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Home insurance vs. Home warranty. They sound the same, but are they?
If you are wondering the difference between home insurance and a home warranty, you aren’t alone. They are similar, but they have a few major differences.
The good thing is, you have questions – and we have answers. Here’s what you need to know about home insurance vs. a home warranty. Read on!
Home insurance
Home insurance is about protecting the interior and exterior of the home. You usually HAVE to have home insurance if you have a mortgage, because your lender wants to protect the asset, i.e. your home, from things like fires and storms.
It covers damage from things like robberies, storms, fires and other events and it also usually covers injuries that occur on your property.
Home warranty
A home warranty is also a type of insurance, however, it isn’t something you MUST have and it is usually used for general repairs – usually for things like appliances, HVAC systems or plumbing/electrical systems — instead of major damage.
Do you need one? Both?
Generally, if you have a mortgage, your lender will mandate a certain amount of home insurance coverage. So, in that sense, yes. You do need it! If you own your home outright, you might be able to not have it, but would you take the risk?
For home warranties, you are never required to have one, however, they are a good idea, especially if you recently purchased your home. The good news is, home warranties are usually affordable with low deductibles!
When are they used?
For home insurance, you generally make a claim if something catastrophic happens. These policies usually have high deductibles, so if it is a repair that is only a few hundred bucks, it’s easier to just pay for it out of pocket and avoid a claim.
For a home warranty claim, you generally file one if, say, your refrigerator breaks or you have a plumbing or electrical issue that could run into the hundreds.
Skip Ivery Agency
At the Skip Ivery Agency, we can help you navigate the home insurance and home warranty worlds. If you have questions, we have answers. And we’d love to help! We’d love to talk to you about what plans we offer that best fit your needs, so contact us today!
