Home Warranty v/s Home Insurance
What are the differences between a home warranty and home insurance?
While they may sound the same, a home warranty and home insurance are two different things. A home insurance policy protects the home and its contents from major events, such as fire, and criminal damage to the property, as well as liability coverage if someone were to be injured in the home or property. A home warranty policy provides for the repair and replacement of a home’s major components, including the furnace, HVAC, plumbing, and electrical systems, should you have a covered repair. In addition, a home warranty may also cover major appliances, such as washers and dryers, refrigerators, and swimming pools.
A simple way to look at it is a home warranty plan covers the home’s day-to-day components, appliances, and other elements which the home’s occupants need in order to function and be comfortable. A home insurance policy covers unique events which are typically out of the homeowner’s control and impact the structure of the home.
A home warranty policy may be included in the sale price of the home. A home insurance policy is the responsibility of the buyer.
Questions and Answers
Q: What is homeowners’ insurance, and why do I need it?
Homeowners insurance protects your assets in case of damage. Purchased from an insurance provider, a homeowners insurance policy helps pay for damages caused by a covered disaster or other events in your home.
Q: What are the advantages of home insurance?
If your home is suddenly destroyed or damaged by a covered event, homeowners insurance can pay for the repair costs so that you are not paying those expenses. While not required by any state law, most mortgage lenders require borrowers to have a policy.
Q. What is the main purpose of a home warranty plan?
A home warranty plan protects you against many unforeseen expensive repairs for critical components within your home.
Q. What does a homeowner’s warranty cover?
Each policy is unique. But in general, a home warranty provides for the repair and replacement of a home’s major components, including the furnace, HVAC, plumbing, and electrical systems, should you have a covered repair. In addition, a home warranty may also cover major appliances, such as washers and dryers, refrigerators, and swimming pools.
Q. What should a homeowners insurance policy include/cover?
There are many types of home insurance policies covering a variety of things, including the structure of the home and its contents, reimbursement for living expenses, and liability protection in case someone is hurt on your property. Talk with your provider and see which coverage best suits your needs.
Q. Do home warranties cover AC replacement?
Most home warranty companies cover air conditioner repair or replacement costs within the limits of the contract. Check your contract for details.
Q. What is home insurance?
A home insurance policy covers loss or damage to the owner’s home, as well as the contents and assets inside the home. The policy can also provide protection against accidents that occur within the home or on the property.
Q. What are the things I have to look for in a home warranty?
Each home warranty policy is unique. Look for a policy that covers the items that are most important to you and whose repair or replacement costs would be burdensome. Evaluate the details of a policy before you sign.
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