A home warranty is something homeowners purchase to protect themselves against expensive repairs that come with owning a home. Home warranties are an agreement made with a warranty company for discounted repairs of major home components. While home warranties are commonly mistaken for homeowners insurance, the two things are very different. Homeowners’ insurance protects against major disasters such as fires, water damage, and property crime. Home warranties cover major components of a home including HVAC, plumbing, and furnace. Some warranties also include appliances like washers and dryers and refrigerators. When a homeowner with a warranty decides their home needs a repair, they contact the home warranty company. The home warranty company will send a representative to evaluate the item and decide what is needed for it to be fixed. The warranty company will then send a professional to complete the repairs. The homeowner pays a small service fee for the warranty company representative to come to visit the home, and the warranty covers the rest of the repair costs.