Home Insurance And Home Warranty: What Are The Key Differences?

What exactly distinguishes a home warranty from home insurance? Home insurance and home warranties are investments to protect your biggest financial asset: your home.
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Below are some key differences between home insurance and home warranty, should you be looking at both. Read on to learn more!

Home Insurance
Home insurance can protect your home and its contents against damage or loss from fire, theft, wind, and flood. It can also compensate you if someone is injured on your property.

If your home is damaged or destroyed, the insurance company can pay for the cost of repairing or rebuilding it. You may get back the money you paid for your home and any interest earned.

What Does It Cover?
Buildings insurance can cover damage to the structure of your house. This insurance may include the foundations, roof, and any changes to your house.

It can cover accidental damage caused by fire or subsidence. Buildings can be extended to cover other structures, such as garages and sheds.

Also, content insurance can cover everything inside your homes, such as furniture and electrical goods. Contents can be extended to cover other items such as jewelry, antiques, and valuable documents.

If you have a newer house, actual cash value coverage may be more appropriate. It can pay what your house is worth at the time of the claim rather than what it cost when it was new.

Home Warranty
A home warranty is a coverage that can pay for repairs to your house’s major systems, including the plumbing, electrical, and HVAC units.

It can also cover small items like faucets and light bulbs. Home warranties are available through licensed contractors or the home builder.

What Does It Cover?
A typical home warranty may cover big-ticket items like your HVAC system and appliances, but not every company offers the same coverage.

Some companies include carpeting, while others don’t include it at all. Most companies may offer one-year contracts that may be renewed for additional years, typically at a higher cost.

Some companies offer longer-term contracts at discounted rates, while others require you to purchase multiple contracts at once to get that discount.

Different plans offered by home warranty providers may include protection for all of these things, some of them, or neither. However, it is possible that these warranties may not cover faulty appliances.

The Distinction Between Home Insurance and Home Warranty
Home insurance and home warranty are not the same things. However, they can be used together to protect your home in case of a disaster or unexpected repair costs.

Home insurance covers damages during a fire, flood, storm, or other disasters. It can protect you against financial risks such as theft, vandalism, and liability claims. A home warranty can cover the cost of certain home appliances, systems, and components that may break down unexpectedly.

What’s covered by a house warranty and what’s covered by insurance are the two key distinctions.

While homeowners’ insurance can help repair or replace a home’s structure after an accident like a fire or theft, a home warranty can help repair or replace systems and appliances that break down due to age or regular use.

Conclusion
This article discussed the necessary information to help you know your needs as a homeowner. It might be time to consider these distinctions if you’re seeking a solution to safeguard your house warranty and insurance.

Do you want all-risk coverage or just parts? Does your current home warranty cover everything on this list? These are questions you need answers to before deciding which type of policy would be best for your situation.

At Priority Insurance LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (864) 297-9744. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!