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Home Warranty: Defined & Explained

Home Repairs

A home warranty protects a home buyer from costs associated with home repairs in their first year of ownership. For example, if the dishwasher breaks or if a pipe bursts, the warranty company will pay to fix or replace it. Read on for more details on what a home warranty covers and what it costs.


A home warranty will typically provide repair or replacement coverage for appliances, plumbing, electrical systems and other equipment in the home that may fail due to normal wear and tear. Additional coverage can be purchased to cover items like pool and spa equipment.


Warranty coverage is purchased a year in advance. The premium is paid at closing and the buyer can renew it annually if they choose. The home warranty may be paid by the buyer or seller (depending on local customs) and is usually fairly inexpensive – often less than $500.

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