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Homeowners Insurance Policy

Should You Purchase Both a Homeowners Insurance Policy and a Home Warranty?

Owning a home involves a significant financial investment. Indeed, it’s the largest expenditure most people make in a lifetime. Homeowner’s insurance policies and home warranties can help you to protect this investment. While both of these products provide coverage for your home and your possessions if an emergency occurs, they do so in different ways. Knowing the differences between a home warranty vs home insurance can help you to decide what type of plan is right for you.

What Is a Homeowners Insurance Policy?

Homeowners insurance is a type of property insurance. It will pay the cost of repairing or replacing the structure of your home and your personal belongings in the event of:

  • Storms
  • Theft
  • Fire
  • Some forms of water damage
  • Other natural disasters

A plan will also protect against third-party claims of bodily injury occurring in your home.

What Is a Home Warranty?

Unlike homeowners insurance, a home warranty will not cover the structure of your home or your personal possessions. Instead, it pays for the repair or replacement of your home’s major components, such as plumbing, electrical wiring, cooling and heating systems and certain appliances, should they stop working. However, it is important to note that a warranty will not provide coverage should these be improperly maintained.

You’ve invested time and money in your home. Unfortunately, unforeseen damages and breakdowns can easily occur. Homeowner’s insurance policies and home warranties can help you to cover the expense of restoring your home, its components and your personal possessions.