A home warranty is a service contract that helps cover the repair or replacement costs of major home systems and appliances. This can include items like heating systems, air conditioning units, plumbing, and kitchen appliances. Home warranties are designed to provide homeowners with peace of mind, especially when unexpected breakdowns occur. Typically, homeowners pay an annual fee for the warranty, which may also involve a service call fee when repairs are needed. It's important to read the terms carefully, as coverage can vary significantly between different warranty providers and plans.