Often times, people get homeowners insurance and home warranties mixed up. Yes, they can both fix or replace things when they break or are damaged and they both are typically paid on a monthly basis with a deductible or service call fee when used. Nevertheless, these two things are actually very different.
If you own a home, it’s likely that you already have a homeowners policy and are under the impression that homeowners insurance covers anything and everything to do with your home. However, there are multiple situations that homeowners insurance is unable to cover and it would make more sense financially to utilize home warranties instead.
Homeowners Insurance typically covers:
Theft
Storms
Fires
Some natural disasters (floods are always a separate policy)
Water damage
Personal/premise liability (i.e. someone is injured on your property)
Home Warranties typically cover:
HVAC
Electrical
Plumbing
Kitchen appliances
Washer and dryer
A home warranty may be a great choice for you if you don’t have money set aside to replace your AC units or kitchen appliances if they break. Many home warranties cost no more than $50 per month and often have a one-time service call fee around $100. When it comes time to repair or replace something that costs thousands of dollars to fix, a home warranty can be a huge relief.
The bottom line:
Homeowners insurance is useful for theft, liability and sudden natural occurrences while home warranties are for wear and tear on appliances, plumbing and electrical.
We now offer home warranties in addition to homeowners insurance. Contact us today for more info at (480)535-5709.