The Difference Between Home Insurance And Home Warranty

​Home Insurance and home warranty secure the home from disaster in case of loss and damages. Each protection has its respective coverage that favors the insured. Knowing the distinction between home insurance and a home warranty is an advantage. These two are essential in reducing the risk of draining your pocketbook with home ownership issues.

Home Insurance
Homeowners often erroneously think that home insurance can cover the cost of every loss or damage. Home insurance may cover loss or damages caused by unfortunate events such as strong wind, fire, vandalism, or theft. Other policies cover a much more comprehensive scope that includes all possible risks beyond basic perils. 

A basic home insurance policy would not cover superficial damage to the house. Comprehensive policy, on the other hand, may cover the damage expenses.

The home insurance may cover incidents such as exterior damage, interior damage, loss, or damage of possession. The policy under home insurance has a liability limit. It means that the insurance company sets the limit of the claim when an unfortunate event occurs.

Home Warranty
A home warranty is not an alternative to home insurance. This policy covers repairs, services, or replacements of home systems and major appliances. In other terms, a home warranty is a contract that may claim for repairs of home systems such as appliances. 

The home warranty may have coverage that home insurance  does not cover. The contracts under home warranty usually expire at a specific time. The agreement may cover issues due to wear and tear on items, so be mindful to check yours.

Difference Between Home Insurance and Home Warranty
Home insurance and home warranty are sometimes misunderstood due to many similarities between these contracts. Both contracts have deductibles such as monthly fees and service fees. There are distinctions between home insurance and home warranty. 

When a loss or damage is insurable, the home warranty does not cover its repair or replacement. Similarly, when a warranty covers the loss or damage, it is excluded from the insurance. 

Conclusion
The two contracts may have identical features, but they differ in scope. Home insurance protects against sudden damages or loss caused by unwanted incidents. Meanwhile, the content of a home warranty includes service, repair, and replacement of home systems and is not a replacement for home insurance. Added protection against sudden loss or damages is vital to safeguard the hard-earned money.

At Schneiderman Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 322-4744 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!