Many people confuse home insurance with home warranty, and also think that warranties are something which is included in the home insurance. But this is just a misconception since warranties are taken to insurance your appliances and protect against repairs and replacements if need, while a home insurance is taken for the entire home, but which does not cover appliances.

Warranty in layman terms can be explained as a guarantee which is issued to any person on purchase of products or for services rendered, which promises to repair or reduce the cost of repairs. Normally certain repairs and services for any product which are covered under warranty are free of cost, or may be carried out at reduced prices.