Tennessee Real Estate License Exam Practice Question
A home warranty offers protection to the buyer of a previously owned home for which of the following?
Correct Answer: D
Rationale: A home warranty primarily covers the failure of major mechanical systems or appliances, such as HVAC units, water heaters, and kitchen appliances, ensuring that buyers are protected from unexpected repair costs.
Option A, flooding, is typically covered by homeowners insurance, not a home warranty.
Option B addresses losses from poor construction, which are usually covered by builders' warranties or liability insurance, not home warranties.
Option C, while storm damage is significant, falls under homeowners insurance, which covers property damage rather than mechanical failures.
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