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A home warranty primarily serves to cover repair or replacement costs for specific home systems or appliances that may fail due to normal wear and tear. This is particularly important for new homeowners who want peace of mind regarding unexpected expenses that can arise from the breakdown of critical systems, such as heating and cooling systems, plumbing, or major appliances like refrigerators and dishwashers. By having a home warranty, homeowners can have a structured plan for managing these costs, as the warranty typically offers services for a set fee while handling the specifics of repairs.

The other options presented focus on different aspects of homeownership that are not the main purpose of a home warranty. Guaranteeing the sale price of a home relates more to real estate transactions and appraisals, while ensuring regular maintenance pertains to routine upkeep of the property rather than covering unforeseen repairs. Lastly, financing for home improvements deals with loan options and funding renovations, which is separate from the coverage provided by a home warranty.