What does your home owner’s insurance cover on your real estate investment? Not enough. For example, you have a pipe that bursts in your home. The home insurance carrier will cover what the water damages, but will not fix the broken pipe. Sheesh. The rule of thumb is that it needs to be “sudden and accidental” if the insurance will even consider covering the issue. Home warranty can and should cover most everything mechanical in your residential real estate. This means the water heater, furnace, a/c, dishwasher, washer-dryer, garage door opener and more. It can be a real fail safe, especially in the first year you own your home.