Home Warranty
A service contract that covers repair or replacement of home systems and appliances for a yearly fee.
In plain English
A home warranty is a paid annual service plan covering the repair or replacement of major systems and appliances (like HVAC, water heaters, or ovens) that fail from normal wear — distinct from homeowners insurance, which covers sudden damage or disasters.
Sellers sometimes offer a home warranty as an incentive — it can provide useful peace of mind in your first year, though coverage exclusions are worth reading carefully.
Where you'll run into it
Guides and tools on TheBuyingPath that cover home warranty in context.
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