Homeowners Insurance Vs. Home Warranty: What’s The Difference?

Buying a home is the single biggest investment you may ever make. While there are many factors to consider when purchasing real estate, one thing to not overlook is protection. As an owner, it is important to take advantage of the protection offered by homeowners insurance and a home warranty plan. Both will help you secure your home, belongings, and various system components in the case that they need repair or replacement.

You may be wondering what the difference is between home insurance and a home warranty and whether or not you need to have both. 

Things Your Home Warranty Covers

A warranty is for items that break during the coverage period (usually one year) because of defects in manufacturing or materials. It does not cover things like theft of valuables or injuries sustained by people on your property. A warranty is entirely optional; however, it can save you money because it covers parts.

Things Your Insurance Covers

A home insurance policy is one of the most important things a homeowner can purchase. Insurance is for damage that is not covered by a warranty that happens after you purchase the policy. This means it will pay for damages from normal wear-and-tear as well as acts of nature—floods, fires, tornadoes—or accidents like floods or fires. An insurance policy may also provide coverage if someone gets hurt on your property or if someone steals something from the house or the garage.

Why You Need Both

The right home insurance policy can protect you for all eventualities, helping you relax in the knowledge that your home and belongings are protected. A home warranty, on the other hand, safeguards against specific issues with your home’s essential systems and appliances.

By protecting your home with both a home insurance policy and a home warranty, you can sleep easy knowing that both you and your things are taken care of.