A home warranty is an annual service contract that covers the repair or replacement of important appliances and systems components that break down over time.

Home Warranty Cost. For basic home warranty coverage, plans average from $350 to $600 per year. For extended coverage, warranties add an additional $100 to $500 per year, depending on the number and types of items added.

Coverage varies depending on where you live. Items available for coverage typically include: central air conditioning systems, central heating systems, kitchen appliances, clothes washer and dryer, plumbing system, electrical system and roof leaks. Many of these items are included in the standard plan of the warranty.

Now, whether the seller pays for the home protection plan and home warranty coverage or whether the buyer pays for it, will depend on your local customs. It varies. In many locales, it's normal for a seller to pay for the coverage because it's a seller benefit.

A home warranty, in comparison, will cover repairs and replacements on systems and appliances due to normal wear and tear—no calamities required. A home warranty generally covers these items: Electrical systems. ... Kitchen appliances such as the oven, range, and garbage disposal.

All new air conditioning units come with a manufacturer warranty. The length of the warranty varies from manufacturer to manufacturer, usually ranging from 5 to 15 years, while 10 years is the most common.

Your home protection plan will cover repairs or replacements of covered items regardless of age, make, or model. A home inspection is not required prior to purchasing a warranty. Good ideas, home warranty plan is a one year service contract that is renewable annually.

Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.

Homeowners insurance may cover a roof leak if the leak is caused by a covered peril. ... In those cases, your homeowners policy may help pay to repair the roof leak (unless your policy has wind or hail exclusion). However, homeowners insurance generally does not cover damage resulting from wear and tear.