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By Marjani Hawkins December 21, 2020
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!
By Kevin Hartmann 
Mailing Address
16211 N Scottsdale Rd Suite A6A-478
Scottsdale, AZ 85254
