There is no telling when home appliances will malfunction, or systems will unexpectedly falter. This makes having a safety net for these appliances a necessity. This is where home warranty plans come into play. These plans are designed to provide financial security to homeowners. They offer a buffer against the inevitable wear and tear on property. The average coverage cost of the home warranty plans can amount to $250 to $600 annually. What is a home warranty? A home warranty is a contract of residential services that covers the cost of maintaining appliances and household items for a specific period of time. It is important to note that a home warranty plan or home appliance warranty plan is different from a homeowner’s insurance or structural warranty plan. It is often advised to buy a home warranty plan when purchasing an old property, especially when there is little information available about the appliances. How does it work? As the name suggests, a home appliance warranty covers damaged appliances and system repairs. The warranty company works with a network of home service providers. Once a claim has been received, the warranty company sends one of the providers to assess the damage. This partner provides a report to the company.