What Does a 1-Year Home Warranty Cover?

Buying a home is one of the biggest investments you’ll ever make, and protecting it is just as important. That’s where a 1-year home warranty comes in. Whether you’re a first-time buyer or a seasoned homeowner, this type of coverage provides peace of mind by protecting against unexpected repair costs for your home’s major systems and appliances.

But what does a 1-year home warranty actually cover? And, how does it work when you’re buying a house? Let’s explore everything you need to know before signing up.

What Is a 1-Year Home Warranty?

A 1-year home warranty is a service contract that helps cover the cost of repairing or replacing key home systems and appliances when they break down due to normal wear and tear. It’s not the same as homeowners insurance. Insurance covers damage from unexpected events like fire, theft, or weather, while a home warranty protects the things you use every day.

Most plans last for 12 months, but they can usually be renewed annually. Home warranties are especially popular during real estate transactions because they can make a home more appealing to buyers and provide assurance after closing.

What’s Typically Covered

While exact coverage varies depending on your provider and plan level, most 1-year home warranties include:

Major Home Systems

Your home’s essential systems keep everything running smoothly, but repairs can be costly. A typical plan covers:

• HVAC systems: Heating, air conditioning, and ductwork
• Plumbing systems: Leaks, clogs, toilets, and water lines
• Electrical systems: Wiring, outlets, and circuit breakers
• Water heaters and garage door openers

2. Major Appliances

A warranty can also protect your most-used household appliances, like refrigerators, dishwashers, ovens and ranges, washers and dryers, built-in microwaves and garbage disposals. When one of these appliances fails due to normal wear, your warranty company may send a qualified technician to assess and repair the issue.

Optional Add-Ons for a 1-Year Home Warranty

Many companies, including Liberty Home Guard, offer optional coverage add-ons so you can tailor your plan. Common add-ons include pool and spa equipment, septic systems, well pumps, stand-alone freezers, roof leak repair, and additional appliances or second HVAC systems. These upgrades make your plan more comprehensive and allow you to protect features unique to your home.

How a 1-Year Home Warranty Works

Understanding how a home warranty works helps you get the most out of your plan. Here’s a step-by-step overview:

1. File a claim: When a covered item breaks, you contact your warranty provider.
2. Service request: The company schedules a licensed technician to visit your home.
3. Repair or replacement: The technician diagnoses the issue and either repairs or replaces the covered item.
4. Service fee payment: You pay a small service fee (like a copay) for each claim visit.

This process makes unexpected repairs simple, fast, and budget-friendly—especially compared to paying full price for replacements.

1-Year Home Warranty When Buying a House

One of the most common times homeowners consider a 1-year home warranty is during the home-buying process. Here’s why:

Protection for Buyers

After closing, it’s common for buyers to discover small issues that weren’t apparent during the inspection. A 1-year home warranty provides protection for these surprises, helping new owners avoid large, out-of-pocket repair costs.

Confidence for Sellers

Sellers often include a 1-year home warranty when selling a house to make their property more attractive. This assurance can give buyers extra confidence and help homes sell faster.

Peace of Mind for Everyone

From HVAC issues in winter to appliance failures during move-in week, a warranty ensures help is just one call away. It bridges the gap between the unknowns of a pre-owned home and the comfort of knowing repairs are covered.

What’s Not Covered by a 1-Year Home Warranty

It’s important to understand what your warranty does not cover. Most plans exclude pre-existing conditions or known issues, cosmetic damage like dents or scratches, structural components (walls, windows, foundations),and misuse or neglect of covered items. Reading the contract carefully before you buy helps set clear expectations and avoids surprises later on.

How Much Does a 1-Year Home Warranty Cost?

The cost of a 1-year home warranty typically ranges from $400 to $700 per year, depending on the coverage level and add-ons you choose. You’ll also pay a service fee—usually between $60 and $125—each time a technician visits your home.

When you compare those costs to replacing a refrigerator or repairing a central air unit, the value becomes clear. A single repair could easily cost more than your entire yearly premium.

Benefits of Having a 1-Year Home Warranty

A well-chosen home warranty offers several key benefits:

• Budget protection: Avoid large, unexpected repair bills.
• Convenience: Access to vetted, licensed service professionals.
• Peace of mind: Know your home systems are covered.
• Ease of use: One call handles scheduling, service, and payments.
• Increased home value: Great selling point if you list your home later.

Choosing the Right Home Warranty Provider

Not all warranties are the same. When comparing plans, look for a company that offers transparent coverage terms, fast and reliable service, flexible add-ons for custom coverage, positive customer reviews, and 24/7 claims support. 

At Liberty Home Guard, for instance, our goal is to simplify homeownership by offering personalized coverage plans and dedicated support every step of the way.

A 1-year home warranty is one of the smartest investments homeowners can make, especially when buying a new house. It provides a safety net against unexpected repair costs, saves time, and delivers peace of mind year-round.

Whether you’re protecting your own home or offering extra assurance to potential buyers, a home warranty is a simple, cost-effective way to safeguard your investment. Explore Liberty Home Guard’s award-winning home warranty plans today and discover how easy it is to protect your home’s most important systems and appliances. Visit our home warranty plans page to get started.