Mortgage Glossary
Home Warranty
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A home warranty is a service contract that covers repair or replacement of major systems and appliances for a set period, separate from homeowners insurance.
What Home Warranty means
Unlike insurance, which covers damage from events, a warranty covers normal breakdowns of items like HVAC, plumbing, and appliances. Sellers sometimes offer one to reassure buyers of older homes. Coverage and exclusions vary by plan.
Florida example
A buyer of an older Lakeland home accepted a seller-paid home warranty, which covered the air conditioner when it failed three months after closing.
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