What is the purpose of a home warranty?

A home warranty is designed primarily to cover repair and replacement costs for home system failures. This includes major systems such as plumbing, electrical, heating, and cooling systems, as well as appliances in the home. It provides peace of mind to homeowners by helping to mitigate unexpected expenses that may arise due to mechanical breakdowns or failures of covered items.

In contrast, the other options address different aspects of real estate transactions but do not align with the fundamental purpose of a home warranty. While assisting in closing transactions, providing homeowners insurance, or securing financing are important elements in the home-buying process, they serve distinct roles that do not encompass the protective assurance offered by a home warranty. Therefore, the answer focuses on the specific protection and service a home warranty provides to homeowners.