What Is a Home Warranty, and Why Do You Need One?

A home warranty is a renewable home service plan that offers discounted repair and replacement services for applicable household appliances and systems. Contracts and terms may vary, and coverage depends on the type of warranty you purchase. It does not provide the same coverage as homeowners insurance, which protects policyholders against damage to personal property and the home’s structure, such as fire damage or theft.
A home warranty can be an excellent option to protect your home investment. When coupled with a good homeowners insurance policy, you can have most of your bases covered. However, if you purchased a new home, many house systems are covered by manufacturer warranties.

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