What is a home warranty?

A home warranty is essentially a service contract designed to provide homeowners with peace of mind regarding the maintenance and functionality of their home's systems and appliances. It typically covers items such as heating systems, electrical systems, plumbing, kitchen appliances, and more. When a covered item breaks down due to normal wear and tear, the homeowner can request repair or replacement services, often at little to no additional cost beyond the warranty fees.

In contrast, other options presented do not define what a home warranty is. For instance, a legal document demonstrating ownership pertains more to titles and deeds rather than service contracts. A financial guarantee for selling properties is more relevant to sales transactions rather than ongoing maintenance. Meanwhile, home insurance policies focus primarily on protecting against damages and losses due to unforeseen events like fire or theft, rather than offering coverage for repair or replacement of existing systems and appliances. Thus, identifying a home warranty as a service contract that covers repairs or replacements accurately captures its purpose and function.