The Role of Home Warranty Policies: What Buyers Should Know in Maryland

By klrw460 February 19, 2024

In today’s competitive real estate market, the inclusion of a home warranty has become a key selling point for many properties. As a buyer or homeowner in Maryland, understanding the ins and outs of home warranties is pivotal in making informed decisions about property investments. Home warranties, often confused with homeowners’ insurance, play a unique role in protecting homeowners from unexpected expenses related to the wear and tear of home systems and appliances. 

What exactly is a Home Warranty?

Let’s begin with the basics: a home warranty is a service contract that covers the repair or replacement of major home systems and appliances including HVAC systems, plumbing, electrical systems, kitchen appliances, and more. It’s distinct from homeowner’s insurance, which typically covers damages due to perils like fire, theft, or natural disasters. Home warranties specifically focus on the wear and tear of systems and appliances over time. Common exclusions include pre-existing conditions, inadequate maintenance, and certain types of repairs or replacements are not covered in a home warranty.

 The two types of home warranties we’re going to cover are:

   1. Home service contracts:

Home service contracts, often termed home warranties, operate similarly to insurance policies. They typically cover systems like electrical, plumbing, heating, cooling, and appliances

   2. New home construction warranties:

New home construction warranties are guarantees provided by builders to protect against specific defects.

In Maryland, new home construction warranties follow a structured timeline:

  • One-Year Coverage: During the first year, the warranty ensures the home is free from defects in materials or workmanship.
  • Two-Year Coverage: Extending to two years, this phase specifically covers defects in electrical, plumbing, heating, cooling, ventilating, and mechanical systems.
  • Five-Year Coverage: The most extensive coverage extends up to five years, focusing on major structural defects.

Pros and Cons of Home Warranties:


  • Financial Protection: Home warranties offer financial protection by covering the cost of repairing or replacing major home systems and appliances.
  • Peace of Mind: Knowing that potential repair costs are mitigated can provide homeowners with peace of mind, especially during the initial years of homeownership.
  • Convenience: Home warranties often come with a network of pre-screened service professionals, streamlining the repair process and saving homeowners the hassle of finding reliable contractors.


  • Coverage Limitations: Home warranties have limitations and exclusions, and not all repairs or replacements are covered.
  • Service Fees: Depending on the warranty, homeowners might have to pay service fees for each repair visit.
  • Overlap with Manufacturer Warranties: Some appliances or systems may already be covered by manufacturer warranties, leading to potential redundancy in coverage.

In conclusion, home warranties emerge as invaluable safeguards for homeowners and prospective buyers in Maryland, acting as a protective shield against unexpected repair costs. To navigate this landscape wisely, it’s essential to grasp the coverage, limitations, and associated costs of these warranties. Making an informed decision hinges on understanding whether a home warranty aligns with specific needs and preferences.

Ready to secure your home’s future and shield your finances from unforeseen repairs? Look no further than Keller Williams Preferred Properties (KWPP). Our team is dedicated to providing you with a seamless home warranty experience. Visit our website at to schedule an appointment or gather more information. For personalized assistance, feel free to give us a call at 240-737-5000. 

Take the proactive step today and ensure your home is protected with KWPP – because peace of mind starts with a reliable home warranty.