If you are in an area with a sewer system and your house is lower than street level, you probably have a grinder pump.  What is a grinder pump and why is it important?  A grinder pump is a device that grinds all of the household waste that goes down a drain and pumps it to the sewer pipe at the street.  Household waste goes into a holding tank.  When the tank reaches a certain level, the grinder pump grinds the waste and pumps it to the street.

On to the home warranty...  A home warranty is something that many sellers buy for the people who are buying their home.  There is limited coverage for things like the air conditioning, water heater, etc. and optional upgrades for things like appliances, pools and septic systems.   If your house has a grinder pump, you need to have the additional septic coverage.  Although you aren't technically on a septic system, the grinder pump and holding tank are considered part of a septic system, not sewer.

I learned this the hard way.  I got a couple into a great house that had a grinder pump.  Neither the buyer, the seller, the warranty company rep or I knew that the additional coverage was needed.  The grinder pump went out the week after the couple moved in and they couldn't use any water until this got fixed.  The warranty rep came through and got the company to add the coverage and we got the problem taken care of.  The warranty didn't pay for the entire repair, but it did help.

So if you are buying a house on a public sewer system, take a look at the grade.  If the lowest plumbed area is below street level, ask if there is a grinder pump and get the additional coverage.