Home Warranty Vs Home Insurance | All you need to know

A home warranty is a brilliant idea when it comes to protecting your house and appliances from unexpected breakdowns.

3 min read
Home Warranty Vs Home Insurance | All you need to know
Photo by Josh D / Unsplash

A home warranty is a brilliant idea when it comes to protecting your house and appliances from unexpected breakdowns. A warranty covers repair costs, but it also provides peace of mind. This article will compare the benefits of a Home warranty versus a policy that only covers repairs. Read on to learn more about these two types of policies and determine which one will work best for you.

HomeTool Overview Video by Purgula
HomeTool Overview Video by Purgula

A home warranty covers appliances.

The difference between home insurance and a home warranty is primarily prices. Home insurance typically covers an enormous array of home assets, while a home warranty covers only a few items. On the other hand, a home warranty covers a set number of home appliances. Some of these policies also cover the cost of service calls to repair or replace your devices. Home warranties, however, have their limitations. Some home warranty plans do not cover any repair or replacement of the property itself.

Buying a home warranty is usually not mandatory. However, it can save you a considerable amount of money. First-time home buyers may find this option especially helpful, and it can be a great way to protect the investment in their first home. Home warranty coverage also fills in gaps left by an insurance policy, and it also protects you against unexpected upfront costs if an appliance breaks down. It is also good to remember that a home insurance policy only covers certain damages.

5 Best Home Warranty Companies
What makes a good home warranty company? Among these factors are customer service and warranty coverage.

The home warranty doesn't cover repairs.

A home warranty covers specific systems and appliances within a home, but it won't obscure the costs of repairs to the structure or personal possessions. While a home warranty is great for peace of mind, you should check the conditions listed before purchasing it. If you find a problem that needs immediate repair, it may be better to get a discount for the home instead. You might also want to consider purchasing a homeowners insurance policy to cover these issues.

If you don't maintain your home, there are many things you should know about your home warranty. For instance, home warranty plans may only cover repairs related to specific causes, such as damage caused by insects, pests, or other non-covered things. You should also check whether the warranty covers the systems and appliances you already own. If they don't, you may want to consider adding on a home warranty for those parts.

A home warranty is an annual renewable service contract.

A home warranty is a service contract that covers the essential components of your home. Covered appliances and systems include your dishwasher, garbage disposal unit, and washer dryer. Some home warranties have additional coverage, such as a swimming pool or hot tub protection. The contract's coverage period can be up to 15 years. In addition to these essential components, home warranties can also cover appliances, systems, and more. Some contracts even cover appliances not covered by your standard policy.

In some states, home warranty providers must be licensed, while it is sufficient to register in others. In the latter case, the provider must meet specific criteria and pass competency exams before being approved. A registration may only require you to fill out a form and pay a fee. There should be a waiting period before the contract begins in either case. A waiting period can help ensure that your claim is for a simple breakdown and not just a fraudulent one.

A home warranty is a contract of inclusion.

A home warranty covers many of your house's household systems and appliances. Some of the items covered are significant components of the HVAC, plumbing, and electrical systems. Depending on the provider and plan you choose, the coverage can be quite extensive, or it may cover only a few specific items. Before buying a home warranty, read the contract very carefully and discuss any concerns you may have with a company representative.

There are many differences between a home warranty and a traditional home insurance policy. The difference between a home warranty and home insurance coverage is often deductible. Many home warranties have a deductible for repairs, so homeowners can save money by choosing a lower deductible. However, this option is only viable if the homeowner can afford the higher deductible in a significant system failure. For example, water can damage floors and furniture if a dishwasher breaks down. The resulting water damage can ruin walls and floors, so a home warranty can help you cover the cost of repairs and replacements.