Home warranty contracts cover mechanical systems such as plumbing, heating, electrical, water heater, and most built-in appliances. Structural components are typically not covered. Some policies cover garage door openers and roof repairs up to a specified limit. Contracts normally run for a year, but they may be extended at the owner's option for a renewal fee. If the protection plan is ordered at the time a home is purchased, inspections are usually not required.
Sellers can protect their mechanical systems while selling their home for less than a dollar a day.
There is usually a waiting period after the application is submitted before the policy goes into effect and an inspection may be required. Additional coverage is available for an extra charge for a pool, spa, air conditioning, and free-standing appliances, such as refrigerator, washer, and dryer. Limited roof leak coverage is also available. A number of different companies offer home warranty plans. Regardless of who pays for the policy, the buyers should review sample contracts from various companies and select one of their choice.