a home that's protected with both a home insurance policy and a home warranty

Home Insurance vs Home Warranties – What’s The Difference?

Buying a new home requires a lot of paperwork and decision-making. Two of the many things to consider getting in order to protect yourself are home insurance and home warranties. Both are quite different and provide varying types of coverage. There are situations where a homeowner may need both of them, although it helps to fully understand exactly what home insurance and home warranties are.

So, what’s the difference? Let’s go over what both home insurance and home warranties are and their benefits together.

Home Insurance – Coverage in Case of Catastrophe

Homeowners insurance is designed to provide coverage to the home and its belongings, in case something horrible happens. If the home is flooded, catches on fire, is hit by lightning, or is damaged by high winds, home insurance kicks in and covers the repairs. It also will pay for most (if not all) of the items damaged during the incident.

For example, if a home is hit by lightning, but doesn’t catch fire, the electronics inside of the house might be damaged. Insurance will pay to repair the roof or chimney that was damaged by the lightning strike, as well as to replace the televisions, computers, lamps, and other things that were on and damage by the lightning.

In addition, home insurance will also provide some general liability, in case people are injured in the home or on the property, and it will cover items that are stolen or lost. The amount of coverage is dependent on the deductible, as well as the overall worth of the home and its contents. A claim specialist will take over once something happens and a claim is called in by the policy holder.

Home Warranties – For When Things Break Down

On the other hand, a home warranty is designed to cover specific things that make your home function properly. Examples include your HVAC system, both heating and air conditioning, if you have central air, as well as your major appliances like the hot water heater, stove, and refrigerator, which are all part of a home warranty plan. If something goes wrong, you simply need to contact the company that provided the home warranty, and they’ll cover some or all of the cost, depending on the appliance and the situation, of the repairs or replacement.

In addition, there are home warranty plans available in North Carolina that you can choose when you buy a home. These provide a similar amount of coverage and are designed to provide the funds needed should something go wrong with the components of the house after you move in. For example, if the roof begins leaking the day after you move in, and that was discovered to be the fault of the home inspector who didn’t notice the issue, then the home warranty would kick in and cover part or all of the replacement or repair costs.

Protecting Yourself and Your Home

Both home insurance and home warranties are designed to keep you from having to pay out of pocket to replace or repair items in your (not to mention your home itself) should something go wrong. Without a doubt, it’s always good to have these kinds of protection in place for those unexpected moments when havoc strikes.

If you’re unsure what your home insurance policy does and does not cover, give us a call! Our team will review your current policy with you.

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