Homeowners insurance is often confused with a home warranty. They do sound similar, but they each each provide different coverage.
What is a Home Warranty?
A home warranty is a contract you sign with a home warranty company that covers those needed repairs for you. A home warranty provides coverage for services to help keep your home in good condition. If your home needs work, your warranty company will do the work. The home warranty company will even find and send their technician to do the job. Home warranties can cover regular home maintenance items such as: heating and cooling systems, vents and duct work, refrigerator and dishwashers, and other systems and appliances.
What is Homeowners Insurance?
While a home warranty is optional, homeowners insurance is usually required before a mortgage lender grants a home loan. When it comes to buying homeowner insurance, the benefits outweigh the drawbacks.
Homeowners insurance covers damage to your home structure and personal property caused by loss, fire, or theft. Homeowners Insurance also usually covers medical and legal expenses related to guests being injured on your property. It is important to know the extent of your coverage because policies differ in terms of extent and type of coverage. For example some homeowner insurance policies might cover damage from natural disasters like wind or snow, but not others like earthquakes and floods.
Conclusion
Simply put they are two very different types of coverage. A home warranty covers repairs and maintenance to system and appliances. Homeowners insurance covers damage to your home’s structure, theft of your personal property, and provides liability protections against third party lawsuits for injuries that occur on your property.
Our insurance professionals are committed to working closely with our clients to makes sure they have the right homeowners insurance at the best price. Call E&Y Agency at 248-362-1313 or fill in the form below. We will be happy to answer all your questions.
