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Home warranty: what it means

A home warranty is a contract with a company that promises to repair or replace parts of the home's systems, such as plumbing, electrical or air conditioning, and certain appliances. It covers wear and tear, deterioration and defects that existed when you bought or leased the home.

In Spanish it is

Garantía de la casa (home warranty)

Also written as: home protection contract · home service contract

Verified on October 17, 2026

1 official source

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The full explanation

It is not homeowners insurance and does not replace it: insurance covers damage from major events, such as a wildfire. Every home warranty has exclusions and limits on what it pays. Sometimes one comes with the purchase of a home, paid for by the seller or agent, and you can choose the company. In California, the Department of Insurance regulates them.

An example

When she buys her home, Sofía gets a home warranty the seller paid for. When the water heater breaks, she checks the contract to see whether it is covered and whether there is a limit on what the company pays.

You will see it in…

Offers that come with the purchase of a home
Ads and letters offering you a protection plan for your home
The warranty contract and its list of exclusions

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “home warranty”

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

1. California Department of Insurance · Home Protection Contracts (external site) · in English · Verified on October 17, 2026