Things break down.

Whether it’s your refrigerator, air conditioner, or water heater, unexpected breakdowns are simply a part of homeownership. But just because something stops working doesn’t mean your life—or your budget—has to stop with it. That’s where warranties come in.

If you’re looking to protect your home and your wallet, it’s important to understand the difference between a manufacturer’s warranty and a home warranty. Each offers benefits, but one may be better suited to your needs than the other.

What Is a Manufacturer’s Warranty?

A manufacturer’s warranty is provided by the original equipment manufacturer (OEM) and usually comes with your purchase at no additional cost. This type of warranty applies to a specific item—like a new refrigerator or furnace—and covers repair or replacement within a limited timeframe, usually one year.

Coverage typically includes parts, labor, or both, but only if the item fails under certain conditions (e.g., poor workmanship or normal wear and tear). To file a claim, you’ll often need to show proof of purchase and, in some cases, register the product.

Important Note:
Manufacturer warranties are often non-transferrable. So, if you're buying a home with newly updated systems or appliances, those warranties may not carry over to you.

What Is a Home Warranty?

A home warranty (also known as a home service contract) provides broader protection. Instead of covering just one item, a home warranty plan can cover multiple appliances and systems in your home under one service agreement.

Think of it like bundling your coverage—kitchen appliances, HVAC, plumbing, and more—into one convenient package. Plans usually last a year or more and can include optional add-ons for things like pools or secondary refrigerators.

A home warranty is not the same as homeowners insurance, but it complements it by covering the wear-and-tear breakdowns insurance typically doesn’t.

Why Choose a Home Warranty?

There are a few key reasons homeowners prefer a home warranty:

  • Transferable Coverage: Most home warranties transfer from the seller to the buyer, offering instant protection when moving into a new home.
  • Simplified Claims: No need to juggle multiple warranties or policies. A home warranty gives you one point of contact, and one claims process.
  • Long-Term Savings: Once manufacturer warranties expire, your home warranty can pick up the slack—saving you hundreds, if not thousands, on repairs or replacements.

Heads up: Some home warranties exclude items still under a manufacturer’s warranty. But once those expire, your home warranty kicks in—giving you extended peace of mind.

So... Which One Do You Need?

It depends on your situation. Ask yourself:

  • What do I need covered?
    If you only need protection for one or two new items, a manufacturer’s warranty may be enough. If you're purchasing a home or want broad, flexible coverage, a home warranty is often the better choice.
  • What’s my budget?
    Manufacturer’s warranties are typically free—but limited. Home warranties come with a cost but offer more expansive coverage over a longer period.
  • How involved do I want to be?
    If you’re okay managing individual claims, go with the manufacturer. But if you’d rather let someone else handle the coordination, a home warranty may be your best bet.

Protect What Matters Most

At the end of the day, choosing the right type of warranty is about more than just fixing things when they break. It’s about protecting your investment—and your peace of mind.

Whether you're buying your first home or upgrading appliances, America’s Preferred Home Warranty is here to help you make the smartest choice for your situation.

Click HERE to get your free quote today!