A home warranty is offered by a third-party provider, and covers repairs and replacements on specified home structures and appliances. Many home warranties are offered as part of the purchase agreement when buying a house. Depending on the agreement and coverage, this could provide protection for one year to 10 years and include repairs or replacements of appliances like ranges, built-in microwaves, refrigerator, dishwashers, and washing machines, as well as heating and air conditioning systems, water heaters and interior electrical systems.

A home warranty can be a great tool for both buyers and sellers of real estate. A buyer can feel reassured that any appliance or system in the house will be covered for an extended period of time, reducing both short and long-term costs. A Seller may use a home warranty as a selling point, taking one more thing of the buyers’ mind and making the house more appealing.

Home warranty coverage not only can include systems and appliances, but also can include items such as light fixtures, locks, garage door openers and ceiling fans. Buyers and sellers should keep in mind that being insured against certain types of events (floods, earthquakes or fires) is typically not covered by a home warranty and should be researched separately.

Homeowners should also check with the warranty provider to see what exclusions and serviceability requirements apply, as well as review the fine print of their policy. Most importantly, understand the process for filing a claim. Good communication and understanding with the third-party provider is key to obtaining satisfaction from your warranty.

Ultimately, a home warranty can be a great way to provide peace of mind for those who want to protect their home and budget. With proper selection of coverage and best provider, having a home warranty can insure that repairs and replacements don’t become unforeseen and costly surprises.