A home warranty is a type of service contract that covers the repair or replacement of specified household appliances if they break down due to normal wear and tear.

What is a home warranty?

In most cases, the home warranty is paid for by the seller and used to cover the buyer for about a year after closing.

Sellers often offer the home warranty as an incentive to buyers because it adds value to their home.

A typical policy costs around $350.

There are several different types of home warranties and they can vary considerably. Some may have a waiting period while others may charge a set fee for each claim. There are home warranties that offer seven days a week, 24 hour service.

Before you agree to a home warranty, make sure to read over the contract and completely understand how your policy works.

For many of us, enduring through a Texas summer without a working air conditioner is not an option.

On the other hand, sellers can also purchase a short term “seller’s warranty” to cover them during the sale process. Such policies usually last about six months as opposed to one purchased for the buyer, which typically lasts a year.


A home warranty is not the same thing as a maintenance plan or homeowner’s insurance.

The benefits of a home warranty are pretty straight forward. It covers the replacement of expensive appliances that might otherwise cost a new homeowner to miss a mortgage payment or even face foreclosure.

But, it should be noted that the Texas Real Estate Commission (TREC) guidelines stipulate that the warranty cannot be used to cover items that are damaged as a result of the breakdown of covered items.

If the dishwasher overflows and damages the flooring, the dishwasher would be covered by the home warranty, but the flooring will not.

The flooring would need to be claimed under the homeowner’s insurance policy.

Commonly covered appliances and systems include:

  • Heating and Air Conditioning
  • Ductwork
  • Door Bells
  • Plumbing Systems
  • Ovens/range/cook-top
  • Dishwasher
  • Water Heater
  • Exhaust Fans
  • Garbage Disposal
  • Ceiling Fans
  • Septic Tank pumps
  • Roof/Leak Repair
  • Stand alone Freezer
  • Refrigerator
  • Washer and or Dryer
  • Pool and Spa
  • Garage Door Systems