What is a Home Warranty and How Does it Work?

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When it comes to buying a home, most people understand the importance of having homeowner’s insurance, but few people are actually familiar with a home warranty and how it works.

The simple answer is:  A home warranty is a yearly service contract that protects specific home systems and appliances.

Your home’s systems and appliances will inevitably break down over time. A home warranty provides you with some protection when those systems and appliances eventually stop working. Many first-time homebuyers find a home warranty to be an extra layer of protection when extra funds are in short supply during those first few years of homeownership.

How does a home warranty work?

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