What is a Residential Service Contract?

A residential service contract (also known as a home warranty) is a product under which a residential service company, for an annual fee, agrees to repair or replace certain equipment or items in a property.  If a seller or buyer requests the names of residential service companies from a REALTOR, the client should note that the REALTOR t is not making any representation or warranty about the service company. This can provide peace of mind for the homeowner and protection from unexpected repairs or replacements.

How Does The Warranty Work?

The homeowner will call the service department or place their request for service online. The company will dispatch a technician to the home to assess the failure and determine coverage. Simple repairs are normally made at that time. If parts need to be ordered, an additional visit may be necessary to complete the repair.

What Are Typical Systems and Appliances That Are Covered?

  • Electrical
  • Central Heating and Air Conditioning
  • Interior plumbing
  • Water heater
  • Dishwasher
  • Oven/range/cooktop
  • Garbage disposal
  • Garage door opener

*Additional coverage may be available for pool, septic, washer, dryer, and refrigerator for an additional cost.*

*The home warranty cover systems and appliances that fail due to normal wear and tear.*

Does the Home Warranty Cover Everything in The Home?

A home warranty only covers items listed as covered and excludes all others. The homeowner may have to pay costs for modifications or code upgrades. Please contact your home warranty representative for questions about noncovered charges.

Is a Home Warranty Required in A Real Estate Contract?

The purchase of a residential service contract is optional. The client should review such service contract for the scope of coverage, exclusions, and limitations. 

Who Actually Fixes The Covered Systems and Appliances?

Contractors are licensed and insured.

Are There Any Additional Fees?

Co-payments typically apply to most service calls. Please review the home warranty company for prices.

Is A Service Contract Only For Residential?

There are also service contracts for commercial properties as well.

Recommendations About Home Warranties During The Real Estate Process

  1. Research the service contracts prior to going under contract for a home. I also highly recommend that you talk with the local representative for further explanation.
  2. If you are selling your home, I recommend you have seller's home warranty coverage on the home while it is on the market. Prior to ordering a home warranty, I also recommend you get a pre-listing inspection as well.
  3. If you are wanting to purchase a home, I recommend that you have the home inspected. The home inspection can provide the following:
    1. evaluate the physical condition: structure, construction, and mechanical systems;
    2. identify items that need to be repaired or replaced
    3. estimate the remaining useful life of the major systems, equipment, structure, and finishes



Kelly Raulston

“Reliable and Ready” REALTOR® since 2016. I was born in Monroeville, Pennsylvania, but was raised in Texas since 1997. When I found out we were moving to Plano, Texas, I remember looking forward to riding a horse to school and a brand-new pair of cowboy boots! Growing up in Plano prepared me to be competitive, quick, and to have a strong work ethic. I graduated from Stephen F. Austin State University in Nacogdoches, Texas. Axe’em Jacks! That is where my love for East Texas began. The nature, warm smiles, football games, and community values can't be beat! I graduated summa cum laude with a degree in Interdisciplinary Studies. I was a middle school math teacher in Tyler, Texas. I met my husband, Travis, in Sunday school, and we have been married since September 2016. I love being a REALTOR® in East Texas! Relationships are genuine, the area is beautiful, and the market is rockin’! I am an involved REALTOR® to better the community. Some of the organizations I am involved with are: The Professional Development Committee, Texas Real Estate Political Action Committee, and Tyler Educational Networking Group. Some awards I have won were “The Hustle Award” in 2016, and “Rookie of the Year” in 2017. When I am not working with my clients, I like to spend quality time with my friends and family doing the following: running, target practice, read and participate in book club, and playing with my dachshund Greta.
972-989-0057 Contact Kelly