Home Warranty vs. Homeowners Insurance

Find out what the real differences are when it comes to comparing a home warranty to home insurance.

Why Do I Need a Home Warranty and Homeowners Insurance?

Shopping for home protection policies can be confusing. Most people don’t realize there is a big difference between a home warranty and homeowners insurance. The truth is, they each cover different items under different circumstances. Both are needed to provide you and your family ideal home protection coverage and greater peace of mind.

What is Homeowners Insurance?

Homeowners insurance covers loss and damages to your home and its contents resulting from acts of nature, accidents, theft and other hazards. It also provides liability protection in case someone is injured on your property – like a delivery person who slips and hurts himself on your sidewalk.

Homeowners insurance is typically mandatory when you finance a home. While it provides valuable protection, it doesn’t cover home systems and appliances that break due to normal wear and tear.

What is a Home Warranty?

Home warranty companies provide you with an additional layer of protection, covering the repair and/or replacement of covered household appliances and systems that fail due to normal wear and tear. When you have a home warranty, you reduce financial risk and remove the hassles and headaches of getting things fixed.

A common misconception is that you can only purchase a home warranty when you buy or sell a home. Home warranties can actually be purchased anytime, saving you significant time and money when your AC gives out in the heat of summer, or your washer breaks down unexpectedly.

Do I Really Need Homeowners Insurance and a Home Warranty?

Yes! Having both gives you optimum protection for your home. Homeowners insurance covers major issues caused by natural disasters or theft, while home warranties cover day-to-day expenses and headaches caused when home systems and appliances break down.

Life happens when we least expect it, and the appropriate home protection coverage can reduce stress, save money and provide peace of mind if – and when – something goes wrong.