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It’s no secret that the cost of living in today’s world is only going up. And while there are ways to save and cut back, you can’t always prepare for disaster. So what do you do when it strikes? The best way to protect your home from natural disasters such as fire or floods is by purchasing a home insurance policy. The second best way? A Home Warranty!

In this article, we’ll cover what a Home Warranty is, how it works and how it compares to home insurance.

What is a Home Warranty?

A home warranty is a service contract offered by the builder, or seller of your new or existing home. It provides labor and materials-based coverage for defects in certain designated systems installed in your new or existing home, typically for one to 10 years. Some companies offer plans carefully tailored to the needs of homeowners, such as the first American Maryland home warranty company. Different plans cover different systems, so make sure to take your time and go through each offer carefully.

There are two types of Home Warranty companies

The first is the manufacturer, builder, or developer that offers a warranty on the type of system they’re marketing in your new home. This can be an appliance warranty, plumbing warranty, HVAC warranty, etc. These warranties are quoted separately from the home purchase. The second type of company offers what’s called a “nested warranty.” This is when the seller or developer contributes to an overall warranty plan in conjunction with the builder, usually included in the closing costs for your new home.

What are Home Warranties typically used for?

One common misconception about these warranties is that they only cover appliances and major systems. In reality, they can also be used to cover wear-and-tear items such as washer and dryer parts, dishwasher parts, hardware for cabinets, doors, and windows.

How is home insurance different?

A Home Insurance policy is designed to protect the actual structure of your home against damage from natural disasters such as fire, hurricanes, tornadoes, etc. Most homeowners obtain both policies because they can be combined into one deductible. Some home insurance policies, however, do not cover appliances and other equipment.

Home warranties are generally used to protect the major systems in a new or existing home – HVAC, plumbing, and electrical. A homeowners insurance policy, on the other hand, is designed to protect the physical structure of your home (walls, flooring, foundation, roof, etc.) from damage caused by external forces such as a storm or fire.

Home warranties and insurance are not the same things. A home warranty only insures the new or existing home against defects in certain designated systems typically for one to 10 years. A homeowners insurance policy covers your house’s physical structure from damage from natural disasters such as fire, hurricanes, and tornadoes.

What’s the difference between a home warranty and homeowners insurance?

A home warranty only insures the new or existing home against defects in certain designated systems typically for one to 10 years. Homeowners insurance covers your house’s physical structure from damage from natural disasters such as fire, hurricanes, and tornadoes. So which wan is a better option?

cc2 Home Warranty Vs. Home Insurance: Which One Do You Need?

A home warranty and homeowners insurance are two different types of coverage that offer protection for your home. A Home Warranty is used to protect the major systems in a new or existing home – HVAC, plumbing, and electrical while homeowners insurance covers the actual structure of your house against damage from natural disasters such as fire, hurricanes, tornadoes, etc. It’s no secret that with today’s cost-of-living increasing it can be difficult to prepare for disaster so why not ensure you’re covered by having both?