A home warranty is a service contract that helps cover the repair or replacement of major home systems and appliances—such as HVAC, plumbing, electrical, water heaters, and kitchen appliances—due to normal wear and tear. While it’s not the same as homeowners insurance, a home warranty can provide peace of mind by helping reduce unexpected out-of-pocket expenses, especially during the first year of ownership. Coverage varies by provider and plan, so reviewing the brochures and asking questions about what’s included (and excluded) is always encouraged.