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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.
Considering Your Resources. 1  1. Learn what coverage you already have. When determining if you need a home warranty, always consider the coverage that you already have. 2  2. Read the fine print to see if it is worth the cost. When buying a home warranty, always read the fine print to see exactly what the warranty covers. Warranties usually cover basic things like the inside electrical system, appliances such as your refrigerator, heating and air conditioning, and interior plumbing.