What is a Home Owner's Warranty (HOW)?

A Home Owner's Warranty (HOW) specifically pertains to the coverage of defects that may arise in new homes. This warranty typically protects homeowners against certain types of defects in materials or workmanship, such as issues with plumbing, electrical systems, and structural problems.

This type of warranty is designed to provide assurance to new home buyers that if problems arise shortly after purchasing the home, they may be covered under this warranty. Generally, HOWs are issued for a defined period (often 1 year), and they can help protect homeowners from unexpected repair costs, thereby offering peace of mind.

The other choices do not accurately represent the primary function of a Home Owner's Warranty. For instance, while a guarantee for all property types may seem broad, it inaccurately attributes the warranty's coverage since it specifically applies to new construction rather than all properties. Similarly, a certification of property value does not describe a warranty but rather reflects an assessment or appraisal, which is unrelated to the concept of guaranteeing home repairs. Lastly, while certain disclosures and conditions are legally required for home sales, a Home Owner's Warranty itself is not mandated by law but is often offered as an optional protection plan by builders or sellers.