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DEFINITION of 'Warrant Coverage'. An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder's investment. Next Up.
A traditional âwarrantyâ in the general sense, is a guarantee towards the quality of a product or service made by the seller to the buyer. A âhome warrantyâ is not a guarantee, but rather a contract to provide repair and/or replacement services for major appliances and home systems that fail due to normal wear and tear. These service contracts will not cover every repair or issue that you may have.