Definition for: Home Warranty
The term "home warranty" can denote an agreement between a home buyer and home seller as to the condition of the home and the circumstances under which the seller will be obligated to reimburse the buyer for repair expenses. A home warranty is also a type of insurance product, generally sold through specialized home warranty companies, that covers repairs to, or replacement of, major appliances or systems--such as heating / cooling systems, electrical systems, or plumbing--within a home. Under the warranty, coverage extends only if the loss is not due to negligence or lack of maintenance, and other exclusions typically apply as well.
