Homeowners Insurance Vs Home Warranties: What You Need To Know

Having your own home also means having your own sanctuary where you can do everything that you want like throw parties or have quality time with your family. However, you have to understand that owning a home also comes with the risks of damage and damages can lead to spending a lot on repairs.

Nobody wants to be surprised by bills and expenses and this is why getting home insurance or a home warranty is the smart way to go. Although both a home warranty and a homeowners insurance cover your home for repairs, they do not offer the same things. Here is some information about their differences.

A standard homeowners insurance is designed to pay for the costs of repair in your home in case of damages. It also covers replacing your personal belongings in case of peril or a covered incident like fire of theft. On the other hand, homeowners insurance will not cover the damages sustained by your appliances such as air conditioners and refrigerators.

Your homeowners insurance also covers your liabilities like paying legal fees and medical bills. This also includes hospital bills for people who get injured in your home. Remember, there will always be limits to insurance coverage so make sure you review your policy. You can also talk to your insurance agent about this information.

Unlike your homeowners insurance, a home warranty can help you with the costs of repair or the replacement of your appliances. The Federal Trade Commission may also require a home warranty to have a coverage for labor and materials for some parts of your home. It can also cover electrical or plumbing labor.

However, a home warranty may not cover appliances that are still under the manufacturer’s warranty. This means that under a home warranty, if a new appliance breaks down you need to take it to the manufacturer for repair.

Remember, you should not rely on your home warranty for replacements or repairs. The FTC says that home warranties have certain rules about how you can file a claim. It can also outline how a specific appliance can be replaced or repaired.

Choosing between a homeowners insurance and a home warranty greatly depends on your needs and preferences. The best thing to do is to do more research and schedule meetings with agents to clarify things.

At Brad Spurgeon Insurance, our mission is to ensure that we protect our clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (409) 945-4746 . You can also request for a free quote by CLICKING HERE.