What’s The Difference Between Home Warranty Vs. Homeowners Insurance

While home warranties and homeowners insurance share a similar structure, both offer different benefits and coverage’s. If you’re a homeowner, it’s essential to understand the difference between home warranties and homeowners insurance to ensure you get the protection you need. What’s The Difference Between Both? Home warranties and home insurance policies are excellent ways to protect your home, each offers unique benefits, but there are some key differences. Home Warranty

Have limits and exclusions
Purchased with a new home for protection and can be renewed each year
Covers home systems and appliances breakdown
Provides for replacement and repair of covered items
Help protect your home from expensive replacement and repair costs

Homeowners Insurance

Required by the mortgage lender
Covers damages from things like theft or fire
Help pay to replace personal property or repair your home.
Protects you from liability
Covers structures that aren’t attached to your home

Why Do You Need Both? While homeowners insurance and home warranties protect your home, they do so differently. As said earlier, you must have homeowners insurance if you have a mortgage. This protects you and your mortgage lender should your home be damaged or destroyed by severe weather, fire, or other covered events. In contrast, a home warranty protects your home’s appliances and systems that will fail over time. The lenders or law does not require a home warranty but investing in it is a great way to supplement your homeowner’s insurance policy.