A homeowners' warranty is a special type of insurance that provides repair services for the specific items that are insured through the policy. A homeowners' warranty functions like other warranties such as car warranties. Homeowners decide what items they want covered in the warranty as well as the length of coverage, and the insurance company charges a premium based on that information. In the event that a covered item is not functioning or is in need of repair, the homeowner simply places a call into the warranty company to report it. They will coordinate repair or replacement. Typically, newly constructed homes come with a warranty that covers the majority of its contents such as appliances, toilets, bathtubs, water heaters and major mechanical systems. However, a homeowners' warranty is usually available for purchase on homes of any age.