Buyers and sellers have the option of including a home warranty into the contract when a home is being sold and purchased. 

Typically, when my buyers purchase a home, I give them the gift of a one-year home warranty policy as a gesture of goodwill and to help them deal with unforeseen challenges in that first year of ownership. 

Every policy and set of coverages is different, and so much depends on the assessment of the service provider—typically a third-party repair person—on each particular service call. Based on the policy coverage, and for a relatively reasonable, flat service fee, a technician will diagnose and/or address the problem at hand, which may cost less than hiring a standalone company to help. 

My buyers have typically utilized their home warranty policy to re-key their locks, address plumbing issues, and repair or replace appliances. Some investors have used their home warranty services to maintain their investment properties. Sometimes buyers don’t use the policy at all and don’t renew the policy. It’s like a health insurance policy: sometimes you use it a little, and sometimes a lot.