Home warranty in the USA was founded in 1970s, when real estate market experienced a steady growth. During this period, newly emerged companies began to offer home service contracts that were called home warranties. These contracts covered repairs of major home systems, such as electrical, plumbing, heating and air conditioning, as well as most kitchen appliances, including ovens, refrigerators, dishwashers, and such.
Coverage may vary significantly from company to company. Most home warranty companies in the USA provide basic coverage that may include only main systems of the home and a very limited number of appliances. Some companies offer more extensive plans that may include all home systems, kitchen and laundry appliances, pool and spa, pest control, lawn sprinkler system, and roof leak repairs.
The limitations of home warranty contracts include the number of the covered units, their size and location. Some companies limits dollar amount per home system, others have an overall limit per contract period, and once that limit is reached the company will no longer pay for any repairs or replacements.