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Home Warranty Vs Home Insurance- Determine What You Actually Need

Thursday, April 15, 2021

When everything is working perfectly and remained in a good condition, your sweet home can be the ideal place for peace of mind and relaxation. But, owning a home can be a challenging and expensive affair-from doing time to time costly repairing job to replacing unrepairable items. Be it repairing any of your broken kitchen appliances or replacing your broken roof, depending on the exact problem, a home insurance policy or a home warranty plan may provide you with some excellent benefits.

While a home insurance policy and a home warranty plan, may help cover your home but they don’t offer the same kind of protection. Here you should take a look at some of the differences-

What does a home warranty plan cover?

A home warranty plan covers the expenses associated with repairing or replacing broken home appliances or systems due to regular wear and tear. A home warranty plan also covers the repairing or replacement of plumbing and electrical systems.

What is not covered by home protection or a home warranty plan? 

According to Federal Trade Commission, a home protection plan may not cover items under the manufacturer’s warranty in a new home. If any of your appliance or home system breaks, you should first discuss it with your manufacturer to know whether the item is already covered or not.

A home warranty plan is not like a blank cheque for the repairing or replacement of your home appliance or system. Each company has its specific rules regarding how a homeowner can make a claim and how the particular item will be repaired or replaced. Some home appliances and systems warranty-providing companies may also specify the particular repairing company that will do the repairing job in your area.

What does homeowners insurance cover?

While a home warranty plan may cover for a home appliance or system that has stopped working but what if some of your belongings have got stolen or your home is severely damaged by fire?

Home insurance protects by financially by paying you the coverage to repair your home or replace your personal property if you meet perils like fire, theft, or damage caused by a natural disaster like a storm.

It will not provide any protection if any of your home appliance or system breaks down or stops working.

A home insurance plan also comes with the liability coverage that pays the legal or medical expenses if you are found responsible after a visitor is injured on your property.

A home insurance’s coverage amount will be determined by a local insurance agent.

Be it choosing a home warranty provider or a home insurance provider, it’s always important to do some serious background checks before choosing a specific provider.

You should always check the online reviews given by real customers. Most of the customer reviews that you can see on companies’ official sites are fabricated ones. You can check the reviews given on Better Business Bureau.

You can also go for recommendations given by your family members, friends colleagues, acquittances, etc.

It’s your hard-earned money and that’s why you need to extra careful before investing it in a wrong home warranty or home insurance company. When you are ready to purchase a well-known home protection warranty plan, we would suggest you buy it from Total Home Protection.