How is a Home Warranty Different from Homeowners Insurance?

How is a Home Warranty Different from Homeowners Insurance?

November 18, 2022

Both homeowners insurance and a home warranty aim to protect your house, but they each provide distinct kinds of security. A homeowner should think about getting both a house warranty and a homeowners insurance policy because they are a great complement to one another.

What is homeowners insurance?

The loss and damage to your house or possessions brought on by certain risks like fire or water are covered by homeowner’s insurance. The majority of mortgage lenders demand homeowners insurance as a condition of approving a loan for a property.

What is a home warranty?

A home warranty is a type of service agreement that pays for the common home system and appliance problems.

Smart home sellers and buyers are aware of the benefits a home warranty offers, both prior to and following the sale of the home. A home warranty plan provides plan holders with convenience, financial protection, and peace of mind because home systems and appliances do not last forever.

Homeowners Insurance

provides coverage for loss and damage to the structure of your house and your personal property due to perils like fire, wind, water, theft, etc.

Home insurance coverage is frequently necessary in order to obtain a mortgage loan.

Home Warranty

a contract that helps lower the expense of the home system and appliance failures brought on by typical wear and use and covers things like:

  • Appliances for the kitchen Plumbing, electrical, HVAC, and ducting
    • Pool and spa accessories
  • Washers and dryers for clothes
  • And a whole lot more!

Home warranties and homeowner’s insurance complement each other

Imagine your beautiful hardwood floors in your kitchen getting wet from a dishwasher. A home warranty would cover the dishwasher malfunction while homeowners insurance might pay for the expenditures associated with the water damage.

It makes sense to get both homeowners insurance and a house warranty. Together, they can guarantee protection for the house and everything within it, including the appliances and systems. When combined, these two coverage options give homeowners substantial financial security in the event of covered home system and appliance failures.

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