Home warranty plans may cover items such as heating and cooling systems, plumbing, electrical components, and household appliances. Some providers offer optional coverage for items like pools or additional equipment.

Review the coverage limits, exclusions, service fees, and conditions that apply before choosing a plan.

Compare more than the annual price. Check which items are covered, how much the company will pay toward repairs or replacements, and whether additional fees apply when you request service.

Ask whether you can choose your own contractor or must use one from the provider’s network. Coverage terms and service arrangements vary by company.

A home warranty and homeowners insurance serve different purposes. A home warranty may cover specified systems or appliances that fail due to normal wear and tear, subject to the contract. Homeowners insurance generally covers certain losses caused by covered events, subject to the policy’s terms, exclusions, and deductible.

For more information about preparing for closing, see our Mortgage Loan Process guide.

A home warranty is optional and may be purchased at different times, depending on the provider’s requirements. Some buyers arrange coverage as part of the home purchase, and a seller may agree to pay for it as part of the transaction.

If you’re considering a warranty before closing, ask your real estate agent or title company how it will be arranged, who will pay, when coverage begins, and how the agreement will be documented.

If you’re still evaluating a property, our Home Inspection guide explains how an inspection can help you better understand the home’s condition.

Before requesting repairs, contact the home warranty provider and follow its claim process. The company may arrange for a service contractor to assess the problem and determine whether it qualifies for coverage.

You may be responsible for a service-call fee, and the provider may deny coverage for items excluded by the contract or for conditions that do not meet its requirements. Review the claim process and coverage limits so you understand potential out-of-pocket costs before authorizing repairs.

Read the full service contract before purchasing, and compare the coverage, exclusions, fees, and claim procedures. A home warranty may help with certain unexpected repair costs, but it does not guarantee that every repair or replacement will be covered.