Warranty Different from Homeowners Insurance?

This is a common point of confusion.

• Homeowners insurance covers damage from events like fire, storms, theft, or water damage from a burst pipe.

• A home warranty covers breakdowns caused by normal use over time — like an aging HVAC system that stops cooling in July or a dishwasher that suddenly quits.

In short:
Insurance protects your home from disasters.
A warranty protects your systems and appliances from wear and tear.

Why Consider a Home Warranty?

A home warranty can be especially helpful if:

• You’re buying an older home

• You’re a first-time homebuyer

• You want protection against unexpected repair costs

• You don’t want the stress of finding a contractor in an emergency

Instead of scrambling to pay for a major repair, you typically pay a small service fee and the warranty company arranges the fix.

Many sellers also include a home warranty as a gift to buyers at closing, which can make a listing more attractive and provide peace of mind to everyone involved.

Is a Home Warranty Right for You?

It depends on your home, your budget, and your comfort level with risk. Some homeowners love the added security, while others prefer to self-insure by setting aside savings for repairs.

If you’re unsure, we’re happy to talk through your options and connect you with reputable home warranty providers.

Got questions about home warranties or how they work in a real estate transaction? Reach out — we’re here to help.