Home Insurance vs. Home Warranty: Understanding The Difference

Owning a property is not an in end in itself. A residential property for example may require some maintenance and safe-keeping. And what better way to ensure your home’s long term security by having insurance. Aside from the idea of being secured, insurance is also helpful and necessary when dealing with mortgage transactions. However, many homeowners are sometimes confused with the idea of home insurance and home warranty; others simply mixed up both concepts. In order to shed some light, here below are some basic concepts, which differentiate one from the other.

Home Warranty

A home warranty covers home systems which include but are not limited to electrical system, heating and cooling, plumbing and appliances, like your washer andn dryers. In sense, it applies to the material objects within your property. When a particular system or appliance breaks down, it is suggested that you immediately contact your home warranty company in order to scheduled an appointment to assess the situation and arrange for the repair, if that’s what’s needed to rectify the situation. The best part of it is that you would only pay for the service fee and the rest of the expenses would be covered under the home warranty contract.

Home Insurance

Home insurance, on the other hand, primarily covers the structure of your home under a certain policy. This type of coverage may also include belongings damaged due to disasters like hurricanes or similar events. Depending on its clause, burglary may also be covered by the insurance policy. In brief, a home insurance covers any damages from within and the exterior of your property.

The main difference between an insurance and warranty lies on the things or objects it covers and process of indemnity. In order to be more accurate of the things that are covered by insurance or a warranty, a wise homeowner should check their policies and contracts for clearer understanding and references.

For assistance with a complete understanding of your insurance policy, you can contact your insurance agent or the staff here at Complete Choice Insurance would be more than happy to help!


Source:  Realty Today

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