Home warranty is normally purchased by the seller for the buyer covering a year after close of escrow.

It covers most interior problems that is not covered by the homeowner insurance policy including electrical, plumbing, A/C, water heater, pool and spa equipment depending on the type of coverage purchased.

If not sure about the coverage, it is always a good idea to call the home warranty company to find out if that particular defect is covered. Here's how it works:

1. If a home system or appliance breaks or stops working, the home owner calls the home warranty company.

2. The home warranty company calls a provider with which it has a business arrangement.

3. The specific provider calls the home owner to make an appointment.

4. The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.

5. The home owner pays a small trade service fee about $50 to $60.

Home warranty provides a peace of mind especially for the first-time home buyer with no experience maintaining a home. It will help take out the headache of finding the right contractor and get the problem fixed by licensed professionals promptly.