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September 23, 2018

Category: Homeowners Insurance

January 18, 2017

Difference between Home Warranty and Homeowners Insurance

by admin — Categories: Homeowners InsuranceComments Off on Difference between Home Warranty and Homeowners Insurance

Do you ever wonder what the differences between home warranty and homeowners insurance are? Are both of these things same? This article aims to find out all the answers. While both home insurance and home warranty come across as the same, these are actually completely different. The cost, coverage and terms and conditions vary a lot. In some cases, homeowners insurance is compulsory where the home warranty is a recommended option.

The home warranty is basically a type of insurance offered by the home warranty companies, which offers protection for all the major appliances like electrical and plumbing units. This mainly covers the cost of repairing or replacing major appliances in the households in case these break down, provided those meet the terms and conditions mentioned in the home service contracts.

On the contrary, the homeowners insurance covers the homes in case of any damage caused by the man-made disasters or natural calamity and offers the homeowners liability protection from the lawsuits even in the event of any third party involvement. Having this type of insurance is a must for those homes, which have mortgages.

Now let’s have a look at the ways to choose a home warranty and homeowners insurance:

  • Choosing a home warranty: Before you start looking for home warranty, it is always a great option to do some research. After getting price quotes from different sellers, you must inquire to look over the sample policy. In this case, consider to understand the total policy documents together with the fine print.
    The home warranty policy is actually transferable. Therefore, even if the seller sales the house, the warranty will then pass to the new owner. This is one of the well-liked features, which makes it sense to invest in the home warranty insurance.
  • Choosing a homeowners insurance: Like other insurance types, while it comes to purchasing homeowners insurance, it is always a good idea to shop around, and to evaluate the costs and benefits as the majority of the insurance providers will be ready to offer policy discounts. But before you sign the fine print, make it sure that you read the documents properly and also ask all the queries that you have in your mind.

So, in conclusion it can be said that both of these insurances are complementary to one another. The homeowner can choose to protect everything he/she owns in case it is affordable.

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