Home Insurance Versus Home Warranties

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What separates home insurance from warranties?

If you own a home, then protecting your property is a matter of great importance.  Fortunately, there are many things that you can do to keep your home safe.  For instance, you can secure a home insurance policy or a warranty.  While both of these options offer home coverage, they do so in different ways.  To make the right decision for your home, here’s what you need to know about insurance and warranties.

Home Insurance

A home insurance policy is designed to cover accidental damage to your home and belongings and protect your personal liability.  There are four main types of coverage included in standard home policies: dwelling, personal property, personal liability, and loss of use.  Typically, homeowners insurance policies will include a list of covered perils, such as fires, storms, theft, vandalism, and certain natural disasters.  Should your home sustain damage due to one of these issues, your home insurance policy will offer you coverage for repairs.

It’s also important to note that home insurance policies include a deductible; the amount that the policyholder must pay towards a claim before they can access their insurance coverage.  When you purchase a home, your mortgage lender will require you to secure some minimum level of home insurance coverage.  You also have the ability to customize your homeowners insurance policy by adding other forms of coverage and adjusting your coverage limits and deductibles.  Adjusting your coverage options, coverage limits, and deductible amounts will all affect the cost of your premium.

Home Warranties

A home warranty is a service contract that covers the repair or replacement of certain home systems or appliances that may fail due to age, wear and tear, or some other type of internal malfunction.  Oftentimes, home warranties provide coverage for your home’s HVAC, electrical system, plumbing, kitchen appliances, and washer and dryer.  Home warranties are an optional form of coverage that is not required by mortgage lenders.

Home warranties will only offer coverage to repair or replace the systems and appliances that are specifically listed in the contract.  Additionally, you will not have coverage if a listed system breaks down due to external issues such as fire, storms, and so on.  Instead, warranties only provide coverage for the damages caused by mechanical, internal issues.

This is what separates insurance from a warranty.  Do you need help with your home coverage needs?  If so, then contact the experts at Udell Family Insurance.  We are ready to assist you with all your homeowners insurance needs today.

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