In real estate transactions, Home Warranty Insurance is a private insurance policy that protects a buyer against certain defects or failures in a home after purchase. Coverage typically includes major systems such as plumbing, electrical, and heating, and may extend to other appliances depending on the policy.
Home warranty insurance is often offered as part of a real estate sale to provide buyers with peace of mind during the first year of ownership. It differs from homeowners’ insurance, as it covers mechanical or system failures rather than damage caused by hazards or disasters.
