Trying to wrap your head around the terms – home warranty vs. home insurance could be confusing. However, they mean different things and have various applications for other users. Keep reading to learn more about both terms.
What is a Home Warranty?
A home warranty plan is a name for a type of contract. Many standard home warranty insurance covers all parts and components of your home’s electrical and plumbing systems. It also covers heating and air conditioning systems and a wide range of other products.
What is Home Insurance?
Home insurance is sometimes known as homeowner’s insurance. It safeguards your cottage, apartment, rented flat, owned property, or newly built home against threats. Also, it covers any losses incurred as a result of an unforeseen event.
Home Warranty vs. Home Insurance
While premiums, deductibles, claims, and duties are comparable across house warranties and home insurance plans, their services aren’t. Home warranties ensure that household systems keep working, which can break or wear out. On the other hand, home insurance protects the home from fire and other natural disasters.
When purchasing a home, the buyer may be unaware of how well the previous owners maintained and managed the components. Information regarding the age of household equipment or its valuable life years may not be available at the purchase time.
Furthermore, the homeowner’s search for a qualified handyman or service provider may take some time. Homebuyers buy home warranties for two reasons:
- the short period and
- the high cost of compensating for damage or replacing many property components.
Is a Home Warranty for a House?
No, a home warranty doesn’t cover your house. It only covers your appliances, such as your refrigerator.
Is it Compulsory to Get Home Warranty?
Unlike homeowners insurance, you mustn’t purchase a home warranty for your home. If you buy an older home with obsolete appliances, think about replacing them or purchasing a home warranty policy.
