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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!