The difference between home warranty and home insurance

Profile Image

Estee Soto

Date Published: 2021-09-23

 

Home Insurance

Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property. According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.

Home Warranty

A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.

More about our services

You may also like

It is important to know where to buy, the area and its benefits. However, to select the right location it is necessary to know the budget we have. As a Real Estate Agent, I can assist you in every step of the way during the selection of the area.

There are some terms and conditions that you need to know before buying a property in plans or in pre-construction, in other to avoid looking bad when signing the contract…

When we talk about short sale, we refer to your property sale for less than what you owe on your mortgage. This kind of sales are made when the owner needs to pay off their mortgage debt ...

Are you looking to invest?

Contact me