Homeowners Insurance vs. Home Warranty-What’s the difference?

Homeowners insurance and home warranty coverage are both integral parts of protecting your home and personal property. However, they can often be confused for one another despite covering very different aspects of the home.

To better understand homeowner’s insurance vs. home warranty, keep reading. We’re breaking down each option and how they can benefit your home.

Do I need a Home Warranty if I Have Homeowners Insurance?

Short answer, yes. If you already have homeowner’s insurance, great job! That will protect you against any exterior damage to your home from storms or fire, and protect your personal property against vandalism.

Homeowner’s insurance rarely covers the valuable systems that keep your home running like HVAC and plumbing. A home warranty plan can protect your home’s systems, appliances, and even outdoor recreation, like pools or spas, depending on your coverage.

Together, these two coverage plans create a full-service coverage plan that works to protect your home and gives you the assurance you need in case anything should happen.

What is a Home Warranty?

A home warranty plan is a contract designed to provide coverage for various components of your home, including HVAC, electrical, plumbing, and appliances. If an unexpected breakdown occurs, a repair or replacement can cost thousands out of pocket, which is why having a home warranty plan in place is always a smart solution.

What’s the Main Purpose of a Home Warranty?

The primary purpose of a home warranty is to offer you coverage for the costly home systems and appliances in your home. An average home repair can cost anywhere between $1,400 to $17,000. For new home buyers, especially, having a safety net in place so that you don’t have to pay full price, out-of-pocket for any unexpected damages can help not only your financial health, but mental health as well.

What Does a Home Warranty Cover?

While each home warranty plan will differ based on their coverage options, a standard home warranty will cover service costs, repair costs, or a replacement of your home’s systems and appliances, including:

Home Systems Repair
Plumbing
Appliance & Electrical
Water Heater
Washer and Dryer

Is a Home Warranty Required at Closing?

No, a home warranty plan is not required at closing, although it is recommended. Even if new homebuyers have the promise from the previous homeowner or a check mark from a home inspector, there’s no guarantee that your home’s systems or appliances won’t stop working the day you move in.

It’s important to choose a home warranty plan that works best for your new home before anything goes wrong.

Is a Home Warranty Worth It?

Home repairs and replacements are expensive. If you can’t afford to replace your entire HVAC system or purchase a new refrigerator today, a home warranty plan is worth it. Having a home warranty plan will also save you time if you’re a busy person!

At Simplicity Protection®, that’s exactly why we take care of everything for you. Our mission is to help you save both time and money with customized coverage plans at an affordable price.

What is Home Insurance?

Home insurance is a policy that individuals can buy to protect their home against destructive events, theft of personal property, or liability.

Like home warranty plans, home insurance differs based on each individual’s need. A California resident will likely need coverage against mudslides and earthquakes, whereas a Kansas resident will want coverage against tornados.

Home insurance policies can also vary depending on the type of residence – a home will require different insurance coverage options than a commercial building or an apartment.

Is Homeowners Insurance Worth Getting?

As with home warranty coverage, if you can’t outright pay for any damages that may occur to your home or the temporary residence costs needed while you get your home repaired, then homeowner’s insurance is 100% worth getting.

Get the Most Out of Your Home Warranty with Simplicity’s Home Warranty Protection

At Simplicity Protection®, we believe in the power of home warranty to protect you, your family, and your home against unforeseen damages. We’ve been protecting consumers for more than 45 years so that they can enjoy the simple things in life, without worry.

To find out more about Simplicity’s Home Warranty Protection, head to our FAQ page or check out our other informational blogs in our “Simple Home” blog series.