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

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

Homeownership necessitates continuous and sometimes costly repairs, such as replacing a leaky roof or repairing a faulty oven or washing machine. Homeowners Insurance will aid in one area, while a Home Warranty can help in another, depending on what needs to be fixed or replaced and why. They are both capable of providing you with adequate protection.

In the event of a loss due to a calamity, such as fire, theft, wind storm, lightning, tree falling, vandalism, and many more disasters, your homeowner’s insurance policy covers four key areas. It includes the following topics:

  • The construction of your home’s inside and exterior
  • Your personal effects
  • It also covers you in the event of a claim or lawsuit for bodily harm or property damage to others as a consequence of an accident on your property or your personal activities anywhere.
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A home warranty is a type of coverage that you can add to your homeowner’s insurance policy to protect you from the cost of repairs that your policy does not cover; it can fill in the gaps where your homeowner’s insurance leaves off. There could possibly be some coverage overlap between the two. Check the details of each of the coverages with your insurance agent and home warranty salesperson.

  • It is not a policy, but rather a one-year service contract. Every time a service professional comes to your home, it usually does not come with a deductible, but rather a service charge. The typical annual cost is between $300.00 and $900.00.
  • Optional coverages including as coverage for a swimming pool and spa, septic tank, and other items can be added by a homeowner.
  • The service call will cost anything from $40.00 to $100.00 each visit and per item.
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It usually covers things like air conditioning, heating, plumbing, large appliances, and other equipment that aren’t covered by a typical house insurance policy.
Your homeowner’s insurance policy may cover the damage to the floor if your washing machine leaks and water damages the floor, but not the repair or replacement of the washing machine. The repair or replacement of it would be covered by your house warranty.

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If your water heater exploded and damaged your home’s walls, your homeowner’s insurance would cover the expense of repairing the wall, while your home warranty would replace or repair the water heater.

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Remember that home warranties are not a substitute for homeowner’s insurance, and that no two companies will provide you with the same level of protection. Each insurance will have its own set of disasters and/or exclusions.

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Contact your insurance agent or a home warranty representative if you have any questions about your coverage.

This article does not contain all available information about homeowner’s insurance or home warranties; it is just intended to provide general information.

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