Throughout the process of becoming a homeowner, you will probably be exposed to a lot of terms, products and services related to your home that you may not have any prior experience with. One of the most popular ones that raise questions about is a home warranty. Sometimes, this can be confused or interchanged with homeowners insurance but in fact, both are two separate products that are very important in their own ways.

For those that find yourself asking,  “what is a home warranty is when buying a house?”…

Keep on reading because we’re going to lay out what it is and why it can be extremely beneficial.

What is a home warranty and how is it different from homeowners insurance?

  • Much like a warranty that you get with a new car, a home warranty is a service agreement that provides financial and repairs coverage for essential appliances and home systems that may break down over time from normal wear and tear. This is much different than a homeowners insurance policy, which pays for home damages that are caused by covered perils such as fire, flood and other storm damages.

What is covered under a home warranty?

  • While the coverage varies depending on location and company but a basic home warranty will typically cover: central air conditioning systems, central heating systems, kitchen appliances, washer and dryer, plumbing system, electrical and roof leaks. Other items may be covered under different types of plans. If you need extra items covered like a second refrigerator or pool, optional coverage add-ons are available.

What is covered under a home warranty?

Isn’t it the same thing as a manufacturer warranty?

  • While these are similar, a manufacturer’s warranty will typically only cover failed parts and systems but not the labor required for the repairs or installation after the first year. Knowing that your appliances and home systems are covered for parts and labor can provide peace of mind, especially since labor can be very expensive.

Is it worth it?

  • Whether you are a first-time home buyer or an experienced homeowner, a home warranty is definitely worth purchasing, especially if the appliances and systems are outside of their original manufacturer’s warranty. The costs of moving into a new home can be extremely high and the last thing that you budgeted for is repairs on broken appliances or key systems in your home. Well, by purchasing a home warranty you will be covered in the unfortunate event of any unexpected breakdowns.

Buying a new home can be an extremely stressful time in your life due to the amount of money, steps in the process and the unexpected potential problems that could arise. However, utilizing a home warranty can help put your mind at ease knowing that your home is protected. Another way to help ease the stresses of finding and buying a new home is to work with a real estate agent in McCormick Ranch that years of success and experience.

I am proud to serve those looking to buy or sell their home in the Phoenix, Scottsdale or Paradise Valley areas. With nearly 20 years of experience in the East Valley, I have established myself as one of the top agents in the country and would love the opportunity to work with you as you find your dream home. To learn more and to start your search today, visit