When purchasing an existing home, there will be unforeseeable repairs that may be necessary. Home inspections conducted prior to a home purchase will not detect future repairs. In some cases, the repairs will be costly without a home warranty. If you are a buyer purchasing an existing or pre-existing home, I would recommend purchasing a home warranty, if the seller does not pick up the annual cost through your home sale transaction. It helped me alleviate costs when my husband and I purchased our first home. A couple of months after we moved in, our heater went out during the cold season. We avoided paying unwanted costs, because we had a home warranty.
Home warranties are typically purchased through a home sale. They are designed to cover mechanical breakdown that insurance companies do not cover on existing or pre-owned homes. Annual fees are paid, which covers repairs or replacement for home systems.
If something breaks down that is covered by the warranty, the homeowner will contact the home warranty company. The warranty company will contact a repair company who will then send someone out to take care of the issue. The homeowner will just pay for the visit.