FAQ: What’s the difference between a home warranty and homeowners insurance?

If you’re asking this question, you’re not alone! We hear it most frequently from first home buyers, but it can be an area of confusion for seasoned homeowners too. Home warranties and homeowners insurance each protect your home, but they cover different things. 

A home warranty covers repair and replacement costs of systems and appliances that break down due to normal wear and tear. Some commonly covered items include air conditioning and heating issues, plumbing stoppages, water heater repair and replacement and garbage disposal replacements. 

Homeowners insurance provides insurance against natural disasters and calamities, such as a fire, tornado or burglary. It typically covers structures of the house, personal belongings and liability protection. Homeowners insurance is often required if you purchase a home with a mortgage. 

Neither a home warranty nor homeowners insurance can completely safeguard you from problems and expenses that may arise as a homeowner. However, each helps provide some protection to reduce unexpected expenses. Homeowners can benefit greatly from having both a home warranty and homeowners insurance in place. 

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Looking for more information about our home warranties and the protection they provide? Give us a call at 602.733.5000! We’re glad to answer any questions and help ensure you get the coverage you need.