A home warranty is something that either is or isn’t included in the purchase of your home. Often times, these warranties cover the major systems of the home such as plumbing, heating, and electrical systems. They also cover major appliances like the oven, stove, exhaust fans, garbage disposal, and refrigerator, if one is included. These are all things that aren’t typically covered in a normal home insurance policy, thus the appeal to buyers.
The warranty, often paid for by the seller, may benefit both seller and buyer. The seller may be able to quicken the sell of a home by offering a “guarantee” of sorts that the major systems in the home will continue to work or will be repaired if they fail. This potentially protects the seller from any legal action that could happen if a system malfunctions, especially within the first few months after purchase. For the buyer, the warranty offers peace of mind, especially if the appliances and major systems of the home are older and no longer covered under manufacturer warranties.