What is the purpose of a home warranty?

The purpose of a home warranty is to provide coverage for unexpected repairs after a home purchase. This is particularly beneficial for new homeowners who may encounter issues with major systems or appliances shortly after moving in. A home warranty typically covers repairs or replacements for key components such as plumbing, electrical systems, heating, and air conditioning, allowing homeowners to avoid significant out-of-pocket expenses. This peace of mind can make the transition to homeownership much smoother, as it helps mitigate the financial risks associated with unforeseen repairs.