The Difference Between Home Insurance and Home Warranty

A major responsibility every homeowner faces is the cost of maintaining and repairing parts of the home. Whether the roof is leaking or your HVAC system isn’t working, you’re responsible for the financial costs of repairs and replacements. Home insurance policies and home warranties are designed to provide financial protection against unexpected home costs.

What is a home warranty?


A home warranty policy provides financial protection against the expensive repair and replacement of major home systems and appliances. Homeowners pay either a monthly or annual fee for a warranty plan in exchange for paying a flat rate on service calls. In the event of a home system or appliance breakdown, you contact the warranty company, who will then send a service technician to your home. Home warranty plans do have coverage limits and annual claim limits, and these do vary by plan and warranty company.

Warranty policies cover the home systems and appliances in both old and new homes. You can choose three types of plans: an appliance plan, a system plan, or a combination appliance and system plan. These typically come with add-on coverage options for specific items that are excluded from standard plans.

If you don’t want to add an air purifier to your list of appliances to be covered by a warranty, an easy way to improve your home’s indoor air quality is the use of indoor plants. Adding live plants in colorful pots around the house is a fun way to add color and create a relaxing environment while purifying the air. You can find an impressive selection of indoor plants, care kits, and accessories at Lively Root. Their plant bundles come in a variety of sizes and assortments, such as air plants and succulents. House plant bundles are the grower’s choice for easy-care live plants and variety.

What is homeowner’s insurance?


Homeowners insurance covers your property against losses and damages resulting from covered perils. There are four types of coverage provided by a home insurance policy. It provides coverage for the structure of your home if you need to repair or rebuild due to damage or destruction. Personal belongings such as furniture, clothing, and electronics are also covered if lost or stolen. Liability coverage protects you against legal action by third parties for injuries or property damage caused by you, your family members, or pets. Home insurance also provides coverage for additional living expenses if your home is uninhabitable.

Covered perils are the specific disasters and situations outlined by your policy. Examples of covered perils include natural disasters such as hurricanes, floods, and fires, vandalism or malicious mischief, damage caused by vehicles, falling objects, and explosions.

Keeping up with routine maintenance is the best way to extend the life of your home. Most homeowners routinely clean the inside of the windows but ignore the outside. The same is true for performing an annual house wash to clean away dirt and grime from the exterior. Wilmington Labor Panes has years of experience providing residential and commercial window cleaning, gutter cleaning, pressure washing, and exterior cleaning services to customers in North Carolina. The trained professionals at Grit Media use an exclusive streak-free formula to provide flawless window cleaning that lets in plenty of light.

Do you need both?


It’s a good idea to have both types of coverage for total peace of mind. A home warranty will cover the expensive costs of repairs and replacements of home systems and appliances that home insurance excludes. A smart way to determine if you should get a home warranty plan is to consider the age and condition of your appliances and systems. If any appliances or systems are currently under a manufacturer’s warranty, compare how much it would cost to undergo repairs or replacements with and without a home warranty plan. Homeowners who don’t have the cash reserves to cope with emergency repairs or replacements would benefit most from home warranty coverage.

Home insurance and home warranty policies are designed to provide you financial peace of mind when facing unexpected home repair costs.