What Is the Difference Between a Homeowners Insurance Policy and a Home Warranty?

Owning a home requires ongoing and sometimes expensive repairs, from fixing a broken oven and washing machine to replacing a leaking roof. Depending on what needs to be repaired or replaced and why, homeowners insurance will help you in one area while a home warranty can help in others. Both can give you proper protection.

hLand owner insurance Covers four basic areas under your policy in the event of a loss due to a disaster such as fire, theft, gust of wind, lightning, falling tree, vandalism and many other damages. covers:

  • The internal and external structure of your home
  • Your personal belongings
  • It also protects against a suit or lawsuit that results in bodily injury or property damage to others due to an accident on your property or due to your personal activities anywhere.

home guarantee It is a form of coverage that you can use to supplement your homeowner’s insurance policy and will protect you from the cost of repairs not covered by the policy; It can pick up where your homeowner’s insurance ends. There may be a potential overlap in coverage between the two. Check with your insurance agent and home warranty representative regarding the details of each of the coverages.

  • It is an annual service contract of one year, Not a policy. It usually does not incur a deductible fee, but a service fee, each time a service professional comes to your home. The average cost is usually $300.00 – $900.00 per year.
  • The homeowner can add optional coverages such as pool cover, spa equipment, septic tank, etc.
  • The cost of a service call ranges from $40.00 to $100.00 per visit and per item.

Typically, it covers things like: air conditioning, heating, plumbing, major appliances, and items not covered by a standard home insurance policy.

For example, if a washing machine leaks and water damages the floor, the homeowner’s insurance policy may cover the floor damage, but not repair or replace the washer. Your home warranty will cover its repair or replacement.

Another example is if the water heater explodes and damages the walls of your home, your homeowner’s insurance will cover the cost of repairing the wall, while the home warranty will replace or repair the water heater.

Remember that home guarantees be Not substitutes for home insurance policy And that not every company will offer you similar coverage. The disasters and/or exclusions identified in each individual policy will vary.

If you have any questions about your policy, contact your insurance agent or home warranty representative.

This article does not include all available information regarding homeowner’s insurance or home warranties, it is for informational purposes only.

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