A few years ago, Jacqueline and Jonathan Sanchez’s furnace kept shutting off. So they called the company that provided their home warranty contract and an HVAC technician came out to troubleshoot. 

Turns out, it was a simple fix: A dusty sensor needed cleaning.

Thanks to their home warranty, the Bellevue, Nebraska couple with two “lively ” kids, only had to pay $100 out of pocket to get their furnace running again. 

“A home warranty helps protect a homeowner from major home system and appliance repair and replacement costs,” explains Tim Meenan, executive director and general counsel for the Service Contract Industry Council in Tallahassee, Florida. He says a typical warranty covers heating, air conditioning, electrical, plumbing systems, and major appliances such as washing machines, dryers, and refrigerators.

If you’re in the market to buy a home, it’s common for sellers to include a one-year home warranty to seal the deal.