Hello World! Welcome Friends! Purchasing a home is one of the best investments that a person can make. But you need to make sure that you protect your assets.
The best way to do this is with both a home warranty and a homeowner’s insurance policy. Purchasing both is going to make sure that you are covered for practically anything.
But what’s the difference when it comes to home insurance vs home warranty? We’re glad you asked. Keep on reading and we’ll take you through everything that you’re going to want to know!
What Is Homeowner’s Insurance?
Homeowner’s insurance is supposed to cover any accidental damage to your house and belongings. This applies whether your property is damaged by natural disasters, fires, storms, and theft.
There are four primary areas that are covered under your homeowner’s insurance policy. These are: general liability that can arise when a person is injured while on your property, damage or loss, personal property in case of theft, and the exterior and interior of your house.
It’s usually mandatory that you have a homeowner’s insurance policy. A bank will typically need you to get such a policy before they can issue a mortgage on a house. In fact, 95 percent of homeowners have homeowners insurance.
A policy is renewed every year. These annual costs are generally around $600 depending upon the value of the home. All home insurance policies are going to come with a deductible, which is what you need to pay when a claim is made.
The policy will take care of any costs that are past the deductible.
What Is a Home Warranty?
A home warranty is a service contract that covers the costs of replacement or repair of your appliances and system parts. This contract kicks in when the appliances fail due to standard wear and tear and age.
This means that components of your HVAC, plumbing, electrical, washer and dryer, and kitchen appliances are all usually covered under the warranty. You can also cover bigger systems like a spa or pool.
These kinds of warranties have contract terms that tend to last for one year. They’re also not mandatory to get a mortgage.
A home warranty is a purely elective policy but it’s also a very smart purchase. System and appliance combination place can be bought for around $100 per month.
You can add on aspects to the coverage for items like a pool system or second refrigerator for extra costs.
Make sure to get a home warranty from a reputable service, such as selecthomewarranty.com.
The Importance of Knowing the Difference Between Home Insurance vs Home Warranty
Hopefully, after reading the above article, you now have a better idea of what the differences between home insurance vs home warranty are. As we can see, they both perform helpful functions that can bring down the costs of expensive repairs and replacements to your home.
Are you looking for other helpful articles like this one? Make sure to check out the rest of our site today for more!
Click the links below for any posts you have missed:
4 Trendy Alternatives to Window Curtains
Choosing Cold Weather Protection
The Best Kitchen Designs For Small Houses
How to Choose the Right Spreader for Your Lawn
4 Useful Apps To Get Your Home Clean & Clutter Free
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