What’s the Difference? Home Insurance vs. Warranty
Home insurance provides coverage for damages to a home caused by certain events such as fire, theft, and weather damage, as well as liability protection in case someone is injured on the property. Home insurance is typically required by lenders and may also be required by state laws.
Home warranties, on the other hand, are service contracts that cover the costs of repairs or replacements of certain household systems and appliances that wear out over time. Home warranties are not typically required, but they can provide peace of mind and save homeowners money on repairs and replacements.
Homeowners’ insurance typically covers unforeseen and accidental events like fire, theft, and natural disasters. Home warranties are optional service contracts
that offer assistance with repairs or replacements of home appliances and systems. Homeowners’ insurance is typically required by the lender and is necessary to protect the home and its occupants from unexpected damage or loss. Home warranties are optional and can be purchased by the homeowner to provide discounted repair services for appliances and systems.
So what does a home warranty cover specifically? Plans can include the following:
- Add-ons for swimming pools, septic systems, roofs, etc.
- Washers and dryers
- Plumbing systems
- Electrical systems
- Water heaters
- HVAC
- Refrigerators
- Dishwashers
- Additional appliances
Homeowners insurance often provides liability protection. Yes, homeowners’ insurance often includes liability coverage to help protect the policyholder from legal responsibility for accidents or damage that occur on their property. This coverage can
help pay for bodily injury or property damage that the policyholder is found legally responsible for. It can also cover medical expenses and legal defense costs if a lawsuit is filed against the policyholder.
If you have a mortgage, a homeowners insurance policy may be mandatory. A home warranty is optional. Homeowners insurance is mandatory if you have a mortgage. A home warranty is an optional service contract that covers the repair or replacement of home systems and appliances that break down due to normal wear and tear.
Home warranties typically cover major mechanical systems and appliances that most homeowners’ insurance policies will not cover. Home warranties are an affordable way to protect yourself from the costly repairs that come with owning a home.
A home warranty is a service contract that covers the repair or replacement of
specified systems and appliances in the home. Homeowners’ insurance covers the financial losses that result from damage to the property and personal belongings caused by events beyond the homeowner’s control, such as fires, storms, theft, and more.
Homeowners can opt for both a home warranty and homeowners’ insurance for the best coverage. A home warranty is a service contract that covers the repair and replacement of home systems and appliances due to malfunction or normal wear and tear. Homeowners’ insurance covers losses due to fires, storms, theft, and other common disasters. It also provides liability coverage in case someone is injured on the property. Both are important in protecting your home and belongings.