Home Insurance vs. Home Warranty… What’s the difference, and should you have both?

7/22/2020 (Permalink)

Understand the benefits of home insurance and home warranties is important to homeowners

In today’s real estate market, many Americans are experiencing the American dream by becoming first-time homeowners. With homeownership comes with a wide variety of challenging and sometimes confusing decisions that need to be made. One of the first questions that may be asked is the best way to protect arguably one of the biggest investments of your life. And what is the difference between a home warranty and home insurance?

So, what are the biggest between a home warranty and home insurance? The biggest difference is your mortgage lender usually requires the homeowner to carry insurance. After the home is paid off, it is up to the homeowner to carry insurance. A home warranty is often an optional purchase. When trying to understand the other differences, you can think of a home warranty like an extended warranty you may have on your car. The home warranty should cover things that may need to be repaired or replaced due to age, wear, and tear. An example of these things is home appliances and your home’s HVAC system. A home insurance policy covers the disasters that can unexpectedly strike the property, such as fire, water, or mold damage. If you have a significant appliance breakdown that’s generally not covered by you homeowner’s insurance

• HOMEOWNER’S INSURANCE COVERS*
  The structure of the home
  Personal Belongings
  Contents that may have been damaged by the initial incident
• HOME WARRANTY COVERS*
  Appliance Repairs
  Plumbing Problems
  Electrical Problems

*Be advised warranties and insurance policies vary differently, and this is just a guideline. For completed coverage, please talk to your agent or warranty provider.

If a disaster does strike your home, contact the professionals at SERVPRO of Lexington/Thomasville. Our professional team will determine the scope of the loss and the best course of action for the homeowners. And at SERVPRO we work with hundreds of insurance carriers and understand the claims process. If you would like to learn more or schedule your appointment, give us a call at 336-224-2565.