A home warranty is a service contract that covers the cost of maintaining household systems and appliances. Unlike homeowner's insurance—which covers damage from events like fires or storms—a home warranty covers items that fail due to normal wear and tear, such as your HVAC, plumbing, electrical systems, and kitchen appliances.

For home buyers, a warranty provides peace of mind during your first year of ownership. For sellers, offering one can make your listing more attractive and reduce post-sale liability.