For many homeowners, surprise repairs are part of the job. But with the right home warranty plan, you can protect your budget—and your peace of mind. This beginner-friendly guide breaks down what home warranties are, how they work, and why homeowners should consider them.

What Is a Home Warranty?
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances due to normal wear and tear. It’s not the same as homeowners insurance, which covers damages from fire, storms, or theft.

What Do Home Warranty Plans Cover?
Coverage varies by provider, but most plans include:

HVAC (heating and cooling systems)

Plumbing systems

Electrical systems

Water heaters

Kitchen appliances (refrigerator, oven, dishwasher)

Washer and dryer

Optional add-ons may include pool equipment, roof leaks, or septic systems.

How Do They Work?
You pay a monthly or annual fee.

When something breaks, you pay a service fee (usually $75–$125).

The warranty company sends a contractor to diagnose and repair the issue.

Why Homeowners Should Consider One
Peace of mind: Helps avoid large, unexpected repair bills.

Convenience: One call gets you a licensed service technician.

Budget control: Flat monthly costs vs. surprise expenses.

Conclusion
A home warranty isn’t a luxury—it’s a smart investment for many homeowners. If your appliances or systems are aging, or you just want financial predictability, a home warranty plan can offer valuable protection.