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. But the main question is what is home warranty and why is it needed, or rather do we actually need it. Home warranties in general terms is a contract which is entered into by the warranty provider and you, to take acre of any major or minor repairs for your appliances, electrical and even plumbing systems. You might consider taking up a home warranty if you have old appliances, you don’t have time to make minor repairs yourself, you don’t know a trusted contractor who will not try to rip you off. But the main reason might be, you just don’t have the budget for the costly repairs which is more the reason why you should take up a home warranty. Getting an estimate will not hurt anyone and won’t cost you much in the first place. For new homeowners, this is not a pressing problem since there is a good chance you might have opted for home warranty when you signed the purchase or lease agreement.