Home Warranty vs. Homeowners Insurance — What You Need to Know

When you least expect it, you will run into a home repair issue: a faulty appliance, clogged duct systems, or worn-out pool components. Sometimes the problem is much bigger, such as damage from a natural disaster. When considering ways to protect your home, it’s important to know the difference between a home warranty and homeowners insurance — each serves a very different purpose. Here’s how to differentiate the two.

Home Warranty

A service contract for common repair or replacement issues in the home due to normal wear and tear, often available at differing levels of coverage.

• Household appliances 
• HVAC units
• Water heaters
• Garbage disposals
• Electrical
• Plumbing 
• Pool equipment

A home warranty’s range of coverage addresses many common fixes. It’s not just about a replacement — if you’re in a situation where an appliance or system needs maintenance, a warranty is very beneficial to have in place.

Homeowners Insurance

This type of insurance safeguards the homeowner against major damage and personal liability:

• Weather damage
• Natural disasters
• Fire
• Theft
• Loss or damage of personal property 
• Personal injury

If you have taken out a mortgage on your property, chances are your lender will require you to have homeowners insurance — homeowners insurance protects their interest as well as yours. Yearly premiums for homeowners insurance are higher than a home warranty premium as the insuring company is taking on more risk.

For any additional questions or more information about our Platinum Home Warranty plans and pricing, contact us today!