Home Warranty vs. Homeowners’ Insurance

Home Warranty vs. Homeowners’ InsuranceNot knowing the difference between a home warranty and homeowner’s insurance could be costly.

Home warranty and homeowners insurance sound very similar and may cause some people some confusion. They are not terms that are used interchangeably to describe the same thing. While they both provide protection to your home they are actually two completely different documents. Know the difference between a home warranty and a homeowners’ insurance policy before it’s too late!

Home Warranty

Home warranties cover the major home appliances that have to do with the HVAC systems, plumbing, wiring, and kitchen appliances that no longer work due to normal wear and tear of the respective system. The HVAC systems include heating, ventilation, and air conditioning. The homeowner simply rings the warranty company and they send over a contractor to determine if the damage is covered by your policy. If it is, they repair or replace the system. You only pay for the service call, which, compared to the full repair or replacement, is minute.
These are optional, though highly recommended.

Homeowners’ Insurance

Homeowners’ insurance covers damage to your home caused by theft/vandalism, storms, fire, treefall, hail, and other select natural disasters. Comprehensive home insurance also covers damages from accidental harm that comes from a defect in the structure. (e.g., an icicle falling on you.)
These are typically mandatory as many banks and lenders will not issue your mortgage loan unless your home is insured.

As you can see, the difference between these two policies are big and not knowing the difference can be very costly. For more information about how your Texas homeowners insurance policy or home warranty protects your home and your loved ones, contact VGW Walker Insurance.