While home warranties aren't necessary for every homeowner, those who will benefit most are those trying to buy or sell houses.
Home warranties cover malfunctions of major appliances.
When you buy a home, you take on the burden of maintaining a variety of systems and appliances and their idiosyncrasies. Sellers are required to disclose known problems but can't be blamed for passing along a washing machine that conks out six months after the sale, or a seemingly healthy oven that's headed for an untimely death. That's when a home warranty goes to work. Generally, home warranties cover malfunctions of major appliances such as washers, dryers, ovens, and refrigerators, as well as ductwork, plumbing, electrical, heating, and air-conditioning systems. The National Board of Realtors describes home warranties as service contracts, typically lasting one year, that cover the repair or replacement of major home systems and appliances that break down due to normal wear and tear.