What is the purpose of a home warranty?

A home warranty is designed to provide coverage for the repair or replacement of specific systems and appliances within a home that may break down over time. This can include important components such as heating and cooling systems, electrical systems, plumbing, and major kitchen appliances. The main purpose of a home warranty is to protect homeowners from unexpected costs associated with repairs, offering peace of mind and financial relief in the event of system failures.

This coverage typically comes into play after the initial warranty period or as part of the sale of a home, and it can help bridge the gap for new homeowners who may not be familiar with the age and condition of the home's systems and appliances. This is especially useful as it allows homeowners to budget for maintenance and potential repairs, ensuring they are not caught off guard by sudden breakdowns.

The other options do not align with the fundamental purpose of a home warranty, which is specifically aimed at addressing the repair needs of home systems rather than concerns related to mortgage assistance, property valuation, or renovations.