Home Warranty vs Home Insurance – What’s The Difference?
Home Warranty vs Home Insurance – do you know the difference? When you combine both you will have total home protection.
Many times people confuse a home warranty with homeowner’s insurance. They are both policies that will help to protect your home, but they cover completely different things.
As a homeowner, it’s important that you understand the differences.
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Home Warranty vs Home Insurance
So What Does Homeowners Insurance Cover?
Your homeowner’s insurance policy will pay for any damaged or lost items that were caused by covered perils listed on your policy or any liability issues that arise during your ownership up to your limit amounts.
This would typically be things like your roof, your structure, water damage and other large ticket items associated with the ownership of your home.
What does a Home Warranty Cover?
There are many different companies out there that offer a home warranty and they all have different coverages – so make sure you read over your contract and plan details so you understand what your home warranty covers.
Typically your home warranty is going to cover the interior appliances of your home and operating systems that homeowners insurance wouldn’t cover.
Some homeowners insurance policies will cover replacement of items if the policy holder experienced a total loss, for instance in a fire or tornado, but they will not fix or replace these items that break down because of normal wear and tear.
HomeMembership has a very easy to understand plan. It covers the cost of repairs and replacements of most of your home appliances and operating systems.
Some examples of the appliances and home systems that we cover are:
- Washer and Dryer
- Water heater
- and much more
A HomeMembership home warranty will also pay for hotel stay coverage if your home needs HVAC repairs in extreme weather conditions.
Your home appliances may initially be covered under the manufacturer’s warranty, and usually only last for a year. A home warranty provides you with the protection to cover breakdowns of your appliance once this one year manufacturer warranty is up.
For example, if there is a fire in your kitchen, your homeowner’s policy would help you replace your damaged appliances and repair your home.
But if your dryer just stops working, the home warranty would repair and/or replace it.
The convenient thing about HomeMembership is we are an independent insurance company and a home warranty company. It’s not required but we can shop your homeowners insurance out to all the top insurance companies for you and find you the best price and coverage for your money.
Then we can apply our award winning home warranty coverage on top of that. This will give you complete home protection! Plus as a HomeMembership home warranty and insurance customer you will qualify for a $0 deductible on home repairs.