The Difference Between a Home Warranty and a Homeowner’s Insurance

The Difference Between a Home Warranty and a Homeowner’s Insurance Policy

 In Blog, Pros and Cons

Homeowner’s Insurance and Home Warranty Policies are both great pieces of protection to have, though they are far different in terms of what they cover. While we highly recommend purchasing both of these types of protection, understanding the differences before you do so is very important.


The decision to own a home is probably one of the biggest decisions that you will ever make. Protecting your home isn’t just a good idea, it’s a necessary one. Having both a home warranty and a homeowner’s insurance policy will ensure your ultimate protection.



Homeowner’s Insurance

Homeowner’s Insurance is made to cover anything that is accidental in your home. These accidents can range from fires to storms to theft and beyond. Your insurance policy will typically be split into a few different categories: theft, loss and damage, interior and exterior, and general liability, in case someone were to get hurt when in your home.

When you get a home, you will typically be obligated to get a homeowner’s insurance policy before they give you the mortgage. That policy has to be renewed every year. Every time you make a claim, you’ll have to pay your deductible, though the insurance company will take care of the rest.



Home Warranty

A Home Warranty is a type of contract that will pay for appliance and component replacement if things fail. Let’s say that your AC system fails in your house, or even your washer and dryer. Typically, your home warranty will cover these things. Some warranties will even cover your pool. These contracts will typically last for about 12 months, though banks and lenders don’t force you to buy them when you buy your home.


With that said, it is still a great purchase to make. You can typically add on other smaller appliances and systems for under $100 per month as well. This is great if you have multiple refrigerators for example.


Let’s say something happens with your pool. A licensed technician will come out to your home, analyze the issue. If they deem the issue is a cause of wear of tear and it is still under the warranty terms of service, the contractor will make the repair. All you will have to pay at that point is the service call fee.




Sometimes you just have to prepare for the unavoidable in life. The best way to make sure that you are prepared for the breakage of your home and the things inside is to have both homeowner’s insurance and a home warranty. Not only will all of your stuff be covered and fixed by professionals, you also won’t have to deal with shady, third-party contractors or repairmen when things break.


We hope that this article was helpful in differentiating these two types of protection. Have you ever had a breakage where you needed to utilize your homeowner’s insurance policy or home warranty? How was your experience? Make sure to let us know about it in the comments!

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