What’s the Difference Between Homeowners Insurance and a Home Warranty?

Understand How a Home Warranty and Home Insurance Differ

Owning a home is one of the greatest investment you’ll make in your life. Protecting your assets is not just smart, it’s essential. As a homeowner, you may be faced with getting home insurance in Millbrook, NY and a home warranty. But, what’s the difference? Do you need both or can you just get one? Purchasing both will cover your home, belongings, appliances, and system components in case they need replacement or repair. But understanding the differences between the two can be tricky.

Homeowners Insurance

A home insurance policy covers any accidental damage to your home and belongings due to theft, storms, fire, some natural disasters, and other listed perils. There are four primary areas covered under a home insurance policy: the interior and exterior of your home, personal property, and general liability that can arise when a person is injured while on your property.

If you take out a mortgage from a lender, they will most likely require you to purchase a home insurance policy to protect their investment. A policy is renewed yearly, and you should always review it when your lifestyle and home changes so that it stays in line with your needs.

Home Warranty

A home warranty is a service contract that provides repair and replacement for your systems and appliances that fail due to age and standard wear and tear. Generally, your HVAC components, electrical, plumbing, kitchen appliances, washer, and dryer are typically covered under this warranty.

Home warranties do not cover damage caused by malfunctioning systems or appliances. For instance, if a dishwasher was leaking, the home warranty company would help to fix the dishwasher, but would not pay to repair any water damage that was caused to the structure of the home because of the leak. The protection of a home warranty can potentially save you hundreds of dollars and the headache of finding a trusted service contractor to make the repairs.

Let’s face it – accidents happen. When they do, a home warranty and homeowners insurance can help to pick up the pieces. To help you get started on your quality coverage, contact Kneller Agency to get started.

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