Home Warranty vs Homeowners Insurance

Home warranty on home insurance can be a tough decision. They both cover pretty much the same stuff, just with different benefits and drawbacks. So, what is the main difference between home warranty vs home insurance? Well, there are many. Let's take a look at some of the main benefits you can expect when buying a home warranty.

A home warranty is an additional protection plan for your home, specifically s internal systems. Typically, there are some differences in your home insurance plan, and when you want to ensure that you don't experience any major financial surprises, adding a home warranty to your existing home insurance may be your best option. With home insurance, you pay a specific amount every year, regardless of whether or not there are any accidental damage incidents during the year.

Home insurance only covers incidents that happen to your home. While it's true that your home has the potential to become damaged throughout the year, typically, your home insurance doesn't cover those incidents because you've already paid your premiums. A home warranty covers those incidents, giving you financial protection in the case of something unfortunate happening to your home. Without this protection, you'll be financially burdened, because you'll have to pay your premium before your insurance kicks in.

Home warranty does not typically cover any damages to your personal property within your home. Most home insurance plans will provide coverage for damage to personal property caused by an unforeseen event within the home. Some home warranties do offer coverage for certain events within the home, such as fires and floods. However, most home insurance policies don't cover home appliances.

If you own an expensive appliance, it may be a good idea to purchase both home warranty and home repair at the same time. You can save money by purchasing a service contract for major appliances and then a repair contract for minor appliances. For example, you can purchase service coverage that covers the entire home for one flat rate, but then you can purchase a separate service contract for each major appliance. With a repair contract, you can repair one appliance at a reduced rate, which can save you money. You may not have to purchase home repair coverage if you have a home warranty service contract.

As mentioned above, home warranty usually doesn't cover personal belongings. Major appliances such as washers, dryers, televisions, dishwashers, refrigerators and washing machines are usually covered with a standard warranty policy. However, some manufacturers offer special coverage for major appliances, including refrigerators. Home insurance typically doesn't cover personal items purchased within the home. Items covered by home insurance may include clothing, jewelry, electronics, sports equipment and other personal belongings.

The cost of home insurance depends on many factors. Some of these factors include the value of your home, the amount of home equity you have, the current condition of your home, the structure of your home and the location of your home. Your home's worth is based on recent sales, recent renovation and repairs, condition of the foundation and interior structures. The amount of home equity you have determined the amount of coverage you will need, as well as the maximum liability protection. Liability protection usually limits the amount of money a homeowner is responsible for in the event of a lawsuit. Homeowners may also need to consider the details of their home's structure, including its electrical wiring, plumbing and roofing.

When comparing home warranty and home insurance policies, check carefully to see what type of coverage is included. Make sure the coverage includes replacement cost, which means that if your home's damages are covered by the warranty, you will not be responsible for the repair or replacement costs. Look carefully at the limits of the coverage to make sure there is enough coverage to pay for all of your damaged belongings. If you live in an area with a high crime rate or if you are considered high risk, you may need more than the average amount of coverage.