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

Oftentimes when you least expect it, you will run into a home repair issue. Either a faulty appliance, faulty duct systems or worn out pool components. In other scenarios, the problem is much bigger like damage done to the entire home as a result of a natural disaster. When considering how to protect your home no matter the issue, it’s important to know the difference between a home warranty and homeowners insurance. Here’s how to differentiate the two and make the best choice for your situation. 

One main component of a home warranty is the price point for addressing your home repair issue. It can be a hassle to figure out the least expensive route to take care of the problem, especially when service fees vary. With a warranty, it’s typical that you will only be responsible for a minimal, flat-fee, in order to gain access to a reputable technician. Just because a warranty is low-cost – you won’t have to worry about limited services. Usually, you are able to select a package that covers only what you desire for your property. For example, if you want to service your pool yourself – you can select a tier that excludes spa service. You won’t pay for anything other than what you need!

Depending on where you live, weather and natural elements can pose a serious threat to your home. This is when home insurance can be the best option. Many homeowners opt for this just in case there is a total loss or extremely tedious repair. Another benefit of a standard policy is that it protects from damage to property inside of the home, such as an expensive rug or furniture. In the event of a disaster such as fire, or flooding – many of your belongings can be replaced under that insurance. The major takeaway of insurance vs a warranty – is that insurance is suited for protection against major incidents while warranties work to maintain the general functionality of a home.

One major benefit of a warranty, is that the company you select, will take the stress out of finding the best person for the job. They communicate your issue, and then a provider is dispatched. This solution works well when you’re in a time crunch and on a budget. Also, the range of coverage addresses many common fixes. It’s not just about repair – if you’re in a situation where an appliance or system just needs maintenance – warranties can be very beneficial. In that instance, you can prevent a simple cleaning from spiraling into a serious issue by getting a provider that will tackle anything dirty or hazardous.