Insurance
Home Warranty
A service contract that covers the repair or replacement of major home systems and appliances, such as HVAC, plumbing, electrical, and kitchen appliances, for a set period, usually one year. Home warranties cost $300 to $600 per year and are different from homeowners insurance, which covers damage from events like fire or storms. Sellers sometimes offer a home warranty as a selling incentive, and buyers can purchase one for added peace of mind.
Why It Matters
Home Warranty is part of the safety net that protects your investment in a home. While insurance adds to your monthly costs, going without adequate coverage puts your finances at serious risk.
Review your insurance needs carefully before and after closing. Understanding what home warranty covers and what it does not helps you make smart decisions about the level of protection you need.