“Warranty” and “insurance” are both words that encompass some form of protection for people who purchase them. However, when it comes to protection for your home, these two words have very different meanings. Every homeowner and real estate agent should understand the differences between home warranties and home insurance, and what each type of coverage offers.
Here are some brief examples below of what “home warranty vs. insurance” really means in day-to-day life.
What Does Homeowners Insurance Cover?
Homeowners insurance pays for damage and loss caused by outside forces such as fire and weather — or even vandalism committed by a burglar. If any of these events damage or destroy a portion of your home, insurance would help you rebuild and replace your lost and damaged belongings.
For example, if a tree falls and crashes into your kitchen, your homeowner’s policy would help you replace your damaged appliances. However, if your oven range quits working, repair and replacement would not be covered through a home insurance policy.
What Protection Does a Home Warranty Offer?
Home warranties may covers the cost of repairs and replacements of certain appliances and systems in your home caused by everyday wear and tear, or from old age. Coverage differs by plan and by state, but examples of items commonly covered in our home warranty plans include:
Heating, Air Conditioning, & Ductwork
Kitchen Appliances
Clothes Washers & Dryers
Electrical
Plumbing
Water Heater
Attic, Ceiling & Exhaust Fans
Doorbells, Burglar & Fire Alarm Systems
Central Vacuum
Garage Door Openers
And more!
There’s also many items available as optional coverage, including Pools, Outdoor Kitchens, Stand-Alone Freezers, and many more.
The bottom-line difference with regards to warranty vs. insurance is that insurance covers unexpected events that lead to damage, while warranties cover events that are somewhat expected, such as the aging and ultimate breakdown of appliances and systems.
Information provided by Home Warranty of America (https://www.hwahomewarranty.com/)
