As a homeowner, it’s essential to take the necessary steps to safeguard your investment and assets. While home warranties and home insurance offer crucial financial protection, they serve distinct purposes. Understanding how they differ can ensure you find a home insurance policy that accounts for circumstances and events not included in your home warranty, allowing you to keep your assets secure. Read on to learn more about home warranties, how they differ from home insurance, and how SelectQuote can help you secure the coverage you need.
What is a home warranty?
A home warranty is a service contract that provides homeowners financial protection by covering the repair or replacement costs of home systems and appliances that may stop working due to normal wear and tear. Home warranties typically cover heating, ventilation, air conditioning (HVAC), plumbing, electrical, and major appliances like refrigerators, ovens, and washers/dryers. This means that when one of these covered items malfunctions, a homeowner can file a claim with the warranty provider, who will arrange for a licensed technician to appraise the issue and repair or replace the item, usually for an agreed-upon service fee.
Is a home warranty different from a home insurance policy?
Homeowners insurance protects against unforeseen circumstances like fire, theft, and natural disasters, while a home warranty focuses more on the functionality and longevity of essential components within the home. While a home warranty covers the operational integrity of vital systems and appliances, home insurance protects against unforeseen perils and structural damage. Both home insurance and warranties serve distinct purposes in safeguarding different aspects of your investment as a homeowner. You can typically benefit from having both types of coverage to offer comprehensive protection for your homes and finances.
Do you still need home insurance if you have a home warranty?
Both home insurance and a home warranty offer financial security and peace of mind in the face of unexpected events, so it’s important to secure the right homeowners insurance policy even if you have a home warranty. Here’s an overview of the additional coverage home insurance provides:
Liability Protection: Home insurance includes liability coverage, which protects you if an injury happens on your property. The policy also protects you if you accidentally damage someone else's property. This coverage is crucial for safeguarding your finances in a lawsuit; a home warranty doesn’t protect against this.
Structural Coverage: Home insurance protects the physical structure of your home. This includes aspects that are typically not covered by a home warranty, including the roof, walls, floors, and built-in appliances.
Additional Living Expenses: If your dwelling becomes unlivable after a covered peril, home insurance can assist in covering the price of temporary living arrangements, such as hotel stays and meals, which isn’t a feature of a home warranty.
Personal Property Coverage: Homeowners insurance also includes personal property coverage, which protects the furniture, electronics, clothing, and other items inside your home if they’re damaged or destroyed in an unexpected event. This coverage can help you replace or repair your belongings, providing financial protection and peace of mind.
Find Peace of Mind with a Home Insurance Policy from SelectQuote
If you already have a home insurance policy, ensuring it’s adequate for your home and belongings is crucial. Fortunately, our licensed insurance agents at SelectQuote make it easy to understand your options and find the right policy. In just minutes, they’ll help you compare rates from several of the nation’s most trusted carriers—all in one place.
