What is the purpose of a home warranty for buyers?

A home warranty serves a crucial role for buyers by covering the repair or replacement of major systems and appliances within a home, such as the HVAC system, plumbing, electrical systems, and kitchen appliances. This is particularly beneficial for new homeowners who may face unexpected costs associated with repairs shortly after moving into their new property.

Home warranties can provide peace of mind, ensuring buyers that if something fails within the covered systems, they will have support to handle the financial burden. This protection can be especially useful for older homes, where the likelihood of systems needing repairs or replacement can be higher.

In contrast, other options do not accurately reflect the primary function of a home warranty. Legal protection for real estate transactions may refer to title insurance or legal agreements, insurance against mortgage default pertains to financial institutions ensuring their investment, and guaranteeing a property's market value relates to appraisals rather than warranties. Thus, the coverage of repair or replacement of major systems encapsulates the true essence of what a home warranty is meant to provide for buyers.