Quick Answer
A home warranty is different from title insurance or a home inspection — it is ongoing coverage for things like your HVAC system, water heater, or major appliances after you move in. Sellers sometimes offer one to reassure buyers, and coverage can usually be renewed afterward.
- Typical term
- One year, renewable
- Covers
- Major systems and appliances that fail from normal wear
- Who often pays
- Seller, as a concession, or buyer directly
- Not the same as
- Homeowners insurance or a home inspection
What a Home Warranty Actually Covers
Home warranty plans typically cover core systems like HVAC, plumbing, and electrical, along with major appliances such as the water heater, oven, or dishwasher, when they fail from normal wear and tear. Coverage tiers and exclusions vary by provider, so it is worth reading the contract before relying on it.
It is not a substitute for a thorough home inspection, which evaluates the current condition of the home rather than insuring against future breakdowns.
Why Sellers Often Offer One
Including a home warranty is a low-cost way for a seller to reassure a buyer who is nervous about an older furnace or water heater, and it can be a useful negotiating tool during offer discussions. Buyers can also purchase a plan directly if the seller does not include one.
Our agents can point you toward reputable providers and help you weigh whether a warranty makes sense for a particular home's age and systems.
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Frequently Asked Questions — Home warranty
Does a home warranty replace homeowners insurance?
No. Homeowners insurance covers major disasters like fire or storm damage; a home warranty covers mechanical breakdowns of systems and appliances.
Who pays for the home warranty?
Either the seller as a concession or the buyer directly; it is negotiable and often written into the purchase agreement.
Are all repairs automatically covered?
No, coverage depends on the plan's terms, and pre-existing conditions or certain components may be excluded.
Can I renew a home warranty after the first year?
Yes, most plans can be renewed annually for an additional premium.