What Is the Difference Between Homeowners Insurance & a Home Warranty
Homeowners insurance vs. home warranty: which one should you get?
Often misunderstood as the same thing, homeowners insurance and a home warranty are actually very different as they cover separate bodies of your home. It is a very good idea to have both of them, as you’ll have assurance that your insurance (or warranty) kick in when you need them to. Know the difference between homeowners insurance policy and a home warranty to better protect your home.
Your insurance kicks in when some calamity befalls upon your home. Such disasters include: fires, tornadoes, burglary, etc. Homeowners insurance also covers structural damage to your home. Things like trees falling on your home, cars crashing, and even rogue airplanes that landed a few miles off from the airport. This type of insurance is usually mandatory as banks will not give you a loan unless you’ve insured it.
This type of protection is more or less a service contract for your house. Warranties cover when something goes wrong with one or more of your HVAC System (heating, ventilating, and air conditioning), and plumbing. If it isn’t working properly due to age or wear and tear, and is covered in your warranty, it will be repaired or replaced. Unlike insurance, warranties are not mandatory, but highly recommended as they can save you thousands.