Home Warranty 101: Separating Fact from Fiction

In the legal sense a warranty of any kind within the United States must adhere to guidelines set at the state and federal governments levels. A home warranty is a contract that agrees to provide discounted repair and replacement services.

 
The words “home warranty” are not always used explicitly to mean a legal warranty is being conveyed. In many cases, a home warranty is not a warranty at all, but rather a home service contract that covers the repair and/or replacement cost of home appliances, heating and cooling systems, and possibly other components of a home.