A home warranty helps reduce the cost of covered systems or appliances experiencing covered breakdowns. And because buying a home comes with a long list of costs—like a down payment, homeowners insurance, property taxes, and moving expenses—adding unexpected repair costs can be a hassle. That’s where a home warranty from 2-10 Home Buyers Warranty (2-10) can make a meaningful difference.
In this article, we’ll walk through why a home warranty matters, what a home warranty covers when you buy a house, and a few common myths that can get in the way of making the right choice.
Why Does a Home Warranty Matter?
When a major system or appliance breaks down, it can be costly. A home warranty can help reduce the costs when these important systems and appliances experience covered breakdowns. For buyers already managing closing costs and move-in expenses, this kind of protection can make all the difference. It’s a practical way to stay prepared and a smart step toward protecting your home.
What Does a Home Warranty Cover When You Buy a House?
While coverage may vary by provider and plan, most home buyer warranty plans include major systems and appliances that are essential to daily living. These can include:
- Kitchen appliances (e.g., refrigerator, range, oven, built-in microwave)
This kind of coverage helps reduce out-of-pocket costs when these items break down after move in.
It’s important to note that what is covered in a home buyer warranty depends on the provider and the selected plan. Some warranties offer optional coverage for items like garage door openers, pool equipment, and even roof leaks. With 2-10 Home Buyers Warranty, buyers can select from a range of plans designed to fit their specific home and budget needs.
How Can a Home Warranty Benefit First-Time Buyers?
Owning a home for the first time comes with a lot to learn—and often, a few surprises along the way. A home warranty on a house purchase can offer an extra layer of protection when unexpected breakdowns happen—especially if the previous homeowner’s systems or appliances are already aging.
Here’s a common scenario: A buyer moves into a home with a 25-year-old HVAC system. Within two months, the system stops working. Without a warranty, this repair or replacement could cost thousands*. With a home warranty in place, the issue may be resolved by paying just a service fee, depending on plan coverage.
How a Home Warranty Helps in Today’s Market
Home buyers today are navigating a tough and costly market, which means your hard-earned money deserves even better protection. Here are just a few issues homebuyers are up against:
- U.S. housing inventory remains tight, making the competition fierce. Though some regions have seen more listings, affordability challenges persist, keeping buyers under pressure (Investopia, July 2025)
- Down payments have climbed significantly. As of January 2025, the median down payment was about $54,310, representing roughly 15% of the home’s median sale price of $362,000 (Bankrate, April 2025)
That’s already a substantial financial commitment—even before factoring in closing costs, moving, furnishings, property taxes, and ongoing expenses.
A major appliance or system failure right after closing can strain your budget even further. For most buyers, a home warranty on a house purchase provides critical financial relief—and peace of mind—when something breaks down after moving in.
Do Homeowners Insurance and Home Warranties Offer the Same Coverage?
No. It’s a common misconception to assume that homeowners insurance and a home warranty are the same. In fact, they cover completely different risks:
- Homeowners insurance covers damage from events like fire, theft, or storms.
- A home warranty covers breakdowns from normal wear and tear on covered systems and appliances.
This makes home warranties an excellent complement to insurance—especially for those asking, "What is covered in a home buyer warranty?" The answer: unexpected, expensive covered breakdowns caused by routine wear and tear.
What Should Buyers Know About Coverage Limits and Exclusions?
All home warranty companies include terms, conditions, and coverage caps in their Plan Agreements. It's important to review:
- Coverage limits by system/appliance
- Whether maintenance history affects eligibility
- Any exclusions (e.g., cosmetic defects)
Note that routine maintenance is the best way to get the most out of your home warranty. Additionally, all home warranty companies have dollar limits on coverage. With 2-10, homeowners receive a clear, detailed agreement outlining exactly what’s included and excluded—so there are no surprises.
Is a Home Warranty Only for Newly Built Homes?
Not at all. In fact, homes with aging systems or appliances are more likely to benefit from warranty protection, which can help reduce unexpected repair costs after closing.
Some sellers may even include a home warranty on a house purchase as a value-add during negotiations, making the offer more attractive to buyers.
Key Takeaways: What is Covered in a Home Buyer Warranty?
Buying a home is a big deal—and so is protecting it. But with the right coverage in place, unexpected breakdowns don’t have to disrupt your budget or peace of mind. Here’s what to remember:
- Home warranties offer coverage that helps reduce the cost of covered system and appliance breakdowns caused by routine wear and tear.
- Commonly covered items include HVAC systems, plumbing, water heaters, and essential appliances—with optional add-ons like roof-leak repair protection.
- Home warranties and homeowners insurance cover different risks; having both gives you more complete protection.
- Reviewing your Plan Agreement and choosing coverage that fits your home’s needs are the best ways to stay prepared and protected.
*Repair/replacement cost is the eightieth percentile as reported in a nationwide survey of homeowners conducted in 2024 by ClearVantage for Frontdoor, Inc.
