A warranty protects you from unexpected repair costs. The typical warranty plan usually costs between $300 and $400 for basic coverage.

Most warranty programs cover a pre-owned home's plumbing, electrical, heating and cooling systems, appliances, lighting fixtures, septic system, and more. Coverage typically lasts for one year from the date of your loan closing.

For a small deductible, usually $50 or $75 per occurrence, a service technician is called to repair the covered item and they are typically available with 24-hour, 7-day-a-week service. A warranty can save you a great deal of money spent for repair or replacement of your homes' major components.