What is a Home Warranty?

A home warranty can be a buyer’s best friend - but what is it, and how does it work? Here’s what you need to know.

What is a Home Warranty?

A home warranty is a sort of insurance policy that you pay for. It’s a policy that covers the cost of repairing many home appliances when something goes wrong - but every policy is different, and each has its own coverage limits.

Having a home warranty can be a life-saver when you’re a brand-new homeowner and one of your house’s major systems goes out - like the HVAC or the refrigerator. When you have a warranty, you call the warranty company to schedule time for them to send a technician out, you pay the technician’s fee, and your stuff gets fixed. (Magical, right?)

Home warranties don’t cover everything, though. And again, each policy is different.

What Does a Home Warranty Cover?

For the most part, your home warranty will cover things like:

  • Electrical systems

  • Heating and cooling systems

  • Kitchen appliances

  • Plumbing systems

  • Washers and dryers

Some policies have exceptions, though, so it’s best to ask all about the coverage when you’re calling warranty companies to get quotes.

Isn’t a Home Warranty the Same Thing as Homeowners Insurance?

A home warranty is very different from a homeowners insurance policy. Homeowners insurance only covers your home’s structure and the things in it if there’s an accident or disaster - it doesn’t cover repairs and replacements on systems and appliances.

How Much Do Home Warranties Cost?

Home warranties typically range between a few hundred dollars and up to $700 or $800 for the year, but there’s plenty of variation in that. In many policies, you can add “extras,” like coverage for your pool or other systems that isn’t always included in a basic policy.

Are You Buying or Selling a Home in Lakewood or Long Beach?


If you’re buying or selling a home in Lakewood or Long Beach, we can help. Call us at 562-882-1581 to find out how!


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