In this guide by the i.e. Insurance, learn all about the differences between a home warranty vs. home insurance and which is right for you.
If you are a homeowner that is seeking coverage for your residence, you may have noticed that phrases such as “home insurance” and “home warranty” have popped up in your research. While they certainly sound similar, do not assume they describe the same thing!
So, what’s the difference between home insurance and home warranty? We’re glad you asked! We understand at i.e. Insurance that making sense of legal jargon can be daunting, and we want to help make the process as simple as possible for you.
That’s why we want to break down a home warranty vs. home insurance in simple English for you, so you can make the choice that is right for you!
What is a Home Warranty?
Major home systems and appliances are not built to last forever. Eventually, they will break down, and you would have to repair or replace them.
In simple terms, a home warranty is a service contract that provides coverage for your appliances and systems in your home. This includes things like your HVAC system, water heater, plumbing fixtures, electrical wiring, and more.
Home Warranty Coverage
A typical home warranty will cover the cost of repairs or replacement for these items if they break down due to normal wear and tear.
The repair cost or the expenses of purchasing a new appliance can be a hefty burden on your finances. A home warranty provides you financial protection by covering major appliances such as dishwashers, refrigerators, ovens, etc. Generally, the home warranty also covers major systems such as an HVAC system, plumbing, and electrical systems.
This type of warranty is issued by a warranty company and does not cover cosmetic defects such as scratches on appliances or damages to a house from rodents or insects. Sometimes, a home warranty provider may also offer optional coverage for swimming pools pump, septic tanks, and well pumps for an extra fee.
What is Home Insurance?
Home insurance is a type of coverage that protects your home and its contents from the financial loss that can result from fires, theft, or severe weather.
Home insurance can be purchased for both your residence and your belongings, such as furniture, electronics, appliances, valuables stored in the house, etc.
This type of insurance also protects you from liabilities that may arise if someone is injured on your property.
Home Insurance Coverage
There are different types of home insurance policies available depending on what you want to protect. For instance, homeowners insurance is a common policy type that will cover damage to the structure of your house due to natural disasters or other unforeseen circumstances such as vandalism, fire, theft, etc.
Insurance typically does not cover repairs to appliances and systems that malfunction due to normal wear and tear. For those cases, you would need a home warranty plan instead.
Ultimately, every insurance policy is different, and there are many types of home insurance you can purchase. For example, you might opt for a policy that covers flood damage if you live in an area that is prone to flooding. It is always important to carefully review the terms of your policy before you sign up for anything!
Warranty vs. Home insurance Coverage in a Nutshell
A home warranty and home insurance policy are two different things. A home warranty protects your appliances and systems for things that happen gradually and due mostly to wear and tear or defects, while home insurance protects your house and contents for things that happen suddenly and accidentally, like a fire, tornado, or theft.
Reason to buy a home warranty:
- When you have an older HVAC system.
- When you can’t afford unexpected home maintenance or repair expenses.
- If you want comprehensive protection for your home.
Reasons to buy homeowners insurance:
- When you have a mortgage on your home.
- When you can’t afford to buy or build a new home if something happened that yours was unusable or gone.
- To protect your belongings from theft or damage.
- To protect yourself from liability if someone is injured on your property.
So, Which One Should I Buy?
It is important to have both types of coverage, because they cover different things. For example, if your air conditioner breaks down, a home warranty will cover the cost of repairs or replacement. But if your house burns down, home insurance will replace it.
A home warranty is a great way to protect your appliances and systems, and home insurance is a great way to protect your house and belongings. If you can afford it, we recommend getting both.
i.e. Insurance is Here to Help You Purchase a Home Warranty or Home Insurance
If you are shopping for a home warranty or home insurance, the friendly team at i.e. Insurance is here to help! We offer a wide range of coverage options and can work with you to find the plan that best meets your needs. Whether you are looking for comprehensive protection or want to cover a specific type of risk, we can help you get the insurance coverage that is right for you.
So, why not contact us today to learn more about our products and services? We look forward to working with you soon! We are available during regular business hours at 724-719-2093 or you can contact us online using our convenient form.