When you are purchasing a new home, you are going to receive a few offers for home warranty—but is this something you should be incorporating into your purchase?

For starters, home warranty is not the same thing as home owner insurance—nor should  you consider it a replacement for homeowners insurance.  Homeowners insurance covers large-scale perils that affect the entire structure of your home, or all of your possessions.  This could include protection from fire, flood, inclement weather, and property crime.  Home warranty is much more specifically focused. 

 Home warranty represents a contract between the home owner and the home warranty company that ensures discounted replacement and repair services on the home’s major components.  These include the furnace, the air conditioning system, the home’s plumbing, and the electrical system.  Home warranty may also include major appliances that are included in the purchase of the home, like the washer, dryer, fridge, stove, or swimming pool.

 How does it work?

 The home warranty company will have an agreement with an approved service provider.  When something happens, you simply call the home warranty company and they will send one of their service providers to take a look.  The work will be completed by the service provider if it is assessed to be a warranty issue.  The homeowner is then only responsible for a small service fee.

 What are the benefits?

 Home warranty can help protect the home buyer from any unforeseen expenses he or she may encounter after purchasing a new home.  Home warranty is also a good idea for anyone who isn’t handy, or who doesn’t want to be bothered having to look into repairs or search out contractors to complete those repairs.  Opting for home warranty creates an expense buffer that can add to your peace of mind—especially if your budget for buying your new home did not factor in the expense of unforeseen repairs.

Posted by Gurpreet Ghatehora on


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You explain very well that how home warranty work and what is the benefit of home warranty for home buyers. In home warranty you just pay a very small amount of money to the home warranty company and in return they give you their best services.

Posted by Select Home Warranty on Tuesday, March 7th, 2017 at 6:29am

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Listing information last updated on August 12th, 2022 at 6:31am CDT.