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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.
What is a Home Warranty? A home warranty is an insurance plan that protects homeowners from the high costs of repairing major home appliances and other systems. Unlike traditional homeowners insurance, a home warranty can cover items that fail or break down due to simple wear and tear. Many home warranty plans will also include maintenance and service to help extend the life of many essential home system components.