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Simply put, a home warranty is a yearly service contract that protects specific home systems and appliances. ... If you purchased a home warranty that includes coverage for your dishwasher, the home warranty can cover its repair or replacement.

Why homeowners need a home warranty

If you’re a current homeowner, ask yourself, when was the last time you had an appliance, heating system, or air conditioner break down? If you’re like many homeowners, the answer will be either: last year, this year, or maybe just last week.

You know home systems and appliances will eventually break down. A home warranty provides a layer of protection against the inevitable wear and tear of the covered home systems and appliances you are using every day.

First-time homeowners also benefit from home warranty coverage. Extra funds are often in short supply during the first few years of homeownership. Surprise out-of-pocket expenses can potentially derail dreams of improving or updating a newly purchased home.