When it comes to protecting your home, it’s important to understand the difference between a home warranty and home insurance. Though they may seem similar at first glance, they serve very different purposes. Let’s break down what each covers and who can benefit from having them.
WHAT IS A HOME WARRANTY?
A home warranty may fully or partially cover the repairs or replacements of major home systems and household appliances when they break down due to normal wear and tear. They can typically be purchased for either newly-built or older homes and usually lasts a year, with the possibility of renewing the contract annually.
WARRANTY COVERED
Most home warranty plans cover common household appliances, including washers dryers dishwashers refrigerators and ovens. They also extend to home systems like HVAC, plumbing, and electrical. If you have additional features like a pool or sprinkler system, you can usually pay extra for coverage.
IS A HOME WARRANTY REQUIRED?
Unlike homeowners insurance, a home warranty isn’t mandatory. However, it can be a great option for those looking to avoid unexpected repair bills, especially if your appliances are older or you don’t have a large emergency fund set aside for repairs.
WARRANTY NOT COVERED
While a home warranty can offer peace of mind, it does have limitations. issues caused by faulty installation, and proper maintenance, or misuse typically aren’t covered. It’s important to understand the specifics of your policy to avoid surprises.
WHO SHOULD CONSIDER A HOME WARRANTY?
Home warranties are especially useful for homeowners with older appliances or systems that may be nearing the end of their lifespan. If you’re worried about the cost of repairs or replacements, a home warranty can provide some financial relief. It’s also a great option for a new homeowner who wants extra protection while adjusting to the responsibilities of owning a home.
INSURANCE COVERED
Homeowners insurance typically covers the structure of your home, personal belongings, and additional living expenses if you need to temporarily relocate due to damage. Common perils covered include fire, theft, vandalism, and wind storms. Liability coverage is another key component, protecting you from financial responsibilities if an accident occurs on your property.
IS HOMEOWNERS INSURANCE REQUIRED?
Well it’s not legally required to have homeowners insurance, most lenders will require it before approving a mortgage. Even if it’s not mandated, having homeowners insurance is a wise choice for anyone looking to protect their biggest investment.
INSURANCE NOT COVERED
Standard homeowners insurance policies usually don’t cover damage from earthquakes, floods, mold or pests. Depending on where you live, you may need to purchase additional coverage for these risks.
Your home is often your largest investment, and protecting it is something I truly care about. Home insurance and home warranties can play an important role in safeguarding your property and your peace of mind—but coverage isn’t one-size-fits-all. I always encourage homeowners to consider their options carefully, read policies in detail, and never hesitate to ask questions so there are no surprises later. Below are a few home insurance and home warranty providers to explore as you decide what coverage best fits your needs.