what is a home warranty?

I am embarrassed to admit that I was not informed on home warranties until a few years back----what I have found is that I'm not the only one who has just ignored them and moved on.  So, here is the scoop---They are very beneficial for a home that is not new, keep in mind that new construction has the builders warranty for up to 2 years.   However, when purchasing a resale one issue crossing buyers minds is---how old is the A/C?  the water heater?  the appliances?  and when will they break and cost me an arm and a leg?   Good questions and the fact is they will break at some time during the life of the home.   Home warranties are for that situation!  You pay for home warranties by the year, usually around $350-400.   They have core coverages, advanced coverages, pool and spa coverages etc.  You pay a service fee when trades come out, usually about $60, and your home warranty pays for the repair/replacement.  There are so many home warranty companies to choose from --- you can go to www.homeservicecontract.org/Texas to get a list to ck out.    Here is the take-away---this is insurance for breakdowns in your home---look into it---can save you a bundle!!